111(US:YI)2021-05-19 18:25Financial 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]