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 in China's healthcare sector.

• Operational efficiency improvements, disciplined cost control, and digital transformation—including AI-driven technologies—were key to profitability and enhanced customer engagement.

• Expanded national fulfillment network to 18 centers, supporting 24-hour delivery to 300+ cities and 72-hour nationwide coverage, and reinforcing market leadership.

• Recognized with multiple industry awards and expanded patent portfolio to 33, reflecting ongoing innovation.

• Management remains confident in long-term growth, focusing on digitalization, supply chain, and AI-driven solutions.

Financial highlights

• Full-year 2024 net revenues were RMB14.4 billion, down 3.7% year-over-year; Q4 revenues were RMB3.8 billion, down 6.3%.

• Gross margin improved to 5.8% in 2024 from 5.7% in 2023; Q4 gross margin rose to 5.3% from 5.2%.

• Achieved annual operating profit of RMB2.1 million and positive operating cash flow of RMB263 million for the first time.

• Non-GAAP net loss narrowed sharply to RMB0.6 million in 2024 from RMB127 million in 2023.

• Cash and equivalents at year-end were RMB518.3 million.

Outlook and guidance

• Remain optimistic for 2025, focusing on expanding supply capabilities, digital transformation, and AI integration.

• Plan to add at least 15 more fulfillment centers in 2025 to enhance national reach and supply chain resilience.

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