Inc. Announces Fourth Quarter and Fiscal Year 2024 Financial Results Achieved First-Ever Annual Operating Profit Bottom Line Improved by RMB332.7 Million YoY in 2024 Operating Expenses as a Percentage of Revenues Decreas

Fourth Quarter and Fiscal Year 2024 Financial Results

20, 2025 /PRNewswire/ - 111, Inc. ("111" or the "Company") (NASDAQ: YI), a leading tech-enabled healthcare

platform company committed to reshaping the value chain of healthcare industry by digitally empowering the upstream and downstream in

China, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2024.

Quarter 2024 Highlights

Year 2024 Highlights

Mr. Junling Liu, Co-Founder,

Chairman, and Chief Executive Officer of 111, commented, "2024 was

a year of both challenges and transformation. The macroeconomic environment and ongoing healthcare reforms created headwinds across the

industry, pressuring consumer spending, retail pharmacy sales, and profitability while also intensifying competition. Despite these challenges,

we successfully navigated the evolving market landscape to achieve a historic milestone-our first-ever annual operational profitability

and positive operating cash flow. Notably, income from operations for the full year 2024 was RMB2.1 million, a significant turnaround

from an operating loss of RMB350.1 million in 2023. This solid performance underscores the resilience of our business model and our strategic

execution in becoming the most efficient tech-enabled healthcare e-commerce platform."

relentless focus on operational efficiency continues to drive impressive improvements through cost optimization and strategic infrastructure

investments. In Q4, total operating expenses accounted for 5.5% of revenues, down 470 basis points year over year, while on a non-GAAP

basis, the ratio fell 130 basis points to a record-low 5.3%. For full-year 2024, our operating expense ratio declined 230 basis points

to 5.7%, while the non-GAAP ratio dropped 90 basis points to 5.6%."

we made further strides in supply chain management, primarily by streamlining logistics, reducing delivery times, and lowering costs

through our Kunpeng Network, which now operates 28 transportation routes across our five major geographic super hubs. Our continued investments

in AI-driven solutions and digital tools have also strengthened operational efficiency while enhancing customer engagement."

challenges remain, we believe the most difficult period is now behind us. Looking ahead into 2025, we remain confident in the long-term

growth opportunities driven by the digitalization of healthcare, the transition of pharmaceutical sales toward retail pharmacies, and

the rising healthcare needs of China's aging population. We will

continue to invest in AI and digital technologies to further cement our competitive position, elevate operational efficiency, and empower

the entire healthcare value chain. Our strategy also focuses on bolstering supply chain capabilities and stimulating demand through deepened

customer engagement. With a robust technology foundation, an efficient supply chain, and an unwavering commitment to pioneering seamless

one-stop shopping experiences in this sector, we are well positioned to seize new opportunities, drive sustainable growth, and enhance

profitability in the quarters ahead."

Quarter 2024 Financial Results

revenues were RMB3.8 billion (US$527.1 million), representing a decrease of 6.3% from RMB4.1 billion in

the same quarter of 2023.

For segment reporting purposes, purchase rebates are allocated to the B2B segment and B2C segments 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. Cost of service revenue is recorded in the operating expense.

costs and expenses were RMB3.9 billion (US$528.1 million), representing a decrease of 10.7%

from RMB4.3 billion in the same quarter of 2023.

from operations was RMB7.3 million (US$1.0 million), representing an improvement of 96.5% from RMB206.5 million in

the same quarter of 2023. As a percentage of net revenues, loss from operations accounted for 0.2% in the quarter, down from 5.0% in

the same quarter of 2023.

loss from operations was RMB2.3 million (US$0.3 million), representing an improvement of 95.8% from RMB55.2 million in

the same quarter of 2023. As a percentage of net revenues, non-GAAP loss from operations accounted for 0.1% in the quarter, down from

1.3% in the same quarter of 2023.

loss was RMB12.5 million (US$1.7 million), representing an improvement of 93.9% from RMB205.2 million in the

same quarter of 2023. As a percentage of net revenues, net loss accounted for 0.3% in the quarter, down from 5.0% in the same quarter

net loss (4) was RMB7.5 million (US$1.0 million), representing an improvement of 86.0% from RMB53.9 million in

the same quarter of 2023. As a percentage of net revenues, non-GAAP net loss accounted for 0.2% in the quarter, down from 1.3% in the

same quarter of 2023.

loss attributable to ordinary shareholders was RMB19.8 million (US$2.7 million), representing an improvement of 90.6%

from RMB210.4 million in the same quarter of 2023. As a percentage of net revenues, net loss

attributable to ordinary shareholders accounted for 0.5% in the quarter, down from 5.1% in the same quarter of 2023.

net loss attributable to ordinary shareholders (5) was RMB14.8 million (US$2.0 million), representing an improvement of

74.9% from RMB59.0 million in the same quarter of 2023. As a percentage of net revenues, non-GAAP net loss attributable to ordinary shareholders

accounted for 0.4% in the quarter, down from 1.4% in the same quarter of 2023.

Non-GAAP net loss represents net loss excluding share-based compensation expenses, net of tax. Considering the impact of accretion of

redeemable non-controlling interest for the fourth quarter and fiscal year ended December 31, 2024, non-GAAP net loss is used as a meaningful

measurement of the operation performance of the Company.

Non-GAAP net loss attributable to ordinary shareholders represents net loss attributable to ordinary shareholders excluding share-based

compensation expenses, net of tax.

Year 2024 Financial Results

revenues were RMB14.4 billion (US$2.0 billion), representing a decrease of 3.7% from RMB14.9 billion in the previous

costs and expenses were RMB14.4 billion (US$2.0 billion), representing a decrease of 5.9%

from RMB15.3 billion in 2023.

from operations was RMB2.1 million (US$0.3 million), compared to loss from

operations of RMB350.1 million in 2023.

income from operations was RMB22.3 million (US$3.0 million), compared to non-GAAP loss from operations of RMB123.9

loss was RMB20.8 million (US$2.8 million), representing an improvement of 94.1% from RMB353.4 million in 2023. As

a percentage of net revenues, net loss accounted for 0.1% in 2024, down from 2.4% in 2023.

net loss was RMB0.6 million (US$0.1 million), representing an improvement of 99.5% from RMB127.3 million in 2023.

As a percentage of net revenues, non-GAAP net loss accounted

for 0.004% in 2024, down from 0.9% in 2023.

loss attributable to ordinary shareholders was RMB64.7 million (US$8.9 million), representing an improvement of 83.5%

from RMB392.7 million in 2023. As a percentage of net revenues, net loss attributable to ordinary

shareholders accounted for 0.4% in 2024, down from 2.6% in 2023.

net loss attributable to ordinary shareholders was RMB44.6 million (US$6.1 million), representing an improvement of 73.2%

from RMB166.5 million in 2023. As a percentage of net revenues, non-GAAP

net loss attributable to ordinary shareholders accounted for 0.3% in 2024, down from 1.1%

of December 31, 2024, the Company held cash and cash equivalents, restricted cash and short-term investments totaling RMB518.3 million

(US$71.0 million), compared to RMB673.7 million as of December 31, 2023. To date, amount of RMB1.08 billion has been included in the

balances of redeemable non-controlling interests and accrued expenses and other current liabilities. This amount is owed to a group of

investors of 1 Pharmacy Technology pursuant to equity investments made in 2020, as previously disclosed. 111 has received redemption

requests from certain of such investors in accordance with the terms of their initial investments in 1 Pharmacy Technology. Following

communication and negotiation to date, the Company has reached agreements with or received commitment letters from investors representing

approximately 96.79% of the total amount to reschedule the repayments, allowing for phased repayments at extended periods, if the holders exercise their redemption rights.

A portion of the redemption has already been paid upon signing of these agreements. For further details on the terms of 111's arrangements

with these investors, please see "Item 5. Operating and Financial Review and Prospects-B. Liquidity and Capital Resources"

in the Company's annual report for the fiscal year ended December 31, 2023.

team will host an earnings conference call at 7:30 AM U.S. Eastern Time on Thursday, March 20, 2025 (7:30 PM Beijing Time on the same

conference call are as follows:

Inc. Fourth Quarter and Fiscal Year 2024 Unaudited Financial Results

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