Participants

Kaye Liu; IR; Yunji Inc.

Shanglue Xiao; Chairman, CEO; Yunji Inc.

Yeqing Cui

Ethan Yu; Analyst; First Trust China

Presentation

Operator

Good morning and good evening, ladies and gentlemen. Thank you for standing by, and welcome to Yunji's third quarter 2023 earnings conference call. With us today are Mr. Shanglue Xiao, Chairman and Chief Executive Officer; Mr. Yeqing Cui, Senior Financial Director; and Ms. Kaye Liu, Investor Relations Director of the company. As a reminder, this conference call is being recorded.
Now I would like to hand the conference over to our first speaker today, Ms. Kaye Liu, Investor Relations Director of Yunji. Please go ahead, ma'am.

Kaye Liu

Hello, everyone. Welcome to our third quarter 2023 earnings call. Before we start, please note that this call will contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on current expectations and current market operating conditions and relate to events that involve known and unknown risks, uncertainties, and other factors of Yunji in this industry.
These forward-looking statement can be identified by terminologies such as will, expect, anticipate, continue or other similar expressions. For detailed discussion of these risks and uncertainties, please refer to our related documents that is filed with US SEC. Any forward-looking statement that we make on this call are based on assumptions as of today and that is especially qualified in the entirety by cautionary statements, risk factors, and details of the company's filing with SEC. Yunji does not undertake any obligation to update these statements except as required under applicable law.
With that, I will now turn over to Shanglue Xiao, Chairman and CEO of Yunji.

Shanglue Xiao

(interpreted) Hello, everyone. Welcome to the third quarter 2023 earnings call. The third quarter is traditionally an off-peak season for e-commerce. We took this opportunity to further develop and strengthen our business foundation and continue to accelerate and build the marketing and a product front.
We focused on a number of initiatives, including fine-tuning our market positioning and advancing development of a new product, strategically at adjusting the structure of our product offerings, and optimizing our supply chain capabilities. In addition, we have ramped up our marketing and hosted events to highlight product [arrangements] and unveil new products, laying the groundwork for our promotional sales in the fourth quarter. Notably during September, our private label team relocated to a new office building with enhanced production display and a presentation area, allowing us to more effectively showcase our private label brands to our panels.
Guided by our ongoing strategic development, we conducted a comprehensive evaluation of the Yunji's market positioning. Both Yunji and our private label brands have consistently maintained high repeat purchase rates. This positive trend has promoted us to reflect on how can we further enhance the value we deliver to our users and our service managers.
Although these are within our current private label market landscape, we remain firmly [communitive] offering high quality competitively priced products that deliver outstanding value to our users. We believe that these commitments will generate higher revenues and strengthen our brand image, paving the way for our sustainable growth.
During the year's February 11 shopping festival, major e-commerce platform to engage in aggressive discounting and a [senator] promotions over the course of a month by using a value of accrued 80 approaches. We chose to have a different course, opting for a more straightforward promotional approach over a shorter time frame.
For example, we successfully attracted and engaged users by leveraging production date, direct discounts, and multi-item offers. These strategic focus enabled us to coordinate our marketing efficiently and more presently having dormant users effectively joined them back to our platform.
During our previous earnings call, we outlined our strategic initiative to enhance our supply chains and capitalize on consumers' growing appetite for seasonal purchases. Our approach has yielded impressive results for the [way] in the food category. For example, by the end of August, our crab vouchers and crap gift boxes have emerged as go-to-gifting choices for the Mid-Autumn Festival and a National Day holiday.
Importantly, we have successfully generate stable levels of a battery cells without significant promotional spending. In the space of just the one month we sold over 400,000 crabs generating revenue in excess of RMB13 million.
Now, I want to share some updates on Yunji's private label brands. While beauty remain our core focus, healthcare has emerged as a strong secondary area. This (inaudible) building a house opens up exciting opportunities to explore across category collaboration allowing us to create a highly unique and differentiated products.
For example, in September, our beauty brands [PNH] launched a (inaudible) lip balm that was an instant hit, selling out within our on launch day. The lip balm popularity sparked a strong demand within our community groups for further round of sales.
The [product] has proved to be a popular ingredient. For our health brand, the valuation following its launch the lip balm has garnered a devout following across both beauty and health category, demonstrating the potential of an cross-category collaboration. Building on the success of the lip balm and aligned with the resurgence of the traditional Chinese medicine culture, we've established an herbal skincare (inaudible) and intend to introduce more cross category products such as [DTC] and face masks to cater to the evolving preferences of users.
Finally, I'd like to tend to a critical component of our success, our dedicated service managers. They choose Yunji because we offer a unique opportunity to strike a balance between their professional and assembly lines. Our innovative flash sales strategy empowers service manager to build [massive] products or brands in a short timeframe, often within an [hour].
This allows them to rapidly generate sales and then return here their personal life, freeing up time for self-improvement and to spend with their family. In terms of a personal development, we continue to prove our case (technical difficulty) continuous learning and a growth of our service managers. As part of this commitment we launched a new education and training program in the third quarter. This initiative will not only refine their sales skills, but also force a broader thinking and cultivate a more diverse interests, ultimately helping to create a more fulfilling family life.
With that, I will turn it over to Mr. Cui, our Senior Financial Director, to go through the financial results.