111, Inc. · NASDAQ:YI
111 — Q1 2024 Earnings Presentation
26 slides from 111's earnings presentation, May 23, 2024
Slide 1: 111, Inc. First Quarter 2024 Earnings Call
111, Inc. (NASDAQ: YI) Reshaping the Value Chain of Healthcare Industry with Digital Technology First Quarter 2024 Earnings Call May 23, 2024 1
Slide 2: Disclaimer
DISCLAIMER ◼ The following presentation has been prepared by 111,. Inc. (“111” or the “Company”) solely for informational purposes and ◼ Forward-looking statements involve inherent risks, uncertainties and other factors that could cause actual results to differ should not be construed to be, directl
Slide 3: Content
1 BUSINESS & OPERATIONAL PERFORMANCE HIGHLIGHTS 2 FINANCIAL REVIEW 3CONTENT APPENDIX 3
Slide 4: Breaking Ground: First Operational Profit Reported Amid Ongoing Pharmaceutical Transformation
Breaking Ground: First Operational Profit Reported Amid Ongoing Pharmaceutical Transformation Major Milestone & Macroenvironment ◼ First operational income after years of dedicated effort towards long-term resilient growth with strategic operational refinements. ◼ The national anti-corruption campai
Slide 5: Slight Revenue Decrease Due to Sudden Surge of Demand During Peak of Pandemic in Q1 of 2023
Slight Revenue Decrease Due to Sudden Surge of Demand During Peak of Pandemic in Q1 of 2023 Revenue – Total B2B Revenue (Million) YoY -4.6% (Million) YoY -3.7% RMB3,697 USD538 RMB3,528 RMB3,584 USD489 RMB3,452 USD522 USD478 2023 Q1 2024 Q1 2023 Q1 2024 Q1 5
Slide 6: Driving Operational Excellence
Driving Operational Excellence (Excluding Share-Based Compensation Expenses) Selling and Marketing Expense Fulfillment Expense as % of Net Revenue Workforce as % of Net Revenue Optimization YoY -20bps YoY -30bps 0.03 2.8% 2.4% 2.2% 2.5% Streamlined 0.02 Management 0.01 Improved Corporate Governance
Slide 7: First Time Operational Profitability Driven By Operational Efficiency
First Time Operational Profitability Driven By Operational Efficiency Operating Expense as % of Net Revenue (Excluding Share-Based Compensation Expenses) Excluding Share-Based YoY -60bps Compensation Expenses 6.3% 2023 Q1 2024 Q1 5.7% Total 6.3% 5.7% Selling and Marketing 2.4% 2.2% G&A 0.6% 0.5% Tec
Slide 8: Data Direct Linkage & Digital Enablement
Reshaping Entire Value Chain of Healthcare Industry with Digital Technology Industry Upgrade Traditional Model Digital Model ◼ De-Intermediation of Pharmas Pharmas Industrial Supply Chain Data Direct Linkage & Digital Enablement ◼ Transaction Automation Primary Distributor 111, Inc. ◼ Intelligent Se
Slide 9: Driving Operational Excellence by Leveraging Technology
Driving Operational Excellence by Leveraging Technology Supply Demand Customer Acquisition & Retention Operation Technology Supply Chain Support Operating Expenditure Ratio1 (Excluding Share-Based Compensation Expenses) Resource Utilization YoY -60 bps 6.3% 5.7% Expense Control Market Expansion 1Q23
Slide 10: Intelligent Integration: Driving Demand, Managing Sales, Empowering Partners
Intelligent Integration: Driving Demand, Managing Sales, Empowering Partners Intelligent Demand Analysis Smart Sales Empowering and Optimizing Pharmacy Operations ◼ Combined with company data and industry data, the "Bo Guan" ◼ Smart sales "Eagle Eye" enables ◼ Analyzing pharmacy customer segments, p
Slide 11: Operational Excellence: Enhancing Supply Chain Efficiency with Reduced Costs
Operational Excellence: Enhancing Supply Chain Efficiency with Reduced Costs ◼ Fulfillment expenses significantly declined in Q1 24, dropping by RMB14 million, representing a 14% decrease, to RMB89 million in Q1 24 from RMB103 million in Q1 23. ◼ Fulfillment expenses accounted for 2.51% of revenue i
Slide 12: Private Label Development Helping Margin Growth
Private Label Development Helping Margin Growth Private labelled products have introduced a significant portion of planned ingredients, achieving impressive growth in revenue and gross profit across a wide range of SKUs ◼ Revenue from private labelled products surged 89% year over year in Q1 2024 ◼
Slide 13: Awards and Accolades
Awards and Accolades 111 Inc. Awards in Q1 2024 111 Inc. in April secured a new patent for a voice service enhancement system, expanding technology portfolio to 24 patents. 13
Slide 14: Shaping the Future: Enhancing Leadership and Competitive Advantage with a Structured Approach
Shaping the Future: Enhancing Leadership and Competitive Advantage with a Structured Approach Digitization Efficiency Pledging to digital transformation Focusing on operational efficiency Private Comprehensive Label Selection Expand our portfolio of Offering a comprehensive selection of proprietary
Slide 15: Unlocking Success: Relentlessly Driving Revenue and Margin Growth
Unlocking Success: Relentlessly Driving Revenue and Margin Growth Accelerated Investment in JBP Platform Innovation on the supply side to optimize the range Optimizing Operational Costs of categories and products Strengthened Partnerships Adopting new transshipment model, Kunpeng, offered with P
Slide 16: Content
1 BUSINESS & OPERATIONAL PERFORMANCE HIGHLIGHTS 2 FINANCIAL REVIEW 3CONTENT APPENDIX 16
Slide 17: Slight Revenue Decrease Due to Sudden Surge of Demand During Peak of Pandemic in Q1 of 2023
Slight Revenue Decrease Due to Sudden Surge of Demand During Peak of Pandemic in Q1 of 2023 Revenue – Total B2B Segment 1 – Revenue (Million) (Million) YoY -3.7% RMB3,584 USD522 RMB3,452 YoY -4.6% USD478 RMB3,697 USD538 RMB3,528 USD489 2023 Q1 2024 Q1 B2C Segment 2 – Revenue (Milliion) YoY -32.3% RM
Slide 18: Gross Margin Decrease Due to Sudden Surge of Demand During Peak of Pandemic in Q1 of 2023
Gross Margin Decrease Due to Sudden Surge of Demand During Peak of Pandemic in Q1 of 2023 Gross Segment Margin – Total 1 B2B Segment 2 – Gross Segment Margin (Million) (Million) RMB211 YoY -9.5% YoY -11.7% USD31 RMB191 RMB236 USD27 USD34 RMB209 USD29 2023 Q1 2024 Q1 5.9% 5.5% B2C Segment 3 – Gross S
Slide 19: First Time Operational Profitability
First Time Operational Profitability Income from Operations Non-GAAP Income1 from Operations (Million) (Million) Turned to profitability RMB3.7 USD 0.5 YoY +259% RMB8.9 USD1.2 RMB2.5 USD0.4 2023 Q1 2024 Q1 RMB21.7 USD3.2 2023 Q1 2024 Q1 Notes: 1. Non-GAAP income from operations represents income fro
Slide 20: Content
1 BUSINESS & OPERATIONAL PERFORMANCE HIGHLIGHTS 2 FINANCIAL REVIEW 3CONTENT APPENDIX 20
Slide 21: Selected Balance Sheet Summary
Selected Balance Sheet Summary As of December 31, 2023 March 31, 2024 '000 RMB USD RMB USD Cash and cash equivalents, restrict cash and short-term 673,691 94,886 627,329 86,884 investments Total current assets 2,933,331 413,150 2,785,510 385,788 Total assets 3,089,036 435,083 2,924,573 405,048 Total
Slide 22: Selected Income Statement Summary
Selected Income Statement Summary For the Three Months Ended March 31, 2023 March 31, 2024 '000 RMB USD RMB USD Net revenues 3,696,761 538,290 3,528,429 488,682 Cost of products sold 3,460,548 503,895 3,319,896 459,800 Fulfillment expenses 102,650 14,947 88,523 12,260 Selling and marketing expenses
Slide 23: Cash Flow Statements
Cash Flow Statements As of March 31, 2023 March 31, 2024 '000 RMB USD RMB USD Net cash (used in) provided by operating activities (121,328) (17,668) 108,438 15,019 Net cash (used in) provided by investing activities (53,188) (7,744) 29,742 4,119 Net cash provided by (used in) financing activities 78
Slide 24: Non-GAAP Financial Measures Reconciliation
Non-GAAP Financial Measures Reconciliation For the Three Months Ended March 31, 2023 March 31, 2024 '000 RMB USD RMB USD (Loss)/Income from operations (21,732) (3,164) 3,724 516 Add: Share-based compensation 24,208 3,525 5,171 716 Non-GAAP income from operations 2,476 361 8,895 1,232 Net loss (19,35
Slide 25: Q&A
Q&A MHtine. | 1am
Slide 26: Thank You
THANK YOU MHtine. | 1am