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111(YI) - 2022 Q4 - Annual Report
2022-11-30 16:00
Third Quarter 2022 Key Results & Management Commentary Q3 2022 revenue was flat at RMB 3.35 billion due to lockdowns, but gross profit grew 21.6% and Non-GAAP loss narrowed[1](index=1&type=chunk) - CEO Junling Liu stated that business was negatively impacted by COVID-19 lockdowns in various cities and provinces during the quarter[2](index=2&type=chunk) - The company achieved **positive operating cash flow** and overall cash flow for the quarter[2](index=2&type=chunk) Q3 2022 Key Financial Metrics | Metric | Q3 2022 | YoY Change | | :--- | :--- | :--- | | Net Revenues | RMB 3.35 billion | +0.1% | | Gross Segment Profit | - | +21.6% | | Total Operating Expenses as % of Net Revenues | 8.4% | from 10.2% | | Non-GAAP Loss from Operations as % of Net Revenues | 1.5% | from 4.1% | Segment Margin Improvement | Segment | Q3 2022 Margin (%) | Q3 2021 Margin (%) | | :--- | :--- | :--- | | Overall Gross Segment Margin | 6.0% | 5.0% | | B2B Segment Margin | 5.5% | 4.4% | | B2C Segment Margin | 22.4% | 19.7% | [Detailed Financial Performance](index=2&type=section&id=Third%20Quarter%202022%20Financial%20Results) Q3 2022 financial performance details flat revenue, B2B growth, and significant expense reductions narrowing losses [Revenue and Segment Performance](index=2&type=section&id=Revenue%20and%20Segment%20Performance) Q3 2022 segment performance details B2B revenue growth and margin improvement, contrasting with B2C decline Q3 2022 Segment Performance | Metric | B2B Segment (RMB thousands) | YoY Change | B2C Segment (RMB thousands) | YoY Change | | :--- | :--- | :--- | :--- | :--- | | Net Revenue | 3,248,917 | +0.8% | 99,798 | -19.7% | | Segment Profit | 179,601 | +26.9% | 22,381 | -8.7% | | Segment Profit % | 5.5% | from 4.4% | 22.4% | from 19.7% | [Operating Costs and Expenses](index=2&type=section&id=Operating%20Costs%20and%20Expenses) Q3 2022 operating expenses show significant year-over-year reductions across all major categories, enhancing efficiency Q3 2022 Operating Expense Breakdown (YoY) | Expense Category | Amount (RMB million) | YoY Change | As % of Net Revenue | | :--- | :--- | :--- | :--- | | Fulfillment | 100.2 | -0.4% | 2.99% (from 3.01%) | | Selling & Marketing | 107.8 | -18.2% | 3.2% (from 3.9%) | | General & Administrative | 46.1 | -13.1% | 1.4% (from 1.6%) | | Technology | 29.5 | -47.3% | 0.9% (from 1.7%) | [Profitability and Cash Position](index=3&type=section&id=Profitability%20and%20Cash%20Position) Q3 2022 profitability details significant reductions in operating and net losses, alongside a strong cash position Q3 2022 Profitability Metrics (vs. Q3 2021) | Metric | Q3 2022 (RMB million) | Q3 2021 (RMB million) | | :--- | :--- | :--- | | Loss from Operations | (80.7) | (175.4) | | Non-GAAP Loss from Operations | (48.7) | (135.9) | | Net Loss | (86.2) | (165.8) | | Non-GAAP Net Loss | (54.3) | (126.3) | - As of September 30, 2022, the company held **RMB 865.9 million (US$121.7 million)** in cash, cash equivalents, restricted cash, and short-term investments[9](index=9&type=chunk) [Conference Call Information](index=3&type=section&id=Conference%20Call) The company will host an earnings conference call on December 1, 2022, at 7:30 AM U.S. Eastern Time, with registration and webcast details - The earnings conference call is scheduled for **7:30 AM U.S. Eastern Time** on Thursday, December 1, 2022 (8:30 PM Beijing Time)[10](index=10&type=chunk) - Participants must pre-register online for dial-in information, with a live and archived webcast also available[11](index=11&type=chunk) [Notes on Financial Reporting](index=4&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) This section explains the company's use of non-GAAP financial measures and includes a forward-looking statements disclaimer [Use of Non-GAAP Financial Measures](index=4&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) The company utilizes non-GAAP measures, excluding share-based compensation, for clearer core operating performance insights - The company uses non-GAAP measures, including non-GAAP loss from operations and non-GAAP net loss, to supplement its U.S. GAAP financial results[14](index=14&type=chunk) - These non-GAAP measures primarily exclude **share-based compensation expenses**, which management believes helps identify underlying business trends and provides a better basis for comparing performance[15](index=15&type=chunk) - The company acknowledges the limitations of non-GAAP measures and provides a reconciliation to comparable U.S. GAAP measures[17](index=17&type=chunk)[18](index=18&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) This section notes the press release contains forward-looking statements, subject to various known and unknown risks - This press release contains forward-looking statements based on management's current expectations, subject to known and unknown risks, uncertainties, and other factors[20](index=20&type=chunk) [Unaudited Condensed Consolidated Financial Statements](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section presents unaudited financial statements as of September 30, 2022, detailing balance sheet, comprehensive loss, and positive operating cash flow [Consolidated Balance Sheets](index=7&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) This section presents unaudited consolidated balance sheets, highlighting key asset and liability figures as of September 30, 2022 Balance Sheet Highlights (as of Sep 30, 2022 vs. Dec 31, 2021) | Account | Sep 30, 2022 (RMB thousands) | Dec 31, 2021 (RMB thousands) | | :--- | :--- | :--- | | Cash, cash equivalents, restricted cash & short-term investments | 865,946 | 943,228 | | Total Current Assets | 2,791,956 | 2,801,737 | | Total Assets | 3,054,959 | 3,145,833 | | Total Current Liabilities | 2,258,122 | 2,129,978 | | Total Liabilities | 2,373,055 | 2,297,129 | [Consolidated Statements of Comprehensive Loss](index=8&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20COMPREHENSIVE%20LOSS) This section presents unaudited consolidated statements of comprehensive loss, detailing revenue, expenses, and net loss for Q3 2022 Statement of Comprehensive Loss (Q3 2022 vs Q3 2021) | Metric | For the three months ended Sep 30, 2022 (RMB thousands) | For the three months ended Sep 30, 2021 (RMB thousands) | | :--- | :--- | :--- | | Net Revenues | 3,348,715 | 3,346,227 | | Total Operating costs and expenses | (3,429,384) | (3,521,583) | | Loss from operations | (80,669) | (175,356) | | Net Loss | (86,240) | (165,780) | | Net Loss attributable to ordinary shareholders | (96,846) | (252,855) | | Loss per ADS (Basic and diluted) | (1.16) RMB | (3.04) RMB | [Consolidated Statements of Cash Flows](index=9&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) This section presents unaudited consolidated statements of cash flows, summarizing operating, investing, and financing activities for Q3 2022 Cash Flow Summary (Q3 2022 vs Q3 2021) | Activity | For the three months ended Sep 30, 2022 (RMB thousands) | For the three months ended Sep 30, 2021 (RMB thousands) | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | 11,815 | (107,181) | | Net cash provided by (used in) investing activities | 100,460 | (243,454) | | Net cash used in financing activities | (40,755) | (5,307) | | Net increase (decrease) in cash | 78,539 | (355,177) | [Reconciliation of GAAP and Non-GAAP Results](index=10&type=section&id=Unaudited%20Reconciliation%20of%20GAAP%20and%20Non-GAAP%20Results) This section provides a clear reconciliation of GAAP to non-GAAP financial results for Q3 2022, adjusting for share-based compensation Q3 2022 GAAP to Non-GAAP Reconciliation | Metric | GAAP Figure (RMB thousands) | Share-based Compensation (RMB thousands) | Non-GAAP Figure (RMB thousands) | | :--- | :--- | :--- | :--- | | Loss from operations | (80,669) | 31,938 | (48,731) | | Net Loss | (86,240) | 31,938 | (54,302) | | Net Loss attributable to ordinary shareholders | (96,846) | 31,938 | (64,908) | Q3 2022 Loss per ADS Reconciliation | Metric | GAAP Figure (RMB) | Share-based Compensation per ADS (RMB) | Non-GAAP Figure (RMB) | | :--- | :--- | :--- | :--- | | Loss per ADS | (1.16) | 0.38 | (0.78) |
111(YI) - 2022 Q2 - Earnings Call Transcript
2022-08-25 17:01
111, Inc. (NASDAQ:YI) Q2 2022 Earnings Conference Call August 25, 2022 7:30 AM ET Company Participants Monica Mu - Investor Relations Director Gang Yu - Co-Founder and Executive Chairman Junling Liu - Co-Founder, Chairman and Chief Executive Officer Luke Chen - Chief Financial Officer, Major Subsidiary Harvey Wangg - Chief Operating Officer Conference Call Participants Xipeng Feng - CICC Zoe Bian - Citi Operator Hello everyone and thank you for joining 111's Conference Call today. On the call today from the ...
111(YI) - 2022 Q2 - Earnings Call Presentation
2022-08-25 10:57
Financial Performance - Revenue reached RMB 3037145000 despite difficult circumstances[12, 44] - Gross profit significantly increased to RMB 192 million, a 43% year-over-year increase[12] - B2B segment revenue increased by 13% year-over-year to RMB 2935000000[16, 31] - B2B segment gross profit increased by 55% year-over-year to RMB 169 million[15, 16] - B2C segment revenue decreased by 20% year-over-year to RMB 103 million[31] - Non-GAAP operating loss as a percentage of net revenue decreased by 320 basis points year-over-year to 17%[17] Operational Efficiency - G&A expense as a percentage of net revenue decreased by 25% year-over-year[17] - Operating expense as a percentage of net revenue decreased from 107% in 2021 Q2 to 89% in 2022 Q2 including share-based compensation expenses[35] New Initiatives - 1 Health program connects digitally with over 67 million patients, with a 48% quarter-over-quarter increase in patients[18] - High Margin Product Program saw a 232% year-over-year increase in GMV[20] - Cloud Promotion Platform covered over 7000 pharmacies and 9000 pharmacy managers/pharmacists/salespersons[24]
111(YI) - 2022 Q1 - Earnings Call Transcript
2022-06-16 20:00
111, Inc. (NASDAQ:YI) Q1 2022 Earnings Conference Call June 16, 2022 7:30 AM ET Company Participants Monica Mu - Investor Relations Director Junling Liu - Co-Founder, Chairman and Chief Executive Officer Luke Chen - Chief Financial Officer, Major Subsidiary Harvey Wangg - Chief Operating Officer Conference Call Participants Xipeng Feng - CICC Jessie Lu - HSBC Zoe Bian - Citi Operator Good day and thank you for standing by. Welcome to the First Quarter 2022 Earnings Conference Call. At this time all particip ...
111(YI) - 2021 Q4 - Earnings Call Transcript
2022-03-17 21:09
111, Inc. (NASDAQ:YI) Q4 2021 Earnings Conference Call March 17, 2022 7:30 AM ET Company Participants Monica Mu - IR Director Junling Liu - Co-Founder, Chairman and Chief Executive Officer Luke Chen - CFO, Major Subsidiary Harvey Wangg - Chief Operating Officer Conference Call Participants Zoe Bian - Citi Xipeng Feng - CICC Kenneth Lau - Cornerstone Investment Marcus Shi - Individual Investor Disclaimer*: This transcript is designed to be used alongside the freely available audio recording on this page. Tim ...
111(YI) - 2021 Q3 - Earnings Call Transcript
2021-11-19 17:05
Financial Data and Key Metrics Changes - Total net revenues for Q3 2021 grew 41.6% year-over-year to RMB3.35 billion, marking the 13th consecutive quarter of year-over-year growth since the IPO [15][23] - B2B segment revenue increased 46.3% year-over-year to RMB3.2 billion, reaching a new record high for segment revenue [23] - B2C segment revenue decreased 22.9% year-over-year to RMB124 million, with a focus on pivoting towards profitable contributions [16][24] - Non-GAAP net loss as a percentage of net revenues decreased from 4.1% in Q3 2020 to 3.8% in Q3 2021 [15][26] - Gross margins grew by 85% year-over-year, improving to 5% as a percentage of revenue [16][24] Business Line Data and Key Metrics Changes - B2B service revenues totaled RMB16.1 million, representing a 336% year-over-year increase [15] - Gross margins for the B2B segment improved from 3.6% in Q1 to 3.8% in Q2 and 4.4% in Q3 [16] - The B2C segment remains an important pillar, but revenue has slowed down as the company focuses on profitability [16] Market Data and Key Metrics Changes - The company has expanded partnerships with over 400 pharmaceutical companies, up 33% from a year prior [18] - The market for the pharmaceutical sector is estimated to be around RMB2 trillion, with significant growth expected in the out-of-hospital care segment [49] Company Strategy and Development Direction - The company aims to leverage technology to connect patients with healthcare services, focusing on a patient-centric care platform [11] - The strategy includes expanding the fulfillment capacity and optimizing supply chain efficiency to support growth [18][55] - The company is committed to enhancing its technology capabilities and has invested significantly in this area [47] Management's Comments on Operating Environment and Future Outlook - Management believes that current policies will provide tailwinds to the healthcare industry, emphasizing digitization and compliance [8][33] - The company expects to achieve profitability within 12 months, with a focus on margin improvement and revenue growth [43][44] - Management is optimistic about the future growth potential in the healthcare services sector, driven by industry trends and internal initiatives [22] Other Important Information - The company has provided approximately 400,000 free online consultations as part of its ESG efforts [21] - The 1 Health membership program has gained strong momentum, with over 11,000 participating stores [20] Q&A Session Summary Question: Impact of new regulations for online medical services - Management views the new regulations as tailwinds for the industry, emphasizing the importance of digitization and compliance [32][33] Question: Reasons behind strong B2B growth and future momentum - B2B revenue reached RMB3.2 billion in Q3 2021, with margin growth outpacing revenue growth, indicating a healthy business [34] Question: Updates on pharmaceutical collaborations - The company has increased sourcing relationships to over 400 and formed partnerships with major pharmaceutical companies for specialized internet hospitals [39][40] Question: Differentiation of the 1 Health program - The program aims to provide value-added services to pharmacies, leveraging digital technology to enhance competitiveness [41][42] Question: Timeline for breakeven - Management expects to achieve profitability within 12 months, with confidence in margin growth and operational efficiency [43][44] Question: Fulfillment capacity enhancement - The company is focused on optimizing and expanding fulfillment capacity to support growth and improve supply chain efficiency [55] Question: Strategy for enhancing relationships with pharmacies - The company aims to grow loyalty among existing pharmacies while continuing to attract new ones through value-added services [58]