111, Inc. Announces Fourth Quarter and Fiscal Year 2024 Financial Results

Core Viewpoint - 111, Inc. achieved its first-ever annual operational profitability and positive operating cash flow in 2024, despite facing challenges from the macroeconomic environment and healthcare reforms [4][7][20]. Fourth Quarter 2024 Highlights - Net revenues for Q4 2024 were RMB3.8 billion (US$527.1 million), a decrease of 6.3$28.7 million), a significant improvement of 50.1% compared to RMB420.8 million in Q4 2023 [7][9]. - Loss from operations improved to RMB7.3 million (US$1.0 million) in Q4 2024, a 96.5$0.3 million), improving by 95.8% from RMB55.2 million in Q4 2023 [11][13]. Fiscal Year 2024 Highlights - Total net revenues for the fiscal year 2024 were RMB14.4 billion (US$2.0 billion), down 3.7$0.3 million), a turnaround from an operating loss of RMB350.1 million in 2023 [20][21]. - Non-GAAP income from operations for 2024 was RMB22.3 million (US$3.0 million), compared to a non-GAAP loss of RMB123.9 million in 2023 [21][22]. - Net cash from operating activities reached RMB263.0 million (US$36.0 million), marking the first-ever positive operating cash flow for the year [7][21]. Operational Efficiency - The company focused on operational efficiency, with total operating expenses as a percentage of revenues decreasing by 230 basis points to 5.7% for the full year 2024 [4][7]. - In Q4 2024, operating expenses accounted for 5.5% of revenues, down 470 basis points year over year [4][7]. - The company streamlined logistics and reduced delivery times through its Kunpeng Network, which operates 28 transportation routes across five major geographic hubs [4][7]. Future Outlook - The company remains optimistic about long-term growth opportunities driven by the digitalization of healthcare and the rising healthcare needs of China's aging population [4][7]. - Continued investments in AI and digital technologies are planned to enhance operational efficiency and customer engagement [4][7].