Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2020shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2020 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Document Annual Report | true |
Document Transition Report | false |
Entity Interactive Data Current | Yes |
Entity Registrant Name | Yunji Inc. |
Entity Central Index Key | 0001759614 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Shell Company | false |
Entity Filer Category | Accelerated Filer |
Entity Emerging Growth Company | false |
Document Shell Company Report | false |
Entity File Number | 001-38877 |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | 15/F, South Building Hipark Phase 2 |
Entity Address, City or Town | Xiaoshan District |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 310000 |
Document Registration Statement | false |
ICFR Auditor Attestation Flag | true |
Document Accounting Standard | U.S. GAAP |
Business Contact [Member] | |
Document Information [Line Items] | |
Contact Personnel Name | Chengqi Zhang |
Contact Personnel Email Address | zhangcq@yunjiglobal.com |
Entity Address, Address Line One | 15/F, South Building Hipark Phase 2 |
Entity Address, City or Town | Xiaoshan District |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 310000 |
Country Region | 86 |
City Area Code | 571 |
Local Phone Number | 8168 8947 |
Ordinary Shares [member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 2,133,265,412 |
Class A ordinary shares [member] | |
Document Information [Line Items] | |
Security Exchange Name | NASDAQ |
Title of 12(b) Security | Class A ordinary shares |
No Trading Symbol Flag | true |
Entity Common Stock, Shares Outstanding | 1,183,305,412 |
Class B ordinary shares [member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 949,960,000 |
American Depositary Shares [Member] | |
Document Information [Line Items] | |
Trading Symbol | YJ |
Security Exchange Name | NASDAQ |
Title of 12(b) Security | American depositary shares, each American depositary share representing ten Class A ordinary shares |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Current assets: | |||
Cash and cash equivalents | ¥ 1,063,900 | $ 163,050 | ¥ 883,369 |
Restricted cash | 125,844 | 19,287 | 84,374 |
Short-term investments | 134,146 | 20,559 | 774,736 |
Accounts receivable, net (Allowance for credit losses of nil and RMB 8,603, respectively) | 164,733 | 25,246 | 28,527 |
Advance to suppliers | 103,836 | 15,914 | 87,289 |
Inventories, net | 135,245 | 20,727 | 428,322 |
Amounts due from related parties | 7,841 | 1,202 | 6,830 |
Prepaid expenses and other current assets (Allowance for credit losses of nil and RMB 2,972, respectively) | 410,423 | 62,899 | 567,432 |
Total current assets | 2,145,968 | 328,884 | 2,860,879 |
Non-current assets: | |||
Property, equipment and software, net | 26,010 | 3,986 | 45,344 |
Long-term Investments | 158,931 | 24,357 | 198,860 |
Deferred tax assets | 59,455 | 9,112 | 97,792 |
Operating lease right of use assets, net | 11,324 | 1,735 | 43,043 |
Other non-current assets (Allowance for credit losses of nil and RMB 1,514, respectively) | 148,793 | 22,804 | 56,281 |
Total non-current assets | 404,513 | 61,994 | 441,320 |
Total assets | 2,550,481 | 390,878 | 3,302,199 |
Current liabilities (including amounts of the consolidated VIEs and VIEs' subsidiaries without recourse to the primary beneficiary of RMB 818,634 and RMB 635,467 as of December 31, 2019 and 2020, respectively) | |||
Accounts payable | 501,549 | 76,866 | 741,959 |
Deferred revenue | 50,951 | 7,809 | 181,828 |
Incentive payables to members | 312,170 | 47,842 | 384,486 |
Refund payable to members | 4,398 | 674 | 26,883 |
Member management fees payable | 45,841 | 7,025 | 78,355 |
Other payable and accrued liabilities | 280,586 | 43,002 | 349,111 |
Amounts due to related parties | 22,989 | 3,523 | 18,296 |
Operating lease liabilities - current | 6,988 | 1,071 | 17,559 |
Total current liabilities | 1,225,472 | 187,812 | 1,798,477 |
Non-current liabilities | |||
Operating lease liabilities – non-current | 8,309 | 1,273 | 27,734 |
Deferred tax liabilities | 1,832 | 281 | 11,329 |
Total non-current liabilities | 10,141 | 1,554 | 39,063 |
Total liabilities | 1,235,613 | 189,366 | 1,837,540 |
Commitments and contingencies | |||
Shareholders' equity | |||
Ordinary shares (US$0.000005 par value 20,000,000,000 shares authorized as of December 31, 2019 and 2020; 1,208,831,222 Class A ordinary shares and 949,960,000 Class B ordinary shares issued as of December 31, 2019 and 2020; 1,179,445,572 and 1,183,305,412 Class A ordinary shares and 949,960,000 and 949,960,000 Class B ordinary shares outstanding as of December 31, 2019 and 2020, respectively) | 70 | 11 | 70 |
Additional paid-in capital | 7,327,148 | 1,122,935 | 7,255,404 |
Statutory reserve | 12,624 | 1,934 | 11,633 |
Accumulated other comprehensive income | 9,452 | 1,449 | 88,863 |
Less: Treasury stock (29,385,650 and 25,525,810 shares as of December 31, 2019 and 2020, respectively) | (85,202) | (13,058) | (96,669) |
Accumulated deficit | (5,952,085) | (912,197) | (5,805,332) |
Total Yunji Inc. shareholders' equity | 1,312,007 | 201,074 | 1,453,969 |
Non-controlling interests | 2,861 | 438 | 10,690 |
Total shareholders' equity | 1,314,868 | 201,512 | 1,464,659 |
Total liabilities and shareholders' equity | ¥ 2,550,481 | $ 390,878 | ¥ 3,302,199 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)shares |
Allowance for credit losses, accounts receivable | ¥ | ¥ 8,603 | ¥ 0 | |
Allowance for credit losses, Prepaid expenses and other current assets | ¥ | 2,972 | 0 | |
Allowance for credit losses, other non current assets | ¥ | 1,514 | 0 | |
Variable Interest Entity, Consolidated, Liabilities, Current, No Recourse | ¥ 1,225,472 | $ 187,812 | ¥ 1,798,477 |
Common stock par value | $ / shares | $ 0.000005 | ||
Common Stock, Shares Authorized | 20,000,000,000 | 20,000,000,000 | 20,000,000,000 |
Treasury Stock, Shares | 25,525,810 | 25,525,810 | 29,385,650 |
Variable Interest Entity, Primary Beneficiary [Member] | |||
Variable Interest Entity, Consolidated, Liabilities, Current, No Recourse | ¥ | ¥ 635,467 | ¥ 818,634 | |
Common Class A [Member] | |||
Common Stock, Shares, Issued | 1,208,831,222 | 1,208,831,222 | 1,208,831,222 |
Common Stock, Shares, Outstanding | 1,183,305,412 | 1,183,305,412 | 1,179,445,572 |
Common Class B [Member] | |||
Common Stock, Shares, Issued | 949,960,000 | 949,960,000 | 949,960,000 |
Common Stock, Shares, Outstanding | 949,960,000 | 949,960,000 | 949,960,000 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | |
Revenues: | ||||
Total revenues | ¥ 5,530,257 | $ 847,549 | ¥ 11,672,024 | ¥ 13,015,225 |
Operating cost and expenses: | ||||
Cost of revenues | (3,939,997) | (603,830) | (9,249,474) | (10,706,596) |
Fulfilment | (450,104) | (68,981) | (965,883) | (1,162,051) |
Sales and marketing | (806,140) | (123,546) | (1,187,462) | (955,128) |
Technology and content | (202,817) | (31,083) | (315,167) | (143,645) |
General and administrative | (261,877) | (40,135) | (277,487) | (147,208) |
Total operating cost and expenses | (5,660,935) | (867,575) | (11,995,473) | (13,114,628) |
Other operating income | 33,218 | 5,091 | 68,646 | 7,048 |
Loss from operations | (97,460) | (14,935) | (254,803) | (92,355) |
Financial income/(expense), net | (8,571) | (1,314) | 121,370 | 46,068 |
Foreign exchange loss, net | (919) | (141) | (12,397) | (685) |
Other non-operating income/(loss), net | (1,610) | (247) | 8,497 | 0 |
Loss before income tax expense, and equity in income of affiliates, net of tax | (108,560) | (16,637) | (137,333) | (46,972) |
Income tax (expense)/benefit | (39,298) | (6,022) | 16,720 | (12,346) |
Equity in income/(loss) of affiliates, net of tax | (3,834) | (586) | (3,221) | 2,992 |
Net loss | (151,692) | (23,245) | (123,834) | (56,326) |
Less: net income/(loss) attributable to non- controlling interests shareholders | (5,346) | (819) | 1,928 | 3,362 |
Net loss attributable to YUNJI INC. | (146,346) | (22,426) | (125,762) | (59,688) |
Accretion on convertible redeemable preferred shares to redemption value | (1,532,013) | (2,187,633) | ||
Re-designation to Series A convertible redeemable preferred shares from Initial Ordinary Shareholders' contribution, including beneficial conversion feature | (60,796) | |||
Deemed dividend from preferred shareholders | 107 | |||
Net loss attributable to ordinary shareholders | (146,346) | (22,426) | (1,657,775) | (2,308,010) |
Net loss | (151,692) | (23,245) | (123,834) | (56,326) |
Other comprehensive income | ||||
Foreign currency translation adjustment | (79,411) | (12,170) | 33,298 | 55,565 |
Total comprehensive loss | (231,103) | (35,415) | (90,536) | (761) |
Less: total comprehensive income/(loss) attributable to non-controlling interests shareholders | (5,346) | (819) | 1,928 | 3,362 |
Total comprehensive loss attributable to YUNJI INC. | (225,757) | (34,596) | (92,464) | (4,123) |
Net loss attributable to ordinary shareholders | ¥ (146,346) | $ (22,426) | ¥ (1,657,775) | ¥ (2,308,010) |
Weighted average number of ordinary shares used in computing net loss per share, basic and diluted | shares | 2,125,906,398 | 2,125,906,398 | 1,818,487,917 | 1,165,136,438 |
Net loss per share attributable to ordinary shareholders | ||||
—Basic | (per share) | ¥ (0.07) | $ (0.01) | ¥ (0.91) | ¥ (1.98) |
—Diluted | (per share) | ¥ (0.07) | $ (0.01) | ¥ (0.91) | ¥ (1.98) |
Sales of merchandise, net | ||||
Revenues: | ||||
Total revenues | ¥ 4,829,397 | $ 740,138 | ¥ 10,548,322 | ¥ 11,388,425 |
Membership program revenue | ||||
Revenues: | ||||
Total revenues | 42,438 | 6,503 | 776,839 | 1,552,437 |
MarketPlace Revenue | ||||
Revenues: | ||||
Total revenues | 599,895 | 91,938 | 311,914 | |
Other revenues | ||||
Revenues: | ||||
Total revenues | ¥ 58,527 | $ 8,970 | ¥ 34,949 | ¥ 74,363 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' DEFICIT ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) | Ordinary shareCNY (¥)shares | Treasury StockCNY (¥)shares | Additional paid-in capitalCNY (¥) | Statutory reserveCNY (¥) | Accumulated other comprehensive incomeCNY (¥) | Accumulated deficitCNY (¥) | Total Yunji Inc. shareholders' deficitCNY (¥) | Non- controlling interestCNY (¥) |
Balance at Dec. 31, 2017 | ¥ (1,918,601) | ¥ 4,227 | ¥ (1,922,828) | ¥ (1,918,601) | ||||||
Balance (Shares) at Dec. 31, 2017 | shares | 1,268,000,000 | |||||||||
Net loss | (56,326) | (59,688) | (59,688) | ¥ 3,362 | ||||||
Accretion on convertible redeemable preferred shares to redemption value | (2,187,633) | ¥ (54,193) | (2,133,440) | (2,187,633) | ||||||
Deemed dividend from Preferred Shareholders | 107 | (107) | 107 | |||||||
Appropriation to statutory reserves | 4,277 | (4,277) | ||||||||
Foreign currency translation adjustments | 55,565 | ¥ 55,565 | 55,565 | |||||||
Issuance of ordinary shares at par value | 36 | ¥ 36 | 36 | |||||||
Capital injection from non-controlling interests | 3,000 | 3,000 | ||||||||
Re-designation to Series A convertible redeemable preferred shares from Initial Ordinary Shareholders' contribution, including beneficial conversion feature (Shares) | shares | (116,600,000) | |||||||||
Re-designation to Series A convertible redeemable preferred shares from Initial Ordinary Shareholders' contribution, including beneficial conversion feature | (60,796) | (60,796) | (60,796) | |||||||
Shared-based compensation | 54,300 | 54,300 | 54,300 | |||||||
Balance at Dec. 31, 2018 | (4,110,455) | ¥ 36 | 8,504 | 55,565 | (4,180,922) | (4,116,817) | 6,362 | |||
Balance (Shares) at Dec. 31, 2018 | shares | 1,151,400,000 | |||||||||
Net loss | (123,834) | (125,762) | (125,762) | 1,928 | ||||||
Accretion on convertible redeemable preferred shares to redemption value | (1,532,013) | (36,494) | (1,495,519) | (1,532,013) | ||||||
Appropriation to statutory reserves | 3,129 | (3,129) | ||||||||
Issuance of ordinary shares upon Initial Public Offering | 737,297 | ¥ 4 | 737,293 | 737,297 | ||||||
Issuance of ordinary shares upon Initial Public Offering (Shares) | shares | 112,174,470 | |||||||||
Foreign currency translation adjustments | 33,298 | 33,298 | 33,298 | |||||||
Conversion of redeemable preferred shares | 6,446,060 | ¥ 30 | 6,446,030 | 6,446,060 | ||||||
Conversion of redeemable preferred shares (Shares) | shares | 895,216,752 | |||||||||
Repurchasing common stock | (117,371) | ¥ (117,371) | (117,371) | |||||||
Repurchasing common stock (Shares) | shares | (33,829,860) | |||||||||
Issuance of ordinary shares due to the exercise of share option | 1,080 | ¥ 5,769 | (4,689) | 1,080 | ||||||
Issuance of ordinary shares due to the exercise of share option (Shares) | shares | 1,407,920 | |||||||||
Issuance of restricted shares | ¥ 14,933 | (14,933) | ||||||||
Issuance of restricted shares (Shares) | shares | 3,036,290 | |||||||||
Capital injection from non-controlling interests | 2,400 | 2,400 | ||||||||
Shared-based compensation | 128,197 | 128,197 | 128,197 | |||||||
Balance at Dec. 31, 2019 | 1,464,659 | ¥ 70 | ¥ (96,669) | 7,255,404 | 11,633 | 88,863 | (5,805,332) | 1,453,969 | 10,690 | |
Balance (Shares) at Dec. 31, 2019 | shares | 2,158,791,222 | (29,385,650) | ||||||||
Net loss | (151,692) | $ (23,245) | (146,346) | (146,346) | (5,346) | |||||
Appropriation to statutory reserves | 6,467 | (6,467) | ||||||||
Foreign currency translation adjustments | (79,411) | (12,170) | (79,411) | (79,411) | ||||||
Repurchasing common stock | (23,171) | ¥ (23,171) | (23,171) | |||||||
Repurchasing common stock (Shares) | shares | (6,246,410) | |||||||||
Issuance of ordinary shares due to the exercise of share option | 8,004 | ¥ 31,489 | (23,485) | 8,004 | ||||||
Issuance of ordinary shares due to the exercise of share option (Shares) | shares | 9,151,290 | |||||||||
Issuance of restricted shares | ¥ 3,149 | (3,149) | ||||||||
Issuance of restricted shares (Shares) | shares | 954,960 | |||||||||
Capital injection from non-controlling interests | 2,300 | 2,300 | ||||||||
Shared-based compensation | 98,378 | 98,378 | 98,378 | |||||||
Disposal of a subsidiary | (2,999) | (5,476) | 6,060 | 584 | (3,583) | |||||
Dividend to non-controlling interest shareholders | (1,200) | (1,200) | ||||||||
Balance at Dec. 31, 2020 | ¥ 1,314,868 | $ 201,512 | ¥ 70 | ¥ (85,202) | ¥ 7,327,148 | ¥ 12,624 | ¥ 9,452 | ¥ (5,952,085) | ¥ 1,312,007 | ¥ 2,861 |
Balance (Shares) at Dec. 31, 2020 | shares | 2,158,791,222 | (25,525,810) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Net Cash Provided by (Used in) Operating Activities [Abstract] | ||||
Net loss | ¥ (151,692) | $ (23,245) | ¥ (123,834) | ¥ (56,326) |
Adjustments to reconcile net loss to net cash generated from/(used in) operating activities: | ||||
Depreciation and amortization | 21,054 | 3,228 | 19,888 | 9,306 |
Shared-based compensation | 98,378 | 15,077 | 128,197 | 54,300 |
Loss/(gain) from disposal of property, equipment and software | 674 | 105 | (1,518) | 871 |
Equity in (income)/loss of affiliates | 3,834 | 586 | 3,221 | (2,992) |
Changes in fair value for equity securities with readily determinable fair value | 53,683 | 8,227 | (68,555) | |
Inventory write-downs | 40,609 | 6,224 | 3,608 | 2,540 |
Foreign exchange loss | (6,417) | (983) | 13,706 | 190 |
Amortization of right of use assets | 15,732 | 2,411 | 19,430 | |
Change in estimate of refund payable to members | (23,521) | (3,605) | (379,370) | |
Loss on disposal of long-term investments and the subsidiary | 1,610 | 247 | ||
Allowance for credit losses | 13,089 | 2,006 | ||
Cash dividend received | 204 | 31 | 190 | |
Deferred income tax | 28,840 | 4,420 | (30,020) | (13,067) |
Changes in operating assets and liabilities: | ||||
Increase in accounts receivable | (154,413) | (23,665) | (4,525) | (6,658) |
(Increase)/decrease in inventories | 251,998 | 38,620 | 243,613 | (345,305) |
Increase in advance to suppliers | (16,547) | (2,536) | (38,773) | (25,285) |
(Increase)/decrease in prepaid expenses and other current assets | 78,143 | 11,976 | 60,654 | (184,341) |
Increase in other non-current assets | (4,867) | (746) | (278) | |
Decrease/(increase) in amounts due from related parties | 1,793 | 275 | (6,453) | 773 |
Increase/(decrease) in accounts payable | (205,824) | (31,544) | (674,414) | 662,249 |
Increase in refund payable to members | 1,036 | 159 | 10,229 | 248,081 |
Increase/(decrease) in incentive payables to members | (72,316) | (11,083) | (37,459) | 182,105 |
Increase/(decrease) in member management fees payable | (32,514) | (4,983) | (30,029) | 8,417 |
Increase/(decrease) in deferred revenue | (130,853) | (20,054) | (365,147) | 223,424 |
Increase in amount due to related parties | 4,693 | 719 | 6,851 | 8,248 |
Increase/(decrease) in other payable and accrued liabilities | (77,920) | (11,942) | 133,972 | 116,507 |
Net cash generated from/(used in) operating activities | (261,514) | (40,075) | (1,116,816) | 883,037 |
Cash flows from investing activities: | ||||
Purchase of property, equipment and software | (84,403) | (12,938) | (28,184) | (28,731) |
Proceeds from disposal of property, equipment and software | 1,845 | 283 | 3,041 | 17 |
Cash paid for short term investments | (1,774,781) | (271,998) | (4,793,867) | (11,539,398) |
Cash received from maturity of short term investments | 2,492,613 | 382,010 | 5,028,793 | 11,124,565 |
Cash paid to merchants for factorings services | (57,913) | (8,876) | (42,467) | |
Cash received for factoring services | 36,407 | 5,580 | 10,000 | |
Cash paid for loans provided to third parties | (93,755) | (14,369) | (171,855) | |
Cash received from repayment of loans provided to third parties | 61,869 | 9,482 | ||
Cash received from disposal of long-term investments | 3,344 | 512 | ||
Impact to cash resulting from deconsolidation of a subsidiary | (7,144) | (1,095) | ||
Cash paid for long-term investments | (27,067) | (4,148) | (120,944) | (14,500) |
Net cash (used in)/generated from investing activities | 551,015 | 84,443 | (115,483) | (458,047) |
Cash flows from financing activities: | ||||
Proceeds from issuance of convertible redeemable preferred shares, net of issuance costs | 744,921 | |||
Proceeds from issuance of ordinary shares upon Initial Public Offering, net of issuance costs | 737,297 | |||
Net proceeds from exercise of share options | 6,995 | 1,072 | 1,080 | |
Cash paid for repurchase of common stocks | (23,171) | (3,551) | (117,371) | |
Capital injection from non-controlling shareholders | 2,300 | 352 | 2,400 | 3,000 |
Net cash generated from/(used in) financing activities | (13,876) | (2,127) | 623,406 | 747,921 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (53,624) | (8,217) | 11,390 | 34,594 |
Net increase/(decrease) in cash, cash equivalents and restricted cash | 222,001 | 34,024 | (597,503) | 1,207,505 |
Cash, cash equivalents and restricted cash at beginning of the year | 967,743 | 148,313 | 1,565,246 | 357,741 |
Cash, cash equivalents and restricted cash at the end of the year | 1,189,744 | 182,337 | 967,743 | 1,565,246 |
Supplemental disclosure of cash flow information | ||||
Cash paid for income tax | 4,251 | 651 | 13,413 | 18,978 |
Supplemental schedule of non-cash investing and financing activities | ||||
Accretion on convertible redeemable preferred shares to redemption value | 1,532,013 | 2,187,633 | ||
Re-designation to Series A convertible redeemable preferred shares from Initial Ordinary Shareholders' contribution, including beneficial conversion feature | 60,796 | |||
Deemed dividend from convertible redeemable preferred shareholders | (107) | |||
Issuance of Series B convertible redeemable preferred shares to the funder with no consideration | 6,421 | |||
Payable for capital expenditure | 94 | 209 | ||
Net settlement between factoring receivables and payables | 23,507 | 3,603 | 15,901 | |
Additional Cash Flow Elements [Abstract] | ||||
Cash and cash equivalents | 1,063,900 | 163,050 | 883,369 | 1,519,146 |
Restricted cash(Note 2.9) | 125,844 | 19,287 | 84,374 | 46,100 |
Cash, cash equivalents and restricted cash at the end of the year | ¥ 1,189,744 | $ 182,337 | ¥ 967,743 | ¥ 1,565,246 |
PRINCIPAL ACTIVITIES AND ORGANI
PRINCIPAL ACTIVITIES AND ORGANIZATION | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
PRINCIPAL ACTIVITIES AND ORGANIZATION | 1. PRINCIPAL ACTIVITIES AND ORGANIZATION (a) Principal activities Yunji Inc. (“Yunji”, or “the Company”) was incorporated under the laws of the Cayman Islands in November 2017, as an exempted company with limited liability. Th e e-commerce e-commerce On May 3, 2019, the Company completed its initial public offering (IPO) of 11,000,000 American Depositary Shares (“ADSs”), each representing ten Class A ordinary shares of the Company, at the price of US$11.00 per ADS. On June 4, 2019, the Company’s underwriters exercised their over-allotment option to purchase an additional 217,447 ADSs. The Company received US$109 million (equivalent to RMB 737 million) of proceeds after deducting underwriting discounts commissions and other offering expense from its IPO and related over-allotment option arrangement. Immediately prior to the completion of the IPO, all classes of preferred shares of the Company, which were originally classified as Mezzanine Equity, were converted and re-designated one-for-one (b) History of the Group and Basis of Presentation for the Reorganization Prior to the incorporation of the Company and starting in May 2015, the Group’s business was carried out under subsidiaries (“Operating Entities”) of Yunji Sharing Technology Co., Ltd. (“Yunji Sharing”), previously known as Hangzhou Bolue Biology Technology Co., Ltd. (“Bolue”). Mr. Xiao Shanglue is the co-founder “Co-Founder”). Co-Founder, E-commerce In preparation of its initial public offering, the Group underwent a reorganization (the “Reorganization”) starting from December 2017. After the Reorganization, the prior shareholding interests at Yunji Sharing were mirrored to the shareholding interests of the Group. The Group’s consolidated financial statements include the financial statements of the Company, its subsidiaries, consolidated VIEs and VIE’s subsidiaries. As of December 31, 2020, the Company’s principal subsidiaries are as follows: Subsidiaries Place of Date of incorporation or Percentage Principal activities Yunji Holding Limited Hong Kong December 20, 2017 100 % Investment holding Chuangke Information Technology (Shenzhen) Co., Ltd. Shenzhen August 28, 2018 100 % Technology development Zhejiang Youji Supply Chain Management Co., Ltd. Huzhou November 30, 2016 100 % Procurement Anhui Delue Network Technology Co., Ltd. Hefei January 15, 2017 100 % Customer service Zhejiang Jiyuan Network Technology Co., Ltd. Hangzhou August 14, 2018 100 % Procurement Zhejiang Zhelue Network Technology Co., Ltd. Hangzhou May 23, 2016 100 % Sales of merchandise Hangzhou Jichuang Network Technology Co., Ltd. Hangzhou May 23, 2016 100 % Investment holding Yunji Hongkong Limited Hong Kong August 25, 2015 100 % Procurement Ningbo Yunchu Trading Co., Ltd. Ningbo May 10, 2018 100 % Custom clearance Hangzhou Yunchuang Sharing Network Technology Co., Ltd. Hangzhou June 13, 2018 100 % Investment holding Desking technology (HK) Co., Limited Hong Kong July 26, 2016 100 % Investment holding and Jironghuishang Commercial Factoring (Tianjin) Co., Ltd Tianjin October 16, 2018 100 % Financing solution Zhejiang Yunxuan Supply Chain Management Co., Ltd Hangzhou August 9, 2018 100 % Procurement As of December 31, 2020, the Company’s principal consolidated VIEs and VIE’s subsidiaries are as follows: Place of incorporation Date of incorporation or acquisition Percentage of direct or indirect Principal activities VIEs and VIE subsidiaries Yunji Sharing Technology Co., Ltd. Hangzhou March 5,2018 100 % Investment holding Zhejiang Yunji Preferred E-Commerce Hangzhou June 13, 2018 100 % Investment holding Zhejiang Jishang Preferred E-Commerce Hangzhou April 22, 2016 100 % Procurement Zhejiang Jixiang E-commerce Hangzhou August 14, 2018 100 % E-Commerce Hangzhou Fengjing Network Technology Co., Ltd. Hangzhou December 18, 2020 100 % Investment holding Ningbo Meishan Bonded Port Area Jichuang Taihong Venture Capital Partnership (LP) (“Jichuang Taihong”) Ningbo January 15, 2019 100 % Investment holding Hangzhou Heyi e-commerce Hangzhou August 5, 2020 100 % E-Commerce Anhui Yunhe Network Technology Co., Ltd. (“Yunhe”) Hefei March 28, 2019 100 % Customer service and Procurement Starting from third quarter of 2020, Yunhe and Jichuang Taihong, which were originally subsidiaries of the Company, became subsidiaries the Company’s consolidated VIEs as a result of equity transactions within th e (c) Consolidated variable interest entities In order to comply with the PRC laws and regulations which prohibit or restrict foreign investments into companies involved in restricted businesses, the Group operates its Apps and other restricted businesses in the PRC through certain PRC domestic companies, whose equity interests are held by certain management members of the Company or onshore nominees of the Company (“Nominee Shareholders”). The Company obtained control over these PRC domestic companies by entering into a series of Contractual Arrangements with these PRC domestic companies and their respective Nominee Shareholders. These contractual agreements cannot be unilaterally terminated by the Nominee Shareholders or the PRC domestic companies. As a result, the Company maintains the ability to control these PRC domestic companies and is entitled to substantially all of the economic benefits from these PRC domestic companies. Management concluded that these PRC domestic companies are VIEs of the Company, of which the Company is the ultimate primary beneficiary. As such, the Group consolidated financial results of these PRC domestic companies and their subsidiaries in the Group’s consolidated financial statements. The principal terms of the agreements entered into amongst the VIEs, their respective shareholders and the WFOE are further described below. Loan Agreements Pursuant to the relevant loan agreements, the WFOE has granted interest-free loans to the relevant Nominee Shareholders of the relevant VIEs with the sole purpose of providing funds necessary for the capital injection to the relevant VIEs. Only the WFOE can require the Nominee Shareholders to settle the loan amount with the equity interests of relevant VIEs, subject to any applicable PRC laws, rules and regulations. The relevant Nominee Shareholder has agreed that any proceeds from sale of the Nominee Shareholder’s equity interest in the relevant VIE should be used to repay the loan amount to the WFOE. The term of the loan agreements is ten years and can be extended with the written consent of both parties before expiration. Exclusive Option Agreements Pursuant to the exclusive option agreement, the Nominee Shareholders of the VIEs have granted the WFOE the exclusive and irrevocable right to purchase or to designate one or more person(s) at its discretion to purchase part or all of the equity interests in the VIEs (the “Target Equity”) from the Nominee Shareholders at any time, and the VIEs have granted the WFOE the exclusive and irrevocable right to purchase or to designate one or more person(s) at its discretion to purchase part or all of the assets of the VIEs (the “Target Assets”) at any time. The total transfer price for the Target Equity and/or the Target Assets shall be equal to the loan provided by the WFOE to the Nominee Shareholders under the Loan Agreements. The VIEs and their Nominee Shareholders have agreed that without prior written consent of the WFOE, the Nominee Shareholders shall not sell, transfer, pledge or dispose of their equity interests, and the VIEs shall not sell, transfer, pledge or dispose of their assets, including but not limit to significant assets, significant revenue and significant business. In addition, the VIEs covenant that they shall not declare any dividend or change capitalization structure of the VIEs or enter into any loan or investment agreements. Proxy Agreement and Power of Attorney Pursuant to the Proxy Agreement and Power of Attorney, each of the Nominee Shareholders appointed the WFOE as their attorney-in-fact Exclusive Service Agreement Pursuant to the exclusive service agreement, the WFOE has agreed to provide to the VIEs services, including, but not limited to, development, maintenance and update of technology, design, installation, daily management, maintenance and updating of the network system, hardware design, and marketing. The VIEs shall pay to the WFOE service fees determined by the WFOE in its sole discretion. The agreement has a term of 10 years and shall automatically renew at the end of each term for a further term of ten years, unless otherwise terminated by the WFOE in its sole discretion with 30 days’ prior written notice. Equity Interest Pledge Agreements Pursuant to the relevant equity interest pledge agreements, the Nominee Shareholders of the VIEs have pledged 100% equity interests in relevant VIEs to the WFOE to guarantee performance by the Nominee Shareholders of their obligations under the exclusive option agreements, the proxy agreement and power of attorney and the loan agreements, as well as the performance by the VIEs of their obligations under the exclusive option agreements and the exclusive service agreements. All of the equity interest pledge agreements shall remain valid until the pledges are released. In the event of a breach by the VIEs or any of their Nominee Shareholders of contractual obligations under the exclusive option agreements, the proxy agreement and power of attorney, the exclusive service agreements, the loan agreements and the equity interest pledge agreements, as the case may be, the WFOE, as pledgee, will have the right to dispose of the pledged equity interests in the relevant VIE and will have priority in receiving the proceeds from such disposal. The Nominee Shareholders of the VIEs also covenant that, without the prior written consent of the WFOE, they will not dispose of, create or allow any encumbrance on the pledged equity interests. In October and December 2018, the equity pledge registrations of Yunji Preferred and Yunji Sharing with the relevant office of the State Administration for Market Regulation were completed, respectively. The equity pledge registrations of Hangzhou Chuanchou and Hangzhou Fengjing are in the proce s Spousal Consent Letters Pursuant to the Spousal Consent Letters, each Nominee Shareholder (except for Mr. Wenwei Shu, the shareholder of both Hangzhou Chuanchou and Hangzhou Fengjing, who has no spouse yet), who is a natural person, and his or her spouse unconditionally and irrevocably agreed that the equity interests in the VIEs held by such Nominee Shareholder will be disposed of pursuant to the equity interest pledge agreements, the exclusive option agreements, the loan agreement and the proxy agreement and power of attorney. Each of their spouses agreed not to assert any rights over the equity interests in the VIEs held by their respective spouses. In addition, in the event that any spouse obtains any equity interests in any VIE held by his or her spouse for any reason, he or she agreed to be bound by the contractual arrangements. (d) Risks in relations to the VIE structure The following table set forth the assets, liabilities, results of operations and changes in cash, cash equivalents and restricted cash of the consolidated VIEs and their subsidiaries taken as a whole, which were included in the Group’s consolidated financial statements with intercompany transactions eliminated (It should be noted that the VIEs were not established until 2018 as the Reorganization occurred. The following disclosures present the operations and financial positions of the businesses that currently constitute the VIE entities as of and for the respective periods.): As of December 31, 2019 2020 RMB RMB Cash and cash equivalents 139,323 137,994 Restricted cash 80,289 125,844 Accounts receivable, net 5,271 12,204 Advance to suppliers 21,393 18,334 Inventories, net 19,403 3,500 Amounts due from the Group companies (2) 2,872,259 3,909,067 Amounts due from related parties (1) 5,809 6,603 Prepaid expense and other current assets 171,498 195,428 Property, equipment and software, net 30,057 23,698 Long-term investments — 34,625 Operating lease right-of-use 8,774 8,612 Deferred tax assets 58,613 44,674 Other non-current 4,804 7,553 Total assets 3,417,493 4,528,136 Accounts payable 326,014 296,640 Deferred revenue 158,942 35,412 Incentive payables to members — 8,212 Refund payable to members 26,883 4,398 Members management fee payable 13,805 45,841 Other payable and accrued liabilities 282,189 228,321 Amounts due to the Group companies (3) 2,846,591 4,142,953 Amounts due to related parties (1) 6,039 11,483 Operating lease liabilities, current 4,762 5,160 Operating lease liabilities, non-current 3,735 4,265 Deferred Tax Liability 1 — Total liabilities (4) 3,668,961 4,782,685 (1) Information related to VIEs’ transactions with related parties is included in Note 27. (2) Amounts due from the Group companies primarily consisted of inter-company receivables for the sales of goods and the rendering of services made by the VIEs and their subsidiaries on behalf of other Group companies. (3) Amounts due to the Group companies primarily consisted of inter-company payables for the purchase of goods and services made by other Group companies on behalf of the VIEs and their subsidiaries. (4) Amounts of the consolidated VIEs and VIEs’ subsidiaries without recourse to the primary beneficiary is RMB 818,634 and RMB 635,467 as of December 31, 2019 and 2020, respectively Year Ended December 31, 2018 2019 2020 RMB RMB RMB Total revenues 2,551,221 4,570,774 3,122,086 Cost of revenues (593,605 ) (2,550,386 ) (1,693,547 ) Net (loss)/income (364 ) 16,071 6,826 Net cash generated by/(used in) operating activities 778,728 (1,019,175 ) 61,434 Net cash (used in)/generated by investing activities (25,014 ) 440,033 (18,347 ) Net cash (used in)/generated by financing activities (208,982 ) — 2,300 Effect of exchange rate changes on cash, cash equivalents and restricted cash (2,302 ) 288 (1,161 ) Net increase/(decrease) in cash, cash equivalents and restricted cash 542,430 (578,854 ) 44,226 Cash, cash equivalents and restricted cash at beginning of year 256,036 798,466 219,612 Cash, cash equivalents and restricted cash at end of year 798,466 219,612 263,838 Under the Contractual Arrangement s The Group believes that the Group’s relevant PRC subsidiaries’ Contractual Arrangements with the consolidated WFOEs, VIEs and VIEs’ subsidiaries and the Nominee Shareholders are in compliance with PRC laws and regulations, as applicable, and are legally enforceable. However, uncertainties in the PRC legal system could limit the Company’s ability to enforce these Contractual Arrangements. In addition, if the current structure of any of the Contractual Arrangements were found to be in violation of any existing PRC laws, the Company may be subject to penalties, which may include but not be limited to, the cancellation or revocation of the Co m There are, however, substantial uncertainties regarding the interpretation and application of current or future PRC laws and regulations. Accordingly, the Company cannot be assured that the PRC government authorities will not ultimately take a view that is contrary to the Company’s belief and the opinion of its PRC legal counsel. In March 2019, the draft Foreign Investment Law was submitted to the National People’s Congress for review and was approved on March 15, 2019, which came into effect from January 1, 2020. The approved Foreign Investment Law does not touch upon the relevant concepts and regulatory regimes that were historically suggested for the regulation of VIE structures, and thus this regulatory topic remain unclear under the Foreign Investment Law. Since the Foreign Investment Law is new, there are substantial uncertainties exist with respect to its implementation and interpretation and the possibility that such entities will be deemed as foreign-invested enterprise and subject to relevant restrictions in the future shall not be excluded. If the contractual arrangements establishing the Company’s VIE structure are found to be in violation of any existing law and regulations or future PRC laws and regulations, the relevant PRC government authorities will have broad discretion in dealing with such violation, including, without limitation, levying fines, confiscating income or the income of these affiliated Chinese entities, revoking business licenses or the business licenses of these affiliated Chinese entities, requiring the Company and its affiliated Chinese entities to restructure their ownership structure or operations and requiring the Company or its affiliated Chinese entities to discontinue any portion or all of the Company’s value-added businesses. Any of these actions could cause significant disruption to the Company’s business operations, and have a severe adverse impact on the Company’s cash flows, financial position and operating performance. If the imposing of these penalties cause the Company to lose its rights to direct the activities of and receive economic benefits from the VIEs, which in turn may restrict the Company’s ability to consolidate and reflect in its financial statements the financial position and results of operations of its VIEs. |
PRINCIPAL ACCOUNTING POLICIES
PRINCIPAL ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
PRINCIPAL ACCOUNTING POLICIES | 2. PRINCIPAL ACCOUNTING POLICIES 2.1 Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). Significant accounting policies followed by the Group in the preparation of its accompanying consolidated financial statements are summarized below. 2.2 Basis of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, the consolidated VIEs and VIEs’ subsidiaries for which the Company is the ultimate primary beneficiary. A subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting power, has the power to appoint or remove the majority of the members of the board of directors, to cast a majority of votes at the meeting of the board of directors or to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. A consolidated VIE is an entity in which the Company, or its subsidiary, through contractual arrangements, bears the risks of, and enjoys the rewards normally associated with, ownership of the entity, and therefore the Company or its subsidiary is the primary beneficiary of the entity. All transactions and balances between the Company, its subsidiaries, VIEs and VIEs’ subsidiaries have been eliminated upon consolidation. 2.3 Non-controlling For the Company’s consolidated subsidiaries, VIEs and VIEs’ subsidiaries, non-controlling Non-controlling 2.4 Use of estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the balance sheet date, and the reported revenues and expenses during the reporting periods in the consolidated financial statements and accompanying notes. Significant accounting estimates reflected in the Group’s consolidated financial statements include, but are not limited to the valuation and recognition of refund payable to members, share-based compensation, reserve for excess and obsolete inventories and credit losses for financial instruments. Estimates are based on historical experiences and on various assumptions that the Group believes are reasonable under current circumstances. As of December 31, 2020, the Group considered the economic implications of the COVID-19 The estimation of refunds payable to members is based upon the historical data of referral incentives earned by referring members within their estimated active life cycle. On a quarterly basis, the Company revisits the estimation with a consistently applied approach and the most up-to-date 2.5 Foreign currencies The Group’s reporting currency is Renminbi (“RMB”). The functional currency of the Group’s holding entities incorporated in Cayman Islands and Hong Kong, China (“HK”) is the United States dollars (“US$”). The Group’s PRC subsidiaries, consolidated VIEs and VIEs’ subsidiaries and the other HK subsidiary determined their functional currency to be RMB. The determination of the respective functional currency is based on the criteria of ASC 830, Foreign Currency Matters and is based primarily on the currency the entity conducts its business in. Transactions denominated in other than the functional currencies are translated into the functional currency of the entity at the exchange rates quoted by authoritative banks prevailing on the transaction dates. Exchange gains and losses resulting from those foreign currency transactions denominated in a currency other than the functional currency are recorded in the Consolidated Statements of Comprehensive Loss. Total exchange loss were RMB 685, RMB 12,397 and RMB 919 for the years ended December 31, 2018, 2019 and 2020, respectively. The financial statements of the Group are translated from the functional currency into RMB. Assets and liabilities denominated in foreign currencies are translated into RMB using the applicable exchange rates at the balance sheet date. Equity accounts other than earnings generated in current period are translated into RMB at the appropriate historical rates. Revenues, expenses, gain and loss are translated into RMB using the periodic average exchange rates. The resulting foreign currency translation adjustments are recorded in other comprehensive income as a component of shareholders’ equity. Total foreign currency translation adjustments to the Group’s other comprehensive income were a gain of RMB 55,565, RMB 33,298 and a loss of RMB 79,411, for the years ended December 31, 2018, 2019 and 2020, respectively. 2.6 Convenience translation Translations of the Consolidated Balance Sheets, the Consolidated Statements of Comprehensive Loss and the Consolidated Statements of Cash Flows from RMB into US$ as of and for the year ended December 31, 2020 are solely for the convenience of the readers and were calculated at the rate of US$1.00=RMB 6.5250, representing the index rates stipulated by the federal reserve board. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2020, or at any other rate. 2.7 Fair value measurements Accounting guidance defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurement for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. Accounting guidance establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Accounting guidance establishes three levels of inputs that may be used to measure fair value: Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 — Include other inputs that are directly or indirectly observable in the marketplace. Level 3 — Unobservable inputs which are supported by little or no market activity. Accounting guidance also describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach, (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. Financial assets and liabilities of the Group mainly consist of cash and cash equivalents, restricted cash, short-term investments, accounts receivable, amounts due from related parties, prepaid expenses and other current assets, equity securities with readily determinable fair values included in long-term investments, accounts payable, amounts due to related parties, accruals and other liabilities. As of December 31, 2019 and 2020, except for short-term investments and equity securities with readily determinable fair values included in long-term investments, the carrying values of cash and cash equivalents, restricted cash, trade receivables, amounts due from related parties, prepayments and other current assets, trade payables, amounts due to related parties, accruals and other liabilities are approximated to their fair values due to the short-term maturity of these instruments. The Group reports short-term investments at fair value and discloses the fair value of these investments based on level 2 measurement, reports equity securities with readily determinable fair values included in long-term investments at fair value based on level 1 measurement (Note 9). 2.8 Cash and cash equivalents Cash includes currency on hand and deposits held by financial institutions that can be added to or withdrawn without limitation. Cash equivalents represent short-term, highly liquid investments that are readily convertible to known amounts of cash and with original maturities from the date of purchase of three months or less. 2.9 Restricted cash Cash that is restricted as to withdrawal or for use or pledged as security is reported separately on the face of the Consolidated Balance Sheets. The Group’s restricted cash mainly represents i) security deposits held in designated bank accounts for issuance of bank acceptance and letter of guarantee, ii) deposits held in the Group’s own bank accounts designated by the customs authorities that the Group makes for cross-border comprehensive tax for imported merchandise, iii) cash held in the Group’s own bank accounts, the use of which is restricted to collecting cash on behalf of the merchants for products sold on Yunji App and transferring these cash receipts to the merchants under the bank’s custody. Restricted cash with the restriction period lapsing within one year are classified as current assets in the Consolidated Balance Sheets. 2.10 Short-term investments Short-term investments are comprised of i) time deposits placed with banks with original maturities longer than three months but less than one year, ii) wealth management products issued by PRC banks or other financial institutions, which contains fixed or variable interest with original maturities within one year. Such investments are generally not permitted to be redeemed early or are subject to penalties for redemption prior to maturities. These investments are stated at fair value. Changes in the fair value are reflected in Financial income/(expense), net in the Consolidation Statements of Comprehensive Loss. 2.11 Accounts receivable, net Accounts receivables, net mainly represent amounts due from customers, including the funds extended by the Group to qualified customers, including the merchants, through its factoring arrangements (the “factoring receivables”) and are recorded net of allowance for credit losses. As of December 31, 2019 and 2020, the balance of the factoring receivables was RMB 17,041 and RMB 122,089, respectively (Note 5). Allowance for expected credit losses Starting from January 1, 2020, the Group adopted ASU No. 2016-13, The Group’s accounts receivable, prepaid expenses and other current assets, amounts due from related parties and other non-current To estimate expected credit losses, the Group has identified the relevant risk characteristics of its customers, the related receivables and other receivables which include size, type of the services, the counterparty or the products the Group provides, or a combination of these characteristics. Receivables with similar risk characteristics have been grouped into pools. For each pool, the Group considers the past collection experience, current economic conditions, future economic conditions (external data and macroeconomic factors) and changes in the Group’s customer collection trends. This is assessed at each quarter based on the Group’s specific facts and circumstances. No significant impact of changes in the assumptions since adoption. The following table summarized the details of the Company’s allowance for expected credit losses: 2018 2019 2020 Balance at beginning of year — — — Allowance for credit losses — — 13,089 Balance at end of year — — 13,089 2.12 Inventories, net Inventories, consisting of products available for sale, are stated at the lower of cost and net realizable value. Cost of inventory is determined using the weighted average cost method. Adjustments are recorded to write down the cost of inventory to the estimated net realizable value due to slow-moving merchandise and damaged goods, which is dependent upon factors such as historical and forecasted consumer demand, and promotional environment. Write downs of RMB 2,540, RMB 3,608 and RMB 40,609 are recorded in Cost of revenues in the Consolidated Statements of Comprehensive Loss for the years ended December 31, 2018, 2019 and 2020, respectively. 2.13 Property, equipment and software, net Property, equipment and software are stated at cost less accumulated depreciation. Property, equipment and software are depreciated at rates sufficient to write off their costs less impairment and residual value, if any, over the estimated useful lives on a straight-line basis. The estimated useful lives are as follow: Category Estimated useful lives Leasehold improvement Shorter of the term of the lease or the estimated useful lives of the assets Electronic equipment 3 years Furniture 3 years Software 3 years Vehicles 3 years Repairs and maintenance costs are charged to expenses as incurred, whereas the costs of renewals and betterment that extend the useful lives of property, equipment and software are capitalized as additions to the related assets. The Group recognized the gain or loss on the disposal of property, equipment and software in the Consolidated Statements of Comprehensive Loss. Construction in progress represents direct costs that are related to the construction of property, equipment and software and incurred in connection with bringing the assets to their intended use. Construction in progress is transferred to specific property, equipment and software items and the depreciation of these assets commences when the assets are ready for their intended use. 2.14 Long-term investments The Group’s investments include equity method investments, equity securities with readily determinable fair values and equity securities without readily determinable fair values. The Group has investments in privately held companies. The Group applies the equity method of accounting to account for an equity investment, in common stock or in-substance An investment in in-substance Under the equity method, the Group’s share of the post-acquisition profits or losses of the equity investees are recorded in Equity in income of affiliates, net of tax in the Consolidated Statements of Comprehensive Loss. The excess of the carrying amount of the investment over the underlying equity in net assets of the equity investee, if any, represents goodwill and intangible assets acquired. When the Group’s share of losses in the equity investee equals or exceeds its interest in the equity investee, the Group does not recognize further losses, unless the Group has incurred obligations or made payments or guarantees on behalf of the equity investee. Equity securities with readily determinable fair values are measured and recorded at fair value on a recurring basis with changes in fair value, whether realized or unrealized, recorded in Financial income/(expense),net through the Consolidated Statements of Comprehensive Loss. For other equity investments that are not considered as debt securities or equity securities that have readily determinable fair values and over which the Group has neither significant influence nor control through investments in common stock or in-substance 2.15 Impairment of long-lived assets Long-lived assets are evaluated for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be fully recoverable or that the useful life is shorter than the Group had originally estimated. When these events occur, the Group evaluates the impairment for the long-lived assets by comparing the carrying value of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted cash flows is less than the carrying value of the assets, the Group recognizes an impairment loss based on the excess of the carrying value of the assets over the fair value of the assets. 2.16 Revenue recognition The Group adopted ASC Topic 606, “Revenue from Contracts with Customers,” for all periods presented. Consistent with the criteria of Topic 606, the Group recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Group expects to receive in exchange for those goods or services. To achieve that core principle, the Group applies the five steps defined under Topic 606: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Group assesses its revenue arrangements against specific criteria in order to determine if it is acting as principal or agent. Revenue arrangements with multiple performance obligations are divided into separate distinct goods or services. The Group allocates the transaction price to each performance obligation based on the relative standalone selling price of the goods or services provided. Revenue is recognized upon the transfer of control of promised goods or services to a customer. Revenue is recorded net of value-added tax. Revenue recognition policies for each type of revenue steam are as follows: Sales of merchandise The Group primarily sells merchandise through its Yunji App. The Group presents the revenue generated from its sales of merchandise on a gross basis as the Group has control of the goods and has the ability to direct the use of goods to obtain substantially all the benefits. In making this determination, the Group also assesses whether it is primarily obligated in these transactions, is subject to inventory risk, has latitude in establishing prices, or has met several but not all of these indicators. The cash collected from the sales of merchandise is initially recorded in Deferred revenue in the Consolidated Balance Sheets and subsequently recognized as revenue when the receipt of merchandise is confirmed by the customers, which is the point that the control of the merchandise is transferred to the customer. The revenue is recorded net of value-added tax, discounts, coupons, incentives and return allowances. Return allowances are estimated based on historical experiences and updated at the end of each reporting period. Membership program Before January 2020, the Group earns membership fees from its members, who pay a fixed fee in exchange for (1) a merchandise gift package, (2) the right to receive member exclusive discounts for merchandise sold on the Yunji App, (3) access rights to the member-exclusive features on Yunji App, (4) the right to receive units of Yunbi (meaning Yun coin) upon a successful new member referral (“Referral Yunbi”), (5) member exclusive training, and (6) units of Yunbi (“New member Yunbi”). Each of these items represents a separate performance obligation. Yunbi can be used as coupons for the member’s future purchases on Yunji App and therefore reflect material rights. In order to promote its membership program, the Group, at its discretion, allows its users to join the membership program by purchasing any merchandise of equivalent value of the membership fee via Yunji App within a defined period as an alternative way of paying the upfront fixed membership fee, or allows individuals that meet certain requirements to become members without paying membership fee. When users become members in this manner, they are not entitled to the merchandise gift package and member exclusive training. The Group allocates the transaction price to each performance obligation, after taking into consideration expected refunds payable to members (Note 2.17), based on their relative standalone selling price. When the standalone selling price of a performance obligation is not directly observable, it is estimated by the Group by using an expected cost plus a margin approach. For the merchandise gift package, revenue is recognized when the receipt of the gift package is confirmed by the members, which were RMB 1,197,890, RMB 557,936 and nil for the years ended December 31, 2018, 2019 and 2020, respectively. For the right to receive Referral Yunbi, revenue is recognized when Referral Yunbi is used and redeemed, or upon expiration if not redeemed. For New member Yunbi, revenue is recognized when the New member Yunbi is used and redeemed, or upon expiration if not redeemed. The allocated amounts of the transaction price to the right to receive Referral Yunbi and New Member Yunbi incorporate estimation of breakages based upon historical data, and are deferred on the balance sheet upon the collection of the upfront membership fees, which was RMB 108,634 and RMB159,024, RMB 22,104 and RMB 80,553, and nil, for the years ended December 31, 2018, 2019 and 2020, respectively. For member exclusive training, revenue is recognized when the training courses are delivered over the service period by the third-party vendors engaged by the Group. For the remaining performance obligations, revenue is recognized over the period of the active life cycle of the Group’s members on a straight-line basis. The active life cycle of the Group’s members is estimated based on historical behavior of these members, which is approximately one year. In addition, when members subsequently purchase merchandise, the members initially pay for their purchases at non-member Starting from January 2020, the Group has allowed any user to become its member free of charge for one year by simply registering for an account on Yunji App. When users become members in this manner, they are still entitled to enjoy the right to receive member exclusive discounts for merchandise sold on the Yunji App. Marketplace In 2019, the Group launched its marketplace business model, under which the Group operates its e-commerce Remaining performance obligations The remaining performance obligations associated with the Group’s sale of merchandise represents the cash collected upfront from the customers for their purchase of merchandise on Yunji App, but the underlying merchandise has not yet been received by the customers, which is included in the presentation of Deferred revenue (Note 12). As of December 31, 2019 and 2020, the remaining performance obligation for sales of merchandise were RMB 129,224 and RMB 40,645, respectively, which are expected to be recognized as revenue when the receipt of merchandise is confirmed by the customers. Revenue allocated to remaining performance obligations of the Group’s membership program represents that portion of the overall transaction price that has been received (or for which the Group has an unconditional right to payment) allocated to obligations under the membership program that the Group has not yet fulfilled, which is included in the presentation of Deferred revenue (Note 12). As of December 31, 2019 and 2020, the aggregate amount of the transaction price allocated to remaining performance obligations were RMB 42,438 and nil, respectively, which are expected to be recognized as revenue within 12 months. The remaining performance obligations associated with the Group’s marketplace revenue represents the portion of commission fee included in the payment collected from the users for their purchase of merchandise on Yunji App on behalf of the merchants, but the underlying merchandise has not yet been received by the users, which is included in the presentation of Deferred revenue (Note 12). As of December 31, 2019 and 2020, the remaining performance obligation for marketplace revenue was RMB 9,800 and RMB 9,113, which are expected to be recognized as revenue when the transactions are completed. Other goods and services The Group offers products such as air tickets, tourist attractions tickets, cruise, group tour, hotel reservation and car insurance through Yunji App. The Group presents the revenue generated from such sales on a net basis as the Group does not have control of the goods or services or have the ability to direct the use of the goods or services and obtain substantially all of their benefits. Revenue is recognized when the Group has fulfilled its selling performance obligations on behalf of the principal in the transaction, which is either when the products are accepted by the customer, or once the order of the products become non-cancellable The Group also offers loans to qualified customers, including the merchants, and charges an interest based on the principal through factoring arrangements. The Group extends loans to merchants for their expected orders in addition to the loans to the same merchants who factored their accounts receivable generated from their transactions completed on Yunji App with recourse. The Group also extends loans to unrelated customers who factored their accounts receivable derived from their own business with recourse. The Group records factoring receivables, which is included in accounts receivable, when the cash is advanced to its customers (Note 2.11). The interests are recognized over the term of loans, normally within one year. From cash flow perspective, when the Group has legal rights to net settle the factoring receivables from merchants with its payable to merchants, the Group settles such factoring receivables with the payables to the same merchant respectively, provided by the legal rights as per agreement between the two partie s 2.17 Refund payable to members After joining the Group’s membership program, members are able to make referrals to other users through their social networks. The Group provides incentives to those referring members by paying a cash refund upon a successful merchandise referral. Since customers are only able to receive referral incentives after they become members. When the member become a customer of the Group by either paying the membership fees or making purchase of merchandise sold on Yunji App after they register as a member, the incentives related to merchandise referral are considered payments to customers (and are not payment for a distinct good or service) and accounted for as a refund payable to members. Such refunds are estimated at the time the membership fee is received or at the time that the members make merchandise purchases, and recorded as Refund payable to members, and reduce the transaction price (that the Group expects to be entitled to keep) for the membership fee revenue recognition calculation described above accordingly. Any amount of referral incentives expected to be paid in excess of the initial membership fee received is recorded as Refund payable to members (and reduces merchandise revenue subsequently generated from those members) at the time they make subsequent merchandise purchases, up to the amount of the expected future referral incentives. The estimation of refund payable to members involves the assumption of the members’ active life cycle and the expected number of members who will earn referral incentives, based upon the historical data of referral incentives earned by referring members within their active life cycle (Note 2.4). Once the referral incentives are earned by the referring members, the amounts are transferred to the members’ individual Yunji App accounts and reclassified from Refund payable to members to Incentive payables to members. 2.18 Users incentive programs The Group grants certain units of Yunbi and other coupons (collectively referred to as coupons), from time to time, to its customers at its discretion in different situations. Yunbi are not redeemable for cash and can be used as a coupon for the customer’s future purchase on the Yunji App. The value of one unit of Yunbi is equivalent to one RMB yuan. The coupons granted can be categorized into 1) coupons granted concurrent with a revenue transaction and 2) coupons granted not concurrent with a revenue transaction. When the coupon is granted concurrent with a revenue transaction, the Group determine whether the coupon represents a material right of the current transaction. If the coupon represents a material right, the transaction price is allocated between merchandise sale and the coupon based on the estimated standalone selling price taking into consideration the coupon’s forfeiture rate. If the coupon does not represent a material right, it is recognized as a reduction of revenue when they are applied in the future sales. When the coupon is not granted concurrent with a revenue transaction, the Company assesses whether the coupons were granted in exchange for a distinct service at fair value. When the coupons are granted in exchange for a distinct service at fair value, they are recorded as expense upon grant. In this case, the person granted coupons in return for their service activities does not need to be a member. When the coupons are not granted in exchange for a distinct service, they can only be applied to the future purchase of certain specified merchandise. These coupons are not accounted for when they are granted and are recognized as a reduction of revenue when they are applied in future sales. Starting from 2019, in order to promote its marketplace business, from time to time, the Group at its own discretion issues coupons in various forms to users without any concurrent transactions in place or any substantive action needed from the recipient. These coupons can be used in purchase of goods in a broad range of merchants as an immediate discount of their next purchase, some of which can only be used when the purchase amount exceeds pre-defined 2.19 Cost of revenues Cost of revenues consists of purchase price of merchandise, inbound shipping charges, write-downs of inventory and member training costs. Inbound shipping charges to receive merchandise from suppliers are included in the inventories and recognized as cost of revenues upon sale of the merchandise to the customers. 2.20 Fulfilment Fulfilment expenses represent packaging material costs and those costs incurred in outbound shipping, operating and staffing the Group’s fulfilment and customer service centers, including costs attributable to buying, receiving, inspecting and warehousing inventories, picking, packaging and preparing customer orders for shipment, processing payment and related transaction costs and responding to inquiries from customers, depreciation expenses, payroll costs including share-based compensation expenses, and other daily expenses which are related to the purchasing functions. Fulfilment costs also contain third party payment transaction fees, such as bank card processing and debit card processing fees. 2.21 Sales and marketing Sales and marketing expenses comprise primarily of member management fees, promotion expenses, marketplace coupons, payroll costs including share-based compensation expenses, depreciation expenses and other daily expenses which are related to the sales and marketing functions. The Group engages third party vendors to provide member management services, which are ultimately performed by service managers who enter into employment contract with the third party vendors. Certain of the Group’s members (customers) have been engaged by third party vendors to serve as service managers. The Group has concluded that the member management services provided by the service managers, including those who are also members, are for distinct services at fair value, and records the member management fees paid to the third party vendors as Sales and marketing expenses. 2.22 Technology and content Technology and content expenses are expensed as incurred and primarily consist of payroll costs including share-based compensation expenses, rental expenses, costs associated with the computing, storage and telecommunications infrastructure for internal use that support the Group’s system and Yunji App services and other expenses which are related to the technology and content functions, which are responsible for technology research and development and content editing in the Group. The Group accounts for internal use software development costs in accordance with guidance on intangible assets and internal use software. This r |
CONCENTRATION AND RISKS
CONCENTRATION AND RISKS | 12 Months Ended |
Dec. 31, 2020 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATION AND RISKS | 3. CONCENTRATION AND RISKS 3.1 Concentration of credit risk Financial instruments that potentially subject the Group to the concentration of credit risks consist of cash and cash equivalents, restricted cash, and short-term investments. The maximum exposures of such assets to credit risk is their carrying amounts as of the balance sheet dates. The Group deposits its cash and cash equivalents, restricted cash and short-term investments with financial institutions located in jurisdictions where the subsidiaries are located. The Company believes that no significant credit risk exists as these financial institutions have high credit quality. 3.2 Concentration of customers and suppliers Substantially all revenue was derived from customers located in China. There are no customers or suppliers from whom revenues or purchases individually represent greater than 10% of the total revenues or the total purchases of the Group in any of the periods presented. 3.3 Foreign currency exchange rate risk In July 2005, the PRC government changed its decades-old |
SHORT TERM INVESTMENT
SHORT TERM INVESTMENT | 12 Months Ended |
Dec. 31, 2020 | |
Short-term Investments [Abstract] | |
SHORT TERM INVESTMENT | 4. SHORT TERM INVESTMENT As of December 31, 2019 2020 RMB RMB Time deposits 593,954 134,146 Wealth management products 180,782 — 774,736 134,146 The Group’s wealth management products mainly consisted of financial products issued by commercial banks in China with a variable interest rate indexed to the performance of underlying assets and a maturity date within one year when purchased or revolving terms. For the years ended December 31, 2018, 2019 and 2020, the weighted average return of the wealth management products were 4.1%, 3.4% and 3.4%, respectively. |
ACCOUNTS RECEIVABLE, NET
ACCOUNTS RECEIVABLE, NET | 12 Months Ended |
Dec. 31, 2020 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |
ACCOUNTS RECEIVABLE, NET | 5. ACCOUNTS RECEIVABLE, NET As of December 31, 2019 2020 RMB RMB Factoring receivables 17,041 122,089 Receivables from sales channels on other platforms — 35,950 Receivables from merchants under marketplace business 3,015 8,439 Receivables from other revenue 8,471 6,858 Less: allowance for credit losses — (8,603 ) 28,527 164,733 |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS, NET | 12 Months Ended |
Dec. 31, 2020 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS, NET | 6. PREPAID EXPENSES AND OTHER CURRENT ASSETS, NET Prepaid expenses and other current assets consist of the following: As of December 31, 2019 2020 RMB RMB Prepaid member training costs (1) 36,669 — Receivables from third-party payment settlement platform (2) 71,202 33,154 Deposits (3) 86,796 62,540 Prepaid rental expenses 617 412 Prepaid advertising expenses 4,085 5,482 Short-term loan receivables (4) 121,949 130,629 Share transfer consideration receivable (5) 97,667 — VAT-input 115,252 126,455 Staff advance 640 151 Receivables from disposal of a subsidiary (6) — 26,676 Others 32,555 27,896 Less: allowance for credit losses — (2,972 ) 567,432 410,423 (1) The Group engages third party vendors to provide sales and marketing related training to its members, including on-line (2) Receivables from third-party payment settlement platform represent cash due from the third party on-line (3) Deposits mainly represent the customs deposits held in customs bank accounts, which were RMB 65,000 and RMB 38,000 as of December 31, 2019 and 2020, respectively. (4) Short-term loan receivables represent the principal and interest to be collected on three loans provided by the Group to a customer. As of December 31, 2020, the loans include one principal amount of US$ 10.3 million (equivalent to RMB 67,206), one principal amount of US$ 4.7 million (equivalent to RMB 30,667) and the other with principal amount of US$ 5.0 million (equivalent to RMB 32,625). As of December 31, 2019, the loans include one principal amount of US$ 10.3 million, which was renewed in 2020, and include the other with principal amount of RMB 50,000. The terms of loans are of one-year (5) Share transfer consideration receivable represents the consideration to be collected for transferring of a third party company’s ADSs. In November 2019, the Group subscribed 820,000 ADSs of a third party company with a total consideration of US$ 13.94 million upon its initial public offering in NASDAQ. According to a shares transfer agreement that the Group entered into, the Group sold and transferred all these ADSs to another third party with a fixed consideration of US$ 13.99 million (equivalent to RMB 97.67 million) in December 2019 and the gain of US$50 was recorded in Financial income, net. The Group received the consideration in January 2020. (6) In the fourth quarter of 2020, the Group disposed a subsidiary, Wuhan Yunteng Logistics Co., Ltd. (“Wuhan Yunteng”), to a third party for a total cash consideration of RMB 26,676, with a loss of RMB 1.0 million recorded in other non-operating |
INVENTORIES, NET
INVENTORIES, NET | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
INVENTORIES, NET | 7. INVENTORIES, NET As of December 31, 2019 2020 RMB RMB Merchandise and packing materials 428,763 145,773 Less: inventory write-downs (441 ) (10,528 ) Inventories, net 428,322 135,245 |
PROPERTY, EQUIPMENT AND SOFTWAR
PROPERTY, EQUIPMENT AND SOFTWARE, NET | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, EQUIPMENT AND SOFTWARE, NET | 8. PROPERTY, EQUIPMENT AND SOFTWARE, NET Property, equipment and software, net, consist of the foll o As of December 31, 2019 2020 RMB RMB Leasehold improvement 29,421 32,417 Electronic equipment 25,990 21,932 Furniture 10,117 6,669 Software 2,441 4,336 Vehicles 1,101 1,101 Construction in progress 3,144 874 Subtotal 72,214 67,329 Less: accumulated depreciation (26,870 ) (41,319 ) Property, equipment and software, net 45,344 26,010 Depreciation expenses were RMB 9,306, RMB 18,021 and RMB 21,054 for the years ended December 31, 2018, 2019 and 2020, respectively. No impairment charges were recorded for the years ended December 31, 2018, 2019 and 2020. As of December 31, 2019 and 2020, the balances of construction in progress were RMB 3,144 and RMB 874 which were primarily relating to the leasehold improvements of office buildings. |
LONG-TERM INVESTMENTS
LONG-TERM INVESTMENTS | 12 Months Ended |
Dec. 31, 2020 | |
Long-term Investments [Abstract] | |
LONG-TERM INVESTMENTS | 9. LONG-TERM INVESTMENTS The Group’s long-term investments consist of the following: As of December 31, 2019 2020 RMB RMB Equity method investments 36,588 58,479 Equity securities accounted for under alternative measurement 4,200 5,900 Equity securities with readily determinable fair values 158,072 94,552 Long-term investments 198,860 158,931 Major investments made by the Company during the years ended December 31, 2018, 2019 and 2020 are summarized as follows: Investments accounted for using equity method The investments accounted for using equity method represent the Group’s equity investment over which the Group is able to exercise significant influence in the form of ordinary shares of the investee. The investments accounted for under equity methods are individually immaterial for the periods presented. The carry amount and unrealized securities holding gain/ (loss) for the investments under equity method as of December 31, 2020 was as follows, Equity method investments Total value booked under equity method as of December 31, 2018 16,799 Addition 23,200 Dividends received (190 ) Share of cumulative loss for the year ended December 31, 2019 (3,221 ) Total value booked under equity method as of December 31, 2019 36,588 Addition 28,883 Dividends received (204 ) Disposal of long-term investments (2,954 ) Share of cumulative loss for the year ended December 31, 2020 (3,834 ) Total value booked under equity method as of December 31, 2020 58,479 Equity securities accounted for under alternative measurement The investments accounted for under alternative measurement represent the Group’s equity investment over which the Group is not able to exercise significant influence in the form of ordinary shares of the investee. The equity investments accounted for under alternative measurement are individually immaterial for the periods presented. Equity securities with readily determinable fair values Investment in GXG In May 2019, the Group purchased 22,740,000 ordinary shares of a Hong Kong listed Company - GXG (1817. HK) - with a total consideration of US$ 13 million, and recorded its investment in GXG with initial cost of US$ 13 million (equivalent to approximately RMB 89,517). As of December 31, 2019 and 2020, based on the market price, the Group re-measured |
OTHER NON-CURRENT ASSESTS
OTHER NON-CURRENT ASSESTS | 12 Months Ended |
Dec. 31, 2020 | |
Other Assets, Noncurrent [Abstract] | |
OTHER NON-CURRENT ASSESTS | 10. OTHER NON-CURRENT Other non-current As of December 31, 2019 2020 RMB RMB Long-term loan receivable (1) 50,278 53,612 Prepayment of an office building (2) — 78,000 Others 6,003 18,695 Less: allowance for doubtful accounts (1,514 ) 56,281 148,793 (1) Long-term loan receivable represents the principal and interest to be collected of a loan provided by the Group to a third party. The loan was of principal amount of RMB 50,000, three-year (2) The Group purchased an office building from a third party and paid the full amount in advance with consideration of USD$11.25 million (equivalent RMB 78,000). This office building is expected to be used by the Group to relocate its customer service center in the future. |
ACCOUNTS PAYABLE
ACCOUNTS PAYABLE | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
ACCOUNTS PAYABLE | 11. ACCOUNTS PAYABLE As of December 31, 2019 2020 RMB RMB Merchandise purchase payables 548,427 292,515 Warehouse and logistic fees payables 48,327 7,512 Payable to merchants (1) 145,205 201,522 741,959 501,549 (1) Payable to merchants represents the unpaid balances to the merchants of cash collected by the Group on behalf of the merchants for products sold on Yunji App when the Group is viewed as the agent in the sales arrangement. |
DEFERRED REVENUE
DEFERRED REVENUE | 12 Months Ended |
Dec. 31, 2020 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
DEFERRED REVENUE | 12. DEFERRED REVENUE As of December 31, 2019 2020 RMB RMB Deferred merchandise revenue 129,224 40,645 Deferred membership program revenue 42,438 — Deferred marketplace revenue 9,800 9,113 Deferred other revenue 366 1,193 181,828 50,951 The revenue recognized in the years ended December 31, 2018, 2019 and 2020 that was included in deferred revenue as of the beginning of each respective period were RMB 323,551, RMB 546,975 and RMB 181,828, respectively. |
INCENTIVE PAYABLES TO MEMBERS
INCENTIVE PAYABLES TO MEMBERS | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
INCENTIVE PAYABLES TO MEMBERS | 13. INCENTIVE PAYABLES TO MEMBERS As of December 31, 2019 2020 RMB RMB Accruals of Yunbi granted under member incentive program 251 — Discounts and referral incentive payable (1) 384,235 312,170 Total incentive payables to members 384,486 312,170 (1) Discounts and referral incentive payable represents unpaid balances of discounts granted to members for their self-purchase and referral incentives earned by the members for their referral efforts and is transferred to the members’ individual Yunji App accounts. These unpaid balances are maintained collectively in the members’ Yunji App accounts and can be withdraw as cash upon the members’ requests. |
REFUND PAYABLE TO MEMBERS
REFUND PAYABLE TO MEMBERS | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
REFUND PAYABLE TO MEMBERS | 14. REFUND PAYABLE TO MEMBERS As of December 31, 2019 2020 RMB RMB Refund payable to members 26,883 4,398 Refund payable to members represents the estimated referral incentives expected to be refunded to referring members from the upfront membership fees paid and the merchandise purchases for their own accounts (Note 2.17). The movement of refund payable to members during the periods presented are as follows: Refund payable to members Balance as of December 31, 2017 147,943 Estimated referral incentives to be refunded 626,853 Referral incentives earned (1) (378,772 ) Balance as of December 31, 2018 396,024 Balance as of December 31, 2018 396,024 Estimated referral incentives to be refunded 132,989 Referral incentives earned (1) (122,760 ) Change in estimate (2) (379,370 ) Balance as of December 31, 2019 26,883 Balance as of December 31, 2019 26,883 Estimated referral incentives to be refunded 8,021 Referral incentives earned (1) (6,985 ) Change in estimate (2) (23,521 ) Balance as of December 31, 2020 4,398 (1) Once the referral incentives are earned by the referring members, the amounts are transferred to the members’ individual Yunji App accounts and recorded as Incentive payables to members (Note 13). (2) The estimation of refund payable to members is based upon the historical data of referral incentives earned by referring members within their active life cycle. The balance of the payable was RMB 26,883 and RMB 4,398 as of December 31, 2019 and 2020, respectively, and reflected the Company’s member’s referral behavior in light of its ongoing refinement of its membership enrollment system. In June 2019, the Company, at its discretion, launched a series of promotion activities which allowed non-member non-paid non-member |
MEMBER MANAGEMENT FEES PAYABLE
MEMBER MANAGEMENT FEES PAYABLE | 12 Months Ended |
Dec. 31, 2020 | |
Member Management Fee Payable [Abstract] | |
MEMBER MANAGEMENT FEES PAYABLE | 15. MEMBER MANAGEMENT FEES PAYABLE As of December 31, 2019 2020 RMB RMB Member management fees payable 78,355 45,841 The Group engages third party vendors to provide management service in the member’s community, including organizing product launch events, collecting members or Yunji App users’ feedbacks, etc. Member management fees payable represents the Group’s unpaid balance of such service fees to the third party vendors. For the years ended December 31, 2018, 2019 and 2020, member management fees were RMB 834,576, RMB 876,769 and RMB 418,194, presented in Sales and marketing expenses in the Consolidation Statements of Comprehensive Loss. |
OPERATING LEASE
OPERATING LEASE | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Lessee, Operating Leases | 16. OPERATING LEASE The Company has operating leases primarily for office and operation space. The Company’s operating lease arrangements have remaining terms of one year to five years with no variable lease costs. Operating lease costs were RMB 19,135 and 15,732 for the years ended December 31, 2019 and 2020. Supplemental cash flow information related to leases were as follows: Year Ended December 31, 2019 Year Ended December 31, 2020 RMB RMB Cash paid for amounts included in the measurement of lease liabilities 17,528 14,686 Right-of-use 46,551 — Supplemental consolidated balance sheet information related to leases were as follows: As of December 31, 2019 2020 RMB RMB Right-of-use 43,043 11,324 Operating lease liabilities - current 17,559 6,988 Operating lease liabilities – non-current 27,734 8,309 Total lease liabilities 45,293 15,297 Weighted average remaining lease term 3 1.7 Weighted average discount rate 4.75 % 4.75 % Maturities of lease liabilities are as follows: As of December 31, 2020 RMB 2021 7,316 2022 5,392 2023 3,454 2024 61 2025 — Total operating lease payments 16,223 Less: imputed interest (926 ) Total 15,297 For the years ended December 31, 2018, the Company recognized lease expense of RMB 17,522 respectively, under ASC 840. |
OTHER PAYABLE AND ACCRUED LIABI
OTHER PAYABLE AND ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
OTHER PAYABLE AND ACCRUED LIABILITIES | 17. OTHER PAYABLE AND ACCRUED LIABILITIES As of December 31, 2019 2020 RMB RMB Supplier deposits (1) 86,132 86,759 Merchants deposits (2) 80,643 68,903 Rental fee payables 438 720 IT related service fees 22,937 2,913 Accrued professional fees 8,179 9,106 Salaries and welfare payable 94,973 60,737 Taxes payable 40,498 19,044 Accrued marketing and other operational expenses 13,963 21,576 Others 1,348 10,828 349,111 280,586 (1) The deposit obtained from the suppliers is to ensure inventory level ready for the Group to purchase and good product quality under the Group’s sales of merchandise business model. (2) The deposit obtained from the merchants is to ensure implementation of Yunji App’s platform policy and good product quality to be sold by the merchants on Yunji App under the Group’s marketplace business model. The deposit can be withdrawn immediately after the merchants terminate its online shop on Yunji App. |
OTHER OPERATING INCOME
OTHER OPERATING INCOME | 12 Months Ended |
Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |
OTHER OPERATING INCOME | 18. OTHER OPERATING INCOME Year Ended December 31, 2018 Year Ended December 31, 2019 Year Ended December 31, 2020 RMB RMB RMB VAT-in super deduction (1) — 25,047 4,830 Government grants (2) 7,048 43,599 25,172 Others — — 3,216 7,048 68,646 33,218 (1) From 2019, in accordance with “the Announcement on Relevant Policies for Deepening the Value-added Tax Reform” and relevant government policies announced by the Ministry of Finance, the State Taxation Administration and the General Administration of Customs of China, one China VIE of the Company, as a consumer service company, is allowed to enjoy additional 10% VAT-in (“VAT-in VAT-in VAT-in (2) Government grants mainly represent cash subsidies received from PRC local governments for companies operating a business in their jurisdictions and compliance with specific policies promoted by the local governments. Starting from January 2020, the Company presents government grants as Other operating income. The relevant item in the prior years of RMB 7,048 and RMB 43,599 for the years ended December 31, 2018 and 2019 are also classified from Other non-operating |
OTHER NON-OPERATING INCOME_(LOS
OTHER NON-OPERATING INCOME/(LOSS), NET | 12 Months Ended |
Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |
OTHER NON-OPERATING INCOME/(LOSS), NET | 19. OTHER NON-OPERATING Year Ended December 31, 2018 Year Ended December 31, 2019 Year Ended December 31, 2020 RMB RMB RMB Loss on disposal of long-term investments and a subsidiary — — 1,610 Others — 8,497 — — 8,497 1,610 |
FINANCIAL INCOME_(EXPENSE), NET
FINANCIAL INCOME/(EXPENSE), NET | 12 Months Ended |
Dec. 31, 2020 | |
Financial Income And Expense [Abstract] | |
FINANCIAL INCOME/(EXPENSE), NET | 20. FINANCIAL INCOME/(EXPENSE), NET Year Ended December 31, 2018 Year Ended December 31, 2019 Year Ended December 31, 2020 RMB RMB RMB Interest income 46,919 52,889 46,667 Interest expense — — (6,383 ) Gains/(loss) from fair value change of equity securities with readily determinable fair value (1) — 68,555 (53,683 ) Bank charges (851 ) (444 ) (709 ) Others — 370 5,537 46,068 121,370 (8,571 ) (1) Gain from fair value change of equity securities with readily determinable fair value represents the unrealized changes of fair value of investment in GXG (Note 9). |
TAXATION
TAXATION | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
TAXATION | 21. TAXATION (a) Value added tax (“VAT”) and surcharges The Group is subject to statutory VAT rate of 11% prior to May 1, 2018 , 10% between and April 1, 2019, and 9% since April 1, 2019 between and April 1, 2019, and 13% since April 1, 2019 The Group is subject to VAT at the rate of 11% prior to May 1, 2018, 10% between May 1, 2018 and April 1, 2019, and 9% since April 1, 2019 for the logistics services. (b) Income tax Cayman Islands Under the current laws of the Cayman Islands, the Company and its subsidiaries incorporated in the Cayman Islands are not subject to tax on income or capital gain. Additionally, the Cayman Islands does not impose a withholding tax on payments of dividends to shareholders. Hong Kong Under the current Hong Kong Inland Revenue Ordinance, the Group’s subsidiaries in Hong Kong are subject to 16.5% Hong Kong profit tax on its taxable income generated from operations in Hong Kong. Additionally, payments of dividends by the subsidiaries incorporated in Hong Kong to the Company are not subject to any Hong Kong withholding tax. China On March 16, 2007, the National People’s Congress of PRC enacted a new Enterprise Income Tax Law (“new EIT law”), under which Foreign Investment Enterprises (“FIEs”) and domestic companies would be subject to enterprise income tax at a uniform rate of 25%. The new EIT law became effective on January 1, 2008. In accordance with the implementation rules of EIT Law, a qualified “High and New Technology Enterprise” (“HNTE”) is eligible for a preferential tax rate of 15%. The HNTE certificate is effective for a period of three years. An entity could re-apply Zhejiang Jishang Preferred E-Commerce The Group’s other PRC subsidiaries, VIEs and VIEs’ subsidiaries are subject to the statutory income tax rate of 25%. According to relevant laws and regulations promulgated by the State Administration of Tax of the PRC effective from 2008 onwards, enterprises engaging in research and development activities are entitled to claim 150% of their qualified research and development expenses so incurred as tax deductible expenses when determining their assessable profits for the year (‘Super Deduction’). The additional deduction of 50% of qualified research and development expenses can only be claimed directly in the annual EIT filing and subject to the approval from the relevant tax authorities. Effective from 2018 onwards, enterprises engaging in research and development activities are entitled to claim 175% of their qualified research and development expenses so incurred as tax deductible expenses. The additional deduction of 75% of qualified research and development expenses can be directly claimed in the annual EIT filing. Withholding tax on undistributed dividends The new EIT Law also provides that an enterprise established under the laws of a foreign country or region but whose “actual management body” is located in the PRC be treated as a resident enterprise for PRC tax purposes and consequently be subject to the PRC income tax at the rate of 25% for its global income. The Implementing Rules of the EIT Law merely define the location of the “actual management body” as “the place where the exercising, in substance, of the overall management and control of the production and business operation, personnel, accounting, property, etc., of a non-PRC Withholding tax on undistributed dividends (continued) The new EIT law also imposes a withholding income tax of 10% on dividends distributed by an FIE to its immediate holding company outside of China, if such immediate holding company is considered as a non-resident As of December 31, 2019 and 2020, the Group does not have any plan to require its PRC subsidiaries to distribute their retained earnings and intends to retain them to operate and expand its business in the PRC. Accordingly, no deferred income tax liabilities on withholding tax were provided as of December 31, 2019 and 2020. Composition of income tax The components of loss before tax are as follow: Year Ended December 31, 2018 Year Ended December 31, 2019 Year Ended December 31, 2020 RMB RMB RMB Loss before tax Loss from PRC entities (61,767 ) (204,937 ) (5,399 ) Income/(loss) from overseas entities 14,795 67,604 (103,161 ) Total loss before tax (46,972 ) (137,333 ) (108,560 ) Year Ended December 31, 2018 Year Ended December 31, 2019 Year Ended December 31, 2020 RMB RMB RMB Current income tax expense 25,413 13,300 10,458 Deferred income tax (benefit)/expense (13,067 ) (30,020 ) 28,840 12,346 (16,720 ) 39,298 Reconciliation of the differences between statutory tax rate and the effective tax rate Reconciliation of the differences between the statutory EIT rate applicable to losses of the consolidated entities and the income tax expenses of the Group: Year Ended December 31, 2018 Year Ended December 31, 2019 Year Ended December 31, 2020 PRC Statutory income tax rate 25 % 25 % 25 % Effect on tax rates in different tax jurisdiction 3 % 8 % -9 % The effect of change in the tax rate of Jishang Preferred -76 % 26 % 0 % Difference in EIT rates of PRC entities 9 % 0 % 0 % Non-deductible expenses -4 % -2 % -1 % Additional deduction for research and development expenditures 25 % 16 % 48 % Share-based compensation -17 % -23 % -23 % Non-taxable 7 % 0 % 0 % Permanent book-tax 0 % 2 % 7 % Change in valuation allowance 2 % -40 % -83 % Effective tax rates -26 % 12 % -36 % (c) Deferred tax assets and deferred tax liabilities The following table sets forth the significant components of the deferred tax assets: As of December 31, 2019 2020 RMB RMB Deferred tax assets Net accumulated losses-carry forward 150,990 205,487 Deferred membership program revenue 10,610 — Refund payable to members 6,721 1,100 Inventory write-downs 110 2,632 Allowance for credit losses — 3,272 Others 6,961 4,101 Less: valuation allowance (65,225 ) (156,150 ) Total deferred tax assets 110,167 60,442 As of December 31, 2019 2020 RMB RMB Deferred tax liabilities Prepaid member training costs 9,288 — Gain or loss from changes in fair values 11,312 2,684 Others 3,104 135 Total deferred tax liabilities 23,704 2,819 Movement of valuation allowance Year Ended December 31, 2018 Year Ended December 31, 2019 Year Ended December 31, 2020 RMB RMB RMB Balance at beginning of the year (11,153 ) (10,004 ) (65,225 ) Changes of valuation allowance(1) 1,149 (55,221 ) (90,925 ) Balance at end of the year (10,004 ) (65,225 ) (156,150 ) (1) Valuation allowances have been provided against deferred tax assets when the Group determines that it is more likely than not that the deferred tax assets will not be utilized in the future. In making such determination, the Group evaluates a variety of factors including the Group’s entities’ operating history, accumulated deficit, existence of taxable temporary differences and reversal periods. As of December 31, 2019 and 2020, valuation allowances on a large part of deferred tax assets were provided because it was more likely than not that the Group will not be able to utilize tax loss carry forwards generated by certain unprofitable subsidiaries. As of December 31, 2019 and 2020, valuation allowances of RMB 55,221 and RMB 90,925 were provided against deferred tax assets because it was more likely than not that such portion of deferred tax will not be realized based on the Company’s estimate of future taxable incomes of all its subsidiaries. As of December 31, 2020, net operating loss carry forwards from PRC entities will expire as follows: At December 31, RMB 2021 41 2022 11,832 2023 484 2024 356,494 2025 258,501 627,352 As of December 31, 2020, the Group had tax losses carry forwards of approximately RMB 627,352 which mainly arose from its subsidiaries, consolidated VIEs and VIEs’ subsidiaries established in the PRC. The tax losses carry forwards from PRC entities will expire during the period from 2021 to 2025. |
ORDINARY SHARES
ORDINARY SHARES | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
ORDINARY SHARES | 22. ORDINARY SHARES In November 2017, the Company was incorporated as limited liability company with authorized share capital of US$50 divided into 500,000,000 shares with par value US$0.0001 each. As of December 31, 2017, 1 ordinary share was issued and outstanding. In January 2018, the shares were subdivided into 10,000,000,000 shares with par value US$0.000005 each. 1 ordinary share was subdivided into 20 ordinary shares (the “Share Split”) and was therefore after issued and outstanding. As of December 31, 2019 and 2020, 20,000,000,000 ordinary shares had been authorized and a total of 2,158,791,222 ordinary shares, co n Immediately prior to the completion of the IPO, all classes of preferred shares of the Company were converted and re-designated one re-designated re-designated On May 3, 2019, the Company completed its IPO on NASDAQ Global Select Market. The Company offered 110,000,000 Class A ordinary shares which represented 11,000,000 ADSs. Subsequently on June 4, 2019, over-allotment option were electedly exercised and the Company issued additional 2,174,470 shares of Class A Ordinary Shares issued at a price of US$1.10 per share. On August 28, 2019, the Company was authorized by the Board of Directors to, from time to time, acquire up to an aggregate of US$20 million of its shares in the form of ADSs and/or the ordinary shares of the Company over the next six months in the open market and through privately negotiated transactions, in block trades and/or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations. As of December 31, 2020, the Company cumulatively repurchased 40,076,270 Class A ordinary shares at price of US$0.40 to $0.70. |
CONVERTIBLE REDEEMABLE PREFERRE
CONVERTIBLE REDEEMABLE PREFERRED SHARES | 12 Months Ended |
Dec. 31, 2020 | |
Convertible Preferred Stock [Abstract] | |
CONVERTIBLE REDEEMABLE PREFERRED SHARES | 23. CONVERTIBLE REDEEMABLE PREFERRED SHARES In July 2015, pursuant to an investment agreement, the Company issued 373,000,000 Series Seed Preferred Shares with total cash of RMB50,000, and incurred issuance cost of RMB1,000. In November 2016 and January 2017, pursuant to an investment agreement, the Company issued 272,600,000 Series A Preferred Shares with total consideration of RMB33,160 and US$20,000 (RMB 138,532 equivalent) as well as the full exercise of the Series Seed Warrant at fair value of RMB644 and the full exercise of Series A Warrant at fair value of RMB1,754. Total issuance cost in the amount of RMB8,095 was incurred for the Former Series A Capital Contribution, including a finder’s commission of RMB 6,509. Furthermore, the Company issued 116,600,000 Series A Preferred Shares with the subscription price at US$0.000005 per share to two of the institutional investors of the Initial Ordinary Shareholders, which was accounted for as a modification/extinguishment to Series A Preferred Shares from the Initial Ordinary Shareholders’ contributions. In February 2018, pursuant to a share purchase agreement, the Company issued 110,803,324 shares of Series B Preferred Shares for cash of US$100,000(RMB 630,010 equivalent). Total issuance cost in the amount of RMB14,062 was incurred for the Series B Preferred Shares, including a finder’s commission of US$2,000 (RMB12,600 equivalent). The Company paid 50% of the commission in cash amounted US$1,000 and the remaining 50% by issuance of 1,108,033 shares of Series B Preferred Shares for no consideration to the finder, a financial advisor in June 2018. The total of the finder’s commission was also recorded as an issuance cost as a deduction of the preferred shares. In June and November 2018, pursuant to a share purchase agreement, the Company issued 21,105,395 shares of Series B+ Preferred Shares for cash of US$20,000 (RMB 128,416 equivalent) with issuance cost in the amount of RMB5,867. The Series Seed, Series A, Series B and Series B+ Preferred Shares are collectively referred to as the “Preferred Shares”. All series of Preferred Shares have the same par value of US0.000005 per share. All of Preferred Shares were converted into Class A ordinary shares immediately upon the completion of the Company’s initial public offerings on May 3, 2019 (Note 22). Prior to their conversion, Preferred Shares were entitled to certain preference with respect to conversion, redemption, dividends and liquidation. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE-BASED COMPENSATION | 24. SHARE-BASED COMPENSATION On December 19, 2017, the Company adopted the 2017 Share Incentive Plan (“the 2017 Plan”), which allows the compensation committee to grant options and restricted share units (“RSU”) of the Company to its directors, employees, and etc. (collectively, the “Grantees”) to acquire ordinary shares of the Company at an exercise price as determined by the Compensation Committee at the time of grant. The 2017 Plan was amended and restated in its entirety in March 2019 and referred to as the 2019 Plan. The awards granted and outstanding under the 2017 Plan survive the termination of the 2017 Plan and remain effective and binding under the 2019 Plan. According to the 2019 Plan, 227,401,861 ordinary shares were authorized and reserved for the issuance. Since adoption of the 2017 Plan, the Company granted options and RSUs to employees. All options and RSUs granted have a contractual term of six years from the grant date, and the vest over a period of four years of continuous service, half (1/2) of which vest upon the second anniversary one-fourth The Company accounted for the share-based compensation costs on a straight-line bases over the requisite service period for the award based on the fair value on their respectively grant date. On December 19, 2017, June 30, 2018, November 28, 2018, and January 31, 2019 the Company granted 73,225,200, 12,021,500, 5,540,000 and 4,968,000 stock options to its directors and employees, respectively. In addition, on December 19, 2017, November 28, 2018 and January 31, 2019, the Company granted 5,000,000, 19,800,000 and 14,925,000 RSUs to its directors and employees, respectively. On May 3, 2019, the Company granted 720,000 stock options to its two independent directors. In addition, on May 3, 2019, the Company was authorized by its Board of Directors to grant stock options and RSUs to non-employees non-employees On January 1 2020, the Company granted 356,210 and 49,964,000 RSUs to its two external consultants and employees, respectively. In addition, on July 1, 2020, the Company granted 13,890,000 RSUs to its directors and employees. (a) Options The following table sets forth the stock options activity for the years ended December 31, 2018, 2019 and 2020: Number of Weighted- Weighted Aggregate US$ 000’US$ Outstanding as of December 31, 2018 87,112,400 0.12 5.09 60,399 Granted 16,097,050 0.61 Forfeited (7,954,980 ) 0.31 Exercised (1,407,920 ) 0.09 Outstanding as of December 31, 2019 93,846,550 0.19 3.77 30,442 Granted — — Forfeited (16,014,140 ) 0.11 Exercised (9,151,290 ) 0.10 Expired (115,200 ) 0.14 Outstanding as of December 31, 2020 68,565,920 0.22 2.65 2,826 Vested and expected to vest as of December 31, 2020 68,565,920 Exercisable as of December 31, 2020 53,535,110 — — — The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the estimated fair value of the underlying stock at each reporting date (December 31, 2019: US$0.46, December 31, 2020: US$ 0.19). The Group uses the Binominal option pricing model to estimate the fair value of stock options. The assumptions used to value the Company’s options grants were as follow: 2019 2020 Exercise price (US$) 0.1~0.7 N/A Exercise multiple 2.2~2.8 N/A Risk-free interest rate 1.68%~2.47 % N/A Expected term (in years) 6 N Expected dividend yield — N/A Expected volatility 39.91%~41.29 % N/A Expected forfeiture rate (post-vesting) 0%/5 % N/A Fair value of the underlying shares on the date of options grants (US$) 0.46~1.42 N/A Fair value of share option (US$) 0.11~1.32 N/A Risk-free interest rate is estimated based on the yield curve of US Sovereign Bond as of the option valuation date. The expected volatility at the grant date and each option valuation date is estimated based on annualized standard deviation of daily stock price return of comparable companies with a time horizon close to the expected expiry of the term of the options. The Company has never declared or paid any cash dividends on its capital stock, and the Group does not anticipate any dividend payments in the foreseeable future. Expected term is the contract life of the options. Share-based compensation expense is recorded on a straight-line basis over the requisite service period, which is generally four years from the date of grant. The Company recognized share-based compensation expenses of RMB48,298, RMB 66, 190 As of December 31, 2019 and 2020, there was RMB137,487 and RMB40,192, respectively, in total unrecognized compensation expense, related to unvested share options, which is expected to be recognized over a weighted average period of 1.97 and 0.8 years, respectively. The unrecognized compensation expense may be adjusted for future changes in actual forfeitures. (b) Restricted share units A summary of activities of the service-based RSUs for the years ended December 31, 2018, 2019 and 2020 is presented below: Number of Weighted-Average Grant-Date Fair Value US$ Unvested at December 31, 2018 24,800,000 0.74 Granted 18,257,040 0.68 Vested (3,036,290 ) Forfeited (3,185,900 ) Unvested at December 31, 2019 36,834,850 0.76 Granted 64,210,210 0.43 Vested (954,960 ) Forfeited (51,629,000 ) Expired (500,000 ) Unvested at December 31, 2020 47,961,100 0.63 The fair value of each restricted share units granted with service conditions is estimated based on the fair market value of the underlying ordinary shares of the Company on the date of grant. As of December 31, 2019 and 2020 3,036,290 RSUs and 954,960 RSUs were vested. For the years ended December 31, 2018, 2019 and 2020, total share-based compensation expenses recognized by the Group for the RSUs granted were RMB6,002, RMB62,007 and RMB45,508, respectively. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | 25. FAIR VALUE MEASUREMENTS As of December 31, 2019 and 2020, information about inputs into the fair value measurement of the Group’s assets and liabilities that are measured or disclosed at fair value on a recurring basis in periods subsequent to their initial recognition is as follows: Fair value measurement at reporting date using Description Fair value Quoted Prices in Active Significant Other Significant RMB RMB RMB RMB Assets: Short-term investments Time deposits 593,954 — 593,954 — Wealth management products 180,782 — 180,782 — Long-term investments Equity securities with readily determinable fair value 158,072 158,072 — — Total assets 932,808 158,072 774,736 — Fair value measurement at reporting date using Description Fair value Quoted Prices in Active Significant Other Significant RMB RMB RMB RMB Assets: Short-term investments Time deposits 134,146 — 134,146 — Long-term investments Equity securities with readily determinable fair value 94,552 94,552 — — Total assets 228,698 94,552 134,146 — When available, the Group uses quoted market prices to determine the fair value of an asset or liability. If quoted market prices are not available, the Group will measure fair value using valuation techniques that use, when possible, current market-based or independently sourced market parameters, such as interest rates and currency rates. Following is a description of the valuation techniques that the Group uses to measure the fair value of assets that the Group reports in its Consolidated Balance Sheets at fair value on a recurring basis. Short-term investments Short-term investment consists of wealth management products and time deposits, which are valued by the Group on a recurring basis. The Group values its short-term wealth management products investments held in certain banks using model-derived valuations based upon discounted cash flow, in which significant inputs, mainly including expected return, are observable or can be derived principally from, or corroborated by, observable market data, and accordingly, the Group classifies the valuation techniques that use these inputs as Level 2. The expected return of the financial products were determined based on the prevailing interest rates in the market. Long-term investments Equity securities with readily determinable fair values are measured and recorded at fair value on a recurring basis with changes in fair value. The Group values these equity securities at its quoted prices in stock market, and accordingly the Group classifies the valuation techniques that use these inputs as Level 1. |
NET LOSS PER SHARE
NET LOSS PER SHARE | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
NET LOSS PER SHARE | 26. NET LOSS PER SHARE Basic and diluted net loss per share for each of the years/periods presented are calculated as follows: Year Ended December 31, 2018 Year Ended December 31, 2019 Year Ended December 31, 2020 RMB RMB RMB Numerator: Net loss attributable to YUNJI INC. (59,688 ) (125,762 ) (146,346 ) Accretion on convertible redeemable Preferred Shares to redemption value (2,187,633 ) (1,532,013 ) — Re-designation (60,796 ) — — Deemed dividend from convertible redeemable preferred shares holders 107 — — Net loss attributable to ordinary shareholders (2,308,010 ) (1,657,775 ) (146,346 ) Denominator: Weighted average number of ordinary shares used in computing net loss per share, basic and diluted 1,165,136,438 1,818,487,917 2,125,906,398 Net loss per share attributable to ordinary shareholders: - Basic (1.98 ) (0.91 ) (0.07 ) - Diluted (1.98 ) (0.91 ) (0.07 ) Basic net loss per share is computed using the weighted average number of ordinary shares outstanding during the period. Diluted net loss per share is computed using the weighted average number of ordinary shares and dilutive potential ordinary shares outstanding during the period. For the years ended December 31, 2018, 2019 and 2020, assumed conversion of the Preferred Shares have not been reflected in the dilutive calculations pursuant to ASC 260, “Earnings Per Share,” due to the anti-dilutive effect. The effects of all outstanding share options and RSUs have also been excluded from the computation of diluted loss per share for the years ended December 31, 2018, 2019 and 2020 as their effects would be anti-dilutive. For the years ended December 31, 2018, 2019 and 2020, the Company had potential ordinary shares, including non-vested non-vested |
RELATED PARTY BALANCES AND TRAN
RELATED PARTY BALANCES AND TRANSACTIONS | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
RELATED PARTY BALANCES AND TRANSACTIONS | 27. RELATED PARTY BALANCES AND TRANSACTIONS The table below sets forth the major related parties and their relationships with the Group as of December 31, 2020: Name of related parties Relationship with the Group Xiao Shanglue Founder and CEO of the Group Small Ye Group Controlled by Mr. Xiao Shanglue, Founder and CEO of the Group Wuhan Dahong enterprise management partnership(LP) Non-controlling interest (prior to disposal of Wuhan Yunteng in 2020) Hangzhou Jixi Internet Technology Co., Ltd.(“Jixi”) An associate of the Group (incorporated in 2018) Hangzhou Tianshi Technology Co., Ltd (“Tianshi”) An associate of the Group (incorporated in 2017) Hangzhou Zhangtaihe Health Technology Co., Ltd(“Zhangtaihe”) An associate of the Group (incorporated in 2018) Guangdong Weixin Technology Co., Ltd (“Weixin”) An associate of the Group (incorporated in 2018) Beijing Siwei Technology and Culture Co., Ltd(“Siwei”) An associate of the Group (incorporated in 2018) Hangzhou Adopt A Cow Biological Technology Co., Ltd (“Zhaomu”) An associate of the Group (incorporated in 2018) Hangzhou Bixin Biotechnology Co., Ltd.(“Bixin”) An associate of the Group (incorporated in 2019) Hunan Haomei Haomei Cosmetics Co., Ltd.(“Haomei”) An associate of the Group (incorporated in 2019) Ningbo Langfei Life Electric Co., Ltd.(“Langfei”) An associate of the Group (incorporated in 2019) Shenzhen Liumang Yike Food & Beverage Management Co., Ltd.(“Liumang Yike”) An associate of the Group (incorporated in 2019) Guangzhou Misili Personal Care Products Co., Ltd.(“Misili”) An associate of the Group (incorporated in 2019) Shanxi Yunnong Logistic Management Co., Ltd.(“Yunnong”) An associate of the Group (incorporated in 2019) Zhejiang Zhengdao Fengju Supply Chain Management Co., Ltd.(“Zhengdao”) An associate of the Group (incorporated in 2019) Hangzhou Yuncheng Brand Management Co., Ltd(“Yuncheng”) An associate of the Group (incorporated in 2020) Zhejiang Jimi E-commerce An associate of the Group (incorporated in 2020) Hangzhou Huaji Brand Marketing Management Co., Ltd (“Huaji”) An associate of the Group (incorporated in 2020) Zhejiang Jibi Technology Co., Ltd. (“Jibi”) An associate of the Group (incorporated in 2020) Huzhou Boyun e-commerce An associate of the Group (incorporated in 2020) Yunmu Dairy (Jiangsu) Co., Ltd (“Yunmu”) An associate of the Group (incorporated in 2020) Hangzhou Jiao sanitary products Co., Ltd (“Ji’Ao”) An associate of the Group (incorporated in 2020) Hangzhou Xingsheng Brand Marketing Management Co., Ltd.(“Xingsheng”) An associate of the Group (incorporated in 2020) Hainan Yunding Supply Chain Management Co., Ltd (“Yunding”) An associate of the Group (incorporated in 2020) The Group entered into agreements with aforementioned equity method classified investees as related party transactions, including purchase of merchandise from them and marketplace services provided to them. Details of related party balances and transactions as of December 31, 2018, 2019 and 2020 are as follows: Advance to related parties and amounts due from related parties As of December 31, 2019 2020 RMB RMB Advance to related parties Weixin 5,799 3,682 Amounts due from related parties Wuhan Dahong enterprise management partnership(LP) 20 — Jixi 1,011 3,012 Yuncheng — 971 Others — 176 1,031 4,159 Total 6,830 7,841 Amounts due to related parties As of December 31, 2019 2020 RMB RMB Zhaomu 4,888 4,180 Bixin 303 3,423 Jimi — 2,542 Zhengdao 5,997 2,227 Jixi — 1,828 Haomei 455 1,703 Small Ye Group 658 967 Huaji — 889 Tianshi 179 840 Zhangtaihe 359 641 Yunnong 4,681 605 Jibi — 466 Xingsheng — 343 Poyun — 309 Others 776 2,026 18,296 22,989 The terms of the agreements the Group entered into with the related parties are comparable to the terms in arm’s-length Transactions with related parties Year Ended December 31, 2018 Year Ended December 31, 2019 Year Ended December 31, 2020 RMB RMB RMB Payment on behalf of the related parties Xiao Shanglue 588 — — 588 — — Purchase of merchandise Zhaomu 469 103,269 53,790 Bixin — 69,311 31,825 Zhengdao — 31,418 28,372 Yunnong — 8,006 21,453 Tianshi 39,776 25,295 17,021 Haomei — 13,443 16,404 Weixin 36,958 79,309 9,214 Siwei 307 5,626 7,710 Yunmu — — 4,543 Misili — 8,230 3,315 Huaji — — 2,573 Yuncheng — — 2,239 Ji’Ao — — 1,712 Yunding — — 1,652 Langfei — 3,507 1,117 Xingsheng — — 600 Zhangtaihe 32,110 16,400 482 Small Ye Group — 3,097 307 Others — 431 946 109,620 367,342 205,275 Transactions with related parties (continued) Year Ended December 31, 2018 Year Ended December 31, 2019 Year Ended December 31, 2020 RMB RMB RMB Marketplace service provided to related parties Yuncheng — — 2,932 Bixin — 373 2,759 Jimi — — 2,379 Zhangtaihe — — 876 Jixi — — 574 Jibi — — 522 Liumang Yike — 301 227 Others — 91 701 — 765 10,970 Other goods and services provided to related parties Yuncheng — — 171 Zhaomu — — 73 Weixin — — 58 Bixin — — 31 Others — — 60 — — 393 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 28. COMMITMENTS AND CONTINGENCIES (a) Operating commitment s As of December 31, 2020, the Company had outstanding operating commitments totaling RMB 226, which was the short-term lease payments. (b) Contingencies In the ordinary course of business, the Group is from time to time involved in legal proceedings and litigations. Starting in November 2019, the Group and certain of their officers and directors and others have been named as defendants in putative securities class actions. The actions allege that defendants made misstatements and omissions in connection with the initial public offering in May 2019 in violation of the Securities Act of 1933.The cases are still at the preliminary stage, therefore the Group is unable to predict the outcome of these cases, or reasonably estimate a range of possible loss, if any, given the current status of the litigation. The Group records a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. The Group reviews the need for any such liability on a regular basis. The Group has |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2020 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 29. SUBSEQUENT EVENTS The Company has evaluated subsequent events through April 26, 2021, which is the date these consolidated financial statements are available to be issued. In January and February 2021, the Company granted total 55,988,000 RSUs under the 2019 Plan to its employees, which is only subject to service conditions. As a result of this RSU grant, the Company estimated total share-based compensation expense of approximately US$9.6 million to be recorded in its consolidated financial statements over the vesting period of four years starting from 2021. |
STATUTORY RESERVES AND RESTRICT
STATUTORY RESERVES AND RESTRICTED NET ASSETS | 12 Months Ended |
Dec. 31, 2020 | |
STATUTORY RESERVES AND RESTRICTED NET ASSETS | |
STATUTORY RESERVES AND RESTRICTED NET ASSETS | 30. STATUTORY RESERVES AND RESTRICTED NET ASSETS Pursuant to laws applicable to entities incorporated in the PRC, the Group’s subsidiaries and consolidated VIE from after-tax profit to non-distributable reserve each year-end) until In addition, due to restrictions on the distribution of share capital from the Group’s subsidiaries and consolidated VIE in PRC and also as a result of these entities’ unreserved accumulated losses, total restrictions placed on the distribution of the Group’s PRC subsidiaries’ and consolidated VIEs’ net assets was RMB The Company performed a test on the restricted net assets of consolidated subsidiaries and VIEs in accordance with Securities and Exchange Commission Regulation S-X Rule 4-08 (e) (3), “General Notes to Financial Statements” and concluded that it was not applicable for the Company to disclose the financial statements for the parent company. |
PRINCIPAL ACCOUNTING POLICIES (
PRINCIPAL ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Basis of presentation | 2.1 Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). Significant accounting policies followed by the Group in the preparation of its accompanying consolidated financial statements are summarized below. |
Basis of consolidation | 2.2 Basis of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, the consolidated VIEs and VIEs’ subsidiaries for which the Company is the ultimate primary beneficiary. A subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting power, has the power to appoint or remove the majority of the members of the board of directors, to cast a majority of votes at the meeting of the board of directors or to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. A consolidated VIE is an entity in which the Company, or its subsidiary, through contractual arrangements, bears the risks of, and enjoys the rewards normally associated with, ownership of the entity, and therefore the Company or its subsidiary is the primary beneficiary of the entity. All transactions and balances between the Company, its subsidiaries, VIEs and VIEs’ subsidiaries have been eliminated upon consolidation. |
Non-controlling interests | 2.3 Non-controlling For the Company’s consolidated subsidiaries, VIEs and VIEs’ subsidiaries, non-controlling Non-controlling |
Use of estimates | 2.4 Use of estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the balance sheet date, and the reported revenues and expenses during the reporting periods in the consolidated financial statements and accompanying notes. Significant accounting estimates reflected in the Group’s consolidated financial statements include, but are not limited to the valuation and recognition of refund payable to members, share-based compensation, reserve for excess and obsolete inventories and credit losses for financial instruments. Estimates are based on historical experiences and on various assumptions that the Group believes are reasonable under current circumstances. As of December 31, 2020, the Group considered the economic implications of the COVID-19 The estimation of refunds payable to members is based upon the historical data of referral incentives earned by referring members within their estimated active life cycle. On a quarterly basis, the Company revisits the estimation with a consistently applied approach and the most up-to-date |
Foreign currencies | 2.5 Foreign currencies The Group’s reporting currency is Renminbi (“RMB”). The functional currency of the Group’s holding entities incorporated in Cayman Islands and Hong Kong, China (“HK”) is the United States dollars (“US$”). The Group’s PRC subsidiaries, consolidated VIEs and VIEs’ subsidiaries and the other HK subsidiary determined their functional currency to be RMB. The determination of the respective functional currency is based on the criteria of ASC 830, Foreign Currency Matters and is based primarily on the currency the entity conducts its business in. Transactions denominated in other than the functional currencies are translated into the functional currency of the entity at the exchange rates quoted by authoritative banks prevailing on the transaction dates. Exchange gains and losses resulting from those foreign currency transactions denominated in a currency other than the functional currency are recorded in the Consolidated Statements of Comprehensive Loss. Total exchange loss were RMB 685, RMB 12,397 and RMB 919 for the years ended December 31, 2018, 2019 and 2020, respectively. The financial statements of the Group are translated from the functional currency into RMB. Assets and liabilities denominated in foreign currencies are translated into RMB using the applicable exchange rates at the balance sheet date. Equity accounts other than earnings generated in current period are translated into RMB at the appropriate historical rates. Revenues, expenses, gain and loss are translated into RMB using the periodic average exchange rates. The resulting foreign currency translation adjustments are recorded in other comprehensive income as a component of shareholders’ equity. Total foreign currency translation adjustments to the Group’s other comprehensive income were a gain of RMB 55,565, RMB 33,298 and a loss of RMB 79,411, for the years ended December 31, 2018, 2019 and 2020, respectively. |
Convenience translation | 2.6 Convenience translation Translations of the Consolidated Balance Sheets, the Consolidated Statements of Comprehensive Loss and the Consolidated Statements of Cash Flows from RMB into US$ as of and for the year ended December 31, 2020 are solely for the convenience of the readers and were calculated at the rate of US$1.00=RMB 6.5250, representing the index rates stipulated by the federal reserve board. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2020, or at any other rate. |
Fair value measurements | 2.7 Fair value measurements Accounting guidance defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurement for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. Accounting guidance establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Accounting guidance establishes three levels of inputs that may be used to measure fair value: Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 — Include other inputs that are directly or indirectly observable in the marketplace. Level 3 — Unobservable inputs which are supported by little or no market activity. Accounting guidance also describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach, (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. Financial assets and liabilities of the Group mainly consist of cash and cash equivalents, restricted cash, short-term investments, accounts receivable, amounts due from related parties, prepaid expenses and other current assets, equity securities with readily determinable fair values included in long-term investments, accounts payable, amounts due to related parties, accruals and other liabilities. As of December 31, 2019 and 2020, except for short-term investments and equity securities with readily determinable fair values included in long-term investments, the carrying values of cash and cash equivalents, restricted cash, trade receivables, amounts due from related parties, prepayments and other current assets, trade payables, amounts due to related parties, accruals and other liabilities are approximated to their fair values due to the short-term maturity of these instruments. The Group reports short-term investments at fair value and discloses the fair value of these investments based on level 2 measurement, reports equity securities with readily determinable fair values included in long-term investments at fair value based on level 1 measurement (Note 9). |
Cash and cash equivalents | 2.8 Cash and cash equivalents Cash includes currency on hand and deposits held by financial institutions that can be added to or withdrawn without limitation. Cash equivalents represent short-term, highly liquid investments that are readily convertible to known amounts of cash and with original maturities from the date of purchase of three months or less. |
Restricted cash | 2.9 Restricted cash Cash that is restricted as to withdrawal or for use or pledged as security is reported separately on the face of the Consolidated Balance Sheets. The Group’s restricted cash mainly represents i) security deposits held in designated bank accounts for issuance of bank acceptance and letter of guarantee, ii) deposits held in the Group’s own bank accounts designated by the customs authorities that the Group makes for cross-border comprehensive tax for imported merchandise, iii) cash held in the Group’s own bank accounts, the use of which is restricted to collecting cash on behalf of the merchants for products sold on Yunji App and transferring these cash receipts to the merchants under the bank’s custody. Restricted cash with the restriction period lapsing within one year are classified as current assets in the Consolidated Balance Sheets. |
Short-term investments | 2.10 Short-term investments Short-term investments are comprised of i) time deposits placed with banks with original maturities longer than three months but less than one year, ii) wealth management products issued by PRC banks or other financial institutions, which contains fixed or variable interest with original maturities within one year. Such investments are generally not permitted to be redeemed early or are subject to penalties for redemption prior to maturities. These investments are stated at fair value. Changes in the fair value are reflected in Financial income/(expense), net in the Consolidation Statements of Comprehensive Loss. |
Accounts receivable, net | 2.11 Accounts receivable, net Accounts receivables, net mainly represent amounts due from customers, including the funds extended by the Group to qualified customers, including the merchants, through its factoring arrangements (the “factoring receivables”) and are recorded net of allowance for credit losses. As of December 31, 2019 and 2020, the balance of the factoring receivables was RMB 17,041 and RMB 122,089, respectively (Note 5). Allowance for expected credit losses Starting from January 1, 2020, the Group adopted ASU No. 2016-13, The Group’s accounts receivable, prepaid expenses and other current assets, amounts due from related parties and other non-current To estimate expected credit losses, the Group has identified the relevant risk characteristics of its customers, the related receivables and other receivables which include size, type of the services, the counterparty or the products the Group provides, or a combination of these characteristics. Receivables with similar risk characteristics have been grouped into pools. For each pool, the Group considers the past collection experience, current economic conditions, future economic conditions (external data and macroeconomic factors) and changes in the Group’s customer collection trends. This is assessed at each quarter based on the Group’s specific facts and circumstances. No significant impact of changes in the assumptions since adoption. The following table summarized the details of the Company’s allowance for expected credit losses: 2018 2019 2020 Balance at beginning of year — — — Allowance for credit losses — — 13,089 Balance at end of year — — 13,089 |
Inventories, net | 2.12 Inventories, net Inventories, consisting of products available for sale, are stated at the lower of cost and net realizable value. Cost of inventory is determined using the weighted average cost method. Adjustments are recorded to write down the cost of inventory to the estimated net realizable value due to slow-moving merchandise and damaged goods, which is dependent upon factors such as historical and forecasted consumer demand, and promotional environment. Write downs of RMB 2,540, RMB 3,608 and RMB 40,609 are recorded in Cost of revenues in the Consolidated Statements of Comprehensive Loss for the years ended December 31, 2018, 2019 and 2020, respectively. |
Property, equipment and software, net | 2.13 Property, equipment and software, net Property, equipment and software are stated at cost less accumulated depreciation. Property, equipment and software are depreciated at rates sufficient to write off their costs less impairment and residual value, if any, over the estimated useful lives on a straight-line basis. The estimated useful lives are as follow: Category Estimated useful lives Leasehold improvement Shorter of the term of the lease or the estimated useful lives of the assets Electronic equipment 3 years Furniture 3 years Software 3 years Vehicles 3 years Repairs and maintenance costs are charged to expenses as incurred, whereas the costs of renewals and betterment that extend the useful lives of property, equipment and software are capitalized as additions to the related assets. The Group recognized the gain or loss on the disposal of property, equipment and software in the Consolidated Statements of Comprehensive Loss. Construction in progress represents direct costs that are related to the construction of property, equipment and software and incurred in connection with bringing the assets to their intended use. Construction in progress is transferred to specific property, equipment and software items and the depreciation of these assets commences when the assets are ready for their intended use. |
Long-term investments | 2.14 Long-term investments The Group’s investments include equity method investments, equity securities with readily determinable fair values and equity securities without readily determinable fair values. The Group has investments in privately held companies. The Group applies the equity method of accounting to account for an equity investment, in common stock or in-substance An investment in in-substance Under the equity method, the Group’s share of the post-acquisition profits or losses of the equity investees are recorded in Equity in income of affiliates, net of tax in the Consolidated Statements of Comprehensive Loss. The excess of the carrying amount of the investment over the underlying equity in net assets of the equity investee, if any, represents goodwill and intangible assets acquired. When the Group’s share of losses in the equity investee equals or exceeds its interest in the equity investee, the Group does not recognize further losses, unless the Group has incurred obligations or made payments or guarantees on behalf of the equity investee. Equity securities with readily determinable fair values are measured and recorded at fair value on a recurring basis with changes in fair value, whether realized or unrealized, recorded in Financial income/(expense),net through the Consolidated Statements of Comprehensive Loss. For other equity investments that are not considered as debt securities or equity securities that have readily determinable fair values and over which the Group has neither significant influence nor control through investments in common stock or in-substance |
Impairment of long-lived assets | 2.15 Impairment of long-lived assets Long-lived assets are evaluated for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be fully recoverable or that the useful life is shorter than the Group had originally estimated. When these events occur, the Group evaluates the impairment for the long-lived assets by comparing the carrying value of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted cash flows is less than the carrying value of the assets, the Group recognizes an impairment loss based on the excess of the carrying value of the assets over the fair value of the assets. |
Revenue recognition | 2.16 Revenue recognition The Group adopted ASC Topic 606, “Revenue from Contracts with Customers,” for all periods presented. Consistent with the criteria of Topic 606, the Group recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Group expects to receive in exchange for those goods or services. To achieve that core principle, the Group applies the five steps defined under Topic 606: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Group assesses its revenue arrangements against specific criteria in order to determine if it is acting as principal or agent. Revenue arrangements with multiple performance obligations are divided into separate distinct goods or services. The Group allocates the transaction price to each performance obligation based on the relative standalone selling price of the goods or services provided. Revenue is recognized upon the transfer of control of promised goods or services to a customer. Revenue is recorded net of value-added tax. Revenue recognition policies for each type of revenue steam are as follows: Sales of merchandise The Group primarily sells merchandise through its Yunji App. The Group presents the revenue generated from its sales of merchandise on a gross basis as the Group has control of the goods and has the ability to direct the use of goods to obtain substantially all the benefits. In making this determination, the Group also assesses whether it is primarily obligated in these transactions, is subject to inventory risk, has latitude in establishing prices, or has met several but not all of these indicators. The cash collected from the sales of merchandise is initially recorded in Deferred revenue in the Consolidated Balance Sheets and subsequently recognized as revenue when the receipt of merchandise is confirmed by the customers, which is the point that the control of the merchandise is transferred to the customer. The revenue is recorded net of value-added tax, discounts, coupons, incentives and return allowances. Return allowances are estimated based on historical experiences and updated at the end of each reporting period. Membership program Before January 2020, the Group earns membership fees from its members, who pay a fixed fee in exchange for (1) a merchandise gift package, (2) the right to receive member exclusive discounts for merchandise sold on the Yunji App, (3) access rights to the member-exclusive features on Yunji App, (4) the right to receive units of Yunbi (meaning Yun coin) upon a successful new member referral (“Referral Yunbi”), (5) member exclusive training, and (6) units of Yunbi (“New member Yunbi”). Each of these items represents a separate performance obligation. Yunbi can be used as coupons for the member’s future purchases on Yunji App and therefore reflect material rights. In order to promote its membership program, the Group, at its discretion, allows its users to join the membership program by purchasing any merchandise of equivalent value of the membership fee via Yunji App within a defined period as an alternative way of paying the upfront fixed membership fee, or allows individuals that meet certain requirements to become members without paying membership fee. When users become members in this manner, they are not entitled to the merchandise gift package and member exclusive training. The Group allocates the transaction price to each performance obligation, after taking into consideration expected refunds payable to members (Note 2.17), based on their relative standalone selling price. When the standalone selling price of a performance obligation is not directly observable, it is estimated by the Group by using an expected cost plus a margin approach. For the merchandise gift package, revenue is recognized when the receipt of the gift package is confirmed by the members, which were RMB 1,197,890, RMB 557,936 and nil for the years ended December 31, 2018, 2019 and 2020, respectively. For the right to receive Referral Yunbi, revenue is recognized when Referral Yunbi is used and redeemed, or upon expiration if not redeemed. For New member Yunbi, revenue is recognized when the New member Yunbi is used and redeemed, or upon expiration if not redeemed. The allocated amounts of the transaction price to the right to receive Referral Yunbi and New Member Yunbi incorporate estimation of breakages based upon historical data, and are deferred on the balance sheet upon the collection of the upfront membership fees, which was RMB 108,634 and RMB159,024, RMB 22,104 and RMB 80,553, and nil, for the years ended December 31, 2018, 2019 and 2020, respectively. For member exclusive training, revenue is recognized when the training courses are delivered over the service period by the third-party vendors engaged by the Group. For the remaining performance obligations, revenue is recognized over the period of the active life cycle of the Group’s members on a straight-line basis. The active life cycle of the Group’s members is estimated based on historical behavior of these members, which is approximately one year. In addition, when members subsequently purchase merchandise, the members initially pay for their purchases at non-member Starting from January 2020, the Group has allowed any user to become its member free of charge for one year by simply registering for an account on Yunji App. When users become members in this manner, they are still entitled to enjoy the right to receive member exclusive discounts for merchandise sold on the Yunji App. Marketplace In 2019, the Group launched its marketplace business model, under which the Group operates its e-commerce Remaining performance obligations The remaining performance obligations associated with the Group’s sale of merchandise represents the cash collected upfront from the customers for their purchase of merchandise on Yunji App, but the underlying merchandise has not yet been received by the customers, which is included in the presentation of Deferred revenue (Note 12). As of December 31, 2019 and 2020, the remaining performance obligation for sales of merchandise were RMB 129,224 and RMB 40,645, respectively, which are expected to be recognized as revenue when the receipt of merchandise is confirmed by the customers. Revenue allocated to remaining performance obligations of the Group’s membership program represents that portion of the overall transaction price that has been received (or for which the Group has an unconditional right to payment) allocated to obligations under the membership program that the Group has not yet fulfilled, which is included in the presentation of Deferred revenue (Note 12). As of December 31, 2019 and 2020, the aggregate amount of the transaction price allocated to remaining performance obligations were RMB 42,438 and nil, respectively, which are expected to be recognized as revenue within 12 months. The remaining performance obligations associated with the Group’s marketplace revenue represents the portion of commission fee included in the payment collected from the users for their purchase of merchandise on Yunji App on behalf of the merchants, but the underlying merchandise has not yet been received by the users, which is included in the presentation of Deferred revenue (Note 12). As of December 31, 2019 and 2020, the remaining performance obligation for marketplace revenue was RMB 9,800 and RMB 9,113, which are expected to be recognized as revenue when the transactions are completed. Other goods and services The Group offers products such as air tickets, tourist attractions tickets, cruise, group tour, hotel reservation and car insurance through Yunji App. The Group presents the revenue generated from such sales on a net basis as the Group does not have control of the goods or services or have the ability to direct the use of the goods or services and obtain substantially all of their benefits. Revenue is recognized when the Group has fulfilled its selling performance obligations on behalf of the principal in the transaction, which is either when the products are accepted by the customer, or once the order of the products become non-cancellable The Group also offers loans to qualified customers, including the merchants, and charges an interest based on the principal through factoring arrangements. The Group extends loans to merchants for their expected orders in addition to the loans to the same merchants who factored their accounts receivable generated from their transactions completed on Yunji App with recourse. The Group also extends loans to unrelated customers who factored their accounts receivable derived from their own business with recourse. The Group records factoring receivables, which is included in accounts receivable, when the cash is advanced to its customers (Note 2.11). The interests are recognized over the term of loans, normally within one year. From cash flow perspective, when the Group has legal rights to net settle the factoring receivables from merchants with its payable to merchants, the Group settles such factoring receivables with the payables to the same merchant respectively, provided by the legal rights as per agreement between the two partie s |
Refund payable to members | 2.17 Refund payable to members After joining the Group’s membership program, members are able to make referrals to other users through their social networks. The Group provides incentives to those referring members by paying a cash refund upon a successful merchandise referral. Since customers are only able to receive referral incentives after they become members. When the member become a customer of the Group by either paying the membership fees or making purchase of merchandise sold on Yunji App after they register as a member, the incentives related to merchandise referral are considered payments to customers (and are not payment for a distinct good or service) and accounted for as a refund payable to members. Such refunds are estimated at the time the membership fee is received or at the time that the members make merchandise purchases, and recorded as Refund payable to members, and reduce the transaction price (that the Group expects to be entitled to keep) for the membership fee revenue recognition calculation described above accordingly. Any amount of referral incentives expected to be paid in excess of the initial membership fee received is recorded as Refund payable to members (and reduces merchandise revenue subsequently generated from those members) at the time they make subsequent merchandise purchases, up to the amount of the expected future referral incentives. The estimation of refund payable to members involves the assumption of the members’ active life cycle and the expected number of members who will earn referral incentives, based upon the historical data of referral incentives earned by referring members within their active life cycle (Note 2.4). Once the referral incentives are earned by the referring members, the amounts are transferred to the members’ individual Yunji App accounts and reclassified from Refund payable to members to Incentive payables to members. |
Users incentive programs | 2.18 Users incentive programs The Group grants certain units of Yunbi and other coupons (collectively referred to as coupons), from time to time, to its customers at its discretion in different situations. Yunbi are not redeemable for cash and can be used as a coupon for the customer’s future purchase on the Yunji App. The value of one unit of Yunbi is equivalent to one RMB yuan. The coupons granted can be categorized into 1) coupons granted concurrent with a revenue transaction and 2) coupons granted not concurrent with a revenue transaction. When the coupon is granted concurrent with a revenue transaction, the Group determine whether the coupon represents a material right of the current transaction. If the coupon represents a material right, the transaction price is allocated between merchandise sale and the coupon based on the estimated standalone selling price taking into consideration the coupon’s forfeiture rate. If the coupon does not represent a material right, it is recognized as a reduction of revenue when they are applied in the future sales. When the coupon is not granted concurrent with a revenue transaction, the Company assesses whether the coupons were granted in exchange for a distinct service at fair value. When the coupons are granted in exchange for a distinct service at fair value, they are recorded as expense upon grant. In this case, the person granted coupons in return for their service activities does not need to be a member. When the coupons are not granted in exchange for a distinct service, they can only be applied to the future purchase of certain specified merchandise. These coupons are not accounted for when they are granted and are recognized as a reduction of revenue when they are applied in future sales. Starting from 2019, in order to promote its marketplace business, from time to time, the Group at its own discretion issues coupons in various forms to users without any concurrent transactions in place or any substantive action needed from the recipient. These coupons can be used in purchase of goods in a broad range of merchants as an immediate discount of their next purchase, some of which can only be used when the purchase amount exceeds pre-defined |
Cost of revenues | 2.19 Cost of revenues Cost of revenues consists of purchase price of merchandise, inbound shipping charges, write-downs of inventory and member training costs. Inbound shipping charges to receive merchandise from suppliers are included in the inventories and recognized as cost of revenues upon sale of the merchandise to the customers. |
Fulfilment | 2.20 Fulfilment Fulfilment expenses represent packaging material costs and those costs incurred in outbound shipping, operating and staffing the Group’s fulfilment and customer service centers, including costs attributable to buying, receiving, inspecting and warehousing inventories, picking, packaging and preparing customer orders for shipment, processing payment and related transaction costs and responding to inquiries from customers, depreciation expenses, payroll costs including share-based compensation expenses, and other daily expenses which are related to the purchasing functions. Fulfilment costs also contain third party payment transaction fees, such as bank card processing and debit card processing fees. |
Sales and marketing | 2.21 Sales and marketing Sales and marketing expenses comprise primarily of member management fees, promotion expenses, marketplace coupons, payroll costs including share-based compensation expenses, depreciation expenses and other daily expenses which are related to the sales and marketing functions. The Group engages third party vendors to provide member management services, which are ultimately performed by service managers who enter into employment contract with the third party vendors. Certain of the Group’s members (customers) have been engaged by third party vendors to serve as service managers. The Group has concluded that the member management services provided by the service managers, including those who are also members, are for distinct services at fair value, and records the member management fees paid to the third party vendors as Sales and marketing expenses. |
Technology and content | 2.22 Technology and content Technology and content expenses are expensed as incurred and primarily consist of payroll costs including share-based compensation expenses, rental expenses, costs associated with the computing, storage and telecommunications infrastructure for internal use that support the Group’s system and Yunji App services and other expenses which are related to the technology and content functions, which are responsible for technology research and development and content editing in the Group. The Group accounts for internal use software development costs in accordance with guidance on intangible assets and internal use software. This requires capitalization of qualifying costs incurred during the software’s application development stage and to expense costs as they are incurred during the preliminary project and post implementation/operation stages. Costs capitalized for developing such software application were not material for the periods presented. |
General and administrative | 2.23 General and administrative General and administrative expenses consist of payroll costs including share-based compensation expenses and other expenses which are related to the general corporate functions, including accounting, finance, tax, legal and human relations, costs associated with use by these functions of facilities and equipment, such as depreciation expenses, rental and other general corporate related expenses. |
Share-based compensation | 2.24 Share-based compensation The Company grants restricted share units (“RSUs”) and share options of the Company to eligible employees and accounts for these share-based awards in accordance with ASC 718 Compensation — Stock Compensation. Employees’ share-based awards are measured at the grant date fair value of the awards and recognized as expenses a) immediately at grant date if no vesting conditions are required, or b) using a straight-line method over the requisite service period, which is the vesting period. For nonemployees’ share-based awards, the Group adopted ASU 2018-07 2018-07, All transactions in which goods or services are received in exchange for equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable. Before the Group’s initial public offering, the fair value of RSUs were assessed using the income approach/discounted cash flow method, with a discount for lack of marketability given that the shares underlying the awards were not publicly traded at the time of grant. This assessment required complex and subjective judgments regarding the Company’s projected financial and operating results, its unique business risks, the liquidity of its ordinary shares and its operating history and prospects at the time the grants were made. After the Group’s initial public offering, the fair value of the RSUs is determined based on the quoted market price of Yunji’s ordinary shares on the grant date. In addition, the binomial option-pricing model is used to measure the value of share options. The determination of the fair value is affected by the fair value of the ordinary shares as well as assumptions regarding a number of complex and subjective variables, including the expected share price volatility, actual and projected employee and nonemployee share option exercise behavior, risk-free interest rates and expected dividend yield. Binomial option-pricing model incorporates the assumptions about grantees’ future exercise patterns. The fair value of these awards was determined by management with the assistance from an independent valuation firm using management’s estimates and assumptions. The assumptions used in share-based compensation expense recognition represent management’s best estimates, but these estimates involve inherent uncertainties and application of management judgment. If factors change or different assumptions are used, the share-based compensation expenses could be materially different for any period. Moreover, the estimates of fair value of the awards are not intended to predict actual future events or the value that ultimately will be realized by grantees who receive share-based awards, and subsequent events are not indicative of the reasonableness of the original estimates of fair value made by the Company for accounting purposes. In accordance with ASU 2016-09, |
Employee benefits | 2.25 Employee benefits Full time employees of the Group in the PRC participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing fund and other welfare benefits are provided to the employees. Chinese labor regulations require that the PRC subsidiaries and VIE of the Group make contributions to the government for these benefits based on certain percentages of the employees’ salaries, up to a maximum amount specified by the local government. The Group has no legal obligation for the benefits beyond the contributions made. Total amounts of such employee benefit expenses, which were expensed as incurred, were RMB 299,341, RMB 553,175 and RMB 403,031 for the years ended December 31, 2018, 2019 and 2020, respectively. |
Operating Leases | 2.26 Operating leases The Company applied ASC 842, Leases, on January 1, 2019 on modified retrospective basis and has elected not to recast comparative periods. The Company determines if an arrangement is a lease at inception. Operating leases are primarily for office and warehouse and are included in Operating lease right of use assets, net, Operating lease liabilities, current and Operating lease liabilities, non-current For operating lease with a term of one year or less, the Group has elected to not recognize a lease liability or lease right of use asset on its Consolidated Balance Sheets. Instead, it recognizes the lease payment as expense on a straight-line basis over the lease term. Short-term lease costs are immaterial to its Consolidated Statements of Comprehensive Loss. The Group has operating lease agreements with insignificant non-lease non-lease Upon the adoption of the new lease standard, on January 1, 2019, the Group recognized operating lease assets of RMB 27,653 and total operating lease liabilities of RMB 28,261 (including current liabilities of RMB 11,876) on the Consolidated Balance Sheets. There was no impact to Accumulated deficit at adoption. |
Government grant | 2.27 Government grant Government grants are recognized as Other income, net or as a reduction of specific costs and expenses for which the grants are intended to compensate. Such amounts are recognized in the Consolidated Statements of Comprehensive Loss upon receipts and all conditions attached to the grants are fulfilled. |
Income tax | 2.28 Income tax Current income taxes are recorded in accordance with the regulations of the relevant tax jurisdiction. The Group accounts for income taxes under the asset and liability method in accordance with ASC 740, Income Tax. Under this method, deferred tax assets and liabilities are recognized for the tax consequences attributable to differences between carrying amounts of existing assets and liabilities in the financial statements and their respective tax basis, and operating loss carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred taxes of a change in tax rates is recognized in the Consolidated Statements of Comprehensive Loss in the period of change. Valuation allowances are established when necessary to reduce the amount of deferred tax assets if it is considered more likely than not that amount of the deferred tax assets will not be realized. The Group recognizes in its consolidated financial statements the benefit of a tax position if the tax position is “more likely than not” to prevail based on the facts and technical merits of the position. Tax positions that meet the “more likely than not” recognition threshold are measured at the largest amount of tax benefit that has a greater than fifty percent likelihood of being realized upon settlement. The Group estimates its liability for unrecognized tax benefits which are periodically assessed and may be affected by changing interpretations of laws, rulings by tax authorities, changes and/or developments with respect to tax audits, and expiration of the statute of limitations. The ultimate outcome for a particular tax position may not be determined with certainty prior to the conclusion of a tax audit and, in some cases, appeal or litigation process. The actual benefits ultimately realized may differ from the Group’s estimates. As each audit is concluded, adjustments, if any, are recorded in the Group’s consolidated financial statements in the period in which the audit is concluded. Additionally, in future periods, changes in facts, circumstances and new information may require the Group to adjust the recognition and measurement estimates with regard to individual tax positions. Changes in recognition and measurement estimates are recognized in the period in which the changes occur. As of December 31, 2019 and 2020, the Group did not have any significant unrecognized uncertain tax positions. |
Treasury stocks | 2.29 Treasury stocks The Company accounts for treasury stocks using the cost method. Under this method, the cost incurred to purchase the shares is recorded in the treasury stocks account on the Consolidated Balance Sheets. |
Statutory reserves | 2.30 Statutory reserves The Company’s subsidiaries, consolidated VIEs and VIEs’ subsidiaries established in the PRC are required to make appropriations to certain non-distributable In accordance with the laws applicable to the Foreign Investment Enterprises established in the PRC, the Group’s subsidiaries registered as wholly-owned foreign enterprise have to make appropriations from their after-tax after-tax In addition, in accordance with the PRC Company Laws, the Group’s consolidated VIEs and VIEs’ subsidiaries, registered as Chinese domestic companies, must make appropriations from their after-tax non-distributable after-tax The use of the statutory surplus fund and discretionary surplus fund are restricted to the offsetting of losses or increasing of the registered capital of the respective company. The staff bonus and welfare fund is a liability in nature and is restricted to fund payments of special bonus to employees and for the collective welfare of employees. None of these reserves are allowed to be transferred to the company in terms of cash dividends, loans or advances, nor can they be distributed except under liquidation. For the years ended December 31, 2018, 2019 and 2020, profit appropriation to statutory surplus fund for the Group’s entities incorporated in the PRC was approximately RMB 4,227, RMB 3,129 and RMB 6,467 respectively. |
Comprehensive loss | 2.31 Comprehensive loss Comprehensive loss is defined as the changes in equity of the Group during a period from transactions and other events and circumstances excluding transactions resulting from investments from shareholders and distributions to shareholders. Comprehensive loss for the periods presented includes net loss and foreign currency translation adjustments. |
Net loss per share | 2.32 Net loss per share Basic net loss per share is computed by dividing net loss attributable to holders of ordinary shares, considering the accretions to redemption value of the preferred shares, deemed dividend from/to preferred shareholders, including beneficial conversion feature, by the weighted average number of ordinary shares outstanding during the period, if applicable. Diluted net loss per share is calculated by dividing net loss attributable to ordinary shareholders, as adjusted for the accretion and deemed dividend and allocation of net income related to the preferred shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the period. Ordinary equivalent shares consist of shares issuable upon the conversion of the preferred shares using the if-converted |
Segment reporting | 2.33 Segment reporting ASC 280, Segment Reporting, establishes standards for companies to report in their financial statements information about operating segments, products, services, geographic areas, and major customers. Based on the criteria established by ASC 280, the Group’s chief operating decision maker (“CODM”) has been identified as the Chief Executive Officer, who reviews consolidated results when making decisions about allocating resources and assessing performance of the Group. As a whole and hence, the Group has only one reportable segment. The Group does not distinguish between markets or segments for the purpose of internal reporting. As the Group’s long-lived assets are substantially located in the PRC and substantially all the Group’s revenue are derived from within the PRC, no geographical segments are presented. |
Recent accounting pronouncements | 2.34 Recent accounting pronouncements In December 2019, the FASB issued ASU 2019-12 year-to-date non-income-based step-up In January 2020, the FASB issued Accounting Standards Update No. 2020-01, 815-10-15-141(a) 815-10-15-141 |
PRINCIPAL ACTIVITIES AND ORGA_2
PRINCIPAL ACTIVITIES AND ORGANIZATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of principal subsidiaries | As of December 31, 2020, the Company’s principal subsidiaries are as follows: Subsidiaries Place of Date of incorporation or Percentage Principal activities Yunji Holding Limited Hong Kong December 20, 2017 100 % Investment holding Chuangke Information Technology (Shenzhen) Co., Ltd. Shenzhen August 28, 2018 100 % Technology development Zhejiang Youji Supply Chain Management Co., Ltd. Huzhou November 30, 2016 100 % Procurement Anhui Delue Network Technology Co., Ltd. Hefei January 15, 2017 100 % Customer service Zhejiang Jiyuan Network Technology Co., Ltd. Hangzhou August 14, 2018 100 % Procurement Zhejiang Zhelue Network Technology Co., Ltd. Hangzhou May 23, 2016 100 % Sales of merchandise Hangzhou Jichuang Network Technology Co., Ltd. Hangzhou May 23, 2016 100 % Investment holding Yunji Hongkong Limited Hong Kong August 25, 2015 100 % Procurement Ningbo Yunchu Trading Co., Ltd. Ningbo May 10, 2018 100 % Custom clearance Hangzhou Yunchuang Sharing Network Technology Co., Ltd. Hangzhou June 13, 2018 100 % Investment holding Desking technology (HK) Co., Limited Hong Kong July 26, 2016 100 % Investment holding and Jironghuishang Commercial Factoring (Tianjin) Co., Ltd Tianjin October 16, 2018 100 % Financing solution Zhejiang Yunxuan Supply Chain Management Co., Ltd Hangzhou August 9, 2018 100 % Procurement |
Schedule of variable interest entities | As of December 31, 2020, the Company’s principal consolidated VIEs and VIE’s subsidiaries are as follows: Place of incorporation Date of incorporation or acquisition Percentage of direct or indirect Principal activities VIEs and VIE subsidiaries Yunji Sharing Technology Co., Ltd. Hangzhou March 5,2018 100 % Investment holding Zhejiang Yunji Preferred E-Commerce Hangzhou June 13, 2018 100 % Investment holding Zhejiang Jishang Preferred E-Commerce Hangzhou April 22, 2016 100 % Procurement Zhejiang Jixiang E-commerce Hangzhou August 14, 2018 100 % E-Commerce Hangzhou Fengjing Network Technology Co., Ltd. Hangzhou December 18, 2020 100 % Investment holding Ningbo Meishan Bonded Port Area Jichuang Taihong Venture Capital Partnership (LP) (“Jichuang Taihong”) Ningbo January 15, 2019 100 % Investment holding Hangzhou Heyi e-commerce Hangzhou August 5, 2020 100 % E-Commerce Anhui Yunhe Network Technology Co., Ltd. (“Yunhe”) Hefei March 28, 2019 100 % Customer service and Procurement |
Condensed Balance Sheet [Table Text Block] | The following disclosures present the operations and financial positions of the businesses that currently constitute the VIE entities as of and for the respective periods.): As of December 31, 2019 2020 RMB RMB Cash and cash equivalents 139,323 137,994 Restricted cash 80,289 125,844 Accounts receivable, net 5,271 12,204 Advance to suppliers 21,393 18,334 Inventories, net 19,403 3,500 Amounts due from the Group companies (2) 2,872,259 3,909,067 Amounts due from related parties (1) 5,809 6,603 Prepaid expense and other current assets 171,498 195,428 Property, equipment and software, net 30,057 23,698 Long-term investments — 34,625 Operating lease right-of-use 8,774 8,612 Deferred tax assets 58,613 44,674 Other non-current 4,804 7,553 Total assets 3,417,493 4,528,136 Accounts payable 326,014 296,640 Deferred revenue 158,942 35,412 Incentive payables to members — 8,212 Refund payable to members 26,883 4,398 Members management fee payable 13,805 45,841 Other payable and accrued liabilities 282,189 228,321 Amounts due to the Group companies (3) 2,846,591 4,142,953 Amounts due to related parties (1) 6,039 11,483 Operating lease liabilities, current 4,762 5,160 Operating lease liabilities, non-current 3,735 4,265 Deferred Tax Liability 1 — Total liabilities (4) 3,668,961 4,782,685 |
Condensed financial statements | Year Ended December 31, 2018 2019 2020 RMB RMB RMB Total revenues 2,551,221 4,570,774 3,122,086 Cost of revenues (593,605 ) (2,550,386 ) (1,693,547 ) Net (loss)/income (364 ) 16,071 6,826 Net cash generated by/(used in) operating activities 778,728 (1,019,175 ) 61,434 Net cash (used in)/generated by investing activities (25,014 ) 440,033 (18,347 ) Net cash (used in)/generated by financing activities (208,982 ) — 2,300 Effect of exchange rate changes on cash, cash equivalents and restricted cash (2,302 ) 288 (1,161 ) Net increase/(decrease) in cash, cash equivalents and restricted cash 542,430 (578,854 ) 44,226 Cash, cash equivalents and restricted cash at beginning of year 256,036 798,466 219,612 Cash, cash equivalents and restricted cash at end of year 798,466 219,612 263,838 |
PRINCIPAL ACCOUNTING POLICIES_2
PRINCIPAL ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary Of Expected Allowance For Credit Losses | The following table summarized the details of the Company’s allowance for expected credit losses: 2018 2019 2020 Balance at beginning of year — — — Allowance for credit losses — — 13,089 Balance at end of year — — 13,089 |
Schedule of useful life of property plant equipment | Property, equipment and software are stated at cost less accumulated depreciation. Property, equipment and software are depreciated at rates sufficient to write off their costs less impairment and residual value, if any, over the estimated useful lives on a straight-line basis. The estimated useful lives are as follow: Category Estimated useful lives Leasehold improvement Shorter of the term of the lease or the estimated useful lives of the assets Electronic equipment 3 years Furniture 3 years Software 3 years Vehicles 3 years |
SHORT TERM INVESTMENT (Tables)
SHORT TERM INVESTMENT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Short-term Investments [Abstract] | |
Schedule of short term investments | As of December 31, 2019 2020 RMB RMB Time deposits 593,954 134,146 Wealth management products 180,782 — 774,736 134,146 |
ACCOUNTS RECEIVABLE, NET (Table
ACCOUNTS RECEIVABLE, NET (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |
Summary of accounts receivable | As of December 31, 2019 2020 RMB RMB Factoring receivables 17,041 122,089 Receivables from sales channels on other platforms — 35,950 Receivables from merchants under marketplace business 3,015 8,439 Receivables from other revenue 8,471 6,858 Less: allowance for credit losses — (8,603 ) 28,527 164,733 |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Schedule of prepaid expenses and other current assets | Prepaid expenses and other current assets consist of the following: As of December 31, 2019 2020 RMB RMB Prepaid member training costs (1) 36,669 — Receivables from third-party payment settlement platform (2) 71,202 33,154 Deposits (3) 86,796 62,540 Prepaid rental expenses 617 412 Prepaid advertising expenses 4,085 5,482 Short-term loan receivables (4) 121,949 130,629 Share transfer consideration receivable (5) 97,667 — VAT-input 115,252 126,455 Staff advance 640 151 Receivables from disposal of a subsidiary (6) — 26,676 Others 32,555 27,896 Less: allowance for credit losses — (2,972 ) 567,432 410,423 (1) The Group engages third party vendors to provide sales and marketing related training to its members, including on-line (2) Receivables from third-party payment settlement platform represent cash due from the third party on-line (3) Deposits mainly represent the customs deposits held in customs bank accounts, which were RMB 65,000 and RMB 38,000 as of December 31, 2019 and 2020, respectively. (4) Short-term loan receivables represent the principal and interest to be collected on three loans provided by the Group to a customer. As of December 31, 2020, the loans include one principal amount of US$ 10.3 million (equivalent to RMB 67,206), one principal amount of US$ 4.7 million (equivalent to RMB 30,667) and the other with principal amount of US$ 5.0 million (equivalent to RMB 32,625). As of December 31, 2019, the loans include one principal amount of US$ 10.3 million, which was renewed in 2020, and include the other with principal amount of RMB 50,000. The terms of loans are of one-year (5) Share transfer consideration receivable represents the consideration to be collected for transferring of a third party company’s ADSs. In November 2019, the Group subscribed 820,000 ADSs of a third party company with a total consideration of US$ 13.94 million upon its initial public offering in NASDAQ. According to a shares transfer agreement that the Group entered into, the Group sold and transferred all these ADSs to another third party with a fixed consideration of US$ 13.99 million (equivalent to RMB 97.67 million) in December 2019 and the gain of US$50 was recorded in Financial income, net. The Group received the consideration in January 2020. (6) In the fourth quarter of 2020, the Group disposed a subsidiary, Wuhan Yunteng Logistics Co., Ltd. (“Wuhan Yunteng”), to a third party for a total cash consideration of RMB 26,676, with a loss of RMB 1.0 million recorded in other non-operating |
INVENTORIES, NET (Tables)
INVENTORIES, NET (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory, net | As of December 31, 2019 2020 RMB RMB Merchandise and packing materials 428,763 145,773 Less: inventory write-downs (441 ) (10,528 ) Inventories, net 428,322 135,245 |
PROPERTY, EQUIPMENT AND SOFTW_2
PROPERTY, EQUIPMENT AND SOFTWARE, NET (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, equipment and software, net | Property, equipment and software, net, consist of the foll o As of December 31, 2019 2020 RMB RMB Leasehold improvement 29,421 32,417 Electronic equipment 25,990 21,932 Furniture 10,117 6,669 Software 2,441 4,336 Vehicles 1,101 1,101 Construction in progress 3,144 874 Subtotal 72,214 67,329 Less: accumulated depreciation (26,870 ) (41,319 ) Property, equipment and software, net 45,344 26,010 |
LONG-TERM INVESTMENTS (Tables)
LONG-TERM INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Long-term Investments [Abstract] | |
Schedule of equity method investments | The Group’s long-term investments consist of the following: As of December 31, 2019 2020 RMB RMB Equity method investments 36,588 58,479 Equity securities accounted for under alternative measurement 4,200 5,900 Equity securities with readily determinable fair values 158,072 94,552 Long-term investments 198,860 158,931 |
Equity method investments carrying amount of unrealized gain disclosure | The carry amount and unrealized securities holding gain/ (loss) for the investments under equity method as of December 31, 2020 was as follows, Equity method investments Total value booked under equity method as of December 31, 2018 16,799 Addition 23,200 Dividends received (190 ) Share of cumulative loss for the year ended December 31, 2019 (3,221 ) Total value booked under equity method as of December 31, 2019 36,588 Addition 28,883 Dividends received (204 ) Disposal of long-term investments (2,954 ) Share of cumulative loss for the year ended December 31, 2020 (3,834 ) Total value booked under equity method as of December 31, 2020 58,479 |
OTHER NON-CURRENT ASSESTS (Tabl
OTHER NON-CURRENT ASSESTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Assets, Noncurrent [Abstract] | |
Schedule of other non-current assets | Other non-current As of December 31, 2019 2020 RMB RMB Long-term loan receivable (1) 50,278 53,612 Prepayment of an office building (2) — 78,000 Others 6,003 18,695 Less: allowance for doubtful accounts (1,514 ) 56,281 148,793 (1) Long-term loan receivable represents the principal and interest to be collected of a loan provided by the Group to a third party. The loan was of principal amount of RMB 50,000, three-year (2) The Group purchased an office building from a third party and paid the full amount in advance with consideration of USD$11.25 million (equivalent RMB 78,000). This office building is expected to be used by the Group to relocate its customer service center in the future. |
ACCOUNTS PAYABLE (Tables)
ACCOUNTS PAYABLE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of accounts payable | As of December 31, 2019 2020 RMB RMB Merchandise purchase payables 548,427 292,515 Warehouse and logistic fees payables 48,327 7,512 Payable to merchants (1) 145,205 201,522 741,959 501,549 (1) Payable to merchants represents the unpaid balances to the merchants of cash collected by the Group on behalf of the merchants for products sold on Yunji App when the Group is viewed as the agent in the sales arrangement. |
DEFERRED REVENUE (Tables)
DEFERRED REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Deferred revenue, by arrangement, disclosure | As of December 31, 2019 2020 RMB RMB Deferred merchandise revenue 129,224 40,645 Deferred membership program revenue 42,438 — Deferred marketplace revenue 9,800 9,113 Deferred other revenue 366 1,193 181,828 50,951 |
INCENTIVE PAYABLES TO MEMBERS (
INCENTIVE PAYABLES TO MEMBERS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of incentive payables to member | As of December 31, 2019 2020 RMB RMB Accruals of Yunbi granted under member incentive program 251 — Discounts and referral incentive payable (1) 384,235 312,170 Total incentive payables to members 384,486 312,170 (1) Discounts and referral incentive payable represents unpaid balances of discounts granted to members for their self-purchase and referral incentives earned by the members for their referral efforts and is transferred to the members’ individual Yunji App accounts. These unpaid balances are maintained collectively in the members’ Yunji App accounts and can be withdraw as cash upon the members’ requests. |
REFUND PAYABLE TO MEMBERS (Tabl
REFUND PAYABLE TO MEMBERS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of refund payable to members | As of December 31, 2019 2020 RMB RMB Refund payable to members 26,883 4,398 |
Schedule of movement in refund payable to members | Refund payable to members Balance as of December 31, 2017 147,943 Estimated referral incentives to be refunded 626,853 Referral incentives earned (1) (378,772 ) Balance as of December 31, 2018 396,024 Balance as of December 31, 2018 396,024 Estimated referral incentives to be refunded 132,989 Referral incentives earned (1) (122,760 ) Change in estimate (2) (379,370 ) Balance as of December 31, 2019 26,883 Balance as of December 31, 2019 26,883 Estimated referral incentives to be refunded 8,021 Referral incentives earned (1) (6,985 ) Change in estimate (2) (23,521 ) Balance as of December 31, 2020 4,398 |
MEMBER MANAGEMENT FEES PAYABLE
MEMBER MANAGEMENT FEES PAYABLE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Member Management Fee Payable [Abstract] | |
Schedule of members management fees payable | As of December 31, 2019 2020 RMB RMB Member management fees payable 78,355 45,841 |
OPERATING LEASE (Tables)
OPERATING LEASE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Lessee, Lease, Description [Line Items] | |
Supplemental Cash Flow Information Relating To Operating Leases | Supplemental cash flow information related to leases were as follows: Year Ended December 31, 2019 Year Ended December 31, 2020 RMB RMB Cash paid for amounts included in the measurement of lease liabilities 17,528 14,686 Right-of-use 46,551 — |
Operating Leases Supplementary Balance Sheet Information | Supplemental consolidated balance sheet information related to leases were as follows: As of December 31, 2019 2020 RMB RMB Right-of-use 43,043 11,324 Operating lease liabilities - current 17,559 6,988 Operating lease liabilities – non-current 27,734 8,309 Total lease liabilities 45,293 15,297 Weighted average remaining lease term 3 1.7 Weighted average discount rate 4.75 % 4.75 % |
Lessee, Operating Lease, Liability, Maturity | Maturities of lease liabilities are as follows: As of December 31, 2020 RMB 2021 7,316 2022 5,392 2023 3,454 2024 61 2025 — Total operating lease payments 16,223 Less: imputed interest (926 ) Total 15,297 |
OTHER PAYABLE AND ACCRUED LIA_2
OTHER PAYABLE AND ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of accrued liabilities and other payables | As of December 31, 2019 2020 RMB RMB Supplier deposits (1) 86,132 86,759 Merchants deposits (2) 80,643 68,903 Rental fee payables 438 720 IT related service fees 22,937 2,913 Accrued professional fees 8,179 9,106 Salaries and welfare payable 94,973 60,737 Taxes payable 40,498 19,044 Accrued marketing and other operational expenses 13,963 21,576 Others 1,348 10,828 349,111 280,586 (1) The deposit obtained from the suppliers is to ensure inventory level ready for the Group to purchase and good product quality under the Group’s sales of merchandise business model. (2) The deposit obtained from the merchants is to ensure implementation of Yunji App’s platform policy and good product quality to be sold by the merchants on Yunji App under the Group’s marketplace business model. The deposit can be withdrawn immediately after the merchants terminate its online shop on Yunji App. |
OTHER OPERATING INCOME (Tables)
OTHER OPERATING INCOME (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Schedule Of Other Operating Income Net | Year Ended December 31, 2018 Year Ended December 31, 2019 Year Ended December 31, 2020 RMB RMB RMB VAT-in super deduction (1) — 25,047 4,830 Government grants (2) 7,048 43,599 25,172 Others — — 3,216 7,048 68,646 33,218 (1) From 2019, in accordance with “the Announcement on Relevant Policies for Deepening the Value-added Tax Reform” and relevant government policies announced by the Ministry of Finance, the State Taxation Administration and the General Administration of Customs of China, one China VIE of the Company, as a consumer service company, is allowed to enjoy additional 10% VAT-in (“VAT-in VAT-in VAT-in (2) Government grants mainly represent cash subsidies received from PRC local governments for companies operating a business in their jurisdictions and compliance with specific policies promoted by the local governments. Starting from January 2020, the Company presents government grants as Other operating income. The relevant item in the prior years of RMB 7,048 and RMB 43,599 for the years ended December 31, 2018 and 2019 are also classified from Other non-operating |
OTHER NON-OPERATING INCOME_(L_2
OTHER NON-OPERATING INCOME/(LOSS), NET (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Schedule Of Other Nonoperating Income/(loss) Net | Year Ended December 31, 2018 Year Ended December 31, 2019 Year Ended December 31, 2020 RMB RMB RMB Loss on disposal of long-term investments and a subsidiary — — 1,610 Others — 8,497 — — 8,497 1,610 |
FINANCIAL INCOME_(EXPENSE), N_2
FINANCIAL INCOME/(EXPENSE), NET (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Financial Income And Expense [Abstract] | |
Schedule of financial income/(expense), net | Year Ended December 31, 2018 Year Ended December 31, 2019 Year Ended December 31, 2020 RMB RMB RMB Interest income 46,919 52,889 46,667 Interest expense — — (6,383 ) Gains/(loss) from fair value change of equity securities with readily determinable fair value (1) — 68,555 (53,683 ) Bank charges (851 ) (444 ) (709 ) Others — 370 5,537 46,068 121,370 (8,571 ) (1) Gain from fair value change of equity securities with readily determinable fair value represents the unrealized changes of fair value of investment in GXG (Note 9). |
TAXATION (Tables)
TAXATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Schedule of Income before Income Tax, Domestic and Foreign | The components of loss before tax are as follow: Year Ended December 31, 2018 Year Ended December 31, 2019 Year Ended December 31, 2020 RMB RMB RMB Loss before tax Loss from PRC entities (61,767 ) (204,937 ) (5,399 ) Income/(loss) from overseas entities 14,795 67,604 (103,161 ) Total loss before tax (46,972 ) (137,333 ) (108,560 ) |
Schedule of Components of Income Tax Expense (Benefit) | Year Ended December 31, 2018 Year Ended December 31, 2019 Year Ended December 31, 2020 RMB RMB RMB Current income tax expense 25,413 13,300 10,458 Deferred income tax (benefit)/expense (13,067 ) (30,020 ) 28,840 12,346 (16,720 ) 39,298 |
Schedule of Effective Income Tax Rate Reconciliation | Reconciliation of the differences between the statutory EIT rate applicable to losses of the consolidated entities and the income tax expenses of the Group: Year Ended December 31, 2018 Year Ended December 31, 2019 Year Ended December 31, 2020 PRC Statutory income tax rate 25 % 25 % 25 % Effect on tax rates in different tax jurisdiction 3 % 8 % -9 % The effect of change in the tax rate of Jishang Preferred -76 % 26 % 0 % Difference in EIT rates of PRC entities 9 % 0 % 0 % Non-deductible expenses -4 % -2 % -1 % Additional deduction for research and development expenditures 25 % 16 % 48 % Share-based compensation -17 % -23 % -23 % Non-taxable 7 % 0 % 0 % Permanent book-tax 0 % 2 % 7 % Change in valuation allowance 2 % -40 % -83 % Effective tax rates -26 % 12 % -36 % |
Summary of Valuation Allowance | Movement of valuation allowance Year Ended December 31, 2018 Year Ended December 31, 2019 Year Ended December 31, 2020 RMB RMB RMB Balance at beginning of the year (11,153 ) (10,004 ) (65,225 ) Changes of valuation allowance(1) 1,149 (55,221 ) (90,925 ) Balance at end of the year (10,004 ) (65,225 ) (156,150 ) (1) Valuation allowances have been provided against deferred tax assets when the Group determines that it is more likely than not that the deferred tax assets will not be utilized in the future. In making such determination, the Group evaluates a variety of factors including the Group’s entities’ operating history, accumulated deficit, existence of taxable temporary differences and reversal periods. As of December 31, 2019 and 2020, valuation allowances on a large part of deferred tax assets were provided because it was more likely than not that the Group will not be able to utilize tax loss carry forwards generated by certain unprofitable subsidiaries. As of December 31, 2019 and 2020, valuation allowances of RMB 55,221 and RMB 90,925 were provided against deferred tax assets because it was more likely than not that such portion of deferred tax will not be realized based on the Company’s estimate of future taxable incomes of all its subsidiaries. |
Summary of Operating Loss Carryforwards | As of December 31, 2020, net operating loss carry forwards from PRC entities will expire as follows: At December 31, RMB 2021 41 2022 11,832 2023 484 2024 356,494 2025 258,501 627,352 |
Deferred tax assets [Member] | |
Schedule of Deferred Tax Assets and Liabilities | The following table sets forth the significant components of the deferred tax assets: As of December 31, 2019 2020 RMB RMB Deferred tax assets Net accumulated losses-carry forward 150,990 205,487 Deferred membership program revenue 10,610 — Refund payable to members 6,721 1,100 Inventory write-downs 110 2,632 Allowance for credit losses — 3,272 Others 6,961 4,101 Less: valuation allowance (65,225 ) (156,150 ) Total deferred tax assets 110,167 60,442 As of December 31, 2019 2020 RMB RMB Deferred tax liabilities Prepaid member training costs 9,288 — Gain or loss from changes in fair values 11,312 2,684 Others 3,104 135 Total deferred tax liabilities 23,704 2,819 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based Compensation, Stock Options, Activity | The following table sets forth the stock options activity for the years ended December 31, 2018, 2019 and 2020: Number of Weighted- Weighted Aggregate US$ 000’US$ Outstanding as of December 31, 2018 87,112,400 0.12 5.09 60,399 Granted 16,097,050 0.61 Forfeited (7,954,980 ) 0.31 Exercised (1,407,920 ) 0.09 Outstanding as of December 31, 2019 93,846,550 0.19 3.77 30,442 Granted — — Forfeited (16,014,140 ) 0.11 Exercised (9,151,290 ) 0.10 Expired (115,200 ) 0.14 Outstanding as of December 31, 2020 68,565,920 0.22 2.65 2,826 Vested and expected to vest as of December 31, 2020 68,565,920 Exercisable as of December 31, 2020 53,535,110 — — — |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The Group uses the Binominal option pricing model to estimate the fair value of stock options. The assumptions used to value the Company’s options grants were as follow: 2019 2020 Exercise price (US$) 0.1~0.7 N/A Exercise multiple 2.2~2.8 N/A Risk-free interest rate 1.68%~2.47 % N/A Expected term (in years) 6 N Expected dividend yield — N/A Expected volatility 39.91%~41.29 % N/A Expected forfeiture rate (post-vesting) 0%/5 % N/A Fair value of the underlying shares on the date of options grants (US$) 0.46~1.42 N/A Fair value of share option (US$) 0.11~1.32 N/A |
Nonvested Restricted Stock Shares Activity | A summary of activities of the service-based RSUs for the years ended December 31, 2018, 2019 and 2020 is presented below: Number of Weighted-Average Grant-Date Fair Value US$ Unvested at December 31, 2018 24,800,000 0.74 Granted 18,257,040 0.68 Vested (3,036,290 ) Forfeited (3,185,900 ) Unvested at December 31, 2019 36,834,850 0.76 Granted 64,210,210 0.43 Vested (954,960 ) Forfeited (51,629,000 ) Expired (500,000 ) Unvested at December 31, 2020 47,961,100 0.63 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | As of December 31, 2019 and 2020, information about inputs into the fair value measurement of the Group’s assets and liabilities that are measured or disclosed at fair value on a recurring basis in periods subsequent to their initial recognition is as follows: Fair value measurement at reporting date using Description Fair value Quoted Prices in Active Significant Other Significant RMB RMB RMB RMB Assets: Short-term investments Time deposits 593,954 — 593,954 — Wealth management products 180,782 — 180,782 — Long-term investments Equity securities with readily determinable fair value 158,072 158,072 — — Total assets 932,808 158,072 774,736 — Fair value measurement at reporting date using Description Fair value Quoted Prices in Active Significant Other Significant RMB RMB RMB RMB Assets: Short-term investments Time deposits 134,146 — 134,146 — Long-term investments Equity securities with readily determinable fair value 94,552 94,552 — — Total assets 228,698 94,552 134,146 — |
NET LOSS PER SHARE (Tables)
NET LOSS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Basic and diluted net loss per share for each of the years/periods presented are calculated as follows: Year Ended December 31, 2018 Year Ended December 31, 2019 Year Ended December 31, 2020 RMB RMB RMB Numerator: Net loss attributable to YUNJI INC. (59,688 ) (125,762 ) (146,346 ) Accretion on convertible redeemable Preferred Shares to redemption value (2,187,633 ) (1,532,013 ) — Re-designation (60,796 ) — — Deemed dividend from convertible redeemable preferred shares holders 107 — — Net loss attributable to ordinary shareholders (2,308,010 ) (1,657,775 ) (146,346 ) Denominator: Weighted average number of ordinary shares used in computing net loss per share, basic and diluted 1,165,136,438 1,818,487,917 2,125,906,398 Net loss per share attributable to ordinary shareholders: - Basic (1.98 ) (0.91 ) (0.07 ) - Diluted (1.98 ) (0.91 ) (0.07 ) |
RELATED PARTY BALANCES AND TR_2
RELATED PARTY BALANCES AND TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of major related parties and their relationships with group | The table below sets forth the major related parties and their relationships with the Group as of December 31, 2020: Name of related parties Relationship with the Group Xiao Shanglue Founder and CEO of the Group Small Ye Group Controlled by Mr. Xiao Shanglue, Founder and CEO of the Group Wuhan Dahong enterprise management partnership(LP) Non-controlling interest (prior to disposal of Wuhan Yunteng in 2020) Hangzhou Jixi Internet Technology Co., Ltd.(“Jixi”) An associate of the Group (incorporated in 2018) Hangzhou Tianshi Technology Co., Ltd (“Tianshi”) An associate of the Group (incorporated in 2017) Hangzhou Zhangtaihe Health Technology Co., Ltd(“Zhangtaihe”) An associate of the Group (incorporated in 2018) Guangdong Weixin Technology Co., Ltd (“Weixin”) An associate of the Group (incorporated in 2018) Beijing Siwei Technology and Culture Co., Ltd(“Siwei”) An associate of the Group (incorporated in 2018) Hangzhou Adopt A Cow Biological Technology Co., Ltd (“Zhaomu”) An associate of the Group (incorporated in 2018) Hangzhou Bixin Biotechnology Co., Ltd.(“Bixin”) An associate of the Group (incorporated in 2019) Hunan Haomei Haomei Cosmetics Co., Ltd.(“Haomei”) An associate of the Group (incorporated in 2019) Ningbo Langfei Life Electric Co., Ltd.(“Langfei”) An associate of the Group (incorporated in 2019) Shenzhen Liumang Yike Food & Beverage Management Co., Ltd.(“Liumang Yike”) An associate of the Group (incorporated in 2019) Guangzhou Misili Personal Care Products Co., Ltd.(“Misili”) An associate of the Group (incorporated in 2019) Shanxi Yunnong Logistic Management Co., Ltd.(“Yunnong”) An associate of the Group (incorporated in 2019) Zhejiang Zhengdao Fengju Supply Chain Management Co., Ltd.(“Zhengdao”) An associate of the Group (incorporated in 2019) Hangzhou Yuncheng Brand Management Co., Ltd(“Yuncheng”) An associate of the Group (incorporated in 2020) Zhejiang Jimi E-commerce An associate of the Group (incorporated in 2020) Hangzhou Huaji Brand Marketing Management Co., Ltd (“Huaji”) An associate of the Group (incorporated in 2020) Zhejiang Jibi Technology Co., Ltd. (“Jibi”) An associate of the Group (incorporated in 2020) Huzhou Boyun e-commerce An associate of the Group (incorporated in 2020) Yunmu Dairy (Jiangsu) Co., Ltd (“Yunmu”) An associate of the Group (incorporated in 2020) Hangzhou Jiao sanitary products Co., Ltd (“Ji’Ao”) An associate of the Group (incorporated in 2020) Hangzhou Xingsheng Brand Marketing Management Co., Ltd.(“Xingsheng”) An associate of the Group (incorporated in 2020) Hainan Yunding Supply Chain Management Co., Ltd (“Yunding”) An associate of the Group (incorporated in 2020) |
Schedule of related party balances and transactions | Details of related party balances and transactions as of December 31, 2018, 2019 and 2020 are as follows: Advance to related parties and amounts due from related parties As of December 31, 2019 2020 RMB RMB Advance to related parties Weixin 5,799 3,682 Amounts due from related parties Wuhan Dahong enterprise management partnership(LP) 20 — Jixi 1,011 3,012 Yuncheng — 971 Others — 176 1,031 4,159 Total 6,830 7,841 Amounts due to related parties As of December 31, 2019 2020 RMB RMB Zhaomu 4,888 4,180 Bixin 303 3,423 Jimi — 2,542 Zhengdao 5,997 2,227 Jixi — 1,828 Haomei 455 1,703 Small Ye Group 658 967 Huaji — 889 Tianshi 179 840 Zhangtaihe 359 641 Yunnong 4,681 605 Jibi — 466 Xingsheng — 343 Poyun — 309 Others 776 2,026 18,296 22,989 |
Schedule of transactions with related parties | The terms of the agreements the Group entered into with the related parties are comparable to the terms in arm’s-length Transactions with related parties Year Ended December 31, 2018 Year Ended December 31, 2019 Year Ended December 31, 2020 RMB RMB RMB Payment on behalf of the related parties Xiao Shanglue 588 — — 588 — — Purchase of merchandise Zhaomu 469 103,269 53,790 Bixin — 69,311 31,825 Zhengdao — 31,418 28,372 Yunnong — 8,006 21,453 Tianshi 39,776 25,295 17,021 Haomei — 13,443 16,404 Weixin 36,958 79,309 9,214 Siwei 307 5,626 7,710 Yunmu — — 4,543 Misili — 8,230 3,315 Huaji — — 2,573 Yuncheng — — 2,239 Ji’Ao — — 1,712 Yunding — — 1,652 Langfei — 3,507 1,117 Xingsheng — — 600 Zhangtaihe 32,110 16,400 482 Small Ye Group — 3,097 307 Others — 431 946 109,620 367,342 205,275 Year Ended December 31, 2018 Year Ended December 31, 2019 Year Ended December 31, 2020 RMB RMB RMB Marketplace service provided to related parties Yuncheng — — 2,932 Bixin — 373 2,759 Jimi — — 2,379 Zhangtaihe — — 876 Jixi — — 574 Jibi — — 522 Liumang Yike — 301 227 Others — 91 701 — 765 10,970 Other goods and services provided to related parties Yuncheng — — 171 Zhaomu — — 73 Weixin — — 58 Bixin — — 31 Others — — 60 — — 393 |
PRINCIPAL ACTIVITIES AND ORGA_3
PRINCIPAL ACTIVITIES AND ORGANIZATION - COMPANY'S PRINCIPAL SUBSIDIARIES (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Yunji Holding Limited [Member] | |
Place of incorporation | Hong Kong |
Date of incorporation or acquisition | Dec. 20, 2017 |
Percentage of direct or indirect | 100.00% |
Principal activities | Investment holding |
Chuangke Information Technology (Shenzhen) Co., Ltd.[Member] | |
Place of incorporation | Shenzhen |
Date of incorporation or acquisition | Aug. 28, 2018 |
Percentage of direct or indirect | 100.00% |
Principal activities | Technology development |
Zhejiang Youji Supply Chain Management Co., Ltd.[Member] | |
Place of incorporation | Huzhou |
Date of incorporation or acquisition | Nov. 30, 2016 |
Percentage of direct or indirect | 100.00% |
Principal activities | Procurement |
Anhui Delue Network Technology Co., Ltd.[Member] | |
Place of incorporation | Hefei |
Date of incorporation or acquisition | Jan. 15, 2017 |
Percentage of direct or indirect | 100.00% |
Principal activities | Customer service |
Zhejiang Jiyuan Network Technology Co., Ltd.[Member] | |
Place of incorporation | Hangzhou |
Date of incorporation or acquisition | Aug. 14, 2018 |
Percentage of direct or indirect | 100.00% |
Principal activities | Procurement |
Zhejiang Zhelue Network Technology Co., Ltd.[Member] | |
Place of incorporation | Hangzhou |
Date of incorporation or acquisition | May 23, 2016 |
Percentage of direct or indirect | 100.00% |
Principal activities | Sales of merchandise |
Hangzhou Jichuang Network Technology Co., Ltd.[Member] | |
Place of incorporation | Hangzhou |
Date of incorporation or acquisition | May 23, 2016 |
Percentage of direct or indirect | 100.00% |
Principal activities | Investment holding |
Yunji Hongkong Limited [Member] | |
Place of incorporation | Hong Kong |
Date of incorporation or acquisition | Aug. 25, 2015 |
Percentage of direct or indirect | 100.00% |
Principal activities | Procurement |
Ningbo Yunchu Trading Co., Ltd.[Member] | |
Place of incorporation | Ningbo |
Date of incorporation or acquisition | May 10, 2018 |
Percentage of direct or indirect | 100.00% |
Principal activities | Custom clearance |
Hangzhou Yunchuang Sharing Network Technology Co., Ltd. [Member] | |
Place of incorporation | Hangzhou |
Date of incorporation or acquisition | Jun. 13, 2018 |
Percentage of direct or indirect | 100.00% |
Principal activities | Investment holding |
Desking technology(HK) Co., Limited [Member] | |
Place of incorporation | Hong Kong |
Date of incorporation or acquisition | Jul. 26, 2016 |
Percentage of direct or indirect | 100.00% |
Principal activities | Investment holding and Financing solution |
Jironghuishang Commercial Factoring (Tianjin) Co., Ltd [Member] | |
Place of incorporation | Tianjin |
Date of incorporation or acquisition | Oct. 16, 2018 |
Percentage of direct or indirect | 100.00% |
Principal activities | Financing solution |
Zhejiang Yunxuan Supply Chain Management Co., Ltd [Member] | |
Place of incorporation | Hangzhou |
Date of incorporation or acquisition | Aug. 9, 2018 |
Percentage of direct or indirect | 100.00% |
Principal activities | Procurement |
PRINCIPAL ACTIVITIES AND ORGA_4
PRINCIPAL ACTIVITIES AND ORGANIZATION - COMPANY'S PRINCIPAL CONSOLIDATED VIE (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Yunji Sharing Technology Co., Ltd [Member] | |
Place of incorporation | Hangzhou |
Date of incorporation or acquisition | Mar. 5, 2018 |
Percentage of direct or indirect | 100.00% |
Principal activities | Investment holding |
Zhejiang Yunji Preferred E-Commerce Co., Ltd.[Member] | |
Place of incorporation | Hangzhou |
Date of incorporation or acquisition | Jun. 13, 2018 |
Percentage of direct or indirect | 100.00% |
Principal activities | Investment holding |
Zhejiang Jishang Preferred E-Commerce Co., Ltd.[Member] | |
Place of incorporation | Hangzhou |
Date of incorporation or acquisition | Apr. 22, 2016 |
Percentage of direct or indirect | 100.00% |
Principal activities | Procurement |
Zhejiang Jixiang E-commerce Co., Ltd [Member] | |
Place of incorporation | Hangzhou |
Date of incorporation or acquisition | Aug. 14, 2018 |
Percentage of direct or indirect | 100.00% |
Principal activities | E-Commerce |
Hangzhou Fengjing Network Technology Co., Ltd [Member] | |
Place of incorporation | Hangzhou |
Date of incorporation or acquisition | Dec. 18, 2020 |
Percentage of direct or indirect | 100.00% |
Principal activities | Investment holding |
Ningbo Meishan Bonded Port Area Jichuang Taihong Venture Capital Partnership(LP) ("Jichuang Taihong") [Member] | |
Place of incorporation | Ningbo |
Date of incorporation or acquisition | Jan. 15, 2019 |
Percentage of direct or indirect | 100.00% |
Principal activities | Investment holding |
Hangzhou Heyi e-commerce Co., Ltd [Member] | |
Place of incorporation | Hangzhou |
Date of incorporation or acquisition | Aug. 5, 2020 |
Percentage of direct or indirect | 100.00% |
Principal activities | E-Commerce |
Anhui Yunhe Network Technology Co., Ltd. ("Yunhe") [Member] | |
Place of incorporation | Hefei |
Date of incorporation or acquisition | Mar. 28, 2019 |
Percentage of direct or indirect | 100.00% |
Principal activities | Customer service and Procurement |
PRINCIPAL ACTIVITIES AND ORGA_5
PRINCIPAL ACTIVITIES AND ORGANIZATION - OPERATIONS AND FINANCIAL POSITIONS (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Jan. 01, 2019CNY (¥) |
Operating lease right-of-use assets | ¥ 11,324 | $ 1,735 | ¥ 43,043 | ¥ 27,653 |
Other non-current assets | 148,793 | 22,804 | 56,281 | |
Total assets | 2,550,481 | 390,878 | 3,302,199 | |
Operating lease liabilities, current | 6,988 | 1,071 | 17,559 | ¥ 11,876 |
Operating lease liabilities, non-current | 8,309 | 1,273 | 27,734 | |
Total liabilities | 1,235,613 | $ 189,366 | 1,837,540 | |
Variable interest entity, primary beneficiary | ||||
Cash and cash equivalents | 137,994 | 139,323 | ||
Restricted cash | 125,844 | 80,289 | ||
Accounts receivable, net | 12,204 | 5,271 | ||
Advance to suppliers | 18,334 | 21,393 | ||
Inventories, net | 3,500 | 19,403 | ||
Amounts due from the Group companies | 3,909,067 | 2,872,259 | ||
Amounts due from related parties | 6,603 | 5,809 | ||
Prepaid expense and other current assets | 195,428 | 171,498 | ||
Property, equipment and software, net | 23,698 | 30,057 | ||
Long-term investments | 34,625 | |||
Operating lease right-of-use assets | 8,612 | 8,774 | ||
Deferred tax assets | 44,674 | 58,613 | ||
Other non-current assets | 7,553 | 4,804 | ||
Total assets | 4,528,136 | 3,417,493 | ||
Accounts payable | 296,640 | 326,014 | ||
Deferred revenue | 35,412 | 158,942 | ||
Incentive payables to members | 8,212 | |||
Refund payable to members | 4,398 | 26,883 | ||
Members management fee payable | 45,841 | 13,805 | ||
Other payable and accrued liabilities | 228,321 | 282,189 | ||
Amounts due to the Group companies | 4,142,953 | 2,846,591 | ||
Amounts due to related parties | 11,483 | 6,039 | ||
Operating lease liabilities, current | 5,160 | 4,762 | ||
Operating lease liabilities, non-current | 4,265 | 3,735 | ||
Deferred Tax Liability | 0 | 1 | ||
Total liabilities | ¥ 4,782,685 | ¥ 3,668,961 |
PRINCIPAL ACTIVITIES AND ORGA_6
PRINCIPAL ACTIVITIES AND ORGANIZATION - OPERATIONS AND FINANCIAL POSITIONS (Parenthetical) (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | ||
Variable interest entity, consolidated, liabilities, no recourse | ¥ 635,467 | ¥ 818,634 |
PRINCIPAL ACTIVITIES AND ORGA_7
PRINCIPAL ACTIVITIES AND ORGANIZATION -OPERATIONS OF BUSINESS (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Total revenues | ¥ 3,122,086 | ¥ 4,570,774 | ¥ 2,551,221 |
Cost of revenues | (1,693,547) | (2,550,386) | (593,605) |
Net loss | 6,826 | 16,071 | (364) |
Net cash generated by/(used in) operating activities | 61,434 | (1,019,175) | 778,728 |
Net cash (used in)/generated by investing activities | (18,347) | 440,033 | (25,014) |
Net cash (used in)/generated by financing activities | 2,300 | (208,982) | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (1,161) | 288 | (2,302) |
Net increase/(decrease) in cash, cash equivalents and restricted cash | 44,226 | (578,854) | 542,430 |
Cash, cash equivalents and restricted cash at beginning of year | 219,612 | 798,466 | 256,036 |
Cash, cash equivalents and restricted cash at end of year | ¥ 263,838 | ¥ 219,612 | ¥ 798,466 |
PRINCIPAL ACTIVITIES AND ORGA_8
PRINCIPAL ACTIVITIES AND ORGANIZATION - Additional Information (Details) $ / shares in Units, $ in Millions | May 03, 2019$ / sharesshares | May 02, 2019shares | Dec. 31, 2020USD ($)shares | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2019CNY (¥) |
VIE's Registered Capital | ¥ | ¥ 33,797 | ¥ 33,797 | |||
ADS conversion ratio | 1 | 1 | |||
Net proceeds from IPO | $ 109 | ¥ 737,000,000 | |||
American Depositary Shares [Member] | |||||
Offering of American Depositary Shares | 11,000,000 | ||||
Share issue price | $ / shares | $ 11 | ||||
ADS conversion ratio | 10 | ||||
Exclusive Service Agreement [Member] | |||||
VIE's Agreement Term | 10 years | 10 years | |||
Equity Interest Pledge Agreements [Member] | |||||
VIE's Equity Investment Percentage | 100.00% | 100.00% | |||
Common Class A [Member] | |||||
Conversion of Stock, Shares Converted | 895,216,752 | 895,216,752 | |||
Common Class A [Member] | Underwriting [Member] | American Depositary Shares [Member] | |||||
Offering of American Depositary Shares | 217,447 |
PRINCIPAL ACCOUNTING POLICIES -
PRINCIPAL ACCOUNTING POLICIES - Summary Of Expected Allowance For Credit Losses (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Allowance for Credit Loss [Abstract] | |||
Balance at beginning of year | |||
Allowance for credit losses | 13,089 | ||
Balance at end of year | ¥ 13,089 |
PRINCIPAL ACCOUNTING POLICIES_3
PRINCIPAL ACCOUNTING POLICIES - Schedule of estimated useful lives (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Leasehold improvement | |
Property, Plant and Equipment, Estimated Useful Lives | Shorter of the term of the lease or the estimated useful lives of the assets |
Electronic equipment | |
Property, Plant and Equipment, Estimated Useful Lives | 3 years |
Furniture | |
Property, Plant and Equipment, Estimated Useful Lives | 3 years |
Software | |
Property, Plant and Equipment, Estimated Useful Lives | 3 years |
Vehicles | |
Property, Plant and Equipment, Estimated Useful Lives | 3 years |
PRINCIPAL ACCOUNTING POLICIES_4
PRINCIPAL ACCOUNTING POLICIES - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020USD ($) | Jan. 01, 2019CNY (¥) | |
Foreign exchange gain/(loss), net | ¥ 919 | $ 141 | ¥ 12,397 | ¥ 685 | ||
Foreign currency translation adjustments | ¥ (79,411) | (12,170) | 33,298 | 55,565 | ||
Foreign Currency Exchange Rate | 6,525 | 6,525 | ||||
Inventories Written Down | ¥ 40,609 | 6,224 | 3,608 | 2,540 | ||
Revenues | 5,530,257 | $ 847,549 | 11,672,024 | 13,015,225 | ||
Revenue, Remaining Performance Obligation | 9,113 | 9,800 | ||||
Employee benefit expenses | 403,031 | 553,175 | 299,341 | |||
Unrecognized uncertain tax positions | 0 | 0 | ||||
Appropriated To Statutory Reserve | 6,467 | 3,129 | 4,227 | |||
Operating lease assets | 11,324 | 43,043 | $ 1,735 | ¥ 27,653 | ||
Total lease liabilities | 28,261 | |||||
Operating lease liabilities included in current liabilities | 6,988 | 17,559 | $ 1,071 | ¥ 11,876 | ||
Factoring receivables | ¥ 122,089 | 17,041 | ||||
General Reserve Fund [Member] | ||||||
Description Of Appropriations And Other Compliances Regarding Maintenance Of Statutory Reserves | The appropriation to the general reserve fund must be at least 10% of the after-tax profits calculated in accordance with PRC GAAP. Appropriation is not required if the general reserve fund has reached 50% of the registered capital of the company. | The appropriation to the general reserve fund must be at least 10% of the after-tax profits calculated in accordance with PRC GAAP. Appropriation is not required if the general reserve fund has reached 50% of the registered capital of the company. | ||||
Statutory Surplus Fund [Member] | ||||||
Description Of Appropriations And Other Compliances Regarding Maintenance Of Statutory Reserves | The appropriation to the statutory surplus fund must be 10% of the after-tax profits as determined under PRC GAAP. Appropriation is not required if the statutory surplus fund has reached 50% of the registered capital of the company. | The appropriation to the statutory surplus fund must be 10% of the after-tax profits as determined under PRC GAAP. Appropriation is not required if the statutory surplus fund has reached 50% of the registered capital of the company. | ||||
Membership program revenue | ||||||
Revenues | ¥ 42,438 | $ 6,503 | 776,839 | 1,552,437 | ||
Revenue, Remaining Performance Obligation | ¥ 0 | 42,438 | ||||
Remaining Performance Obligation, Expected Timing of Satisfaction | 12 months | 12 months | ||||
Membership program revenue | Gift Package [Member] | ||||||
Revenues | ¥ 0 | 557,936 | 1,197,890 | |||
Sales of merchandise | ||||||
Revenues | 4,829,397 | $ 740,138 | 10,548,322 | 11,388,425 | ||
Revenue, Remaining Performance Obligation | 40,645 | 129,224 | ||||
Referral Yunbi [Member] | ||||||
Upfront membership fees | ¥ 0 | 22,104 | 108,634 | |||
New Member Yunbi [Member] | ||||||
Upfront membership fees | ¥ 80,553 | ¥ 159,024 |
CONCENTRATION AND RISKS - Addit
CONCENTRATION AND RISKS - Additional Information (Details) | 1 Months Ended | 12 Months Ended | ||
Jul. 31, 2015 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Increase (Decrease) In Foreign Currency Exchange Rate | 20.00% | 6.50% | 1.60% | (5.00%) |
SHORT TERM INVESTMENT - Schedul
SHORT TERM INVESTMENT - Schedule of short term investment (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Short-term investments | ¥ 134,146 | $ 20,559 | ¥ 774,736 |
Time deposits | |||
Short-term investments | ¥ 134,146 | 593,954 | |
Wealth management products | |||
Short-term investments | ¥ 180,782 |
SHORT TERM INVESTMENT - Additio
SHORT TERM INVESTMENT - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Wealth management products | |||
Investment Weighted Average Return | 3.40% | 3.40% | 4.10% |
ACCOUNTS RECEIVABLE, NET - Summ
ACCOUNTS RECEIVABLE, NET - Summary of accounts receivable (Detail) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |||
Factoring receivables | ¥ 122,089 | ¥ 17,041 | |
Receivables from sales channels on other platforms | 35,950 | ||
Receivables from merchants under marketplace business | 8,439 | 3,015 | |
Receivables from other revenue | 6,858 | 8,471 | |
Less: allowance for credit losses | (8,603) | 0 | |
Accounts Receivable, Net, Current | ¥ 164,733 | $ 25,246 | ¥ 28,527 |
PREPAID EXPENSES AND OTHER CU_3
PREPAID EXPENSES AND OTHER CURRENT ASSETS, NET - Schedule of prepaid expenses and other current assets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | |
Prepaid member training costs | [1] | ¥ 36,669 | ||
Receivables from third-party payment settlement platform | [2] | ¥ 33,154 | 71,202 | |
Deposits | [3] | 62,540 | 86,796 | |
Prepaid rental expenses | 412 | 617 | ||
Prepaid advertising expenses | 5,482 | 4,085 | ||
Short-term loan receivables | [4] | 130,629 | 121,949 | |
Share transfer consideration receivable | [5] | 97,667 | ||
VAT-input deductible | 126,455 | 115,252 | ||
Staff Advance | 151 | 640 | ||
Receivables from disposal of a subsidiary (6) | [6] | 26,676 | ||
Others | 27,896 | 32,555 | ||
Less: allowance for credit losses | (2,972) | |||
Total | ¥ 410,423 | $ 62,899 | ¥ 567,432 | |
[1] | The Group engages third party vendors to provide sales and marketing related training to its members, including on-line training courses to facilitate product sales, updated features on Yunji App, etc. According to the member agreement, all members of the Group, except for those joined the Group’s membership program without paying upfront membership fee, are eligible to attend the training courses provided by these third party vendors. In case when the Group should make prepayments for the training costs to these third party vendors, the prepaid amounts are amortized over relevant period of the training courses provided by the third party vendors. For the years ended December 31, 2018, 2019 and 2020, member training costs were RMB 423,586, RMB 356,283 and RMB 37,147, presented in Cost of revenues in the Consolidation Statements of Comprehensive Loss. | |||
[2] | Receivables from third-party payment settlement platform represent cash due from the third party on-line payment service providers in relation to their processing of payments to the Group. | |||
[3] | Deposits mainly represent the customs deposits held in customs bank accounts, which were RMB 65,000 and RMB 38,000 as of December 31, 2019 and 2020, respectively. | |||
[4] | Short-term loan receivables represent the principal and interest to be collected on three loans provided by the Group to a customer. As of December 31, 2020, the loans include one principal amount of US$ 10.3 million (equivalent to RMB 67,206), one principal amount of US$ 4.7 million (equivalent to RMB 30,667) and the other with principal amount of US$ 5.0 million (equivalent to RMB 32,625). As of December 31, 2019, the loans include one principal amount of US$ 10.3 million, which was renewed in 2020, and include the other with principal amount of RMB 50,000. The terms of loans are of one-year term and with fixed annual interest at approximately 4% within the market rate range, and mature within one year. The loans are pledged by gold bullion with value no less than the loan principal provided to this customer, and the loan arrangements were entered into separately from regular sales business with this customer. | |||
[5] | Share transfer consideration receivable represents the consideration to be collected for transferring of a third party company’s ADSs. In November 2019, the Group subscribed 820,000 ADSs of a third party company with a total consideration of US$ 13.94 million upon its initial public offering in NASDAQ. According to a shares transfer agreement that the Group entered into, the Group sold and transferred all these ADSs to another third party with a fixed consideration of US$ 13.99 million (equivalent to RMB 97.67 million) in December 2019 and the gain of US$50 was recorded in Financial income, net. The Group received the consideration in January 2020. | |||
[6] | In the fourth quarter of 2020, the Group disposed a subsidiary, Wuhan Yunteng Logistics Co., Ltd. (“Wuhan Yunteng”), to a third party for a total cash consideration of RMB 26,676, with a loss of RMB 1.0 million recorded in other non-operating income/(loss) (Note 19). |
PREPAID EXPENSES AND OTHER CU_4
PREPAID EXPENSES AND OTHER CURRENT ASSETS, NET - Schedule of prepaid expenses and other current assets (Parenthetical) (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Nov. 30, 2019USD ($)shares | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | ||
Custom Deposits In Bank Accounts | [1] | ¥ 86,796 | ¥ 62,540 | ¥ 86,796 | |||||
Finance receivable term | 1 year | ||||||||
Finance receivable interest percentage | 4 | ||||||||
Consideration received | 97,670 | $ 13,990 | |||||||
Financial income | $ | $ 50 | ||||||||
Loss on disposal of long-term investments and the subsidiary | ¥ 1,000 | ||||||||
Receivables from disposal of a subsidiary | [2] | 26,676 | |||||||
Finance Receivable One [Member] | |||||||||
Finance receivable principal amount | 67,206 | $ 10,300 | $ 10,300 | ||||||
Finance Receivable Two [Member] | |||||||||
Finance receivable principal amount | 50,000 | 30,667 | 50,000 | 4,700 | |||||
Finance Receivable Three [Member] | |||||||||
Finance receivable principal amount | 32,625 | $ 5,000 | |||||||
Custom Deposits [Member] | |||||||||
Custom Deposits In Bank Accounts | ¥ 65,000 | 38,000 | 65,000 | ||||||
Training Costs [Member] | |||||||||
Cost Of Revenues | ¥ 37,147 | ¥ 356,283 | ¥ 423,586 | ||||||
ADS [Member] | |||||||||
Shares subscribed | shares | 820,000 | ||||||||
Consideration paid | $ | $ 13,940 | ||||||||
[1] | Deposits mainly represent the customs deposits held in customs bank accounts, which were RMB 65,000 and RMB 38,000 as of December 31, 2019 and 2020, respectively. | ||||||||
[2] | In the fourth quarter of 2020, the Group disposed a subsidiary, Wuhan Yunteng Logistics Co., Ltd. (“Wuhan Yunteng”), to a third party for a total cash consideration of RMB 26,676, with a loss of RMB 1.0 million recorded in other non-operating income/(loss) (Note 19). |
INVENTORIES, NET - Schedule of
INVENTORIES, NET - Schedule of inventories net (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2020USD ($) | |
Merchandise and packing materials | ¥ 145,773 | ¥ 428,763 | |
Less: inventory write-downs | (10,528) | (441) | |
Inventories, net | ¥ 135,245 | ¥ 428,322 | $ 20,727 |
PROPERTY, EQUIPMENT AND SOFTW_3
PROPERTY, EQUIPMENT AND SOFTWARE, NET - Schedule of Property, equipment and software, net, consist (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Public Utilities, Property, Plant and Equipment, Construction Work in Progress | ¥ 67,329 | ¥ 72,214 | |
Less: accumulated depreciation | (41,319) | (26,870) | |
Property, equipment and software, net | 26,010 | $ 3,986 | 45,344 |
Leasehold Improvement [Member] | |||
Public Utilities, Property, Plant and Equipment, Construction Work in Progress | 32,417 | 29,421 | |
Electronic Equipment [Member] | |||
Public Utilities, Property, Plant and Equipment, Construction Work in Progress | 21,932 | 25,990 | |
Furniture [Member] | |||
Public Utilities, Property, Plant and Equipment, Construction Work in Progress | 6,669 | 10,117 | |
Software [Member] | |||
Public Utilities, Property, Plant and Equipment, Construction Work in Progress | 4,336 | 2,441 | |
Vehicles [Member] | |||
Public Utilities, Property, Plant and Equipment, Construction Work in Progress | 1,101 | 1,101 | |
Construction in Progress [Member] | |||
Public Utilities, Property, Plant and Equipment, Construction Work in Progress | ¥ 874 | ¥ 3,144 |
PROPERTY, EQUIPMENT AND SOFTW_4
PROPERTY, EQUIPMENT AND SOFTWARE, NET - Additional Information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Depreciation Expenses | ¥ 21,054 | ¥ 18,021 | ¥ 9,306 |
Impairment Charges | 0 | 0 | ¥ 0 |
Construction in Progress [Member] | |||
Balances Of Construction In Progress | ¥ 874 | ¥ 3,144 |
LONG-TERM INVESTMENTS - Schedul
LONG-TERM INVESTMENTS - Schedule of Investments under equity method (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2018CNY (¥) | |
Equity method investments | ¥ 58,479 | ¥ 36,588 | ¥ 16,799 | |
Equity securities accounted for under alternative measurement | 5,900 | 4,200 | ||
Equity securities with readily determinable fair value | 94,552 | 158,072 | ||
Total long-term investments | ¥ 158,931 | ¥ 198,860 | $ 24,357 |
LONG-TERM INVESTMENTS - Sched_2
LONG-TERM INVESTMENTS - Schedule of Unrealized securities holding gain/ (loss) Investments equity method (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Beginning balance | ¥ 36,588 | ¥ 16,799 |
Addition | 28,883 | 23,200 |
Dividends received | (204) | (190) |
Disposal of long-term investments | (2,954) | |
Share of cumulative loss | (3,834) | (3,221) |
Ending balance | ¥ 58,479 | ¥ 36,588 |
LONG-TERM INVESTMENTS - Additio
LONG-TERM INVESTMENTS - Additional Information (Details) ¥ in Thousands, $ in Millions | 1 Months Ended | 12 Months Ended | ||||
May 31, 2019USD ($)shares | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | May 31, 2019CNY (¥) | May 31, 2019USD ($) | ||
Unrealised gain/(loss) on equity securities with readily determinable fair value | [1] | ¥ (53,683) | ¥ 68,555 | |||
Equity method securities with readily determinable fair value,fair value | 94,552 | 158,072 | ||||
Hongkong Listed Company GXG [Member] | ||||||
Equity securities with readily determinable fair value cost | ¥ 89,517 | $ 13 | ||||
Unrealised gain/(loss) on equity securities with readily determinable fair value | (56,383) | 68,555 | ||||
Equity method securities with readily determinable fair value,fair value | ¥ 94,552 | ¥ 158,072 | ||||
Hongkong Listed Company GXG [Member] | Equity Securities With Readily Determinable Fair Value [Member] | ||||||
Number of shares invested during the period | shares | 22,740,000 | |||||
Payment to acquire equity securities with readily determinable fair values | $ | $ 13 | |||||
[1] | Gain from fair value change of equity securities with readily determinable fair value represents the unrealized changes of fair value of investment in GXG (Note 9). |
OTHER NON-CURRENT ASSESTS - Sch
OTHER NON-CURRENT ASSESTS - Schedule of Other Non-current Assets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | |
Other Assets, Noncurrent [Abstract] | ||||
Long-term loan receivable | [1] | ¥ 53,612 | ¥ 50,278 | |
Prepayment of an office building | [2] | 78,000 | ||
Others | 18,695 | 6,003 | ||
Less: allowance for doubtful accounts | (1,514) | |||
Total | ¥ 148,793 | $ 22,804 | ¥ 56,281 | |
[1] | Long-term loan receivable represents the principal and interest to be collected of a loan provided by the Group to a third party. The loan was of principal amount of RMB 50,000, three-year term starting from December 2019, and with a lump sum interest rate of 20% at maturity. | |||
[2] | The Group purchased an office building from a third party and paid the full amount in advance with consideration of USD$11.25 million (equivalent RMB 78,000). This office building is expected to be used by the Group to relocate its customer service center in the future. |
OTHER NON-CURRENT ASSESTS - Add
OTHER NON-CURRENT ASSESTS - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019CNY (¥) | Dec. 31, 2020CNY (¥) | Jan. 01, 2020USD ($) | ||
Prepayment of an office building | [1] | ¥ 78,000 | ||
Commercial Real Estate Portfolio Segment [Member] | ||||
Loans receivable face value | ¥ 50,000 | |||
Loan receivable maturity | 3 years | |||
Loan receivable contractual interest rate | 20.00% | |||
Prepayment of an office building | ¥ 78,000 | $ 11,250 | ||
[1] | The Group purchased an office building from a third party and paid the full amount in advance with consideration of USD$11.25 million (equivalent RMB 78,000). This office building is expected to be used by the Group to relocate its customer service center in the future. |
ACCOUNTS PAYABLE - Schedule of
ACCOUNTS PAYABLE - Schedule of accounts payable (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Merchandise purchase payables | ¥ 292,515 | ¥ 548,427 | |
Warehouse and logistic fees payables | 7,512 | 48,327 | |
Payable to merchants | 201,522 | 145,205 | |
Total | ¥ 501,549 | $ 76,866 | ¥ 741,959 |
DEFERRED REVENUE - Schedule of
DEFERRED REVENUE - Schedule of deferred revenue (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Deferred Revenue, Current | ¥ 50,951 | $ 7,809 | ¥ 181,828 |
Deferred merchandise revenue [Member] | |||
Deferred Revenue, Current | 40,645 | 129,224 | |
Deferred membership program revenue [Member] | |||
Deferred Revenue, Current | 0 | 42,438 | |
Deferred marketplace revenue [Member] | |||
Deferred Revenue, Current | 9,113 | 9,800 | |
Deferred other revenue [Member] | |||
Deferred Revenue, Current | ¥ 1,193 | ¥ 366 |
DEFERRED REVENUE - Additional I
DEFERRED REVENUE - Additional Information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue Recognition and Deferred Revenue [Abstract] | |||
Deferred revenue revenue recognized | ¥ 181,828 | ¥ 546,975 | ¥ 323,551 |
INCENTIVE PAYABLES TO MEMBERS -
INCENTIVE PAYABLES TO MEMBERS - Schedule of Incentive payables to members (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | |
Accruals of Yunbi granted under member incentive program | ¥ 0 | ¥ 251 | ||
Discounts and referral incentive payable | [1] | 312,170 | 384,235 | |
Total incentive payables to members | ¥ 312,170 | $ 47,842 | ¥ 384,486 | |
[1] | Discounts and referral incentive payable represents unpaid balances of discounts granted to members for their self-purchase and referral incentives earned by the members for their referral efforts and is transferred to the members’ individual Yunji App accounts. These unpaid balances are maintained collectively in the members’ Yunji App accounts and can be withdraw as cash upon the members’ requests. |
REFUND PAYABLE TO MEMBERS - Sch
REFUND PAYABLE TO MEMBERS - Schedule of Referral Incentive Fees (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Refund payable to members | ¥ 4,398 | ¥ 26,883 | ¥ 396,024 | ¥ 147,943 |
REFUND PAYABLE TO MEMBERS - S_2
REFUND PAYABLE TO MEMBERS - Schedule of Movement in refund payable to members (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Beginning balance | ¥ 26,883 | ¥ 396,024 | ¥ 147,943 | |
Estimated referral incentives to be refunded | 8,021 | 132,989 | 626,853 | |
Referral incentives earned | [1] | (6,985) | (122,760) | (378,772) |
Change in estimate | [2] | (23,521) | (379,370) | |
Ending Balance | ¥ 4,398 | ¥ 26,883 | ¥ 396,024 | |
[1] | Once the referral incentives are earned by the referring members, the amounts are transferred to the members’ individual Yunji App accounts and recorded as Incentive payables to members (Note 13). | |||
[2] | The estimation of refund payable to members is based upon the historical data of referral incentives earned by referring members within their active life cycle. The balance of the payable was RMB 26,883 and RMB 4,398 as of December 31, 2019 and 2020, respectively, and reflected the Company’s member’s referral behavior in light of its ongoing refinement of its membership enrollment system. |
REFUND PAYABLE TO MEMBERS - S_3
REFUND PAYABLE TO MEMBERS - Schedule of Movement in refund payable to members (Parenthetical) (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Refund payable to members | ¥ 4,398 | ¥ 26,883 |
Change in estimation of refund payable to members | ¥ 23,521 | ¥ 379,370 |
MEMBER MANAGEMENT FEES PAYABL_2
MEMBER MANAGEMENT FEES PAYABLE -Schedule of members management fees payable (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Member management fees payable | ¥ 45,841 | ¥ 78,355 |
MEMBER MANAGEMENT FEES PAYABL_3
MEMBER MANAGEMENT FEES PAYABLE - Additional Information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Selling and Marketing Expense [Member] | |||
Member management fees | ¥ 418,194 | ¥ 876,769 | ¥ 834,576 |
OPERATING LEASE - Supplemental
OPERATING LEASE - Supplemental Cash flow information Relating to Operating Leases (Details) - Previous Lease Standard ("ASC 840") [Member] - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Lessee, Lease, Description [Line Items] | ||
Cash paid for amounts included in the measurement of lease liabilities | ¥ 14,686 | ¥ 17,528 |
Right-of-use assets obtained in exchange for operating lease liabilities | ¥ 46,551 |
OPERATING LEASE- Consolidated b
OPERATING LEASE- Consolidated balancesheet information (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Jan. 01, 2019CNY (¥) |
Lessee, Lease, Description [Line Items] | ||||
Right-of-use assets | ¥ 11,324 | $ 1,735 | ¥ 43,043 | ¥ 27,653 |
Operating lease liabilities - current | 6,988 | 1,071 | 17,559 | 11,876 |
Operating lease liabilities – non-current | 8,309 | $ 1,273 | 27,734 | |
Total lease liabilities | ¥ 28,261 | |||
Previous Lease Standard ("ASC 840") [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Right-of-use assets | 11,324 | 43,043 | ||
Operating lease liabilities - current | 6,988 | 17,559 | ||
Operating lease liabilities – non-current | 8,309 | 27,734 | ||
Total lease liabilities | ¥ 15,297 | ¥ 45,293 | ||
Weighted average remaining lease term | 1 year 8 months 12 days | 1 year 8 months 12 days | 3 years | |
Weighted average discount rate | 4.75% | 4.75% | 4.75% |
OPERATING LEASE- Maturities of
OPERATING LEASE- Maturities of lease liabilities (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 |
Lessee, Lease, Description [Line Items] | |||
Total | ¥ 28,261 | ||
Previous Lease Standard ("ASC 840") [Member] | |||
Lessee, Lease, Description [Line Items] | |||
2021 | ¥ 7,316 | ||
2022 | 5,392 | ||
2023 | 3,454 | ||
2024 | 61 | ||
2025 | 0 | ||
Total operating lease payments | 16,223 | ||
Less: imputed interest | (926) | ||
Total | ¥ 15,297 | ¥ 45,293 |
OPERATING LEASE- Additional inf
OPERATING LEASE- Additional information (Details) - Previous Lease Standard ("ASC 840") [Member] - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Lessee, Lease, Description [Line Items] | |||
Operaitng lease costs | ¥ 15,732 | ¥ 19,135 | |
Operating lease expense minimum rentals | ¥ 17,522 | ||
Variable lease cost | ¥ 0 | ||
Maximum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease remaining lease term | 5 years | ||
Minimum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease remaining lease term | 1 year |
OTHER PAYABLE AND ACCRUED LIA_3
OTHER PAYABLE AND ACCRUED LIABILITIES - Schedule of Accrued Liabilities and Other Payables (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | |
Supplier deposits | [1] | ¥ 86,759 | ¥ 86,132 | |
Merchants deposits | [2] | 68,903 | 80,643 | |
Rental fee payables | 720 | 438 | ||
IT related service fees | 2,913 | 22,937 | ||
Accrued professional fees | 9,106 | 8,179 | ||
Salaries and welfare payable | 60,737 | 94,973 | ||
Taxes payable | 19,044 | 40,498 | ||
Accrued marketing and other operational expenses | 21,576 | 13,963 | ||
Others | 10,828 | 1,348 | ||
Accounts Payable and Other Accrued Liabilities, Current | ¥ 280,586 | $ 43,002 | ¥ 349,111 | |
[1] | The deposit obtained from the suppliers is to ensure inventory level ready for the Group to purchase and good product quality under the Group’s sales of merchandise business model. | |||
[2] | The deposit obtained from the merchants is to ensure implementation of Yunji App’s platform policy and good product quality to be sold by the merchants on Yunji App under the Group’s marketplace business model. The deposit can be withdrawn immediately after the merchants terminate its online shop on Yunji App. |
OTHER OPERATING INCOME - Schedu
OTHER OPERATING INCOME - Schedule Of Other Operating Income Net (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Other Income and Expenses [Abstract] | ||||
VAT-in super deduction | [1] | ¥ 4,830 | ¥ 25,047 | |
Government grants | [2] | 25,172 | 43,599 | ¥ 7,048 |
Others | 3,216 | |||
Total | ¥ 33,218 | ¥ 68,646 | ¥ 7,048 | |
[1] | From 2019, in accordance with “the Announcement on Relevant Policies for Deepening the Value-added Tax Reform” and relevant government policies announced by the Ministry of Finance, the State Taxation Administration and the General Administration of Customs of China, one China VIE of the Company, as a consumer service company, is allowed to enjoy additional 10% VAT-in deduction for any services or products it purchased (“VAT-in super deduction”) from April 1, 2019 to December 31, 2021. The VAT-in super deduction obtained is considered as operating given that all VAT-in were derived from the purchases for that VIE’s daily operations in nature, and therefore is presented in Other operating income in the Consolidation Statements of Comprehensive Loss. | |||
[2] | Government grants mainly represent cash subsidies received from PRC local governments for companies operating a business in their jurisdictions and compliance with specific policies promoted by the local governments. Starting from January 2020, the Company presents government grants as Other operating income. The relevant item in the prior years of RMB 7,048 and RMB 43,599 for the years ended December 31, 2018 and 2019 are also classified from Other non-operating income/(loss), net, to be in conformity with the current period presentation in the Consolidated Statements of Comprehensive Loss. These cash subsidies were not subject to meeting any specific future conditions. |
OTHER OPERATING INCOME - Sche_2
OTHER OPERATING INCOME - Schedule Of Other Operating Income Net (Parenthetical) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Other Income And Expenses [Line Items] | ||||
Percent of VAT in super deduction | 10.00% | 10.00% | ||
Other operating income, net | ¥ 33,218 | $ 5,091 | ¥ 68,646 | ¥ 7,048 |
Government grant [Member] | ||||
Other Income And Expenses [Line Items] | ||||
Other operating income, net | ¥ 43,599 | ¥ 7,048 |
OTHER NON-OPERATING INCOME_(L_3
OTHER NON-OPERATING INCOME/(LOSS), NET- Schedule Of Other Nonoperating Income Net (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other non-operating income/(Loss), net | ¥ 1,610 | ¥ 8,497 | |
Loss on disposal of long-term investments and a subsidiary [Member] | |||
Other non-operating income/(Loss), net | ¥ 1,610 | ||
Others [Member] | |||
Other non-operating income/(Loss), net | ¥ 8,497 |
FINANCIAL INCOME_(EXPENSE), N_3
FINANCIAL INCOME/(EXPENSE), NET - Schedule of financial income, net (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | ||
Interest income | ¥ 46,667 | ¥ 52,889 | ¥ 46,919 | ||
Interest expenses | (6,383) | ||||
Gains/(loss) from fair value change of equity securities with readily determinable fair value | [1] | (53,683) | 68,555 | ||
Bank charges | (709) | (444) | (851) | ||
Others | 5,537 | 370 | |||
Financial Income | ¥ (8,571) | $ (1,314) | ¥ 121,370 | ¥ 46,068 | |
[1] | Gain from fair value change of equity securities with readily determinable fair value represents the unrealized changes of fair value of investment in GXG (Note 9). |
TAXATION - Schedule of Income b
TAXATION - Schedule of Income before Income Tax, Domestic and Foreign (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Loss before tax | ||||
Loss from PRC entities | ¥ (5,399) | ¥ (204,937) | ¥ (61,767) | |
Income/(loss) from overseas entities | (103,161) | 67,604 | 14,795 | |
Total loss before tax | ¥ (108,560) | $ (16,637) | ¥ (137,333) | ¥ (46,972) |
TAXATION - Schedule of Componen
TAXATION - Schedule of Components of Income Tax Expense (Benefit) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||||
Current income tax expense | ¥ 10,458 | ¥ 13,300 | ¥ 25,413 | |
Deferred income tax (benefit)/expense | 28,840 | $ 4,420 | (30,020) | (13,067) |
Income Tax Expense (Benefit) | ¥ 39,298 | $ 6,022 | ¥ (16,720) | ¥ 12,346 |
TAXATION - Schedule of Effectiv
TAXATION - Schedule of Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
PRC Statutory income tax rate | 25.00% | 25.00% | 25.00% |
Effect on tax rates in different tax jurisdiction | (9.00%) | 8.00% | 3.00% |
The effect of change in the tax rate of Jishang Preferred | 0.00% | 26.00% | (76.00%) |
Difference in EIT rates of PRC entities | 0.00% | 0.00% | 9.00% |
Non-deductible expenses | (1.00%) | (2.00%) | (4.00%) |
Additional deduction for research and development expenditures | 48.00% | 16.00% | 25.00% |
Share-based compensation | (23.00%) | (23.00%) | (17.00%) |
Non-taxable income | 0.00% | 0.00% | 7.00% |
Permanent book-tax differences | 7.00% | 2.00% | 0.00% |
Change in valuation allowance | (83.00%) | (40.00%) | 2.00% |
Effective tax rates | (36.00%) | 12.00% | (26.00%) |
TAXATION - Schedule of Deferred
TAXATION - Schedule of Deferred Tax Assets and Liabilities (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets | ||||
Net accumulated losses-carry forward | ¥ 205,487 | ¥ 150,990 | ||
Refund payable to members | 1,100 | 6,721 | ||
Inventory write—downs | 2,632 | 110 | ||
Allowance for credit losses | 3,272 | |||
Others | 4,101 | 6,961 | ||
Less: valuation allowance | (156,150) | (65,225) | ¥ (10,004) | ¥ (11,153) |
Total deferred tax assets | ¥ 60,442 | 110,167 | ||
Deferred Membership programme [Member] | ||||
Deferred tax assets | ||||
Deferred membership program revenue | ¥ 10,610 |
TAXATION - Summary Deferred tax
TAXATION - Summary Deferred tax Liabilities (Details) - Deferred Tax Liabilities [Member] - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred Tax Liabilities, Net [Abstract] | ||
Prepaid member training costs | ¥ 9,288 | |
Gain or loss from changes in fair values | ¥ 2,684 | 11,312 |
Others | 135 | 3,104 |
Total deferred tax liabilities | ¥ 2,819 | ¥ 23,704 |
TAXATION - Movement of valuatio
TAXATION - Movement of valuation allowance (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Valuation Allowance [Abstract] | ||||
Balance at beginning of the year | ¥ (65,225) | ¥ (10,004) | ¥ (11,153) | |
Changes of valuation allowance | [1] | (90,925) | (55,221) | 1,149 |
Balance at end of the year | ¥ (156,150) | ¥ (65,225) | ¥ (10,004) | |
[1] | Valuation allowances have been provided against deferred tax assets when the Group determines that it is more likely than not that the deferred tax assets will not be utilized in the future. In making such determination, the Group evaluates a variety of factors including the Group’s entities’ operating history, accumulated deficit, existence of taxable temporary differences and reversal periods. As of December 31, 2019 and 2020, valuation allowances on a large part of deferred tax assets were provided because it was more likely than not that the Group will not be able to utilize tax loss carry forwards generated by certain unprofitable subsidiaries. As of December 31, 2019 and 2020, valuation allowances of RMB 55,221 and RMB 90,925 were provided against deferred tax assets because it was more likely than not that such portion of deferred tax will not be realized based on the Company’s estimate of future taxable incomes of all its subsidiaries. |
TAXATION - Summary of Operating
TAXATION - Summary of Operating Loss Carryforwards (Details) ¥ in Thousands | Dec. 31, 2020CNY (¥) |
Operating Loss Carryforwards | ¥ 627,352 |
2021 | |
Operating Loss Carryforwards | 41 |
2022 | |
Operating Loss Carryforwards | 11,832 |
2023 | |
Operating Loss Carryforwards | 484 |
2024 | |
Operating Loss Carryforwards | 356,494 |
2025 | |
Operating Loss Carryforwards | ¥ 258,501 |
TAXATION - Additional Informati
TAXATION - Additional Information (Details) - CNY (¥) ¥ in Thousands | Jan. 01, 2018 | Mar. 16, 2007 | Jun. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2008 | Apr. 01, 2019 | May 01, 2018 | Apr. 30, 2018 |
Percentage Of Tax On Profits | (9.00%) | 8.00% | 3.00% | |||||||
Corporate Income Tax Rate | 25.00% | 25.00% | 25.00% | |||||||
Operating Loss Carryforwards | ¥ 627,352 | |||||||||
Changes of valuation allowance | 55,221 | ¥ 90,925 | ||||||||
Withholding Tax [Member] | ||||||||||
Deferred income tax liabilities | ¥ 0 | ¥ 0 | ||||||||
Inland Revenue, Hong Kong [Member] | ||||||||||
Percentage Of Tax On Profits | 16.50% | |||||||||
State Administration of Taxation, China [Member] | ||||||||||
Corporate Income Tax Rate | 25.00% | 25.00% | ||||||||
Preferential Tax Rate | 15.00% | |||||||||
Validity Of Preferential Tax Rate | 3 years | |||||||||
Percentage Admissible On Research And Development Costs | 175.00% | 150.00% | ||||||||
Additional Percentage Admissible On Research And Development Costs | 75.00% | 50.00% | ||||||||
State Administration of Taxation, China [Member] | Zheijang Jishang E-Commerce Limited [Member] | ||||||||||
Preferential Tax Rate | 15.00% | |||||||||
State Administration of Taxation, China [Member] | Foreign Tax Authority [Member] | ||||||||||
Corporate Income Tax Rate | 25.00% | |||||||||
State Administration of Taxation, China [Member] | Zhejiang Jishang Preferred ECommerce Co LtdMember [Member] | ||||||||||
Preferential Tax Rate | 15.00% | 15.00% | ||||||||
State Administration of Taxation, China [Member] | Other Entities [Member] | ||||||||||
Corporate Income Tax Rate | 25.00% | |||||||||
CHINA | ||||||||||
Operating Loss Carryforwards | ¥ 627,352 | |||||||||
Outside China [Member] | ||||||||||
Dividend distribution tax rate | 10.00% | |||||||||
HONG KONG | ||||||||||
Dividend distribution tax rate | 5.00% | |||||||||
Dividend distribution tax rate description | Avoidance of Double Taxation and Prevention of Fiscal Evasion in August 2006, dividends paid by an FIE in China to its immediate holding company in Hong Kong will be subject to withholding tax at a rate of no more than 5% if the foreign investor owns directly at least 25% of the shares of the FIE and if Hong Kong company is a beneficial owner of the dividend. | |||||||||
Ownership percent | 25.00% | |||||||||
Agricultural Products [Member] | CHINA | ||||||||||
Value added tax rate | 9.00% | 10.00% | 11.00% | |||||||
Other Products [Member] | CHINA | ||||||||||
Value added tax rate | 13.00% | 16.00% | 17.00% | |||||||
Logistics Services [Member] | CHINA | ||||||||||
Value added tax rate | 9.00% | 10.00% | 11.00% |
ORDINARY SHARES - Additional In
ORDINARY SHARES - Additional Information (Details) $ / shares in Units, $ in Thousands | Jun. 04, 2019$ / sharesshares | May 03, 2019shares | Jan. 01, 2018 | Jan. 31, 2018$ / sharesshares | Dec. 31, 2020$ / sharesshares | Dec. 31, 2019$ / sharesshares | Aug. 28, 2019USD ($) | Dec. 31, 2017shares | Nov. 30, 2017USD ($)$ / sharesshares |
Common stock shares authorized value | $ | $ 50 | ||||||||
Common stock shares authorized | 20,000,000,000 | 20,000,000,000 | 500,000,000 | ||||||
Common stock par value | $ / shares | $ 0.000005 | $ 0.000005 | $ 0.0001 | ||||||
Conversion ratio | 1 | ||||||||
Amount of shares authorised to be repurchased | $ | $ 20,000 | ||||||||
Number of shares cumulatively repurchased | 40,076,270 | ||||||||
MrXiao Shanglue Founder and CEO [Member] | |||||||||
Conversion of Stock, Shares Converted | 201,440,000 | ||||||||
Common Stock [Member] | |||||||||
Common stock par value | $ / shares | $ 0.000005 | ||||||||
Common stock shares issued | 2,158,791,222 | 2,158,791,222 | 1 | ||||||
Common stock shares outstanding | 2,133,265,412 | 2,129,405,572 | 1 | ||||||
Stock issued during period stock split | 10,000,000,000 | ||||||||
Stock split discription | 1 ordinary share was subdivided into 20 ordinary shares | ||||||||
Maximum [Member] | |||||||||
Share repurchase price | $ / shares | $ 1.42 | ||||||||
Minimum [Member] | |||||||||
Share repurchase price | $ / shares | $ 0.46 | ||||||||
Common Class A [Member] | |||||||||
Common stock shares issued | 1,208,831,222 | 1,208,831,222 | |||||||
Common stock shares outstanding | 1,183,305,412 | 1,179,445,572 | |||||||
Conversion of Stock, Shares Converted | 895,216,752 | ||||||||
Common Class A [Member] | MrXiao Shanglue Founder and CEO [Member] | |||||||||
Conversion of Stock, Shares Converted | 895,216,752 | ||||||||
Common Class A [Member] | Over-Allotment Option [Member] | |||||||||
Common stock par value | $ / shares | $ 1.10 | ||||||||
Options Exercised | 2,174,470 | ||||||||
Common Class A [Member] | IPO [Member] | |||||||||
Stock issued during period | 110,000,000 | ||||||||
Common Class A [Member] | Maximum [Member] | |||||||||
Share repurchase price | $ / shares | $ 0.70 | ||||||||
Common Class A [Member] | Minimum [Member] | |||||||||
Share repurchase price | $ / shares | $ 0.40 | ||||||||
Common Class B [Member] | |||||||||
Common stock shares issued | 949,960,000 | 949,960,000 | |||||||
Common stock shares outstanding | 949,960,000 | 949,960,000 | |||||||
Common Class B [Member] | MrXiao Shanglue Founder and CEO [Member] | |||||||||
Voting power, Class B ordinary shares | one share with ten votes | ||||||||
Conversion of Stock, Shares Converted | 949,960,000 | ||||||||
American Depositary Shares [Member] | IPO [Member] | |||||||||
Stock issued during period | 11,000,000 |
CONVERTIBLE REDEEMABLE PREFER_2
CONVERTIBLE REDEEMABLE PREFERRED SHARES - Additional Information (Detail) $ / shares in Units, ¥ in Thousands, $ in Thousands | 1 Months Ended | |||||||||
Jun. 30, 2018CNY (¥)shares | Jun. 30, 2018USD ($)shares | Feb. 28, 2018CNY (¥)shares | Feb. 28, 2018USD ($)$ / sharesshares | Jan. 31, 2017CNY (¥)shares | Nov. 30, 2016CNY (¥) | Nov. 30, 2016USD ($) | Jul. 31, 2015CNY (¥)shares | Nov. 30, 2018$ / shares | Jun. 30, 2018USD ($)shares | |
Series A Preferred Stock [Member] | ||||||||||
Preferred Stock, Shares Issued | shares | 272,600,000 | |||||||||
Series B Preferred Stock [Member] | ||||||||||
Stock issuance costs | ¥ 14,062 | |||||||||
Finders commission | ¥ 12,600 | $ 2,000 | ||||||||
Stock issued during period | shares | 110,803,324 | 110,803,324 | ||||||||
Proceeds from issue of preferred stock | ¥ 630,010 | $ 100,000 | ||||||||
Series B Preferred Stock [Member] | Payment One [Member] | ||||||||||
Finders commission payment percent | 50.00% | 50.00% | ||||||||
Finders commission payment Value | $ | $ 1,000 | |||||||||
Series B Preferred Stock [Member] | Payment Two [Member] | ||||||||||
Stock issued during period | shares | 1,108,033 | 1,108,033 | ||||||||
Finders commission payment percent | 50.00% | 50.00% | ||||||||
Series Seed Preferred Shares [Member] | ||||||||||
Stock issued during period | shares | 373,000,000 | |||||||||
Series B Plus Preferred Shares [Member] | ||||||||||
Stock issuance costs | ¥ 5,867 | |||||||||
Preferred Stock, Shares Authorized | shares | 21,105,395 | 21,105,395 | ||||||||
Preferred stock shares authorized value | ¥ 128,416 | $ 20,000 | ||||||||
Preferred Shares [Member] | ||||||||||
Preferred shares par value | $ / shares | $ 0.000005 | |||||||||
Issue Two [Member] | Series A Preferred Stock [Member] | ||||||||||
Stock issued during period | shares | 116,600,000 | 116,600,000 | ||||||||
Shares issued price per share | $ / shares | $ 0.000005 | |||||||||
Series Seed Capital Contribution [Member] | ||||||||||
Capital injuction | ¥ 50,000 | |||||||||
Stock issuance costs | ¥ 1,000 | |||||||||
Series A Beneficiary Owners [Member] | ||||||||||
Stock issuance costs | ¥ 8,095 | |||||||||
Proceeds from warrant exercise | ¥ 644 | |||||||||
Finders commission | 6,509 | |||||||||
Series A Beneficiary Owners [Member] | Contribution One [Member] | ||||||||||
Capital injuction | 33,160 | $ 20,000 | ||||||||
Series A Beneficiary Owners [Member] | Contribution Two [Member] | ||||||||||
Capital injuction | ¥ 138,532 | |||||||||
Warrant [Member] | Series A Beneficiary Owners [Member] | ||||||||||
Fair value of warrant liability | ¥ 1,754 |
SHARE-BASED COMPENSATION- Sched
SHARE-BASED COMPENSATION- Schedule of Stock Options Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Outstanding, beginning balance | 93,846,550 | 87,112,400 | |
Granted | 16,097,050 | ||
Forfeited | (16,014,140) | (7,954,980) | |
Exercised | (9,151,290) | (1,407,920) | |
Expired | (115,200) | ||
Outstanding, ending balance | 68,565,920 | 93,846,550 | 87,112,400 |
Vested and expected to vest | 68,565,920 | ||
Exercisable | 53,535,110 | ||
Weighted average exercise price, outstanding | $ 0.19 | $ 0.12 | |
Weighted average exercise price, granted | 0.61 | ||
Weighted average exercise price, forfeited | 0.11 | 0.31 | |
Weighted Average Exercise Price,exercised | 0.10 | 0.09 | |
Weighted Average exercise price, expired | 0.14 | ||
Weighted average exercise price, outstanding | $ 0.22 | $ 0.19 | $ 0.12 |
Weighted average remaining contractual term, outstanding | 2 years 7 months 24 days | 3 years 9 months 7 days | 5 years 1 month 2 days |
Aggregate intrinsic value, outstanding beginning balance | $ 60,399 | ||
Aggregate intrinsic value, outstanding ending balance | $ 2,826 | $ 30,442 |
SHARE-BASED COMPENSATION- Assum
SHARE-BASED COMPENSATION- Assumptions Used to Value the Company's Options Grants (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019$ / shares | |
Risk-free interest rate Minimum | 1.68% | |
Risk-free interest rate Maximum | 2.47% | |
Expected term (in years) | 6 years | |
Expected volatility Minimum | 39.91% | |
Expected volatility Maximum | 41.29% | |
Maximum [Member] | ||
Exercise price (USD) | $ 0.7 | |
Exercise multiple | 2.8 | |
Expected forfeiture rate (post-vesting) | 5.00% | |
Fair value of the underlying shares on the date of options grants (US$) | $ 1.42 | |
Fair value of share option (US$) | 1.32 | |
Minimum [Member] | ||
Exercise price (USD) | $ 0.1 | |
Exercise multiple | 2.2 | |
Expected forfeiture rate (post-vesting) | 0.00% | |
Fair value of the underlying shares on the date of options grants (US$) | $ 0.46 | |
Fair value of share option (US$) | $ 0.11 |
SHARE-BASED COMPENSATION - Summ
SHARE-BASED COMPENSATION - Summary of activities of the Service-based RSUs (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Unvested | 36,834,850 | 24,800,000 |
Granted | 64,210,210 | 18,257,040 |
Vested | (954,960) | (3,036,290) |
Forfeited | (51,629,000) | (3,185,900) |
Expired | (500,000) | |
Unvested | 47,961,100 | 36,834,850 |
Weighted Average Grant Date Fair Value, Unvested | $ 0.76 | $ 0.74 |
Weighted Average Grant Date Fair Value, Granted | 0.43 | 0.68 |
Weighted Average Grant Date Fair Value, Vested | ||
Weighted Average Grant Date Fair Value, Unvested | $ 0.63 | $ 0.76 |
SHARE-BASED COMPENSATION - Addi
SHARE-BASED COMPENSATION - Additional Information (Details) ¥ in Thousands | Jul. 01, 2020shares | Jan. 01, 2020shares | May 03, 2019shares | Jan. 31, 2019shares | Nov. 28, 2018shares | Dec. 19, 2017shares | Jun. 30, 2018shares | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2020CNY (¥)$ / shares | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2019CNY (¥)$ / shares | Dec. 31, 2018CNY (¥) | Mar. 31, 2019shares |
Share based Payment Award Expiration Period | 6 years | ||||||||||||
Share Based Payment Award Vesting Period | 4 years | ||||||||||||
Share Based Payment Award Vesting Rights | Half (1/2) of which vest upon the second anniversary of the stated vesting commencement date and one-fourth (1/4) of the remaining will vest upon the third and four anniversaries of the stated vesting commencement date | ||||||||||||
Options Grants In Period | 16,097,050 | ||||||||||||
Restricted Stock Units Grants In Period | 64,210,210 | 18,257,040 | |||||||||||
Stock Option, fair value of the underlying stock | $ / shares | $ 0.19 | $ 0.46 | |||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | ¥ | ¥ 40,192 | $ 40,192 | ¥ 137,487 | $ 137,487 | |||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 6 months 3 days | 2 years 7 months 6 days | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 954,960 | 3,036,290 | |||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | ¥ | ¥ 112,376 | $ 112,376 | ¥ 138,441 | $ 138,441 | |||||||||
Employee Stock Option [Member] | |||||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 9 months 18 days | 1 year 11 months 19 days | |||||||||||
Allocated Share-based Compensation Expense | ¥ | ¥ 52,870 | ¥ 66,190 | ¥ 48,298 | ||||||||||
Restricted Stock Units (RSUs) [Member] | |||||||||||||
Allocated Share-based Compensation Expense | ¥ | ¥ 45,508 | ¥ 62,007 | ¥ 6,002 | ||||||||||
Directors And Employees [Member] | |||||||||||||
Options Grants In Period | 4,968,000 | 5,540,000 | 73,225,200 | 12,021,500 | |||||||||
Restricted Stock Units Grants In Period | 14,925,000 | 19,800,000 | 5,000,000 | ||||||||||
Directors And Employees [Member] | Restricted Stock Units (RSUs) [Member] | |||||||||||||
Restricted Stock Units Grants In Period | 13,890,000 | ||||||||||||
Independent Directors [Member] | |||||||||||||
Options Grants In Period | 720,000 | ||||||||||||
Non Employee [Member] | Employee Stock Option [Member] | |||||||||||||
Options Grants In Period | 10,409,050 | ||||||||||||
Non Employee [Member] | Restricted Stock Units (RSUs) [Member] | |||||||||||||
Restricted Stock Units Grants In Period | 3,332,040 | ||||||||||||
External Consultants [Member] | Restricted Stock Units (RSUs) [Member] | |||||||||||||
Restricted Stock Units Grants In Period | 356,210 | ||||||||||||
Employees [Member] | Restricted Stock Units (RSUs) [Member] | |||||||||||||
Restricted Stock Units Grants In Period | 49,964,000 | ||||||||||||
Two Thousand Nineteen | |||||||||||||
Number of shares authorized and reserved for the issuance | 227,401,861 |
FAIR VALUE MEASUREMENTS - Fair
FAIR VALUE MEASUREMENTS - Fair value measurement of the Group's assets and liabilities that are measured at fair value on a recurring basis (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets, Fair Value Disclosure [Abstract] | ||
Equity securities with readily determinable fair value | ¥ 94,552 | ¥ 158,072 |
Fair Value, Measurements, Recurring [Member] | Short-term Investments [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Assets, Fair Value Disclosure | 228,698 | 932,808 |
Fair Value, Measurements, Recurring [Member] | Long-term investments [member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Equity securities with readily determinable fair value | 94,552 | 158,072 |
Fair Value, Measurements, Recurring [Member] | Wealth Management Products [Member] | Short-term Investments [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Assets, Fair Value Disclosure | 180,782 | |
Fair Value, Measurements, Recurring [Member] | Bank Time Deposits [Member] | Short-term Investments [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Assets, Fair Value Disclosure | 134,146 | 593,954 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Short-term Investments [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Assets, Fair Value Disclosure | 94,552 | 158,072 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Long-term investments [member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Equity securities with readily determinable fair value | 94,552 | 158,072 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Short-term Investments [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Assets, Fair Value Disclosure | 134,146 | 774,736 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Wealth Management Products [Member] | Short-term Investments [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Assets, Fair Value Disclosure | 180,782 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Bank Time Deposits [Member] | Short-term Investments [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Assets, Fair Value Disclosure | ¥ 134,146 | ¥ 593,954 |
NET LOSS PER SHARE - Basic and
NET LOSS PER SHARE - Basic and diluted net loss per share (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | |
Numerator: | ||||
Net loss attributable to YUNJI INC. | ¥ (146,346) | $ (22,426) | ¥ (125,762) | ¥ (59,688) |
Accretion on convertible redeemable preferred shares to redemption value | (1,532,013) | (2,187,633) | ||
Re-designation to Series A Preferred Shares from Initial Ordinary Shareholders' contribution, including beneficial conversion feature | (60,796) | |||
Deemed dividend from convertible redeemable preferred shares holders | 107 | |||
Net loss attributable to ordinary shareholders | ¥ (146,346) | $ (22,426) | ¥ (1,657,775) | ¥ (2,308,010) |
Denominator: | ||||
Weighted average number of ordinary shares used in computing net loss per share, basic and diluted | shares | 2,125,906,398 | 2,125,906,398 | 1,818,487,917 | 1,165,136,438 |
Net loss per share attributable to ordinary shareholders: | ||||
—Basic | (per share) | ¥ (0.07) | $ (0.01) | ¥ (0.91) | ¥ (1.98) |
—Diluted | (per share) | ¥ (0.07) | $ (0.01) | ¥ (0.91) | ¥ (1.98) |
NET LOSS PER SHARE - Additional
NET LOSS PER SHARE - Additional information (Details) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restricted Stock [Member] | |||
Anti dilutive securities excluded from computation of earnings per share | 0 | 2,777,428 | 20,003,824 |
Employee Stock Option [Member] | |||
Anti dilutive securities excluded from computation of earnings per share | 78,973 | 27,628,529 | 31,314,375 |
Preferred Stock [Member] | |||
Anti dilutive securities excluded from computation of earnings per share | 0 | 299,223,134 | 859,677,553 |
RELATED PARTY BALANCES AND TR_3
RELATED PARTY BALANCES AND TRANSACTIONS - Schedule of major related parties and their relationships (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Xiao Shanglue | |
Nature of relationships | Founder and CEO of the Group |
Small Ye Group | |
Nature of relationships | Controlled by Mr. Xiao Shanglue, Founder and CEO of the Group |
Wuhan Dahong enterprise management partnership(LP) | |
Nature of relationships | Non-controlling interest (prior to disposal of Wuhan Yunteng in 2020) |
Jixi | |
Nature of relationships | An associate of the Group (incorporated in 2018) |
Tianshi | |
Nature of relationships | An associate of the Group (incorporated in 2017) |
Zhangtaihe | |
Nature of relationships | An associate of the Group (incorporated in 2018) |
Weixin | |
Nature of relationships | An associate of the Group (incorporated in 2018) |
Siwei | |
Nature of relationships | An associate of the Group (incorporated in 2018) |
Zhaomu | |
Nature of relationships | An associate of the Group (incorporated in 2018) |
Bixin | |
Nature of relationships | An associate of the Group (incorporated in 2019) |
Haomei | |
Nature of relationships | An associate of the Group (incorporated in 2019) |
Langfei | |
Nature of relationships | An associate of the Group (incorporated in 2019) |
Liumang Yike | |
Nature of relationships | An associate of the Group (incorporated in 2019) |
Misili | |
Nature of relationships | An associate of the Group (incorporated in 2019) |
Yunnong | |
Nature of relationships | An associate of the Group (incorporated in 2019) |
Zhengdao | |
Nature of relationships | An associate of the Group (incorporated in 2019) |
Yuncheng | |
Nature of relationships | An associate of the Group (incorporated in 2020) |
Jimi | |
Nature of relationships | An associate of the Group (incorporated in 2020) |
Huaji | |
Nature of relationships | An associate of the Group (incorporated in 2020) |
Jibi | |
Nature of relationships | An associate of the Group (incorporated in 2020) |
Poyun | |
Nature of relationships | An associate of the Group (incorporated in 2020) |
Yunmu | |
Nature of relationships | An associate of the Group (incorporated in 2020) |
JiAo | |
Nature of relationships | An associate of the Group (incorporated in 2020) |
Xingsheng | |
Nature of relationships | An associate of the Group (incorporated in 2020) |
Yunding | |
Nature of relationships | An associate of the Group (incorporated in 2020) |
RELATED PARTY BALANCES AND TR_4
RELATED PARTY BALANCES AND TRANSACTIONS - Schedule of related party balances and transactions (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2020USD ($) | |
Amounts due from related parties | ¥ 7,841 | ¥ 6,830 | $ 1,202 |
Amounts due from related parties, Total | 4,159 | 1,031 | |
Amounts due to related parties | 22,989 | 18,296 | $ 3,523 |
Weixin | |||
Advance to related parties | 3,682 | 5,799 | |
Wuhan Dahong enterprise management partnership(LP) | |||
Amounts due from related parties | 20 | ||
Zhaomu | |||
Amounts due to related parties | 4,180 | 4,888 | |
Jimi | |||
Amounts due to related parties | 2,542 | ||
Zhengdao | |||
Amounts due to related parties | 2,227 | 5,997 | |
Jixi | |||
Amounts due from related parties | 3,012 | 1,011 | |
Amounts due to related parties | 1,828 | ||
Yuncheng | |||
Amounts due from related parties | 971 | ||
Bixin | |||
Amounts due to related parties | 3,423 | 303 | |
Haomei | |||
Amounts due to related parties | 1,703 | 455 | |
Small Ye Group | |||
Amounts due to related parties | 967 | 658 | |
Huaji | |||
Amounts due to related parties | 889 | ||
Tianshi | |||
Amounts due to related parties | 840 | 179 | |
Zhangtaihe | |||
Amounts due to related parties | 641 | 359 | |
Yunnong | |||
Amounts due to related parties | 605 | 4,681 | |
Xingsheng | |||
Amounts due to related parties | 343 | ||
Jibi | |||
Amounts due to related parties | 466 | ||
Poyun | |||
Amounts due to related parties | 309 | ||
Others | |||
Amounts due from related parties | 176 | ||
Amounts due to related parties | ¥ 2,026 | ¥ 776 |
RELATED PARTY BALANCES AND TR_5
RELATED PARTY BALANCES AND TRANSACTIONS - Schedule of transactions with related parties (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Payment on behalf of the related parties | ¥ 588 | ||
Purchase of merchandise from related parties | ¥ 205,275 | ¥ 367,342 | 109,620 |
Xiao Shanglue | |||
Payment on behalf of the related parties | 588 | ||
Zhaomu | |||
Purchase of merchandise from related parties | 53,790 | 103,269 | 469 |
Bixin | |||
Purchase of merchandise from related parties | 31,825 | 69,311 | |
Zhengdao | |||
Purchase of merchandise from related parties | 28,372 | 31,418 | |
Yunnong | |||
Purchase of merchandise from related parties | 21,453 | 8,006 | |
Tianshi | |||
Purchase of merchandise from related parties | 17,021 | 25,295 | 39,776 |
Haomei | |||
Purchase of merchandise from related parties | 16,404 | 13,443 | |
Weixin | |||
Purchase of merchandise from related parties | 9,214 | 79,309 | 36,958 |
Siwei | |||
Purchase of merchandise from related parties | 7,710 | 5,626 | 307 |
Yunmu | |||
Purchase of merchandise from related parties | 4,543 | ||
Misili | |||
Purchase of merchandise from related parties | 3,315 | 8,230 | |
Huaji | |||
Purchase of merchandise from related parties | 2,573 | ||
Yuncheng | |||
Purchase of merchandise from related parties | 2,239 | ||
JiAo | |||
Purchase of merchandise from related parties | 1,712 | ||
Yunding | |||
Purchase of merchandise from related parties | 1,652 | ||
Langfei | |||
Purchase of merchandise from related parties | 1,117 | 3,507 | |
Xingsheng | |||
Purchase of merchandise from related parties | 600 | ||
Zhangtaihe | |||
Purchase of merchandise from related parties | 482 | 16,400 | ¥ 32,110 |
Small Ye Group | |||
Purchase of merchandise from related parties | 307 | 3,097 | |
Others | |||
Purchase of merchandise from related parties | ¥ 946 | ¥ 431 |
RELATED PARTY BALANCES AND TR_6
RELATED PARTY BALANCES AND TRANSACTIONS - Schedule of marketplace service provide to related parties (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Marketplace service provided to related parties | ¥ 10,970 | ¥ 765 |
Other goods and services provided to related parties | 393 | |
Yuncheng | ||
Marketplace service provided to related parties | 2,932 | |
Other goods and services provided to related parties | 171 | |
Bixin | ||
Marketplace service provided to related parties | 2,759 | 373 |
Other goods and services provided to related parties | 31 | |
Liumang Yike | ||
Marketplace service provided to related parties | 227 | 301 |
Jimi | ||
Marketplace service provided to related parties | 2,379 | |
Zhangtaihe | ||
Marketplace service provided to related parties | 876 | |
Jibi | ||
Marketplace service provided to related parties | 522 | |
Jixi | ||
Marketplace service provided to related parties | 574 | |
Zhaomu | ||
Other goods and services provided to related parties | 73 | |
Others | ||
Marketplace service provided to related parties | 701 | ¥ 91 |
Other goods and services provided to related parties | 60 | |
Weixin | ||
Other goods and services provided to related parties | ¥ 58 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Additional Information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Short term lease payments | ¥ 226 | ||
Material liabilities | ¥ 0 | ¥ 0 | ¥ 0 |
SUBSEQUENT EVENTS - Additional
SUBSEQUENT EVENTS - Additional Information (Detail) ¥ in Thousands, $ in Millions | 2 Months Ended | 12 Months Ended | |
Feb. 28, 2021USD ($)shares | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2019CNY (¥)shares | |
Subsequent Event [Line Items] | |||
Restricted Stock Units Grants In Period | 64,210,210 | 18,257,040 | |
Share based payment arrangement non vested award excluding option cost not yet recognized amount | ¥ | ¥ 40,192 | ¥ 137,487 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 6 months 3 days | 2 years 7 months 6 days | |
Service Based [member] | Subsequent Event [member] | Restricted Stock Units (RSUs) [Member] | 2019 Plan [member] | |||
Subsequent Event [Line Items] | |||
Restricted Stock Units Grants In Period | 55,988,000 | ||
Share based payment arrangement non vested award excluding option cost not yet recognized amount | $ | $ 9.6 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 4 years |
STATUTORY RESERVES AND RESTRI_2
STATUTORY RESERVES AND RESTRICTED NET ASSETS - Additional Information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statutory Reserves Funds, Description | These reserve funds include one or more of the following: (i) a general reserve, (ii) an enterprise expansion fund and (iii) a staff bonus and welfare fund. Subject to certain cumulative limits, the general reserve fund requires an annual appropriation of 10% of after tax profit (as determined under accounting principles generally accepted in the PRC at each year-end) until the accumulative amount of such reserve fund reaches 50% of a company’s registered capital, the other fund appropriations are at the subsidiaries’ discretion. These reserve funds can only be used for specific purposes of enterprise expansion and staff bonus and welfare and are not distributable as cash dividends. | ||
Appropriations to the statutory reserve | ¥ 6,467 | ¥ 3,129 | ¥ 4,277 |
PRC Subsidiaries [Member] | |||
Net assets | ¥ 229,527 | ||
Percentage Of Net Asset To Consolidated Net Assets | 17.00% |