111, Inc. · NASDAQ:YI
111 — Q2 2024 Earnings Presentation
27 slides from 111's earnings presentation, Aug 29, 2024
Slide 1: Second Quarter 2024 Earnings Call
111, Inc. (NASDAQ: YI) Reshaping the Value Chain of Healthcare Industry with Digital Technology Second Quarter 2024 Earnings Call August 29, 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: Achieving Operational Profit for Two Consecutive Quarters
Resilience in Action: Achieving Operational Profit for Two Consecutive Quarters Amid Macroeconomic Challenges Major Milestone & Macroenvironment Maintained operational profit for the second consecutive quarter through ongoing operational enhancements that overrode macroeconomic challenges. The n
Slide 5: Revenue Holds Firm Despite Macroeconomic Challenges
Revenue Holds Firm Despite Macroeconomic Challenges Revenue – Total B2B Revenue (Million) YoY -1.5% (Million) YoY -1.0% RMB3,477 RMB3,424 RMB3,389 RMB3,354 USD480 USD471 USD467 USD461 2023 Q2 2024 Q2 2023 Q2 2024 Q2 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 -10bps 0.03 2.7% 2.5% 2.6% 2.3% Streamlined 0.02 Management 0.01 Improved Corporate Governance
Slide 7: Sustaining Operational Profitability for Two Consecutive Quarters Through Enhanced Efficiency
Sustaining Operational Profitability for Two Consecutive Quarters Through Enhanced Efficiency Operating Expense as % of Net Revenue (Excluding Share-Based Compensation Expenses) Excluding Share-Based YoY -70bps Compensation Expenses 6.5% 2023 Q2 2024 Q2 5.8% Total 6.5% 5.8% Selling and Marketing 2.5
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 -70 bps 6.5% 5.8% Expense Control Market Expansion 2Q23
Slide 10: Intelligent Integration: Low Prices Mindset, Supply Chain Optimization, AI-Powered Matching
Intelligent Integration: Low Prices Mindset, Supply Chain Optimization, AI-Powered Matching Strategically Low Prices Supply Chain Optimization AI-Powered Intelligent Matching Bidding Tool and Automated Operation System Supply Chain Efficiency and Cost Reduction - The application of AI Models f
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 Established a design
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 Q2 24, dropping by RMB7 million, representing a 7% decrease, to RMB88 million in Q2 24 from RMB95 million in Q2 23. Fulfillment expenses accounted for 2.57% of revenue in Q
Slide 13: Private Label Development Helping Margin Growth
Private Label Development Helping Margin Growth Private labelled products achieved significant growth in revenue and gross profit across a wide range of SKUs Introduced 19 new private labelled products in H1 2024 Revenue from private labelled products rose 35% year over year in H1 2024 Gross p
Slide 14: Leading the Way in Innovation: Discover Our Latest Patents
Leading the Way in Innovation: Discover Our Latest Patents 111 Inc. secured four new patents, expanding technology portfolio to 28 patents. 111 Inc. Awards in Q2 2024 14
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 Private Comprehensive Label Selection Expand our portfolio of Offering a comprehensive selection of proprietary
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 new 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 -1.0% RMB3,389 RMB3,354 USD467 USD461 YoY -1.5% RMB3,477 USD480 RMB3,424 USD471 2023 Q2 2024 Q2 B2C Segment 2 – Revenue (Milliion) YoY -20.2% RMB89 USD12 RMB71 USD10 2023 Q2 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) 5.6% 5.7% 6.0% 6.1% RMB189 YoY 1.1% RMB191 RMB207.9 USD26 USD26 USD29 YoY -0.1% RMB207.6 USD29 2023 Q2 2024 Q2 B2C Segment 3 – Gross Segment Margin (Million) 21.8
Slide 20: Maintaining Operational Profitability for Two Consecutive Quarters
Maintaining Operational Profitability for Two Consecutive Quarters Income (Loss) from Operations Non-GAAP Income1 (Loss) from Operations (Million) (Million) Turned to profitability RMB8.5 Turned to profitability RMB3.3 USD 1.2 USD 0.5 RMB17.2 RMB41.4 USD2.4 USD5.7 2023 Q2 2024 Q2 2023 Q2 2024 Q2 Not
Slide 21: Content
1 BUSINESS & OPERATIONAL PERFORMANCE HIGHLIGHTS 2 FINANCIAL REVIEW 3CONTENT APPENDIX 22
Slide 22: Selected Balance Sheet Summary
Selected Balance Sheet Summary As of December 31, 2023 June 30, 2024 '000 RMB USD RMB USD Cash and cash equivalents, restrict cash and short-term 673,691 94,886 615,524 84,699 investments Total current assets 2,933,331 413,150 2,656,079 365,489 Total assets 3,089,036 435,083 2,789,230 383,811 Total
Slide 23: Selected Income Statement Summary
Selected Income Statement Summary For the Three Months Ended June 30, 2023 June 30, 2024 '000 RMB USD RMB USD Net revenues 3,477,497 479,568 3,424,370 471,209 Cost of products sold (3,269,610) (450,900) (3,216,772) (442,643) Fulfillment expenses (94,950) (13,094) (88,059) (12,117) Selling and market
Slide 24: Cash Flow Statements
Cash Flow Statements As of June 30, 2023 June 30, 2024 '000 RMB USD RMB USD Net cash (used in) provided by operating activities (164,111) (22,632) 93,260 12,834 Net cash provided by (used in) investing activities 139,938 19,298 (79,728) (10,971) Net cash provided by (used in) financing activities 15
Slide 25: Non-GAAP Financial Measures Reconciliation
Non-GAAP Financial Measures Reconciliation For the Three Months Ended June 30, 2023 June 30, 2024 '000 RMB USD RMB USD (Loss)/Income from operations (41,405) (5,710) 3,338 460 Add: Share-based compensation 24,208 3,338 5,195 715 Non-GAAP (loss)/income from operations (17,197) (2,372) 8,533 1,175 Net
Slide 26: Q&A
Q&A MHtine. | 1am
Slide 27: Thank You
THANK YOU MHtine. | 1am