111 Inc Reports Q3 2024 Financial Results
Intellectia.AI2024-11-27
111, Inc. Reports Q3 2024 Financial Results
Shanghai, Nov. 27, 2024—111, Inc. (NASDAQ: YI), a leading tech-enabled healthcare platform in China, announced its unaudited financial results for the third quarter ending September 30, 2024.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | Year-over-Year Change |
|---|---|---|---|
| Net Revenues | RMB 3.6 billion (US$513.1M) | RMB 3.7 billion | -1.8% |
| Gross Segment Profit | RMB 210.6 million (US$30.0M) | RMB 190.5 million | +10.5% |
| Operating Expenses | RMB 208.2 million (US$29.7M) | RMB 271.0 million | -23.2% |
| Income from Operations | RMB 2.4 million (US$0.3M) | Loss of RMB 80.4 million | - |
| Non-GAAP Income from Operations | RMB 7.1 million (US$1.0M) | Loss of RMB 54.0 million | - |
| Net Loss | RMB 3.5 million (US$0.5M) | RMB 83.5 million | -96% |
| Non-GAAP Net Income | RMB 1.3 million (US$0.2M) | Loss of RMB 57.1 million | - |
Interpretation: 111, Inc. maintained operational profitability for the third consecutive quarter, marking a significant reduction in operating expenses and narrowing its net loss year-over-year by 96%. The results reflect improved cost efficiency and strategic investments in technology.
Revenue Performance by Segment
| Segment | Q3 2024 Revenue |
|---|---|
| Pharmaceutical Distribution | RMB 2.4 billion |
| Online Retail Pharmacy | RMB 1.2 billion |
Interpretation: The pharmaceutical distribution segment remains the company's primary revenue driver, while the online retail pharmacy segment shows potential for future growth amid an evolving landscape.
Key Developments and Operational Highlights
- Operational Profitability: Achieved for the third consecutive quarter.
- Cost Efficiency: Operating expenses decreased by 23.2% year-over-year, and fulfillment expenses reduced by 1.6%.
- Cash Flow: Maintained positive operating cash flow.
Executive Comments
Mr. Junling Liu, Co-Founder, Chairman, and CEO, emphasized the company's resilience in challenging economic conditions, noting improvements in operational efficiency and the strategic reinforcement of its digital and supply chain capabilities. Liu indicated that future growth would focus on technological advancements and market expansion to enhance competitiveness.
Shareholder Returns and Guidance
The company did not announce any dividends or share repurchase programs in this period. Future guidance was not explicitly provided, reflecting the company's cautious stance amid macroeconomic uncertainties.
Stock Movement
Post-results announcement, shares of 111, Inc. experienced a mild decline of 0.23%, reflecting the market's cautious response to the earnings release.
111, Inc. continues to position itself as a leader in China's digital health sector, leveraging its strategic initiatives and robust financial management to navigate future challenges and opportunities.
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