111, Inc. (YI) Reports Q4 Loss of $0.24 on Revenues of $405.1M

March 18, 2021 6:15 AM EDT
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111, Inc. (NASDAQ: YI) reported Q4 EPS of ($0.24). Revenue for the quarter came in at $405.1 million.

Fourth Quarter 2020 Highlights

  • Net revenues were RMB2.64 billion (US$405.1 million), representing an increase of 96.1% year-over-year.
  • Gross Profit[1] was RMB103.6 million (US$15.9 million), representing an increase of 143.7% year-over-year.
  • Operating expenses[2] were RMB248.3 million (US$38.1 million), representing an increase of 17.9% year-over-year. Operating expenses accounted for 9.4% of net revenues in this quarter as compared to 15.6% in the same quarter of last year.
  • Non-GAAP net loss attributable to ordinary shareholder[3] was RMB98.2 million (US$15.1 million), compared to RMB143.7 million in the same quarter of last year. As a percentage of net revenues, non-GAAP net loss attributable to ordinary shareholders decreased to 3.7% this quarter from 10.7% in the same quarter of last year.

"2020 was another strong year for us, with net revenue in Q4 rising by 96.1% YoY to RMB2.64 billion. Despite the challenges of the pandemic, we were able to sustain a consecutive net revenue growth since our IPO, bringing net revenue for the year to RMB8.2 billion, more than doubling the net revenue of RMB3.95 billion in FY 2019. Non-GAAP net loss attribute to ordinary shareholders as a percentage of net revenues also decreased significantly, from 22.3% in our first quarter post IPO to 3.7% in this latest quarter," said Mr. Junling Liu, Co-Founder, Chairman, and Chief Executive Officer of 111.

"Our business recorded a close to nine-fold increase from RMB959.5 million in FY2017. This stellar performance was set in motion by our S2B2C model, which has continued to drive our multi-faceted growth strategy, and has allowed us to lead the charge in the digital transformation of the healthcare system in the new era of industry internet in China."

"The advantages of our S2B2C model continues to attract new partners and has led to the rapid growth of our ecosystem in 2020. The number of global and domestic pharmaceutical companies we have a direct relationship with totaled over 330 as of 4Q 2020, while our network of retail pharmacy customers is now the largest virtual network in China. With the support of our eight regional fulfilment centers, we provide 24-hour delivery to more than 300 cities in China and 72-hour delivery nationwide. As we increase the number of our fulfilment centers and upgrade our logistic management, fulfilment costs as a percentage of net revenue improved significantly – from 3.6% in Q4 2019 to 2.6% in Q4 2020. For the full year 2020, it improved from 3.3% to 2.8% YoY."

"In addition to pharmaceutical companies, market participants such as marketplace vendors, medicine distributors, CSO organizations, commercial medical insurance companies and others have significantly strengthened our supply chain platform. Coupled with the capabilities we have built out over the past few years we are in a very unique position to enable pharmacies and doctors to better service their customers. Doctors are able to enjoy our service modules of cloud clinic, cloud pharmacy, doctor-patient platform to digitally serve their patients in a manner never existed in the past. Today, pharmacies across the country can access a vast selection of medicine with volume-based pricing, supply chain financing, and a variety of SaaS based services on our platform which enable them to deliver greater user experience to their patients."

He continued, "Looking ahead to 2021, we will focus on strengthening every facet of our S2B2C model and advancing our strategic plan to expedite business expansion. We will continue to improve the AI and data processing capabilities of our technology to empower doctors and pharmacies. We will make significant investment in our technology to bring more services to retail pharmacies so that we can deepen our share of wallet. The platform's enhanced capability will also allow us to virtually deploy more digital medical reps to further improve the effectiveness of our commercialization capability and provide better tools to doctors so they can access the latest innovations in medical science."

"During 2020, we continued to build on our momentum and deepen our market positions through our main operating subsidiary, Yao Fang Shanghai, which has raised two rounds of financing that amounted to approximately USD142.8 million from third-party investors, with the second round financing at a pre-money valuation of RMB10 billion (US$1.5 billion) in connection with IPO on Shanghai Stock Exchange's Sci-Tech Innovation Board (STAR). We believe that there are significant opportunities for us in the age of industry internet to expediate the digital transformation of the healthcare system in China. We will work relentlessly to strengthen this model and pursue growth opportunities, delivering ever-greater value to our shareholders," he concluded.

For earnings history and earnings-related data on 111, Inc. (YI) click here.



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