Full Press Release Details
First Quarter 2021 Unaudited Financial Results
2021 /PRNewswire/ - 111, Inc. ("111" or the "Company") (NASDAQ: YI), a leading tech-enabled healthcare platform
company committed to digitally connecting patients with medicine and healthcare services in China, today announced its unaudited financial
results for the first quarter ended March 31, 2021.
Quarter 2021 Highlights
(1) Pandemic-related
items consist of masks, protective clothing and medicine for fever which have an occasional revenue increase in the first quarter of
2020 due to the breakout of COVID-19.
(2) Operating expense
consists of fulfillment expenses, selling and marketing expenses, general and administrative expenses, technology expenses and other
loss attributable to ordinary shareholders represents net loss attributable to ordinary shareholders excluding share-based compensation
delivered another strong quarter of growth in Q1 2021, with net revenue of RMB2.6 billion. This was achieved despite the typical seasonal
retail lull caused by the Lunar New Year, as well as the unusually strong first quarter we had in 2020, driven by high demand for pandemic-related
products due to COVID-19," said Mr. Junling Liu, Co-Founder, Chairman, and Chief Executive Officer of 111.
our commitment to advancing China's healthcare system, we continue to build upon our transformative, cutting-edge technology and
S2B2C model to provide enterprise solutions to enable healthcare businesses better serve their consumers. Our top line growth is driven
by our S2B2C model, and is a testament of the tremendous progress in our mission to digitally connect patients with medicine and healthcare
briefly highlight our S2B2C model, the S' is our innovative supply-chain platform that encompasses industry-leading technology
behind the platform and our network of suppliers, such as pharmaceutical companies, distributors and other service providers. This S'
is digitally connected to the B,' our rapidly expanding network of pharmacies, doctors, clinics, and other healthcare businesses.
The platform works in harmony as doctors can utilize our Cloud Pharmacy, Cloud Clinic, and various doctor-patient platforms to provide
online consultations, e-prescription services, and follow-up care to patients. As a result, our transformative S2B2C model delivers better
doctor-patient experiences and more positive care outcomes."
demonstrated the solid progress we have made in additional partnerships with pharmaceutical companies and healthcare providers. 111's
innovative approach to product commercialization makes us a
to pharmaceutical companies as these partnerships offer access to access to our vast network of pharmacies and doctors, which creates
a streamlined approach to launching new products. Further, our commercialization platform allows pharmaceutical companies to sell their
products outside of the hospital system, through both online and offline channels. This enables pharmaceutical companies to launch their
products as soon as they are approved, giving patients accelerated access to much-needed medication. As of March 31, we have developed
over 360 direct partnerships with pharmaceutical companies."
strengthen our supply chain platform, the two additional new fulfillment centers in Northwest and Northeast China that we announced in
March are now fully operational and we are also expanding some of our existing fulfillment centers to meet growing demand for our services.
In the meantime, our supply chain platform is further strengthened by more and more market place vendors. Currently there are over 900
marketplace vendors utilizing our platform to expand their geographical reach."
our S2B2C model, we are making progress in our Supply Chain Platform to Pharmacy to Consumer ("S2P2C") offering, via which
we leverage our scale to provide over 340,000 pharmacies with a wide selection of products and services. These services allow pharmacies
to elevate their businesses through cutting-edge technology, such as cloud-based systems that manage inventory, product selection, and
pricing. We also provide powerful digital solutions that helps pharmacies improve their customer experience, as well as the tools and
support necessary to enable previously offline businesses establish a significant presence online."
with the growth of our S2B2C and S2P2C segments, we are also expanding the reach of our Supply Chain Platform to Doctors to Consumer
("S2D2C") business," commented Mr. Liu. "Our industry-leading technology is transforming and modernizing the
traditional in-person medical care process by offering telehealth and patient management tools. These tools allow for convenient and
timely medical care ranging from diagnostics to treatment, as well as follow-up and routine care. Our combination of cutting-edge technology
and a robust network of doctors puts 111 at the forefront of the healthcare industry's new era of Internet + Medical Care + Medicine."
this foundation of our model is extended to the C', the consumer or patient, who is digitally connected to doctors, medicine,
and other healthcare providers and services. Consumers can leverage a wide network of doctors and pharmacies that were previously out-of-reach
or unknown. We believe that the benefits to having this integrated digital platform is clear - improved access to healthcare and
better patient outcomes. As a result, our omni-channel, digital platform fills many gaps in the traditional healthcare ecosystem."
industry tailwind and the leadership position 111 has established in our space, we continue to make significant investments in our team,
technology, and supply chain platform. As a testament to our confidence in driving more business momentum, we have more than doubled
the size of our technology team over the past 12 months, and have made significant investment in our patient management portals and other
technology offerings. In addition, we continue to add to the pharmaceuticals and doctors support team that we began building last year,
consisting of professionals with expertise in specific disease areas such as endocrinology, oncology, neurology, and others."
said Mr. Liu, "As we move forward, we will continue to leverage the immense market opportunities in the digitization and transformation
of healthcare in China. Our mission is to digitally connect patients with medicine and healthcare products and services. By bridging
the patient access gap, our platform also ensures a win-win scenario for all parties in the healthcare ecosystem. Whether it is through
our established S2B2C model, or our rapidly expanding S2P2C and S2D2C offerings, patients, doctors, pharmacies and pharmaceutical companies
all benefit. Reflective of our strong Q1 2021 performance, 111 is in an
to continue to transform the healthcare industry in China."
Quarter 2021 Financial Results
revenues were RMB2.6 billion (US$396.0 million), representing an increase of 64.7% from RMB1.6 billion in
the same quarter of last year.
of March 31, 2021, the Group had two reporting segments, Business to Business ("B2B") and Business to Consumer ("B2C").
Revenue contribution from the Company's E-Channel was previously disclosed as a separate segment, but has been incorporated in
the B2B segment since the third quarter of 2020. The Company revised prior comparative periods to conform to the current period segment
presentation as follows:
| (In thousands RMB) | For the three months ended March 31, | |||||||||||
| 2020 | 2021 | YoY | ||||||||||
| B2B Net Revenue | ||||||||||||
| Product | 1,378,450 | 2,440,504 | 77.0 | % | ||||||||
| Service | 2,517 | 12,025 | 377.8 | % | ||||||||
| Sub-Total | 1,380,967 | 2,452,529 | 77.6 | % | ||||||||
| Cost of Products Sold (4) | 1,335,869 | 2,364,354 | 77.0 | % | ||||||||
| Segment Profit | 45,098 | 88,175 | 95.5 | % | ||||||||
| Segment Profit % | 3.3 | % | 3.6 | % |
| (In thousands RMB) | For the three months ended March 31, | |||||||||||
| 2020 | 2021 | YoY | ||||||||||
| B2C Net Revenue | ||||||||||||
| Product | 190,684 | 137,150 | (28.1 | %) | ||||||||
| Service | 4,017 | 5,063 | 26.0 | % | ||||||||
| Sub-Total | 194,701 | 142,213 | (27.0 | %) | ||||||||
| Cost of Products Sold [4] | 152,201 | 114,618 | (24.7 | %) | ||||||||
| Segment Profit | 42,500 | 27,595 | (35.1 | %) | ||||||||
| Segment Profit % | 21.8 | % | 19.4 | % |
For segment reporting purposes, purchase rebate is allocated to B2B segment and B2C segment primarily based on the amount of cost of
products sold for each segment. Cost of products sold does not include other direct costs related to cost of product sales such as shipping
and handling expense, payroll and benefits of logistic staff, logistic centers rental expenses and depreciation expenses, which are recorded
in the fulfillment expenses.
costs and expenses were RMB2.8 billion (US$422.5 million), representing an increase of 63.8% from RMB1.7 billion in
the same quarter of last year.
in B2B business, which increased by 77.6% as compared to the same quarter last year.
growth in B2B business, which
increased by 77.6% as compared to the same quarter last year.
from operations was RMB173.3 million (US26.4 million), compared to RMB113.7 million in the same quarter
of last year. As a percentage of net revenues, loss from operations decreased to 6.7% in the quarter from 7.2% in same quarter of last
loss from operations(5) was RMB135.9 million (US$20.7 million), compared to RMB98.5 million in the
same quarter of last year. As a percentage of net revenues, non-GAAP
loss from operations decreased to 5.2% in the quarter from 6.3% in same quarter of last year.
loss attributable to ordinary shareholders was RMB146.6 million (US$22.4 million), compared to RMB124.6 million in
the same quarter of last year. As a percentage of net revenues, net loss attributable to ordinary
shareholders decreased to 5.7% in the quarter from 7.9% in same quarter of last year.
net loss attributable to ordinary shareholders was RMB109.3 million (US$16.7 million), compared to RMB109.4 million in
the same quarter of last year. As a percentage of net revenues, non-GAAP
net loss attributable to ordinary shareholders decreased to 4.2% in the quarter from 6.9% in same quarter of last year.
ADS was RMB1.78 (US$0.28), compared to RMB1.52 for the same quarter of last year.
loss per ADS(6) was RMB 1.33 (US$0.21), compared to RMB1.34 for the same quarter of last year.
of March 31, 2021, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB
1.2 billion (US$177.5 million), compared to RMB1.6 billion as of December 31, 2020.
Non-GAAP loss from operations represents loss from operations excluding share-based compensation expenses.
Non-GAAP loss per ADS represents loss per ADS excluding share-based compensation expenses per ADS.
the second quarter of 2021, the Company expects its total net revenues to be between RMB2.92 billion and RMB3.08 billion, representing
a year-over-year growth of approximately 80% to 90%.
above outlook is based on the current market conditions and reflects the Company's current and preliminary estimates of market and operating
conditions and customer demand, which are all subject to changes.
team will host an earnings conference call today, Wednesday, May 19, 2020, at 7:30 AM U.S. Eastern Time (7:30 PM Beijing Time on the
conference call are as follows: