Yunji Inc. (NASDAQ: YJ) experienced a significant boost in its stock value, with shares skyrocketing by 50.87% on Friday. The surge came following the release of the company’s unaudited financial results for the first quarter, which ended on March 31, 2023.
During this period, Yunji Inc. generated revenues worth RMB178.7 million (US$26.0 million). This marked a significant decline compared to the RMB342.6 million generated in the same period last year. The company attributed the lower revenues to its ongoing strategy of refining its product range across all categories. In addition, it pointed to its efforts to optimize the selection of suppliers and merchants as contributing factors. These adjustments have had a negative impact on its sales figures in the short term.
Yunji Inc.’s dedication to optimizing its cost structures paid off. The company saw an impressive 45% drop in total operating expenses, from RMB154.9 million in the same period last year to RMB85.3 million ($12.4 million). Moreover, the company witnessed a 44.6% decrease in fulfillment expenses, amounting to RMB27.1 million ($3.9 million). These expenses accounted for 15.2% of total revenues, a significant drop from RMB48.9 million in Q1 2022.
Yunji Inc. reported a net loss of RMB22.2 million ($3.2 million) for the first quarter of 2023. This represents a decrease from RMB35.3 million in the same period last year. This lower figure was primarily driven by the continuous decline in the fair value changes of its equity and securities investments.