Shares of membership-based e-commerce platform Yunji Inc. plunged on Thursday after it reported weak quarterly results.
The Chinese company reported total revenues of about 446.3 million U.S. dollars for the second quarter of the year, lower than that of the same period last year, the company said in a statement on Thursday.
Its gross merchandise volume (GMV) increased 46.4 percent year over year to 1.2 billion dollars, according to the company.
Shares of Yunji declined 11.42 percent to close at 9.39 dollars apiece on Thursday.
Shanglue Xiao, chairman and chief executive officer of Yunji, said the company maintained a healthy growth rate in the second quarter, as it continued to optimize and upgrade its new marketplace business model.
"We are confident that our operational progress and membership expansion will help drive our future growth," said Xiao.
The company reported a 19.5-percent increase in the number of cumulative members as of June 30, as compared with the number registered on March 31. The company had 10.8 million cumulative members by the end of the second quarter.
Founded in 2015, the company based in the eastern Chinese city of Hangzhou applies a membership-based model that leverages the power of social interaction. It offers products at attractive prices and incentivizes members to promote its platform and share its products with their social contacts.