Yunji Inc. (NASDAQ: YJ) reported Q4 EPS of $-0.0003, $0.13 worse than the analyst estimate of $0.13. Revenue for the quarter came in at $351.8 million.

Fourth Quarter 2019 Highlights

• GMV2 in the fourth quarter of 2019 increased by 36.1% year over year to RMB11.0 billion (US$1.6 billion) from RMB8.1 billion in the same period of 2018 as a result of the Company’s effective merchandising, which helped to further increase its competitive differentiation. GMV related to marketplace revenues was RMB5.0 billion (US$ 0.7 billion) in the fourth quarter of 2019, compared with nil in the same period of 2018.
• Total revenues in the fourth quarter of 2019 were RMB2,449.4 million (US$351.8 million), compared with RMB4,465.9 million in the same period of 2018, primarily due to an increase in the proportion of the Company’s business contributed from its marketplace business, which recognizes revenue on a net basis. Revenues generated from the marketplace business grew significantly, along with the continued strong growth in GMV related to marketplace business. The marketplace business also continued to generate higher commission rates.
• Transacting members3 in the twelve months ended December 31, 2019, increased by 57.4% year over year to 9.6 million from 6.1 million in the twelve months ended December 31, 2018.
• Cumulative members4 as of December 31, 2019 increased by 12.3% to 13.8 million from 12.3 million as of September 30, 2019.

Mr. Shanglue Xiao, Chairman and Chief Executive Officer of Yunji, said, “During 2019, we improved our business management capabilities while upgrading our merchandising strategies. Notably, our distinctive focus on empowering emerging brands with our platform resources helped to further differentiate our merchandising mix, bolster our core value proposition for members, and accelerate the growth in number of transactions on our platform. Beyond these improvements, we are quite pleased to see that our financial and operational situations have begun to stabilize. Although our business is experiencing some short-term impacts from COVID-19 outbreak, we are working with a number of leading manufacturers and emerging brands to ensure the daily supply of essential products and groceries to our members.”

“In the fourth quarter of 2019, in addition to our improved margins, we narrowed our net loss by 42.6%, and increased our adjusted net income by 174.1% year over year in the period. We achieved an adjusted net income for the full year of 2019, compared with an adjusted net loss in 2018. Notably, our gross margin improved to 24.3% in the fourth quarter of 2019, compared to 18.1% in the same period of 2018, which was primarily due to our ongoing optimization of brand curation and merchandise offerings, and our continuous efforts to improve our operating efficiency, as well as our ability to facilitate more cost-effective transactions on our platform. Importantly, such achievements further illustrate the good progress we are making along the path towards healthy profitability.” said Mr. Chen Chen, Chief Financial Officer of Yunji.

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