1Yao Health Triumphs with Consecutive Operational Profitability and Technological Advancements

1Yao Health Inc. (YI) has announced its financial results for the second quarter of fiscal year 2024, reporting a revenue of RMB 34.24 billion. The company achieved a Non-GAAP operating profit of RMB 8.5 million and a GAAP operating profit of RMB 3.3 million, marking the second consecutive quarter of operational profitability. Cumulative revenue for the first six months reached RMB 69.53 billion, reflecting a year-on-year decrease of 3.09%, while cumulative net loss narrowed significantly by 92.64% to RMB 4.77 million. Throughout the reporting period, 1Yao Health has focused on increasing market share and driving revenue growth, while also making significant strides in enhancing operational efficiency. Leveraging its core technological advantages, the company has achieved cost reductions and efficiency improvements in areas such as corporate governance, operational management, and supply chain fulfillment. As a high-tech enterprise recognized by the Ministry of Science and Technology, 1Yao Health has consistently driven digital transformation within the pharmaceutical and healthcare sectors through technological innovation. This quarter, the company secured four additional invention patents, bringing its total to 28, underscoring its commitment to long-term growth through technological advancements. Benefiting from its expanding business domains and strengthened technological capabilities, 1Yao Health's operational efficiency saw substantial improvements, with operating expenses as a percentage of net revenue falling from 7.2% in the previous year to 6.0% this quarter. Enhanced algorithms have led to significant cost reductions in supply chain fulfillment, with stocking and replenishment efficiency increasing by 11% and picking path lengths decreasing by 15%, enhancing overall warehouse processing efficiency. Furthermore, the company has continued its investments in AI applications, significantly enhancing the accuracy and efficiency of its medical device and health supplement databases. The firm’s supply chain network also saw considerable upgrades, including the establishment of 13 fulfillment centers nationwide. Newly registered joint fulfillment centers in Urumqi and Wuhan are slated to commence operations in the third quarter of 2024. The company's "Kunpeng" logistics network further optimized delivery costs and reduced damage rates by significant margins. 1Yao Health has been proactive in empowering upstream and downstream pharmaceutical industry partners with digital tools, enhancing commercialization, marketing, and market insights. 1Yao Health has also innovated its business models to increase customer engagement and optimize sales of core products, which saw a year-on-year sales increase of 111.8%. Strengthening strategic direct procurement partnerships with renowned pharmaceutical companies, the company expanded its cooperation with Siliyan Pharmaceutical on multiple product series nationwide. Dr. Yu Gang, Co-Founder and Executive Chairman of 1Yao Health, remarked, "In the second quarter, we leveraged our strengths in digital technology and smart supply chain management to significantly enhance operational efficiency and achieve profitability at the operational level for two consecutive quarters. Moving forward, we remain committed to driving digital and AI innovations to create long-term value for our customers, partners, and shareholders."