#China #Shanghai #fiscal results #healthcare platform #111 Inc

111, Inc. Delivers Remarkable Financial Results for 2024

111, Inc. (NASDAQ: YI), a prominent tech-driven healthcare company focused on modernizing the healthcare value chain in China, has disclosed its financial results for the fourth quarter and fiscal year 2024. The company has made remarkable strides, achieving its first-ever annual operating profit and a significant upswing in its operating cash flow.

Key Highlights

During the fourth quarter, 111, Inc. reported net revenues of RMB 3.8 billion (approximately US$527.1 million), alongside a gross segment profit of RMB 202.5 million (around US$27.7 million). Although the company faced challenges from a subdued macroeconomic environment, it remained resilient, reporting a slight decrease in both revenues and gross profit of 6.3% and 5.5%, respectively, compared to the previous year.

Total operating expenses saw a dramatic improvement, dropping by over 50% to RMB 209.8 million (US$28.7 million), which translates to an impressive decrease in expenses as a percentage of net revenues from 10.2% to 5.5%. This ongoing improvement reflects the company’s efforts in operational efficiency and cost management.

The loss from operations was recorded at RMB 7.3 million (US$1.0 million), marking a significant 96.5% improvement compared to a loss of RMB 206.5 million in the same quarter last year. Furthermore, 111, Inc. also achieved its first positive operating cash flow with an annual gain of RMB 263 million (US$36 million) for the fiscal year.

Fiscal Year 2024 Overview

Over the entire fiscal year, the company reported net revenues of RMB 14.4 billion (US$2.0 billion), experiencing a 3.7% decrease from the previous year's total. However, the operational turnaround was evident, as income from operations stood at RMB 2.1 million (US$0.3 million), a dramatic recovery from the loss of RMB 350.1 million reported in 2023.

The business also benefitted from a decrease in total operating expenses, which fell to RMB 827.1 million (US$113.3 million), reflecting enhanced cost control efforts. These expenses represented 5.7% of total revenues for the year, down from 8% the previous year, showcasing a solid improvement in operational efficiency.

Despite several challenges, including ongoing healthcare reforms impacting consumer spending and retail pharmacy sales, 111, Inc. managed to capitalize on its operational strategies to navigate these tricky waters successfully. The company emphasized its focus on operational efficiency, cost optimization, and strategic investments in infrastructure as key components of its resurgence.

Mr. Junling Liu, the Co-Founder and CEO of 111, Inc., stated, "2024 was a transformative year for us, combining considerable challenges with milestones that repositioned our company within the healthcare sector. We have successfully adapted to the evolving market, achieving our first positive operating profit.”

Looking Forward

Looking ahead, the management expressed confidence in the long-term growth prospects driven by the ongoing digitalization of healthcare. The shift towards retail pharmacy sales and the increasing healthcare needs of China's aging population are set to yield new opportunities.

Furthermore, 111, Inc. plans to deepen its investment in AI and digital solutions to enhance operational efficiency and customer engagement further. With a strong technology backbone and a recommitment to improving customer experience, the company aims to continue reinforcing its competitive edge within the healthcare sector.

In conclusion, the financial results achieved by 111, Inc. for 2024 illustrate a testament of resilience and strategic foresight. The company stands poised to leverage its advancements to foster sustainable growth and strengthen profitability in the future.

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For further inquiries and information, please contact 111, Inc.'s Investor Relations or visit their official website.