111 (YI) Q4 2024 earnings summary

Executive summary

• Achieved first-ever annual operating profit and positive operating cash flow in 2024, with income from operations of RMB2.1 million, reversing a RMB350 million loss in 2023, despite macroeconomic and regulatory headwinds.

• Revenue declined 3.7% year-over-year to RMB14.4–14.95 billion, but operational efficiency gains and digital transformation drove profitability.

• Digital transformation, technology investments, and AI integration improved supply chain, cost structure, and customer engagement.

• Expanded fulfillment network to 18 centers, supporting future growth and supply chain resilience.

• Recognized with multiple industry awards and expanded patent portfolio to 33.

Financial highlights

• Q4 2024 net revenues: RMB3.8–3.85 billion, down 6.3% year-over-year; gross segment profit: RMB202.5 million, down 5.5%.

• Full-year 2024 net revenues: RMB14.4–14.95 billion, down 3.7%; gross segment profit: RMB829.2 million, down 2.3%.

• Full-year income from operations: RMB2.1 million (vs. RMB350 million loss in 2023); non-GAAP net loss narrowed to RMB0.6 million.

• Achieved positive operating cash flow of RMB263 million for the first time.

• Cash and equivalents at year-end: RMB518–518.3 million.

Outlook and guidance

• Management remains optimistic for 2025, focusing on expanding fulfillment centers, digital supply chain, and AI-driven efficiency.

• Plans to add at least 15 new fulfillment centers in 2025 and further leverage AI for growth and customer engagement.

• Expect continued cost optimization and margin improvement through technology and operational scale.