| PREPAID EXPENSES AND OTHER CURRENT ASSETS, NET |
6.
PREPAID EXPENSES AND OTHER CURRENT ASSETS, NET
Prepaid
expenses and other current assets consist of the following:
SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS
| | |
2024 | | |
2025 | |
| | |
As
of December 31, | |
| | |
2024 | | |
2025 | |
| | |
RMB | | |
RMB | |
| | |
| | |
| |
| Loan receivables (1) | |
| | | |
| | |
| -Secured
(1) | |
| 107,826 | | |
| - | |
| -Unsecured (1) | |
| 41,744 | | |
| 147,444 | |
| VAT-input deductible | |
| 26,911 | | |
| 38,258 | |
| Receivables from third-party payment settlement
platform (2) | |
| 5,843 | | |
| 6,991 | |
| Deposits | |
| 5,141 | | |
| 5,834 | |
| Receivables of distribution of an equity method
investment (3) | |
| - | | |
| 4,535 | |
| Receivables from disposal of a subsidiary (4) | |
| 2,200 | | |
| - | |
| Others (5) | |
| 10,945 | | |
| 10,307 | |
| Less:
allowance for credit losses | |
| (23,423 | ) | |
| (127,227 | ) |
| Total prepaid expenses
and other current assets, net | |
| 177,187 | | |
| 86,142 | |
| (1) |
Loan
receivables represent the principal and interest to be collected on loans provided by the Group to third-party companies. |
| |
|
| |
As
of December 31, 2025, there were three unsecured loans provided to three companies. One loan with total principal and interest amount
of RMB 27,120 has an interest rate of 8% per annum. Another loan with total principal and interest amount of RMB 52,584 has an annual
interest rate of 4.35%. |
| |
|
| |
The
remaining loan, with principal of US$ 9,637 (equivalent to RMB 67,740), was provided by the Group to a third-party company. The loan
was originally secured by a certain amount of gold bullion pledged by the third-party company. In May 2025, the third-party company
encountered into a major risk event and became involved in economic crime cases, as a result of which the pledged gold was placed under
control and could not be liquidated. The Group classified the loan receivable as unsecured and provided a full allowance for credit loss as of December 31, 2025. |
| |
|
| |
As
of December 31, 2025, all three loans are due within twelve months. Total allowance for credit losses of unsecured loan receivables
was RMB 121,860. |
| |
|
| (2) |
Receivables
from third-party payment settlement platform represent amount due from the third-party on-line payment service providers in relation
to their processing of payments to the Group. |
| |
|
| (3) |
In
December 2025, one of the Group’s equity method investees, Weixin (Note 28), commenced liquidation proceedings and the Group
recorded the liquidation proceeds of RMB 4,535 as receivables, which were collected subsequently in January 2026, with an investment
gain of RMB 344 recorded in other non-operating income/(loss), net. |
| |
|
| (4) |
In
the fourth quarter of 2020, the Group disposed of a subsidiary, Wuhan Yunteng Logistics Co., Ltd. (“Wuhan Yunteng”), to
a third party for a total cash consideration of RMB 26,676, with a loss of RMB 1 million recorded in other non-operating income/(loss),
net. The third party and the Group entered into an agreement in 2022 on the repayment schedule of the outstanding amount of disposal
consideration. In 2025, the Group collected repayment of RMB 5,000, and the remaining amount of RMB 6,337 was recorded in other non-current
assets as of December 31, 2025, which will be collected in 2027 and 2028 respectively, according to the agreement (Note 11). |
| |
|
(5) |
As of December 31, 2025, others primarily consist of loans to individuals, for which a full allowance for credit
loss was provided, and prepaid operating expenses. |
YUNJI
INC.
NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS
(All
amounts in thousands, except for share and per share data, unless otherwise noted)
|