Financial Data and Key Metrics Changes - In Q1 2021, net revenue increased by 64.7% year-over-year to RMB2.6 billion, marking the 11th consecutive quarter of revenue growth since the IPO [5][6] - Non-GAAP net loss attributable to ordinary shareholders decreased from 6.9% in Q1 2020 to 4.2% in Q1 2021, indicating progress towards profitability [6][20] - Total operating expenses rose by 43.6% to RMB2.9 billion, but as a percentage of net revenue, it decreased to 11.1% from 12.8% [19][20] Business Line Data and Key Metrics Changes - B2B segment revenue grew by 77.6% to RMB2.45 billion, while B2C segment revenue decreased by 47% to RMB142 million due to seasonal factors and prior year demand spikes [18][19] - B2B gross margin improved from 3.3% to 3.6%, while B2C gross margin remained stable at around 20% [19][20] Market Data and Key Metrics Changes - The online consultation market in China is projected to grow from 6% in 2019 to 42% in 2024 and 68.5% by 2030, driven by chronic disease management needs [15][16] - The online pharmaceutical market is expected to grow nearly tenfold to RMB1 trillion by 2030, indicating significant market opportunities [16] Company Strategy and Development Direction - The company is focused on expanding its S2B2C model, enhancing supply chain capabilities, and increasing partnerships with pharmaceutical companies [6][10] - The strategic cooperation with BeiGene aims to leverage technology and supply chain networks to enhance oncology management and drug accessibility [10][11] - The company is investing in technology and supply chain infrastructure to support growth and improve operational efficiency [16][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning within the evolving regulatory landscape, emphasizing transparency and efficiency as key strengths [26][27] - The company anticipates continued robust growth, with Q2 2021 revenue guidance between RMB2.92 billion and RMB3.08 billion, representing a year-over-year growth of approximately 80% to 90% [20] Other Important Information - As of March 31, 2021, the company had cash and cash equivalents of RMB1.16 billion, down from RMB1.62 billion at the end of 2020 [21] - The company is in the process of preparing for a potential IPO on the Shanghai STAR board, with no specific timeline provided [35][36] Q&A Session Summary Question: Fulfillment costs and future reductions - Management highlighted improvements in supply chain efficiency and the launch of new fulfillment centers as key factors in reducing fulfillment costs [25] Question: Impact of industry policies on business - Management noted that recent regulatory changes promote transparency and efficiency, aligning with the company's strengths and business model [26][27] Question: Revenue growth drivers and customer focus - The company is focusing on expanding its reach in lower-tier cities and enhancing partnerships with pharmacies and pharmaceutical companies [30][32] Question: Partnerships with pharmaceutical companies - The company is seen as a valuable partner due to its omni-channel capabilities and transparent governance, which are attractive to pharmaceutical companies [33] Question: Updates on supply chain investments - Management confirmed ongoing investments in fulfillment centers and warehouse automation to enhance operational efficiency [34] Question: Gross margin expansion insights - The company expects continued gross margin improvement driven by better trading terms with pharmaceutical companies and increased service revenue [41][42] Question: Expansion plans for clinics and doctors - Management indicated that while the majority of revenue currently comes from pharmacies, clinics represent a future growth area [46][48] Question: Share issuance and protecting shareholder value - Management acknowledged the complexity of share issuance and expressed commitment to further discussions on protecting shareholder interests [50][51]

111, Inc. (NASDAQ:YI) Q4 2020 Earnings Conference Call March 18, 2021 7:30 AM ET Company Participants Monica Mu - IR Gang Yu - Chairman Junling Liu - CEO Luke Chen - CFO Harvey Wang - Co-COO Barry Zhu - Co-COO Conference Call Participants Zoe Bian - Citi Rachel Yang - HSBC Operator Hello, ladies and gentlemen, and thank you for standing by for 111, Inc.'s Fourth Quarter and Fiscal Year 2020 Conference Call. [Operator Instructions] As a reminder, today's conference call is being recorded. I would now turn th ...

[Company Overview and Performance Highlights](index=1&type=section&id=Company%20Overview%20%26%20Highlights) 111, Inc. reported strong Q4 and FY2020 financial results, highlighting significant revenue growth, improved operating efficiency, reduced non-GAAP net loss, and successful subsidiary financing [Fourth Quarter 2020 Key Highlights](index=1&type=section&id=Fourth%20Quarter%202020%20Key%20Highlights) In Q4 2020, net revenues grew 96.1% to RMB 2.64 billion, gross profit increased 143.7%, operating expenses as a percentage of net revenues decreased from 15.6% to 9.4%, and non-GAAP net loss narrowed to RMB 98.2 million Key Financial Data for Q4 2020 | Metric | Q4 2020 (RMB) | YoY Growth | % of Net Revenues (Q4 2020) | % of Net Revenues (Q4 2019) | | :------------------------------------------ | :------------ | :--------- | :-------------------------- | :-------------------------- | | Net revenues | 2,640,000,000 | 96.1% | | | | Gross Profit | 103,600,000 | 143.7% | | | | Operating expenses | 248,300,000 | 17.9% | 9.4% | 15.6% | | Non-GAAP net loss attributable to ordinary shareholders | (98,200,000) | (vs RMB143.7M loss) | 3.7% | 10.7% | [Fiscal Year 2020 Key Highlights](index=1&type=section&id=Fiscal%20Year%202020%20Key%20Highlights) For FY2020, net revenues increased 107.6% to RMB 8.2 billion, gross profit grew 121.5%, operating expenses as a percentage of net revenues decreased from 16.7% to 10.2%, non-GAAP net loss narrowed to RMB 380.8 million, and cash and equivalents significantly increased to RMB 1.62 billion Key Financial Data for Fiscal Year 2020 | Metric | FY 2020 (RMB) | YoY Growth | % of Net Revenues (FY 2020) | % of Net Revenues (FY 2019) | | :------------------------------------------ | :------------ | :--------- | :-------------------------- | :-------------------------- | | Net revenues | 8,200,000,000 | 107.6% | | | | Gross Profit | 365,800,000 | 121.5% | | | | Operating expenses | 839,100,000 | 27.4% | 10.2% | 16.7% | | Non-GAAP net loss attributable to ordinary shareholders | (380,800,000) | (vs RMB434.3M loss) | 4.6% | 11.0% | | Cash and cash equivalents, restricted cash and short-term investments | 1,620,000,000 | 132.2% | | | [Management Commentary and Strategic Outlook](index=2&type=section&id=Management%20Commentary%20%26%20Strategic%20Outlook) The CEO highlighted 2020 as a year of strong growth with continuous net revenue increase, significant reduction in non-GAAP net loss as a percentage of net revenues, and S2B2C model-driven expansion, with plans to strengthen this model, increase AI and technology investments, and expand services in 2021, following successful subsidiary financing - Net revenues increased by **96.1%** to **RMB 2.64 billion** in Q4 2020, with full-year net revenues reaching **RMB 8.2 billion**, more than double that of FY2019[5](index=5&type=chunk) - Non-GAAP net loss as a percentage of net revenues decreased from **22.3%** in the first quarter post-IPO to **3.7%** in the current quarter[5](index=5&type=chunk) - The S2B2C model drove growth, with over **330** direct global and domestic pharmaceutical company partners and the retail pharmacy network becoming China's largest virtual network by Q4 2020[5](index=5&type=chunk) - Fulfillment expenses as a percentage of net revenues decreased from **3.6%** in Q4 2019 to **2.6%** in Q4 2020, and from **3.3%** to **2.8%** for the full year[5](index=5&type=chunk) - Future focus includes strengthening the S2B2C model, enhancing AI and data processing capabilities, increasing technology investments, expanding services for retail pharmacies, and deploying more digital medical representatives[5](index=5&type=chunk) - Subsidiary Yao Fang Shanghai completed two rounds of financing totaling approximately **$142.8 million**, with the second round's pre-money valuation reaching **RMB 10 billion ($1.5 billion)**, and plans for a STAR Market listing in Shanghai[5](index=5&type=chunk) [Fourth Quarter 2020 Financial Performance](index=3&type=section&id=Fourth%20Quarter%202020%20Financial%20Performance) [Net Revenues](index=3&type=section&id=Q4%20Net%20Revenues) Q4 2020 net revenues increased by **96.1%** to **RMB 2.64 billion**, primarily driven by strong growth in the B2B business Q4 2020 Net Revenues | Metric | Q4 2019 (in thousands of RMB) | Q4 2020 (in thousands of RMB) | YoY Growth | | :----- | :------------ | :------------ | :--------- | | Net Revenues | 1,347,840 | 2,642,950 | 96.1% | [Segment Performance (B2B and B2C)](index=3&type=section&id=Q4%20Segment%20Performance) The B2B segment achieved strong growth of **108.7%** in Q4, with significant increases in both product and service revenues, while the B2C segment also grew, albeit at a slower pace Q4 2020 B2B Segment Revenues | Metric | Q4 2019 (in thousands of RMB) | Q4 2020 (in thousands of RMB) | YoY Growth | | :----- | :------------ | :------------ | :--------- | | **B2B Revenue** | | | | | Product | 1,184,424 | 2,462,875 | 107.9% | | Service | 1,543 | 11,966 | 675.5% | | Sub-Total | 1,185,967 | 2,474,841 | 108.7% | | Segment Profit | 17,036 | 74,169 | 335.4% | | Segment Profit % | 1.4% | 3.0% | | Q4 2020 B2C Segment Revenues | Metric | Q4 2019 (in thousands of RMB) | Q4 2020 (in thousands of RMB) | YoY Growth | | :----- | :------------ | :------------ | :--------- | | **B2C Revenue** | | | | | Product | 156,746 | 161,394 | 3.0% | | Service | 5,127 | 6,715 | 31.0% | | Sub-Total | 161,873 | 168,109 | 3.9% | | Segment Profit | 25,456 | 29,385 | 15.4% | | Segment Profit % | 15.7% | 17.5% | | [Operating Costs and Expenses](index=3&type=section&id=Q4%20Operating%20Costs%20and%20Expenses) Total operating costs and expenses increased by **83.8%** in Q4, yet fulfillment, selling and marketing, general and administrative, and technology expenses all decreased as a percentage of net revenues, indicating improved operating efficiency Q4 2020 Operating Costs and Expenses | Expense Category | Q4 2019 (in thousands of RMB) | Q4 2020 (in thousands of RMB) | YoY Change | % of Net Revenues (Q4 2019) | % of Net Revenues (Q4 2020) | | :--------------- | :------------ | :------------ | :--------- | :-------------------------- | :-------------------------- | | Cost of products sold | 1,305,348 | 2,539,396 | 94.5% | | | | Fulfillment expenses | 48,683 | 69,550 | 42.9% | 3.6% | 2.6% | | Selling and marketing expenses | 102,931 | 118,408 | 15.0% | 7.6% | 4.5% | | General and administrative expenses | 35,501 | 31,776 | -10.5% | 2.6% | 1.2% | | Technology expenses | 19,878 | 30,686 | 54.4% | 1.5% | 1.2% | [Profitability Metrics (GAAP and Non-GAAP)](index=4&type=section&id=Q4%20Profitability%20Metrics) Q4 operating and net losses (GAAP and non-GAAP) both narrowed year-over-year, with their percentages of net revenues significantly decreasing, demonstrating continuous improvement in the company's profitability Q4 2020 Profitability Metrics | Metric | Q4 2019 (in thousands of RMB) | Q4 2020 (in thousands of RMB) | YoY Change | % of Net Revenues (Q4 2019) | % of Net Revenues (Q4 2020) | | :------------------------------------------ | :------------ | :------------ | :--------- | :-------------------------- | :-------------------------- | | Loss from operations | (168,072) | (144,723) | -13.9% | 12.5% | 5.5% | | Non-GAAP loss from operations | (154,163) | (112,306) | -27.2% | 11.4% | 4.2% | | Net loss attributable to ordinary shareholders | (157,591) | (130,624) | -17.1% | 11.7% | 4.9% | | Non-GAAP net loss attributable to ordinary shareholders | (143,682) | (98,207) | -31.6% | 10.7% | 3.7% | | Loss per ADS | (1.92) | (1.58) | -17.6% | | | | Non-GAAP Loss per ADS | (1.75) | (1.19) | -32.0% | | | [Fiscal Year 2020 Financial Performance](index=5&type=section&id=Fiscal%20Year%202020%20Financial%20Performance) [Net Revenues](index=5&type=section&id=FY2020%20Net%20Revenues) FY2020 net revenues increased by **107.6%** to **RMB 8.2 billion**, primarily driven by significant expansion in the B2B business FY 2020 Net Revenues | Metric | FY 2019 (in thousands of RMB) | FY 2020 (in thousands of RMB) | YoY Growth | | :----- | :------------ | :------------ | :--------- | | Net Revenues | 3,952,053 | 8,203,157 | 107.6% | [Segment Performance (B2B and B2C)](index=5&type=section&id=FY2020%20Segment%20Performance) FY2020 B2B segment achieved strong growth of **127.8%**, with significant increases in both product and service revenues, while the B2C segment maintained stable growth FY 2020 B2B Segment Revenues | Metric | FY 2019 (in thousands of RMB) | FY 2020 (in thousands of RMB) | YoY Growth | | :----- | :------------ | :------------ | :--------- | | **B2B Revenue** | | | | | Product | 3,293,268 | 7,490,449 | 127.4% | | Service | 4,537 | 21,442 | 372.6% | | Sub-Total | 3,297,805 | 7,511,891 | 127.8% | | Segment Profit | 46,512 | 226,564 | 387.1% | | Segment Profit % | 1.4% | 3.0% | | FY 2020 B2C Segment Revenues | Metric | FY 2019 (in thousands of RMB) | FY 2020 (in thousands of RMB) | YoY Growth | | :----- | :------------ | :------------ | :--------- | | **B2C Revenue** | | | | | Product | 636,430 | 666,223 | 4.7% | | Service | 17,818 | 25,043 | 40.5% | | Sub-Total | 654,248 | 691,266 | 5.7% | | Segment Profit | 118,671 | 139,268 | 17.4% | | Segment Profit % | 18.1% | 20.1% | | [Operating Costs and Expenses](index=5&type=section&id=FY2020%20Operating%20Costs%20and%20Expenses) FY2020 total operating costs and expenses increased by **95.1%**, yet fulfillment, selling and marketing, general and administrative, and technology expenses all decreased as a percentage of net revenues, reflecting economies of scale and improved operating efficiency FY 2020 Operating Costs and Expenses | Expense Category | FY 2019 (in thousands of RMB) | FY 2020 (in thousands of RMB) | YoY Change | % of Net Revenues (FY 2019) | % of Net Revenues (FY 2020) | | :--------------- | :------------ | :------------ | :--------- | :-------------------------- | :-------------------------- | | Cost of products sold | 3,786,870 | 7,837,325 | 107.0% | | | | Fulfillment expenses | 128,996 | 226,930 | 75.9% | 3.3% | 2.8% | | Selling and marketing expenses | 340,562 | 399,610 | 17.3% | 8.6% | 4.9% | | General and administrative expenses | 123,501 | 128,226 | 3.8% | 3.1% | 1.6% | | Technology expenses | 61,902 | 92,080 | 48.8% | 1.6% | 1.1% | [Profitability Metrics (GAAP and Non-GAAP)](index=6&type=section&id=FY2020%20Profitability%20Metrics) FY2020 operating and net losses (GAAP and non-GAAP) both narrowed year-over-year, with their percentages of net revenues significantly decreasing, indicating continuous profitability improvement alongside high growth FY 2020 Profitability Metrics | Metric | FY 2019 (in thousands of RMB) | FY 2020 (in thousands of RMB) | YoY Change | % of Net Revenues (FY 2019) | % of Net Revenues (FY 2020) | | :------------------------------------------ | :------------ | :------------ | :--------- | :-------------------------- | :-------------------------- | | Loss from operations | (493,513) | (473,311) | -4.1% | 12.5% | 5.8% | | Non-GAAP loss from operations | (439,232) | (397,616) | -9.5% | 11.1% | 4.8% | | Net loss attributable to ordinary shareholders | (499,606) | (456,533) | -8.6% | 12.6% | 5.6% | | Non-GAAP net loss attributable to ordinary shareholders | (434,325) | (380,838) | -12.3% | 11.0% | 4.6% | | Loss per ADS | (6.10) | (5.54) | -9.2% | | | | Non-GAAP Loss per ADS | (5.30) | (4.62) | -12.8% | | | [Financial Position](index=6&type=section&id=FY2020%20Financial%20Position) As of December 31, 2020, the company's cash and cash equivalents, restricted cash, and short-term investments significantly increased, demonstrating substantially enhanced liquidity Cash and Equivalents at FY2020 End | Metric | As of Dec 31, 2019 (RMB) | As of Dec 31, 2020 (RMB) | YoY Change | | :----- | :----------------------- | :----------------------- | :--------- | | Cash and cash equivalents, restricted cash and short-term investments | 697,700,000 | 1,620,000,000 | 132.2% | [Business Outlook](index=6&type=section&id=Business%20Outlook) The company forecasts Q1 2021 net revenues between **RMB 2.53 billion** and **RMB 2.6 billion**, representing **61% to 65%** year-over-year growth, or **87% to 93%** excluding one-time COVID-19 related sales in Q1 2020 - Total net revenues for Q1 2021 are projected to be between **RMB 2.53 billion** and **RMB 2.6 billion**, representing year-over-year growth of approximately **61% to 65%**[21](index=21&type=chunk) - Excluding the impact of one-time COVID-19 related sales in Q1 2020, year-over-year growth is expected to be **87% to 93%**[21](index=21&type=chunk) [Conference Call Information](index=6&type=section&id=Conference%20Call%20Information) The company will host its Q4 2020 earnings conference call on March 18, 2021, providing registration links and replay information - The conference call will be held on March 18, 2021, at **7:30 AM U.S. Eastern Time** (**7:30 PM Beijing Time** on the same day)[21](index=21&type=chunk) - An online registration link is provided, requiring participants to pre-register to obtain dial-in numbers, a passcode, and a unique registrant ID[21](index=21&type=chunk) - A replay of the conference call will be available until **March 26, 2021**, with a webcast and archive accessible on the company's investor relations website[25](index=25&type=chunk) [Use of Non-GAAP Financial Measures](index=7&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) The company uses non-GAAP operating loss, non-GAAP net loss attributable to ordinary shareholders, and non-GAAP loss per ADS as supplementary metrics to better assess operating performance, excluding the impact of non-cash or non-recurring items like share-based compensation and impairment losses on long-term investments, to provide a more comparable measure of core performance - Non-GAAP operating loss is defined as loss from operations excluding share-based compensation expenses[26](index=26&type=chunk) - Non-GAAP net loss attributable to ordinary shareholders is defined as net loss attributable to ordinary shareholders excluding share-based compensation expenses and impairment loss of long-term investment[26](index=26&type=chunk) - The use of non-GAAP measures aims to identify underlying business trends, exclude the distorting impact of certain expenses (such as share-based compensation and impairment loss of long-term investment), and provide a more comparable measure of core operating performance with peer companies[27](index=27&type=chunk) - Non-GAAP financial measures are not defined by U.S. GAAP, should not be considered in isolation or as a substitute for GAAP financial information, and may differ from non-GAAP information used by other companies[28](index=28&type=chunk) [Exchange Rate Information Statement](index=8&type=section&id=Exchange%20Rate%20Information%20Statement) RMB amounts in this announcement converted to USD use the exchange rate of **RMB 6.5250 to $1.00**, as published in the H.10 statistical release of the U.S. Federal Reserve System on December 31, 2020 - All RMB to USD conversions use the exchange rate of **RMB 6.5250 to $1.00**, as listed in the H.10 statistical release of the U.S. Federal Reserve System on December 31, 2020[31](index=31&type=chunk) [Safe Harbor Statement](index=8&type=section&id=Safe%20Harbor%20Statement) This press release contains forward-looking statements involving known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially, with no obligation for the company to update them unless required by applicable law - This press release contains forward-looking statements, involving known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied[32](index=32&type=chunk) - Forward-looking statements are based on management's current expectations and market operating conditions, including business outlook and management quotations[32](index=32&type=chunk) - The company undertakes no obligation to update any forward-looking statements, except as required by applicable law[32](index=32&type=chunk) [About 111, Inc.](index=8&type=section&id=About%20111%2C%20Inc.) 111, Inc. is a leading technology-enabled healthcare platform in China, digitally connecting patients with medicines and healthcare services through online retail pharmacies, offline virtual pharmacy networks, internet hospitals, and online wholesale pharmacies, also offering an omnichannel drug commercialization platform for strategic partners - 111, Inc. is a leading technology-enabled healthcare platform company dedicated to digitally connecting patients with medicines and healthcare services in China[33](index=33&type=chunk) - Key services include: online retail pharmacy (1 Pharmacy), an offline virtual pharmacy network, internet hospital (1 Clinic) offering online consultations, e-prescriptions, and patient management, and online wholesale pharmacy (1 Medicine Marketplace) providing one-stop drug procurement for pharmacies[33](index=33&type=chunk) - The company also provides an omnichannel drug commercialization platform for strategic partners, including digital marketing, patient education, data analytics, and price monitoring services[33](index=33&type=chunk) [Financial Statements](index=10&type=section&id=Financial%20Statements) [Unaudited Condensed Consolidated Balance Sheets](index=10&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) As of December 31, 2020, total assets increased to **RMB 3.026 billion**, with cash and cash equivalents, restricted cash, and short-term investments totaling **RMB 1.62 billion**, and current liabilities also increasing proportionally Summary of Unaudited Condensed Consolidated Balance Sheets | Metric | As of Dec 31, 2019 (in thousands of RMB) | As of Dec 31, 2020 (in thousands of RMB) | | :------------------------------------------ | :----------------------- | :----------------------- | | Total Assets | 1,610,293 | 3,026,489 | | Cash and cash equivalents | 581,281 | 1,189,620 | | Restricted cash | 116,441 | 128,914 | | Short-term investments | — | 300,167 | | Total Current liabilities | 773,423 | 1,629,720 | | Total Liabilities | 836,370 | 1,695,844 | | Total equity | 773,923 | 406,400 | [Unaudited Condensed Consolidated Statements of Comprehensive Loss](index=11&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) FY2020 net revenues doubled, operating costs and expenses significantly increased, yet operating and net losses narrowed year-over-year, leading to a reduction in comprehensive loss Summary of Unaudited Condensed Consolidated Statements of Comprehensive Loss | Metric | Q4 2019 (in thousands of RMB) | Q4 2020 (in thousands of RMB) | FY 2019 (in thousands of RMB) | FY 2020 (in thousands of RMB) | | :------------------------------------------ | :------------ | :------------ | :------------ | :------------ | | Net revenues | 1,347,840 | 2,642,950 | 3,952,053 | 8,203,157 | | Total operating costs and expenses | (1,515,912) | (2,786,660) | (4,445,566) | (8,675,455) | | Loss from operations | (168,072) | (144,723) | (493,513) | (473,311) | | Net loss attributable to ordinary shareholders | (157,591) | (130,624) | (499,606) | (456,533) | | Comprehensive loss | (169,572) | (120,759) | (490,238) | (441,990) | [Unaudited Condensed Consolidated Statements of Cash Flows](index=13&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) FY2020 saw a significant reduction in cash outflow from operating activities and a substantial increase in cash inflow from financing activities, resulting in a net increase in cash and cash equivalents and restricted cash, and a significant boost in period-end cash reserves Summary of Unaudited Condensed Consolidated Statements of Cash Flows | Metric | Q4 2019 (in thousands of RMB) | Q4 2020 (in thousands of RMB) | FY 2019 (in thousands of RMB) | FY 2020 (in thousands of RMB) | | :---------------------------------------------------------------- | :------------ | :------------ | :------------ | :------------ | | Net cash used in operating activities | (71,544) | (156,083) | (512,382) | (116,777) | | Net cash provided by/(used in) investing activities | 109,817 | (216,323) | 237,675 | (324,669) | | Net cash provided by financing activities | 9,052 | 573,663 | 108,987 | 1,070,408 | | Net increase/(decrease) in cash and cash equivalents, and restricted cash | 40,989 | 205,593 | (156,018) | 620,812 | | Cash and cash equivalents, and restricted cash at the end of the period | 697,722 | 1,318,534 | 697,722 | 1,318,534 | [Reconciliation of GAAP and Non-GAAP Results](index=14&type=section&id=Reconciliation%20of%20GAAP%20and%20Non-GAAP%20Results) The reconciliation table details the adjustments from GAAP operating loss, net loss, and loss per ADS to their non-GAAP counterparts, primarily by adding back share-based compensation expenses and impairment losses on long-term investments Reconciliation of GAAP and Non-GAAP Results | Metric | Q4 2019 (in thousands of RMB) | Q4 2020 (in thousands of RMB) | FY 2019 (in thousands of RMB) | FY 2020 (in thousands of RMB) | | :------------------------------------------------------------------------------------------------ | :------------ | :------------ | :------------ | :------------ | | Loss from operations (GAAP) | (168,072) | (144,723) | (493,513) | (473,311) | | Add: Share-based compensation expenses | 13,909 | 32,417 | 54,281 | 75,695 | | Non-GAAP loss from operations | (154,163) | (112,306) | (439,232) | (397,616) | | Net Loss attributable to ordinary shareholders (GAAP) | (157,591) | (130,624) | (499,606) | (456,533) | | Add: Share-based compensation expenses, net of tax | 13,909 | 32,417 | 54,281 | 75,695 | | Add: Impairment loss of long-term investment | — | — | 11,000 | — | | Non-GAAP net Loss attributable to ordinary shareholders | (143,682) | (98,207) | (434,325) | (380,838) | | Loss per ADS (GAAP) | (1.92) | (1.58) | (6.10) | (5.54) | | Add: Share-based compensation expenses and impairment loss of long-term investment per ADS, net of tax | 0.17 | 0.39 | 0.80 | 0.92 | | Non-GAAP Loss per ADS | (1.75) | (1.19) | (5.30) | (4.62) |

111, Inc. (NASDAQ:YI) Q3 2020 Results Conference Call November 19, 2020 7:30 AM ET Company Participants Monica Mu - Director, Investor Relations Dr. Gang Yu - Co-Founder and Executive Chairman Junling Liu - Co-Founder, Chairman and CEO Luke Chen - CFO Harvey Wang - Co-COO Barry Zhu - Co-COO Monica Mu - Investor Relations Director Alex Liu - Finance Director Conference Call Participants Sherry Yin - JP Morgan Bingyu Chen - Citigroup Xipeng Feng - China International Capital Corporation Limited Horace Cheng - ...

111, Inc. (NASDAQ:YI) Q2 2020 Earnings Conference Call August 20, 2020 7:30 AM ET Company Participants Monica Mu - Director, Investor Relations Junling Liu - Co-Founder, Chairman and Chief Executive Officer Luke Chen - Chief Financial Officer Haihui Wang - Co-Chief Operating Officer Conference Call Participants Bingyu Chen - Citi Sherry Yin - JPMorgan Xipeng Feng - CICC Rachel Yang - HSBC Operator Hello, ladies and gentlemen and thank you for standing by for 111 Incorporated Second Quarter 2020 Conference C ...