Yunji Revs Up Its Organic Living Engine: Q2 2026 Review
Yunji, a leader in organic living, took a significant step forward in its first-half 2026 performance, despite the challenging market environment. In an earnings conference call, Chairman and CEO Mr. Shanglue Xiao highlighted the company's strategic positioning and proactive approach to optimizing its structure and improving quality and efficiency.
The company reported total revenue of RMB 96.3 million for the first half, down from RMB 158.3 million in the same period last year. This reflects the structural adjustment made by Yunji to optimize its merchandise mix, including discontinuing relationships with certain third-party merchants whose offerings did not meet its enhanced product standards.
Notably, self-operating merchandise now accounts for approximately 70% of total sales, with private label products making up 56%. Private label products have higher margins and are increasingly becoming the core support for Yunji's revenue. This shift has strengthened the company's merchandise mix in line with its long-term strategy.
Mr. Xiao emphasized that Yunji's experiential initiatives, such as supply chain traceability, continue to strengthen customer engagement and maintain stable customer retention. These efforts have supported improved profitability and long-term development for the company.
The gross margin remained resilient at approximately 41%, and the net loss for the first half narrowed significantly to RMB 72.4 million. This reflects Yunji's continued discipline in cost management and operational efficiency, as it directed resources toward high retention, high margin private label products and enhancing the user experience.
Mr. Xiao also highlighted the company's progress on its product strategy, which rests on two engines: product and experience. In its organic health segment, Yunji continues to deepen its presence in the broader health and wellness market, with a particular focus on food medicine homology products that address the health needs of modern families in China.
The first flagship product in this category is Polygonum tea, which launched in the fourth quarter of 2025. This product has received market feedback exceeding expectations and quickly became a key growth driver of Yunji's food medicine homology product line. In the first half of 2026, Polygonum tea delivered rapid sales growth and validated the company's complete growth model.
The success of Polygonum tea demonstrates that Yunji's product strategy for entering the Chinese wellness and health market has a long-term market potential. As Yunji continues to execute its dual-engine approach, it remains confident in its path to improved profitability.
