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Yunji (YJ)
NASDAQ:YJ
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Yunji (YJ) AI Stock Analysis

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YJ

Yunji

(NASDAQ:YJ)

Rating:41Neutral
Price Target:
$1.50
▼(-10.71% Downside)
Yunji's overall stock score is primarily impacted by its poor financial performance and valuation. The company's consistent unprofitability and negative cash flow are major concerns. Technical analysis suggests bearish momentum, further contributing to a low score. While strategic initiatives were noted in the earnings call, they are insufficient to offset the financial challenges.

Yunji (YJ) vs. SPDR S&P 500 ETF (SPY)

Yunji Business Overview & Revenue Model

Company DescriptionYunji (YJ) is a leading social e-commerce platform based in China, focusing on providing a unique shopping experience through a combination of direct selling and community-based marketing. The company primarily targets consumers in lower-tier cities, offering a wide range of products, including groceries, household items, beauty products, and more. Yunji leverages technology to facilitate user engagement and offers a membership model that enhances customer loyalty and incentivizes repeat purchases.
How the Company Makes MoneyYunji generates revenue through multiple streams, primarily via its membership fees, which offer exclusive discounts and benefits to users. Additionally, the company earns money through product sales on its platform, where it acts as a distributor for various brands. The social commerce model allows Yunji to benefit from commissions on sales made through its network of user influencers who promote products to their communities. Strategic partnerships with suppliers and brands further enhance its product offerings and can lead to revenue-sharing arrangements. The combination of these revenue streams, along with a growing user base, contributes significantly to Yunji's earnings.

Yunji Earnings Call Summary

Earnings Call Date:Aug 21, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 26, 2025
Earnings Call Sentiment Neutral
While Yunji has achieved notable successes in product launches and brand expansion, the company faced significant financial challenges, including a decline in revenue and increased net loss. The strategic initiatives show promise but are juxtaposed against a backdrop of financial difficulties.
Q2-2025 Updates
Positive Updates
Successful Launch of Youjiang Organic Milk
Youjiang Organic Milk achieved RMB 5 million in sales at launch, establishing Yunji's health-focused brand awareness among consumers.
Strong Performance of Major Products
Slimming coffee achieved sales of over RMB 10 million, probiotics nearly RMB 7 million, and freeze-dried sea buckthorn powder more than RMB 5 million.
Growth in SUYE Beauty Brand
The SUYE PRO-XLANE FIRMING ESSENCE LOTION generated over RMB 4 million in sales at launch, with the entire SUYE series reaching sales exceeding RMB 10 million.
Expansion of Public Domain Channels
Enhanced Tmall infrastructure and partnerships with influencers; WeChat channel transaction volume ranks higher than 92% of peers.
Jianxin Tea Therapy Business Expansion
Achieved 100% tea therapy team with a 50% participation rate; tea therapy program users have expanded to high net worth individuals.
Negative Updates
Revenue Decline
Total revenue decreased to RMB 158.3 million from RMB 233.8 million a year ago, mainly due to softer consumer confidence and strategic product selection refinement.
Increased Net Loss
Net loss was RMB 100.7 million compared to a net loss of RMB 8 million a year ago, with adjusted net loss at RMB 100.5 million compared to RMB 6.7 million a year ago.
Increased Operating Expenses
Total operating expenses were RMB 179.4 million compared to RMB 149.1 million in the same period of 2024, with a significant rise in general and administrative expenses.
Company Guidance
During Yunji's First Half 2025 Earnings Conference Call, CEO Shanglue Xiao emphasized the company's commitment to an organic health strategy amidst challenging market conditions and declining consumer confidence, with the goal of establishing Yunji's future growth prospects. The flagship product, Youjiang Organic Milk, launched with RMB 5 million in sales, while other successful products included slimming coffee with over RMB 10 million, probiotics bolus nearing RMB 7 million, and freeze-dried sea buckthorn powder exceeding RMB 5 million in sales. The beauty brand SUYE also performed well, with the PRO-XLANE FIRMING Series generating over RMB 10 million. Financial highlights included a total revenue of RMB 158.3 million, down from RMB 233.8 million the previous year, with a gross margin holding steady at 47.3%. Operating expenses rose to RMB 179.4 million, leading to a net loss of RMB 100.7 million, compared to RMB 8 million a year ago. Despite these challenges, the company maintained a cash position of RMB 217.1 million, focusing on optimizing cost structures and improving profitability.

Yunji Financial Statement Overview

Summary
Yunji's financial performance is concerning, with significant revenue decline, consistent unprofitability, and poor cash flow management. The stable balance sheet with low leverage is overshadowed by declining revenues and profitability challenges.
Income Statement
33
Negative
Yunji has experienced significant revenue decline from 2019 to 2024, with a sharp decrease in total revenue from 11.67 billion to 417.65 million. Gross profit margin has weakened over time, reflecting reduced operational efficiency. Notably, the company has consistently reported negative EBIT and net income, indicating ongoing unprofitability. The revenue growth rate has been negative, which is a major concern for potential investors.
Balance Sheet
45
Neutral
The balance sheet shows a high equity base with an equity ratio of approximately 80%, indicating financial stability. However, the persistent negative net income has resulted in a declining return on equity over the years. The company maintains low debt levels, reflected in a favorable debt-to-equity ratio, which suggests limited financial risk from leverage. Despite these strengths, the erosion of equity due to continuous losses is a concern.
Cash Flow
28
Negative
Yunji's cash flow statement highlights poor cash flow management, with consistent negative operating and free cash flow, indicating a lack of internal cash generation capacity. The free cash flow has deteriorated significantly over the years, raising sustainability concerns. Additionally, the negative operating cash flow to net income ratio suggests inefficiencies in converting revenue to cash, further emphasizing liquidity challenges.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue779.75M417.65M640.21M1.15B2.16B5.53B
Gross Profit356.02M206.34M307.44M502.54M811.98M1.59B
EBITDA-75.53M-103.53M-141.07M-70.85M18.65M-65.39M
Net Income-130.60M-123.11M-165.13M-131.34M131.97M-147.86M
Balance Sheet
Total Assets1.67B1.35B1.55B1.89B2.35B2.55B
Cash, Cash Equivalents and Short-Term Investments528.93M219.37M524.74M626.64M947.26M1.20B
Total Debt18.56M11.65M14.50M1.31M8.69M15.30M
Total Liabilities406.81M274.41M362.69M536.51M871.46M1.24B
Stockholders Equity1.27B1.08B1.19B1.36B1.48B1.31B
Cash Flow
Free Cash Flow0.00-318.62M-200.67M-309.08M-112.97M-345.92M
Operating Cash Flow0.00-126.08M-188.26M-216.82M-25.99M-261.51M
Investing Cash Flow0.00-166.33M294.04M92.56M-513.79M551.01M
Financing Cash Flow0.00-13.32M-25.33M-94.56M-463.00K-13.88M

Yunji Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.68
Price Trends
50DMA
1.82
Negative
100DMA
1.74
Negative
200DMA
1.75
Negative
Market Momentum
MACD
-0.03
Positive
RSI
41.05
Neutral
STOCH
44.93
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For YJ, the sentiment is Negative. The current price of 1.68 is below the 20-day moving average (MA) of 1.75, below the 50-day MA of 1.82, and below the 200-day MA of 1.75, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 41.05 is Neutral, neither overbought nor oversold. The STOCH value of 44.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for YJ.

Yunji Risk Analysis

Yunji disclosed 93 risk factors in its most recent earnings report. Yunji reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Yunji Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$497.06M16.9439.74%9.14%-8.56%-57.78%
61
Neutral
$17.78B13.97-5.40%3.03%1.50%-15.71%
51
Neutral
$1.22B19.14%49.06%1.30%
48
Neutral
$4.23M-37.82%-16.89%31.24%
44
Neutral
$5.54M0.1914.87%-98.56%
41
Neutral
$8.57M-10.86%-35.95%26.08%
39
Underperform
$8.83M-1026.66%-15.24%92.60%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
YJ
Yunji
1.68
-0.28
-14.29%
BWMX
Betterware de Mexico
13.32
1.06
8.65%
NVVE
Nuvve Holding
0.43
-4.55
-91.37%
WNW
Meiwu Technology Company Limited
1.75
-14.75
-89.39%
EVGO
EVgo
4.11
-0.38
-8.46%
JWEL
Jowell Global
1.98
0.53
36.55%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 21, 2025