111(US:YI)2021-11-19 17:05Financial 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]