Shares in Chinese e-commerce site Yunji Inc.(Nasdaq: YJ) jumped 3 percent to $11.31 apiece intraday Tuesday, and Yunji said it shifted to private label and emerging brand products.
The Hangzhou-based firm doubled gross merchandise volume (GMV) , which refers to the total value of all orders paid and shipped for products sold on Yunji’s platform. Yunji said its GMV gained 94 percent to $1 billion in the first quarter from the same period of 2018.
Yunji’s total revenue in the first quarter soared 53 percent at $502.8 million, while its net loss widened 6 percent at nearly $164,000 in total, or 14 cents per American depositary share from the corresponding period one year ago, as it released in the statement.
Shanglue Xiao, the chief executive officer of Yunji, attributed the growth to the growth of membership base, implementation of a new marketplace business model, and innovations to supply chain network.
“In addition, we enhanced our user value proposition by leveraging our proprietary data and improving our product curation capabilities. All of these efforts should continue to drive future growth,” Xiao added.
Launched in 2015, Yunji is labeled as social e-commerce, powered by member participation and covering categories of household goods, electronics, childcare, and food and beverage. According to its statement Tuesday, Yunji membership program generated revenue of $23.3 million in the first three month through March.
Unlike Amazon Prime, Yunji’s members need to promote its products to generate orders from other users, and its transacting members in the past twelve months through March soared 153 percent to 7.1 million from that of 2018. The number of registration members on Yunji application with purchasing a membership package reached 9 million, representing a year-over-year increase of 22 percent from 7.4 million in 2018.
“We also significantly improved our profitability by shifting our product mix towards private label and emerging brand products, both of which have higher margins,” Chen Chen, the chief financial officer of Yunji, said.
Chen told Capitalwatch on May, a team of approximately 400 people, including specialists in the industry, explored new products, emerging brands, and qualified manufacturers for potential cooperation with Yunji.