China Youzan widens loss to US$31m in Q2

This dropped further from RMB97.8m (US$15.11m) in Q2 2020.

China Youzan Limited reported a RMB201.87m loss, or approximately US$31m, in the second quarter of the year.

This is a higher loss when compared to the RMB 97.8m (US$15.11m) loss in the same quarter in 2020.

For the six months ending in June 2021, the group’s loss for the period stood at RMB370m (US$57m), up from RMB230m (US$35.51m) in the corresponding period in 2020.

The group’s revenue slipped by 2.5% to RMB 803m (US$123.98m). Of this, its subscription solutions accounted for RMB508m of the revenues, which showed a 6.8% growth.

This was due to the increase in subscription fees for software as a service (SaaS) products, partially offset by a drop in cloud service fees.

Moreover, the gross merchandise volume (GMV) of the group reached RMB48.1b (US$7.42b), up by 4% compared to the same period of last year, in which, GMV of our store’s SaaS products increased double.

The average sales of each merchant were over RMB550,000 (US$84.9m) in the reporting period, increased by 19% compared to the same period of last year.

In addition, ACV of paying merchants reached RMB12,811 (US$19,779), which increased by 8% compared with 2020.

“The group will spare no effort in seeking opportunities for strategic partnership with other market players that can create synergies with the group, and opportunities for making selective investments or acquisitions to constantly enhance our competence,” China Youzan said in a statement.