Yunji Has Regained Compliance with Nasdaq's Minimum Bid Price Requirement

Rhea-AI Summary

Yunji Inc. (NASDAQ: YJ), a leading membership-based social e-commerce platform, has regained compliance with Nasdaq's minimum bid price requirement. The company received a notification letter from Nasdaq on September 27, 2024, confirming its compliance with Listing Rule 5450(a)(2).

Previously, on October 5, 2023, Yunji was notified of non-compliance as its ADS closing bid price had been below $1.00 for 30 consecutive business days. After transferring from the Nasdaq Global Market to the Nasdaq Capital Market, Yunji was granted until September 30, 2024, to regain compliance.

The company successfully met the requirement by maintaining a closing bid price of $1.00 or greater for 10 consecutive business days from September 13 to September 26, 2024. With this achievement, Nasdaq has closed the matter, ensuring Yunji's continued listing on the exchange.

Positive

• Regained compliance with Nasdaq's minimum bid price requirement
• Successfully maintained ADS closing bid price above $1.00 for 10 consecutive business days
• Secured continued listing on Nasdaq

Negative

• None.

Insights

Financial Analyst

Yunji's regaining of Nasdaq compliance is a positive development, albeit with immediate financial impact. The company's ability to maintain its Nasdaq listing is important for maintaining investor confidence and access to capital markets. However, this news doesn't directly address Yunji's underlying business performance or financial health.

The company's transfer from the Nasdaq Global Market to the Nasdaq Capital Market, while providing additional time to meet compliance, could be seen as a step down in terms of prestige. This move, combined with the prolonged period of low share price, suggests ongoing challenges for the company.

Investors should view this compliance update cautiously. While it removes an immediate threat of delisting, it doesn't necessarily indicate improved fundamentals or growth prospects for Yunji. The focus should now shift to the company's upcoming financial results and strategic initiatives to drive sustainable growth and profitability in the competitive Chinese e-commerce market.

HANGZHOU, China, Sept. 30, 2024 /PRNewswire/ -- Yunji Inc. ("Yunji" or the "Company") (NASDAQ: YJ), a leading membership-based social e-commerce platform, today announced that it received a notification letter (the "Compliance Notice") from the Listing Qualifications Department of the Nasdaq Stock Market Inc. ("Nasdaq") dated September 27, 2024, indicating that the Company has regained compliance with the Nasdaq Listing Rule 5450(a)(2) and the matter is closed.

As previously disclosed, on October 5, 2023, the Company received a letter from Nasdaq indicating that the Company was not in compliance with Nasdaq Listing Rule 5450(a)(1), as the closing bid price of the ADSs had been below US$1.00 per ADS for the previous 30 consecutive business days. The Company was given a period of 180 calendar days, or until April 2, 2024, to regain compliance with the minimum bid price requirement. In response, the Company submitted an application to transfer the listing of its ADSs from the Nasdaq Global Market to the Nasdaq Capital Market. As a result of the transfer to the Nasdaq Capital Market, Nasdaq granted the Company a second period of 180 calendar days, or until September 30, 2024, to regain compliance with the minimum bid price requirement for continued listing. To regain compliance, the closing bid price of the Company's ADSs must meet or exceed US$1.00 per ADS for a minimum of 10 consecutive business days on or prior to September 30, 2024.

According to the Compliance Notice, the closing bid price of the Company's ADSs has been at $1.00 per ADS or greater for 10 consecutive business days from September 13, 2024 through September 26, 2024, and the Company has regained compliance with the minimum bid price requirement and the matter is closed.

About Yunji Inc.

Yunji Inc. is a leading social e-commerce platform in China that has pioneered a unique, membership-based model to leverage the power of social interactions. The Company's e-commerce platform offers high-quality products at attractive prices across a wide variety of categories catering to the day-to-day needs of Chinese consumers. In addition, the Company uses advanced technologies including big data and artificial intelligence to optimize user experience and incentivize members to promote the platform as well as share products with their social contacts. Through deliberate product curation, centralized merchandise sourcing, and efficient supply chain management, Yunji has established itself as a trustworthy e-commerce platform with high-quality products and exclusive membership benefits, including discounted prices.

For more information, please visit https://investor.yunjiglobal.com/.

Safe Harbor Statements

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes, " "estimates," "confident," "potential," "continue" or other similar expressions. Yunji may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Yunji's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Yunji's growth strategies; its future business development, results of operations and financial condition; its ability to understand buyer needs and provide products and services to attract and retain buyers; its ability to maintain and enhance the recognition and reputation of its brand; its ability to rely on merchants and third-party logistics service providers to provide delivery services to buyers; its ability to maintain and improve quality control policies and measures; its ability to establish and maintain relationships with merchants; trends and competition in China's e-commerce market; changes in its revenues and certain cost or expense items; the expected growth of China's e-commerce market; PRC governmental policies and regulations relating to Yunji's industry, and general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Yunji's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Yunji undertakes no obligation to update any forward-looking statement, except as required under applicable law.

Investor Relations Contact

Yunji Inc.
Investor Relations
Email: Yunji.IR@icrinc.com
Phone: +1 (646) 224-6957

ICR, LLC
Robin Yang
Email: Yunji.IR@icrinc.com
Phone: +1 (646) 224-6957

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SOURCE Yunji Inc.

FAQ

What was the minimum bid price requirement Yunji (YJ) needed to meet for Nasdaq compliance?

Yunji (YJ) needed to maintain a closing bid price of $1.00 or greater for a minimum of 10 consecutive business days to regain compliance with Nasdaq's minimum bid price requirement.

When did Yunji (YJ) regain compliance with Nasdaq's minimum bid price requirement?

Yunji (YJ) regained compliance with Nasdaq's minimum bid price requirement by maintaining the required closing bid price from September 13, 2024 through September 26, 2024.

What actions did Yunji (YJ) take to address the Nasdaq compliance issue?

Yunji (YJ) transferred its listing from the Nasdaq Global Market to the Nasdaq Capital Market, which granted the company an additional 180 calendar days to regain compliance with the minimum bid price requirement.

What was the deadline for Yunji (YJ) to regain compliance with Nasdaq's minimum bid price requirement?

Yunji (YJ) had until September 30, 2024, to regain compliance with Nasdaq's minimum bid price requirement after being granted an extension on the Nasdaq Capital Market.