111, Inc.'s Q3 2024: Operational Profitability and Strategic Growth

111, Inc. (NASDAQ: YI), a leading tech-enabled healthcare platform in China, announced its unaudited financial results for the third quarter ended September 30, 2024. The company demonstrated remarkable operational improvements, maintaining profitability for the third consecutive quarter despite flat revenues.

The company's net revenues stood at RMB3.6 billion (US$513.1 million), remaining relatively stable compared to the same quarter last year. Gross segment profit, however, increased by 10.5% year-over-year to RMB210.6 million (US$30.0 million). Total operating expenses decreased by 23.2% to RMB208.2 million (US$29.7 million), representing a significant improvement of 160 basis points to 5.8% of net revenues, compared to 7.4% in the same quarter of last year.



Income from operations for Q3 2024 was RMB2.4 million (US$0.3 million), a stark contrast to the RMB80.4 million loss in the same quarter last year. Non-GAAP income from operations also improved, reaching RMB7.1 million (US$1.0 million), compared to a non-GAAP loss from operations of RMB54.0 million in the same quarter last year. Net cash from operating activities was RMB109.9 million (US$15.7 million), further strengthening the company's cash flow position.



Mr. Junling Liu, Co-Founder, Chairman, and Chief Executive Officer of 111, Inc., attributed the company's success to its commitment to operational efficiency, diligent cost management, and strategic investments in infrastructure and staffing arrangements. These initiatives enabled the company to navigate a challenging consumer spending environment while delivering solid performance results.

The B2B segment remained dominant but witnessed a slight 1.2% revenue decline, while B2C revenue fell more sharply by 26.4%. However, segment profit margins improved for both divisions, reflecting the company's ability to enhance efficiency and adapt to market conditions. The company's largest virtual pharmacy network in China and its omnichannel drug commercialization platform further strengthened its competitive position.

As 111, Inc. continues to scale and optimize its operations, it expects further cost savings, which will be reinvested into growth initiatives. These initiatives include technological advancements, market expansion, and client base growth, driving future profitability and maintaining competitive advantages.

In conclusion, 111, Inc.'s Q3 2024 financial results demonstrate the company's resilience and strategic focus on operational efficiency. Despite a challenging consumer spending environment, the company has successfully maintained profitability and is well-positioned to capitalize on growth opportunities in the tech-enabled healthcare market.