Yunji Inc (NASDAQ: YJ) stock rose 6% on 4th June, 2019 (As of 12:39 pm GMT-4; Source: Google finance) after the company in the first quarter of FY 19 has reported the adjusted net income of RMB43.1 million (US$6.4 million), compared to the adjusted net loss of RMB70.1 million in the same period of 2018.
YJ has reported 53.2% growth in the total revenues to RMB3,385.6 million (US$502.8 million) from RMB2,209.7 million in the same period of 2018. This increase was mainly driven by an increase in revenues from sales of merchandise, net, which was partially offset by a decrease in revenues from the membership program. Revenues from sales of merchandise, net rose by 60.8% to RMB3,220.2 million (US$478.2 million) from RMB2,002.2 million in the same period of 2018, on the back of the number of orders fulfilled grew from 25.1 million in the first quarter of 2018 to 40.0 million in the first quarter of 2019, while the number of buyers fell slightly from 7.9 million in the first quarter of 2018 to 7.3 million in the first quarter of 2019. The revenues from membership program declined by 21.7% to RMB156.6 million (US$23.3 million) from RMB200.0 million in the same period of 2018, due to the Company’s business expansion to allow individuals that meet certain requirements to become members without purchasing a membership package. Other revenues rose by 16.0% to RMB8.8 million (US$1.3 million) from RMB7.6 million in the same period of 2018
Moreover, GMV in the first quarter of 2019 grew by 93.7% year over year to RMB6.8 billion (US$1.0 billion) from RMB3.5 billion in the same period of 2018. GMV growth was mostly driven due to the growth of the membership base, implementation of a new marketplace business model, and innovations to the supply chain network. The company has also enhanced the user value proposition by leveraging the proprietary data and improving product curation capabilities. The GMV growth has exceeded the revenue growth as many brands increasingly opted into the marketplace business model, which recognizes revenue on a net basis. The company has improved its profitability by shifting the product mix towards private label and emerging brand products, both of which have higher margins.
Transacting members in the twelve months ended March 31, 2019, rose by 153.3% year over year to 7.1 million from 2.8 million in the twelve months ended March 31, 2018. Cumulative members as of March 31, 2019, rose by 22.4% to 9.0 million from 7.4 million as of December 31, 2018.