111, Inc. · NASDAQ:YI
111 — Q3 2024 Earnings Presentation
27 slides from 111's earnings presentation, Nov 27, 2024
Slide 1: 111, Inc. Third Quarter 2024 Earnings Call
111, Inc. (NASDAQ: YI) Reshaping the Value Chain of Healthcare Industry with Digital Technology Third Quarter 2024 Earnings Call November 27, 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: Resilience in Action: Maintaining Operational Profit for Three Consecutive Quarters
Resilience in Action: Maintaining Operational Profit for Three Consecutive Quarters Amid Macroeconomic Challenges Highlights & Macroenvironment Maintained operational profit for the third consecutive quarter. Operating expenses as a percentage of revenues decreased 160 basis points year over yea
Slide 5: Resilient Revenue Performance and Gross Margin Growth
Resilient Revenue Performance and Gross Margin Growth Amid Macroeconomic Challenges Revenue – Total Gross Segment Margin – Total 1 (Million) YoY -1.8% (Million) YoY 10.5% 5.2% 5.8% RMB3,665 RMB3,601 RMB211 USD502 USD513 USD30 RMB191 USD26 2023 Q3 2024 Q3 2023 Q3 2024 Q3 Note: 5 1. Total Segment Marg
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 -40bps Flat YoY 2.8% 2.8% 2.5% 2.1% Streamlined Management Improved Corporate Governance 2023 Q3 2024 Q3 2
Slide 7: Sustaining Operational Profitability Through Enhanced Efficiency
Sustaining Operational Profitability for Three Consecutive Quarters Through Enhanced Efficiency Operating Expense as % of Net Revenue (Excluding Share-Based Compensation Expenses) Excluding Share-Based YoY -100bps Compensation Expenses 6.7% 2023 Q3 2024 Q3 5.7% Total 6.7% 5.7% Selling and Marketing
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 -100 bps 6.7% 5.7% Expense Control Market Expansion 3Q2
Slide 10: Intelligent Integration: Tech Boosts Supply Capacity, Smart Pricing, AI Matching
Intelligent Integration: Tech Boosts Supply Capacity, Smart Pricing Tool , AI Matching Tool Tech Boosts Supply Capacity Supply Improvement & Traffic Efficiency Matching Tool—Chinese Herbal Medicine Through the JBP Platform and Inventory Sharing Supply Deployment Upgrading and Smart Pricing The
Slide 11: Kunpeng Pharmaceutical Logistics Network Fuels Supply Chain Cost Reduction
Kunpeng Pharmaceutical Logistics Network Fuels Supply Chain Cost Reduction Our goal is to establish a national pharmaceutical logistics network, ensuring efficient last-mile delivery in supply-dense areas while maintaining full control of the supply chain. Significant Progress Enables an extended
Slide 12: Operational Excellence: Enhancing Supply Chain Efficiency with Reduced Costs
Operational Excellence: Enhancing Supply Chain Efficiency with Reduced Costs Fulfillment expenses significantly declined in the first nine months of 2024, dropping by RMB22 million, representing an 8% decrease, to RMB277 million from RMB299 million in the same period a year ago. Fulfillment expe
Slide 13: Nationwide Fulfillment Network Expansion
Nationwide Fulfillment Network Expansion Strengthens Supply and Fulfillment Capabilities Harbin Significant Progress Shenyang Between October and November, four new fulfillment Urumqi Huhhot centers began operations in Guangzhou, Guangdong Tianjin Shijiazhuang Province, Wuhan, Hubei Province, Ji’n
Slide 14: Leading the Way: Discover Our Latest Accolades
Leading the Way: Discover Our Latest Accolades Our operation centers have been named as either “Top 100 Service Industry Enterprises” or “Top 100 Private Enterprises” in Guangdong, Wuhan and Chongqing, underscoring strong business performance and influence in these regional markets. 111 Inc. Awards
Slide 15: Shaping the Future: Enhancing Leadership and Competitive Advantage
Shaping the Future: Enhancing Leadership and Competitive Advantage with a Structured Approach Digitization Efficiency Pledging to digital transformation Focusing on operational efficiency Supply Side Comprehensive Empowerment Selection Helping pharmaceutical companies Offering a comprehensive select
Slide 16: 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 Optimizing Operational Costs side to optimize the range Adopting the transshipment model, Kunpeng, of categories and products to streamline logistics and operations,
Slide 17: Content
1 BUSINESS & OPERATIONAL PERFORMANCE HIGHLIGHTS 2 FINANCIAL REVIEW 3CONTENT APPENDIX 17
Slide 18: Total Revenue Holds Firm Despite Macroeconomic Challenges
Total Revenue Holds Firm Despite Macroeconomic Challenges Revenue – Total B2B Segment 1 – Revenue (Million) (Million) YoY -1.2% RMB3,577 RMB3,536 USD490 USD504 YoY -1.8% RMB3,665 RMB3,601 USD502 USD513 2023 Q3 2024 Q3 B2C Segment 2 – Revenue (Milliion) YoY -26.4% RMB88 USD12 RMB65 USD9 2023 Q3 2024
Slide 19: Gross Margin Growth Amid Macroeconomic Challenges
Gross Margin Growth Amid Macroeconomic Challenges Gross Segment Margin – Total 1 B2B Segment 2 – Gross Segment Margin (Million) (Million) 4.8% 5.5% 5.2% 5.8% RMB171 YoY 14.0% RMB195 USD23 USD28 RMB191 RMB211 YoY 10.5% USD26 USD30 2023 Q3 2024 Q3 B2C Segment 3 – Gross Segment Margin (Million) 22.2% 2
Slide 20: Sustaining Operational Profitability Through Enhanced Efficiency
Sustaining Operational Profitability for Three Consecutive Quarters Through Enhanced Efficiency Operating Expense as % of Net Revenue (Excluding Share-Based Compensation Expenses) Excluding Share-Based YoY -100bps Compensation Expenses 6.7% 2023 Q3 2024 Q3 5.7% Total 6.7% 5.7% Selling and Marketing
Slide 21: Content
1 BUSINESS & OPERATIONAL PERFORMANCE HIGHLIGHTS 2 FINANCIAL REVIEW 3CONTENT APPENDIX 21
Slide 22: Selected Balance Sheet Summary
Selected Balance Sheet Summary As of December 31, 2023 September 30, 2024 '000 RMB USD RMB USD Cash and cash equivalents, restrict cash and short-term 673,691 94,886 614,411 87,553 investments Total current assets 2,933,331 413,150 2,886,888 411,379 Total assets 3,089,036 435,083 3,029,682 431,726 T
Slide 23: Selected Income Statement Summary
Selected Income Statement Summary For the Three Months Ended September 30, 2023 September 30, 2024 '000 RMB USD RMB USD Net revenues 3,665,245 502,364 3,600,675 513,092 Cost of products sold (3,474,621) （476,236） (3,390,059) (483,080) Fulfillment expenses (101,602) （13,925） (99,977) (14,247) Selling
Slide 24: Cash Flow Statements
Cash Flow Statements As of September 30, 2023 September 30, 2024 '000 RMB USD RMB USD Net cash provided by operating activities 35,208 4,825 109,865 15,656 Net cash provided by investing activities 5,163 708 49,845 7,103 Net cash provided by (used in) financing activities 110,452 15,139 (110,510) (1
Slide 25: Non-GAAP Financial Measures Reconciliation
Non-GAAP Financial Measures Reconciliation For the Three Months Ended September 30, 2023 September 30, 2024 '000 RMB USD RMB USD (Loss)/Income from operations (80,422) (11,022) 2,371 337 Add: Share-based compensation 26,402 3,619 4,756 678 Non-GAAP (loss)/income from operations (54,020) (7,403) 7,12
Slide 26: Q&A
Q&A MHtine. | 1am
Slide 27: Thank You
THANK YOU MHtine. | 1am