6月19日，1药网将披露2025财年一季报（数据来源于纳斯达克官网，预计披露日期为美国当地时间，实 际披露日期以公司公告为准）。 7月1日，1药网(YI)盘中上涨5.02%，截至00:03，报7.278美元/股，成交8.69万美元，总市值6308.25万美 元。 财务数据显示，截至2024年12月31日，1药网收入总额144.01亿人民币，同比减少3.66%；归母净利 润-6474.3万人民币，同比增长83.51%。 大事提醒： 1药网旗下拥有:B2C医药平台"1药网"、互联网医院"1诊",B2B医药平台"1药城",通过创新的S2B2C的模 式,全面实现B端和C端、线上和线下、自营和平台、医+药+保险的融合发展。2018年,1药网成功登陆美 国纳斯达克,股票代码"YI",成为中国互联网医药健康赴美上市第一股。 本文源自金融界 资料显示，1药网公司是111集团的境外控股公司。1药网由于刚和刘峻岭于2010年创建,是中国互联网医 药健康的领军企业,致力于用数字科技将患者和药品及医疗服务有机连接,打造中国最大的医药健康平 台。 1药网基于在互联网科技、智能供应链、全渠道药品商业化、云服务方面建立的优势,与药企、药品 ...

Core Viewpoint - 1药网 (YI) has experienced a slight increase in stock price, while its financial performance shows a decline in revenue but a significant increase in net profit [1][2]. Financial Performance - As of December 31, 2024, 1药网 reported total revenue of 14.401 billion RMB, a year-on-year decrease of 3.66% [1]. - The net profit attributable to the parent company was -64.743 million RMB, reflecting a year-on-year increase of 83.51% [1]. Company Overview - 1药网 is a leading player in China's internet healthcare sector, founded in 2010 by Liu Junling, and is a subsidiary of 111 Group [2]. - The company aims to connect patients with pharmaceuticals and medical services through digital technology, establishing itself as the largest healthcare platform in China [2]. - 1药网 operates various platforms, including the B2C pharmaceutical platform "1药网," the internet hospital "1诊," and the B2B pharmaceutical platform "1药城," utilizing an innovative S2B2C model [2]. - The company went public on NASDAQ in 2018, becoming the first Chinese internet healthcare company to list in the U.S. [2].

Core Viewpoint - 111, Inc. reported stable net revenues of RMB 3.5 billion (US$486.3 million) for Q1 2025, reflecting resilience in a challenging macroeconomic environment [4][5][7] - The company achieved a 4.8% year-over-year reduction in total operating expenses, improving operational efficiency [4][7][19] - The strategic focus remains on leveraging technology to enhance the healthcare value chain, with continued investments in AI and digital solutions [4][5] Financial Performance - Net revenues for Q1 2025 were RMB 3,529 million (US$486.3 million), a slight increase of 0.02% from RMB 3,528 million in Q1 2024 [5][31] - Gross segment profit decreased by 6.4% year-over-year to RMB 195.1 million (US$26.9 million) due to unfavorable macroeconomic conditions [5][31] - Operating expenses totaled RMB 195.0 million (US$26.9 million), down 4.8% from RMB 204.8 million in the same quarter last year, with operating expenses as a percentage of net revenues decreasing to 5.5% [7][9][19] Operational Highlights - The company maintained quarterly operational profitability with income from operations of RMB 0.1 million (US$0.02 million), down from RMB 3.7 million in the same quarter last year [7][11] - Non-GAAP income from operations was RMB 4.3 million (US$0.6 million), compared to RMB 8.9 million in the same quarter of last year [12][32] - Net cash from operating activities was RMB 112.6 million (US$15.5 million), indicating positive operating cash flow for the quarter [7][31] Cost Management - Selling and marketing expenses decreased by 15.5% year-over-year to RMB 67.9 million (US$9.4 million) [9][10] - Technology expenses were reduced by 15.6% to RMB 15.5 million (US$2.1 million) [19] - General and administrative expenses decreased by 3.8% to RMB 18.3 million (US$2.5 million) [19] Balance Sheet and Cash Position - As of March 31, 2025, the company held cash and cash equivalents, restricted cash, and short-term investments totaling RMB 556.8 million (US$76.7 million), an increase from RMB 518.3 million at the end of 2024 [17][29] - Total current assets decreased to RMB 2,485.2 million (US$342.5 million) from RMB 2,649.7 million at the end of 2024 [29] - Total liabilities decreased to RMB 2,230.0 million (US$307.3 million) from RMB 2,406.9 million at the end of 2024 [29]

Core Viewpoint - 1药网 (YI) is experiencing a decline in revenue while showing significant growth in net profit, indicating a potential shift in its financial dynamics [1][2]. Financial Performance - As of December 31, 2024, 1药网 reported total revenue of 14.401 billion RMB, a year-on-year decrease of 3.66% [1]. - The net profit attributable to the parent company was -64.743 million RMB, reflecting a year-on-year increase of 83.51% [1]. Company Overview - 1药网 is a leading player in China's internet healthcare sector, founded in 2010 by Liu Junling, and is a subsidiary of 111 Group [2]. - The company aims to connect patients with pharmaceuticals and medical services through digital technology, striving to create the largest healthcare platform in China [2]. - 1药网 has established a supply chain service platform in collaboration with pharmaceutical companies, distributors, and insurance firms, enhancing service delivery to B-end clients such as pharmacies and doctors [2]. Business Model - The company employs a digital approach to reconstruct the pharmaceutical health industry value chain, facilitating efficient matching of supply and demand [2]. - 1药网 operates several platforms, including the B2C pharmaceutical platform "1药网," the internet hospital "1诊," and the B2B pharmaceutical platform "1药城," utilizing an innovative S2B2C model [2]. - The integration of B-end and C-end services, online and offline operations, and the convergence of medicine, pharmaceuticals, and insurance is a key focus for the company [2]. Market Position - 1药网 successfully listed on NASDAQ in 2018 under the ticker symbol "YI," marking it as the first Chinese internet healthcare company to go public in the U.S. [2].

Part I [Item 3. Key Information](index=6&type=section&id=Item%203.%20Key%20Information) This section outlines the company's holding structure, operational risks in China, key financial and operational information, including VIE termination and HFCAA implications - 111, Inc. is a Cayman Islands holding company with primary operations in China, which terminated its VIE structure in February 2022, making former VIEs directly owned subsidiaries[28](index=28&type=chunk)[29](index=29&type=chunk)[280](index=280&type=chunk) - The company was previously identified under the HFCAA but does not believe it is currently at risk of delisting unless the PCAOB makes a new determination regarding its auditor's inspection[31](index=31&type=chunk)[32](index=32&type=chunk) - Transfers of funds out of the PRC are subject to government restrictions, and the company has not paid and does not plan to pay dividends, intending to retain earnings for business expansion[37](index=37&type=chunk)[38](index=38&type=chunk)[39](index=39&type=chunk) - The company is subject to new PRC regulations, including CSRC and CAC rules on overseas listings and data security, potentially requiring CSRC filings for future offerings[46](index=46&type=chunk)[48](index=48&type=chunk)[49](index=49&type=chunk) [Risk Factors](index=22&type=section&id=D.%20Risk%20Factors) This subsection details principal risks, including evolving regulations, intense competition, operating losses, cybersecurity threats, PRC government oversight, potential HFCAA delisting, and concentrated voting power from its dual-class share structure - The company has a history of net losses, recording **RMB 376.1 million in 2022**, **RMB 353.4 million in 2023**, and **RMB 20.8 million in 2024**, with future profitability not guaranteed due to expected increases in operating costs[84](index=84&type=chunk) - The business is subject to evolving PRC regulations in internet, healthcare, and pharmaceutical industries, where non-compliance or changes, especially concerning online prescription drug sales and data security, could adversely affect operations[73](index=73&type=chunk)[75](index=75&type=chunk)[100](index=100&type=chunk) - The company faces significant risks in China, including legal interpretation uncertainties, potential government intervention, and CSRC and CAC regulations on overseas listings and data security, which could hinder securities offerings[69](index=69&type=chunk)[182](index=182&type=chunk)[186](index=186&type=chunk) - The dual-class share structure grants founders Dr. Gang Yu and Mr. Junling Liu approximately **91.46% of aggregate voting power**, limiting other shareholders' influence on corporate matters[240](index=240&type=chunk)[241](index=241&type=chunk) - A redemption obligation related to the planned STAR Market listing of its subsidiary, 1 Pharmacy Technology, exists, with **RMB 1.08 billion** recorded as of December 31, 2024, and agreements reached with most investors to reschedule repayments[110](index=110&type=chunk)[277](index=277&type=chunk) [Item 4. Information on the Company](index=82&type=section&id=Item%204.%20Information%20on%20the%20Company) This section provides a detailed overview of the company's history, business operations, and regulatory environment, covering its evolution, IPO, VIE termination, and its digital healthcare platform connecting pharmaceutical companies, pharmacies, and consumers [History and Development of the Company](index=82&type=section&id=A.%20History%20and%20Development%20of%20the%20Company) This section details the company's corporate history, including its 2018 IPO, capital injections, VIE termination in February 2022, withdrawal of a going-private proposal, and recent regulatory changes - The company terminated its VIE contractual arrangements in February 2022, resulting in direct equity ownership of its former VIEs, which accounted for **40.6% of total net revenues** in 2021 prior to termination[280](index=280&type=chunk) - In 2020, subsidiary 1 Pharmacy Technology received capital injections tied to a proposed STAR Market listing, with **RMB 1.08 billion** owed as of December 31, 2024, due to unfulfilled listing conditions, and repayment schedules are being negotiated[277](index=277&type=chunk) - A preliminary non-binding going-private proposal from a buyer group including the co-founders, received on September 9, 2022, was formally withdrawn on February 27, 2024[281](index=281&type=chunk) - The company is subject to new PRC regulations, including the Cybersecurity Review Measures and the CSRC's Overseas Offering and Listing Measures, which may require filings for future securities offerings[283](index=283&type=chunk)[288](index=288&type=chunk)[289](index=289&type=chunk) [Business Overview](index=87&type=section&id=B.%20Business%20Overview) The company operates a digital healthcare platform in China, connecting patients, pharmacies, and pharmaceutical companies through its online retail and wholesale pharmacies, leveraging proprietary technology and a smart supply chain under a complex PRC regulatory framework - The company's digital healthcare platform aims to connect patients with medicine and healthcare services, digitizing the value chain for pharmaceutical companies, pharmacies, and consumers[292](index=292&type=chunk)[295](index=295&type=chunk) - As of December 31, 2024, the company's online wholesale pharmacy, 1 Pharmacy, served over **488,000 offline pharmacies**[305](index=305&type=chunk) - The "1 Health Membership" program, launched in May 2021, connects pharmaceutical companies with pharmacies and patients, promoting sales and providing digital commercialization and marketing services[301](index=301&type=chunk)[310](index=310&type=chunk) - The business operates under two main models: a direct sales model for product procurement and sales, and a marketplace model for third-party sellers earning commissions and platform fees[308](index=308&type=chunk)[309](index=309&type=chunk)[321](index=321&type=chunk)[322](index=322&type=chunk) - The company has a significant intellectual property portfolio, including **30 software copyrights**, **334 registered trademarks** (including "1药网"), and **33 granted patents** as of December 31, 2024[375](index=375&type=chunk) [Organizational Structure](index=130&type=section&id=C.%20Organizational%20Structure) This section presents the corporate structure of 111, Inc., a Cayman Islands holding company, detailing the ownership of its principal PRC operating subsidiary, 1 Pharmacy Technology (Shanghai) Co., Ltd., and other PRC subsidiaries - 111, Inc. is a Cayman Islands holding company operating through its subsidiaries in Hong Kong and the PRC[57](index=57&type=chunk) - The main operating entity, 1 Pharmacy Technology, is approximately **89.04% owned** by the company's Hong Kong subsidiaries, with the remaining ownership held by unaffiliated third-party investors and employee equity incentive platforms[59](index=59&type=chunk)[60](index=60&type=chunk)[452](index=452&type=chunk) [Property, Plant and Equipment](index=135&type=section&id=D.%20Property,%20Plant%20and%20Equipment) The company's physical assets primarily consist of leased properties, including approximately **160,804 square meters** for fulfillment centers and over **7,000 square meters** for office space as of December 31, 2024 Leased Property Areas as of Dec 31, 2024 | Property Type | Area (sq. meters) | | :--- | :--- | | Fulfillment Centers | 160,803.65 | | Office Space (Shanghai) | 2,703.92 | | Office Space (Other) | 4,374.78 | | Yi Hao Pharmacies | 1,483.95 | [Item 5. Operating and Financial Review and Prospects](index=136&type=section&id=Item%205.%20Operating%20and%20Financial%20Review%20and%20Prospects) This section provides management's discussion and analysis of the company's financial condition and results, detailing revenue trends, cost structures, profitability, liquidity, capital resources, and critical accounting estimates Key Financial Performance (RMB in billions) | Metric | 2022 | 2023 | 2024 | | :--- | :--- | :--- | :--- | | Total Net Revenues | 13.5 | 14.9 | 14.4 | | B2B Product Revenues | 13.0 | 14.5 | 14.0 | | Net Loss | (0.376) | (0.353) | (0.021) | - The company's revenue is increasingly dominated by its B2B segment, which accounted for **97.5% of product revenues in 2024**, serving over **488,000 pharmacy customers**[474](index=474&type=chunk) - Net loss as a percentage of net revenues improved from **2.8% in 2022** to **2.4% in 2023**, and further to **0.1% in 2024**, driven by cost control measures across selling, general, and technology expenses[464](index=464&type=chunk)[492](index=492&type=chunk) - The company has significant material cash requirements, including operating lease commitments of **RMB 101.3 million** and a redemption obligation of **RMB 1.08 billion** related to a subsidiary's financing as of December 31, 2024[542](index=542&type=chunk)[544](index=544&type=chunk) [Operating Results](index=136&type=section&id=A.%20Operating%20Results) This subsection analyzes the company's operational performance from 2022 to 2024, highlighting a **3.7% decrease in total net revenues to RMB 14.4 billion in 2024**, and a significant reduction in net loss to **RMB 20.8 million** due to decreased operating expenses Consolidated Results of Operations (RMB in thousands) | | 2022 | 2023 | 2024 | |:---|---:|---:|---:| | **Total net revenues** | **13,516,698** | **14,948,129** | **14,401,249** | | Cost of products sold | (12,676,722) | (14,099,151) | (13,572,020) | | (Loss) Income from operations | (371,001) | (350,097) | 2,114 | | **Net loss** | **(376,069)** | **(353,433)** | **(20,776)** | - In 2024, net revenues decreased by **3.7% to RMB 14.4 billion** from **RMB 14.9 billion in 2023**, primarily due to a **3.1% decrease in B2B product revenues** and a **27.0% decrease in B2C product revenues**[487](index=487&type=chunk)[488](index=488&type=chunk) - Operating expenses were significantly reduced in 2024 compared to 2023, with Selling and marketing expenses decreasing by **30.0%**, General and administrative expenses by **68.4%**, and Technology expenses by **44.0%**, primarily due to decreased payroll, share-based compensation, and increased efficiency[494](index=494&type=chunk)[495](index=495&type=chunk)[496](index=496&type=chunk) - In 2023, net revenues increased by **10.6% to RMB 14.9 billion** from **RMB 13.5 billion in 2022**, driven by an **11.5% growth in B2B product revenues**[498](index=498&type=chunk)[499](index=499&type=chunk) [Liquidity and Capital Resources](index=148&type=section&id=B.%20Liquidity%20and%20Capital%20Resources) The company's liquidity is primarily financed through operations, private placements, IPO, and credit facilities, with **RMB 462.3 million** in cash as of December 31, 2024, and a significant **RMB 1.08 billion** redemption obligation being renegotiated, while generating **RMB 263.0 million** in positive operating cash flow in 2024 Cash and Cash Equivalents (RMB in millions) | As of Dec 31 | 2022 | 2023 | 2024 | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | 673.7 | 603.5 | 462.3 | Summary of Cash Flows (RMB in millions) | | 2022 | 2023 | 2024 | | :--- | :--- | :--- | :--- | | Net cash from operating activities | (23.2) | (447.2) | 263.0 | | Net cash from investing activities | (47.2) | 151.7 | 37.4 | | Net cash from financing activities | 22.7 | 206.0 | (406.2) | - The company has a significant redemption liability of **RMB 1.08 billion** as of December 31, 2024, related to its subsidiary's uncompleted STAR Listing, with agreements reached with investors representing **96.79%** of the total amount to reschedule repayments[527](index=527&type=chunk)[542](index=542&type=chunk) - The company utilizes various credit facilities and structured payment arrangements, including revolving credit from China Merchant Bank and Industrial Bank, and factoring programs to manage working capital[517](index=517&type=chunk)[518](index=518&type=chunk)[525](index=525&type=chunk) [Item 6. Directors, Senior Management and Employees](index=156&type=section&id=Item%206.%20Directors,%20Senior%20Management%20and%20Employees) This section provides information on the company's leadership, compensation, board structure, and workforce, profiling co-founders Dr. Gang Yu and Mr. Junling Liu, detailing executive compensation and share incentive plans, and highlighting the co-founders' significant voting control through a dual-class share structure - The company is led by co-founders Dr. Gang Yu and Mr. Junling Liu, who serve as Co-Chairmen, with Mr. Liu also holding the CEO position[553](index=553&type=chunk)[554](index=554&type=chunk) - For the year ended December 31, 2024, aggregate cash compensation to directors and executive officers was approximately **RMB 9.89 million**[559](index=559&type=chunk) - As of March 31, 2025, the co-founders beneficially own all Class B ordinary shares, granting them approximately **91.46% of the total voting power** due to the dual-class structure[241](index=241&type=chunk)[604](index=604&type=chunk) Employee Count by Function as of Dec 31, 2024 | Function | Number | % of Total | | :--- | :--- | :--- | | Wholesale pharmacy business | 503 | 40.6% | | Retail pharmacy business | 134 | 10.8% | | Supply chain | 120 | 9.7% | | Procurement | 245 | 19.8% | | Research and development and IT | 144 | 11.6% | | General and administrative | 92 | 7.5% | | **Total** | **1,238** | **100.0%** | [Item 7. Major Shareholders and Related Party Transactions](index=171&type=section&id=Item%207.%20Major%20Shareholders%20and%20Related%20Party%20Transactions) This section details the company's major shareholders and related party transactions, primarily focusing on the termination of VIE contractual arrangements in January 2022, and referencing executive employment and indemnification agreements - Major shareholders are detailed in Item 6.E, highlighting significant control by the company's founders[610](index=610&type=chunk) - In January 2022, the company terminated its VIE contractual arrangements, with 1 Pharmacy Technology acquiring **100% of the equity** in Yihao Pharmacy, converting former VIEs into direct subsidiaries[610](index=610&type=chunk) - The company has entered into standard employment and indemnification agreements with its directors and executive officers[612](index=612&type=chunk) [Item 8. Financial Information](index=173&type=section&id=Item%208.%20Financial%20Information) This section contains key financial disclosures, including legal proceedings, specifically an arbitration over a **RMB 38.7 million** redemption claim, and confirms no dividends have been paid or are planned, as earnings will be retained for business expansion - The company is currently in legal arbitration with an investor in 1 Pharmacy Technology over a redemption dispute amounting to approximately **RMB 38.7 million**[615](index=615&type=chunk) - The company has not declared or paid any cash dividends and has no plan to do so in the near future, intending to retain all available funds for business operations and expansion[616](index=616&type=chunk) - As a holding company, its ability to pay dividends depends on receiving dividends from its PRC subsidiaries, which are subject to PRC regulations on profit distribution and statutory reserve requirements[617](index=617&type=chunk) [Item 9. The Offer and Listing](index=174&type=section&id=Item%209.%20The%20Offer%20and%20Listing) This section details the listing of the company's American Depositary Shares (ADSs) on The Nasdaq Global Market under symbol "YI" since September 12, 2018, and notes a change in the ADS to ordinary share ratio effective January 2025 - The company's ADSs have been listed on The Nasdaq Global Market under the ticker symbol "YI" since September 12, 2018[619](index=619&type=chunk) - On January 24, 2025, the ADS to Class A ordinary share ratio was changed from **1-for-2 to 1-for-20**[619](index=619&type=chunk) [Item 10. Additional Information](index=174&type=section&id=Item%2010.%20Additional%20Information) This section provides supplementary details on the company's corporate governance and legal framework, including its dual-class share structure, material contracts, exchange controls, and taxation implications, with a focus on Passive Foreign Investment Company (PFIC) risk - The company's ordinary shares are divided into Class A (**1 vote per share**) and Class B (**15 votes per share**), with Class B shares held by founders and convertible to Class A, concentrating their voting control[628](index=628&type=chunk)[636](index=636&type=chunk) - The company is an exempted company under Cayman Islands law, which differs significantly from U.S. corporate law regarding shareholder rights, mergers, and director's fiduciary duties[655](index=655&type=chunk)[660](index=660&type=chunk) - The company believes it was not a Passive Foreign Investment Company (PFIC) for the 2024 taxable year, but its status is subject to change based on income, asset composition, and market capitalization, which could result in adverse U.S. federal income tax consequences for U.S. investors[271](index=271&type=chunk)[706](index=706&type=chunk)[707](index=707&type=chunk) [Item 11. Quantitative and Qualitative Disclosures about Market Risk](index=199&type=section&id=Item%2011.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section discusses the company's exposure to market risks, primarily interest rate risk from borrowings and deposits, and foreign exchange risk from RMB/USD fluctuations, with a **10% RMB depreciation** potentially decreasing RMB-denominated cash by **US$5.4 million** - The company's primary market risks are interest rate risk from borrowings and deposits, and foreign exchange risk from currency fluctuations between the RMB and USD[723](index=723&type=chunk)[724](index=724&type=chunk) - The value of an investment in the company's ADSs is affected by the USD/RMB exchange rate, as the business is denominated in RMB while ADSs are traded in USD[724](index=724&type=chunk) - As of December 31, 2024, a hypothetical **10% depreciation of the RMB** against the USD would result in a decrease of **US$5.4 million** in the value of the company's RMB-denominated cash and cash equivalents[727](index=727&type=chunk) [Item 12. Description of Securities Other Than Equity Securities](index=199&type=section&id=Item%2012.%20Description%20of%20Securities%20Other%20Than%20Equity%20Securities) This section focuses on the company's American Depositary Shares (ADSs), outlining fees payable to the depositary, The Bank of New York Mellon, for services like issuance and cash distributions, and noting the depositary's agreement to reimburse certain investor relations expenses ADS Holder Fees | Fee | For | | :--- | :--- | | Up to $5.00 per 100 ADSs | Issuance or cancellation of ADSs | | Up to $0.05 per ADS | Cash distributions | | Up to $0.05 per ADS per year | Depositary services | - The depositary, The Bank of New York Mellon, has agreed to reimburse the company for certain expenses related to its investor relations programs and ADS facility[733](index=733&type=chunk) Part II [Item 15. Controls and Procedures](index=201&type=section&id=Item%2015.%20Controls%20and%20Procedures) This section addresses the company's internal controls, with management concluding that disclosure controls and internal control over financial reporting were effective as of December 31, 2024, and noting that an auditor's attestation report is not required for non-accelerated filers - Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2024[739](index=739&type=chunk) - Based on the COSO framework, management concluded that the company's internal control over financial reporting was effective as of December 31, 2024[740](index=740&type=chunk) - The annual report does not include an auditor's attestation report on internal control over financial reporting because the company is exempt as a non-accelerated filer[742](index=742&type=chunk) [Item 16. Corporate Governance and Other Matters](index=202&type=section&id=Item%2016.%20Corporate%20Governance%20and%20Other%20Matters) This section covers corporate governance and compliance, including the audit committee financial expert, code of ethics, principal accountant fees, the change of auditor to Grant Thornton in July 2024, the use of home country practices, and the company's cybersecurity risk management strategy - On July 19, 2024, the company dismissed Deloitte Touche Tohmatsu Certified Public Accountants LLP and engaged Grant Thornton Zhitong Certified Public Accountants LLP as its new independent registered public accounting firm[748](index=748&type=chunk)[751](index=751&type=chunk) Principal Accountant Fees (USD in thousands) | Year | Audit fees and audit-related fees | | :--- | :--- | | 2022 | 1,223 | | 2023 | 946 | | 2024 | 534 | - The company follows Cayman Islands home country practices in lieu of certain Nasdaq corporate governance requirements, such as not having a majority-independent board or a nominations committee comprised solely of independent directors[756](index=756&type=chunk) - The company has a comprehensive cybersecurity risk management program overseen by the Board of Directors and managed day-to-day by a team under the Chief Technology Officer, with no material cybersecurity incidents identified in 2024[761](index=761&type=chunk)[767](index=767&type=chunk)[766](index=766&type=chunk) Part III [Item 18. Financial Statements](index=207&type=section&id=Item%2018.%20Financial%20Statements) This section contains the complete audited consolidated financial statements for 111, Inc. for fiscal years 2022-2024, including auditor reports, balance sheets, statements of comprehensive loss, changes in equity, cash flows, and detailed notes [Report of Independent Registered Public Accounting Firm](index=212&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) This subsection includes audit reports from Grant Thornton for 2024 and Deloitte for 2022-2023, with Grant Thornton identifying product revenue as a critical audit matter, and Deloitte's prior report including a going concern paragraph due to recurring losses and potential redemption obligations - The auditor for the 2024 financial statements, Grant Thornton, identified the occurrence of B2B product revenue as a critical audit matter, citing inherent risk due to its significance (**97.5% of total revenue**) and large transaction volume[789](index=789&type=chunk)[790](index=790&type=chunk) - The previous auditor's report on the 2022 and 2023 financials included a going concern paragraph, highlighting that recurring losses and a potential redemption of non-controlling interests raised substantial doubt about the company's ability to continue as a going concern[794](index=794&type=chunk) [Consolidated Financial Statements](index=215&type=section&id=Consolidated%20Financial%20Statements) This section presents the company's core financial statements, showing total assets of **RMB 2.79 billion** and a total deficit of **RMB 658.2 million** as of December 31, 2024, with a net loss of **RMB 20.8 million** for 2024 and positive operating cash flow of **RMB 263.0 million** Consolidated Balance Sheet Highlights (RMB in thousands) | | Dec 31, 2023 | Dec 31, 2024 | |:---|---:|---:| | Total Current Assets | 2,933,331 | 2,649,657 | | Total Assets | 3,089,036 | 2,787,750 | | Total Current Liabilities | 2,745,063 | 2,342,579 | | Total Liabilities | 2,812,932 | 2,406,988 | | Redeemable non-controlling interests | 870,825 | 1,038,914 | | Total Deficit | (594,721) | (658,152) | Consolidated Statement of Comprehensive Loss Highlights (RMB in thousands) | | 2022 | 2023 | 2024 | |:---|---:|---:|---:| | Total net revenues | 13,516,698 | 14,948,129 | 14,401,249 | | (Loss) Income from operations | (371,001) | (350,097) | 2,114 | | Net loss | (376,069) | (353,433) | (20,776) | | Net loss per share (Basic) | (2.50) | (2.33) | (0.38) | [Notes to Consolidated Financial Statements](index=221&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) These notes provide essential context to the financial statements, including the basis of presentation addressing going concern uncertainty, revenue recognition, segment reporting, accounting for redeemable non-controlling interests, and a breakdown of share-based compensation expenses - Management's plans to address going concern uncertainty include renegotiating redemption obligations, securing bank loan facilities, and implementing cost reduction programs, which resulted in positive operating cash flow in 2024[812](index=812&type=chunk)[813](index=813&type=chunk) Revenue by Segment (RMB in thousands) | Segment | 2022 | 2023 | 2024 | | :--- | :--- | :--- | :--- | | B2C Product Revenues | 408,305 | 357,975 | 261,197 | | B2B Product Revenues | 12,995,131 | 14,483,935 | 14,033,543 | | Service Revenues | 113,262 | 106,219 | 106,509 | | **Total** | **13,516,698** | **14,948,129** | **14,401,249** | - The redeemable non-controlling interest balance increased to **RMB 1.04 billion** as of December 31, 2024, from **RMB 870.8 million** a year prior, primarily due to accretion and reclassification from other liabilities after repayment schedules were renegotiated[933](index=933&type=chunk) Share-Based Compensation Expense (RMB in thousands) | Expense Category | 2022 | 2023 | 2024 | | :--- | :--- | :--- | :--- | | General and administrative | 86,992 | 113,536 | 9,230 | | Selling and marketing | 50,110 | 76,976 | 6,899 | | Technology | 20,282 | 35,658 | 4,020 | | **Total** | **157,384** | **226,170** | **20,149** |

111, Inc. (NASDAQ:YI) Q4 2024 Earnings Conference Call March 20, 2025 7:30 AM ET Company Participants Junling Liu - Co-Founder, Chairman and Chief Executive Officer Luke Chen - Chief Financial Officer Haihui Wang - Chief Operating Officer Conference Call Participants Robert Sassoon - Water Tower Research Shifan Sun - CICC Zoe Bian - Citi Operator Hello, everyone, and thank you for joining 111's Conference Call today. On the call today from the company are Dr. . Gang Yu, Co-Founder and Executive Chairman; Mr ...

111, Inc. (NASDAQ: YI) Reshaping the Value Chain of Healthcare Industry with Digital Technology Fourth Quarter and Fiscal Year 2024 Earnings Call March 20, 2025 1 DISCLAIMER 2 Forward-looking statements involve inherent risks, uncertainties and other factors that could cause actual results to differ materially from those contained in any such statements. Potential risks and uncertainties include, but are not limited to, uncertainties as to the Company's ability comply with extensive and evolving regulatory ...

111 (YI) Q4 2024 Earnings Call March 20, 2025 07:30 AM ET Company Participants Junling Liu - Co-Founder, Acting CFO, Chairman & CEOYang Chen - Senior Finance Executive & DirectorHaihui Wang - Co-Chief Operating Officer Conference Call Participants Robert Sassoon - Senior Research AnalystNone - Analyst Operator Hello, everyone, and thank you for joining one hundred and eleven's conference call today. On the call today from the company are Doctor. Gang Yu, Co Founder and Executive Chairman Mr. Junling Liu, Co ...

Core Viewpoint - 111, Inc. achieved its first-ever annual operational profitability and positive operating cash flow in 2024, despite facing challenges from the macroeconomic environment and healthcare reforms [4][7][20]. Fourth Quarter 2024 Highlights - Net revenues for Q4 2024 were RMB3.8 billion (US$527.1 million), a decrease of 6.3% from RMB4.1 billion in Q4 2023 [5][7]. - Total operating expenses in Q4 2024 were RMB209.8 million (US$28.7 million), a significant improvement of 50.1% compared to RMB420.8 million in Q4 2023 [7][9]. - Loss from operations improved to RMB7.3 million (US$1.0 million) in Q4 2024, a 96.5% improvement from RMB206.5 million in the same quarter of 2023 [10][12]. - Non-GAAP loss from operations was RMB2.3 million (US$0.3 million), improving by 95.8% from RMB55.2 million in Q4 2023 [11][13]. Fiscal Year 2024 Highlights - Total net revenues for the fiscal year 2024 were RMB14.4 billion (US$2.0 billion), down 3.7% from RMB14.9 billion in 2023 [17][21]. - Income from operations for the full year was RMB2.1 million (US$0.3 million), a turnaround from an operating loss of RMB350.1 million in 2023 [20][21]. - Non-GAAP income from operations for 2024 was RMB22.3 million (US$3.0 million), compared to a non-GAAP loss of RMB123.9 million in 2023 [21][22]. - Net cash from operating activities reached RMB263.0 million (US$36.0 million), marking the first-ever positive operating cash flow for the year [7][21]. Operational Efficiency - The company focused on operational efficiency, with total operating expenses as a percentage of revenues decreasing by 230 basis points to 5.7% for the full year 2024 [4][7]. - In Q4 2024, operating expenses accounted for 5.5% of revenues, down 470 basis points year over year [4][7]. - The company streamlined logistics and reduced delivery times through its Kunpeng Network, which operates 28 transportation routes across five major geographic hubs [4][7]. Future Outlook - The company remains optimistic about long-term growth opportunities driven by the digitalization of healthcare and the rising healthcare needs of China's aging population [4][7]. - Continued investments in AI and digital technologies are planned to enhance operational efficiency and customer engagement [4][7].

Core Viewpoint - 111, Inc. is set to participate in a fireside chat to discuss its Q4 2024 earnings, priorities for 2025, and macroenvironment overview [1][2]. Company Overview - 111, Inc. is a leading tech-enabled healthcare platform in China, focused on reshaping the healthcare value chain by digitally empowering both upstream and downstream sectors [4]. - The company provides consumers with access to pharmaceutical products and healthcare services through its online retail pharmacy, 1 Pharmacy, and an offline virtual pharmacy network [4]. - Online healthcare services are offered through its internet hospital, 1 Clinic, which includes online consultations, electronic prescriptions, and patient management [4]. - 111 operates the largest virtual pharmacy network in China, enhancing service delivery for offline pharmacies with cloud-based solutions [4]. - The company also provides an omni-channel drug commercialization platform, offering services like digital marketing, patient education, data analytics, and pricing monitoring to strategic partners [4]. Upcoming Events - The fireside chat will take place on March 26, 2025, at 11:00 a.m. ET, featuring Mr. Junling Liu, the Co-Founder, Chairman, and CEO of 111 [2]. - The Q4 2024 earnings report is scheduled for March 20, 2024 [2]. - Registration for the event is available through a provided link, and a replay will be accessible on the company's investor relations website [2].