YUNJI INC (NASDAQ:YJ) Q2 2020 Earnings Conference Call - Final Transcript
Aug 25, 2020 • 07:30 am ET
of simply marketing and promoting other products from third-party brands.
Looking ahead, as our supply chain continues to improve, we believe that this model will also help to boost our platform sales and materially improve our growth trajectory in return.
[Foreign Speech]. Beyond these developments, we also continued to improve our community network and explore a better social sharing product system for promotion and marketing. And in second quarter, we began to explore developing a professional vertical community based on our insights on the service managers and members' interest and capability, which already generated some favorable results. Currently, we have established a true professional vertical communities for food and health supplement categories and achieved high user engagement in those communities. For example, one of our health supplement product generating over RMB500 million in GMV in just two months.
Going forward, we plan to develop more vertical communities for different categories based on business demands. In the meantime, we also focus on improving the capabilities of our service managers and our vertical communities. For example, we operated with top 20 institution to bring in lecturers experienced in marketing and training to provide our service managers with highly relevant training session. In addition to boosting service managers' marketing skills, nurturing skills and managing capability, these training also helped to improve the quality and the authenticity of the product related content produced by these service managers and increased engagement of the members. In the same community with key service managers, we believe that the accomplishment of the service manager upgrades, along with our promotion and marketing system improvement, will serve to further enhance the core competencies of our business model going forward.
[Foreign Speech]. As we advance throughout the remainder of 2020 and beyond, we remain confident that our highly effective marketing models will continue to drive long-term value through the integration of quality products, premium content and efficient content distribution.
With that, I will turn the call over to our CFO, Rex Chen to go through our financial results.
Thank you, Shanglue. Hello, everyone. Before I go through our financial results, please note that all numbers stated in the following remarks are in RMB terms, and all comparisons and percentage changes are on a year-over-year basis unless otherwise noted. We continue to accelerate our business transformation and to refine our membership enrollment system during the second quarter of 2020. In this quarter, an increasing amount of transactions were made through our marketplace business and are recognized on a net basis.
In addition, competition through China's e-commerce industry continued to ramp up during the period as the larger industry players increased their spending on promotional campaigns and buying [Phonetic] subsidies during e-commerce mid year shopping festival. In line with our long-term goals, we decided to forego the distractions of such short-term gains and instead focus our attention on refining our operational efficiency and bolstering our brand awareness.
We continued to advance towards healthy profitability during the second quarter of 2020 as a result