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111, Inc. Announces Third Quarter 2024 Unaudited Financial Results
YI111(YI) Prnewswire·2024-11-27 06:00

Core Viewpoint - 111, Inc. has maintained operational profitability for the third consecutive quarter, demonstrating improved operational efficiency despite a challenging macroeconomic environment in China [1][4]. Financial Performance - Net revenues for Q3 2024 were RMB 3.6 billion (US513.1million),showingaslightdecreaseof1.8 513.1 million), showing a slight decrease of 1.8% from RMB 3.7 billion in the same quarter last year [2][5]. - Gross segment profit increased by 10.5% year-over-year to RMB 210.6 million (US 30.0 million) [2]. - Total operating expenses decreased by 23.2% to RMB 208.2 million (US29.7million)fromRMB271.0millioninthesamequarterlastyear,withoperatingexpensesasapercentageofnetrevenuesdroppingby160basispointsto5.8 29.7 million) from RMB 271.0 million in the same quarter last year, with operating expenses as a percentage of net revenues dropping by 160 basis points to 5.8% [2][4]. - Income from operations was RMB 2.4 million (US 0.3 million), a significant improvement from a loss of RMB 80.4 million in the same quarter last year [2][9]. - Non-GAAP income from operations was RMB 7.1 million (US1.0million),comparedtoanon−GAAPlossofRMB54.0millioninthesamequarterlastyear[2][10].CashFlowandExpenses−Thecompanyachievedpositiveoperatingcashflowforthreeconsecutivequarters,withnetcashfromoperatingactivitiesamountingtoRMB109.9million(US 1.0 million), compared to a non-GAAP loss of RMB 54.0 million in the same quarter last year [2][10]. Cash Flow and Expenses - The company achieved positive operating cash flow for three consecutive quarters, with net cash from operating activities amounting to RMB 109.9 million (US 15.7 million) [2][30]. - Fulfillment expenses were RMB 100.0 million (US14.2million),adecreaseof1.6 14.2 million), a decrease of 1.6% from RMB 101.6 million in the same quarter last year [8]. - Selling and marketing expenses decreased by 19.4% to RMB 77.0 million (US 11.0 million) [8]. Strategic Initiatives - The company is focused on enhancing operational efficiency through cost management, infrastructure investments, and effective staffing arrangements [4]. - Investments in AI and digital technologies are aimed at reshaping the healthcare value chain and capturing shifts in the pharmaceutical industry [4]. - The company is expanding its fulfillment network and refining digital platforms to strengthen core competitiveness in digitalization [4]. Balance Sheet and Liabilities - As of September 30, 2024, the company had cash and cash equivalents of RMB 614.4 million (US$ 87.6 million), down from RMB 673.7 million at the end of 2023 [14]. - The total outstanding amount owed to investors was RMB 1.1 billion, with agreements reached to reschedule repayments for approximately 90% of this amount [14].