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 RMB350.1 million loss in 2023, despite macroeconomic and regulatory headwinds in China's healthcare sector.

• Revenue declined 3.7% year-over-year to RMB14.4–14.95 billion, but operational efficiency improvements and disciplined cost control led to improved margins and profitability.

• Digital transformation, AI-driven technologies, and technology investments strengthened supply chain, cost reduction, and customer engagement.

• Expanded national 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

• Full-year 2024 net revenues: RMB14.4–14.95 billion, down 3.7%; Q4 net revenues: RMB3.8–3.85 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, reversing a RMB350 million loss in 2023; non-GAAP net loss narrowed to RMB0.6 million.

• First-ever annual positive operating cash flow: RMB263 million, compared to a RMB447 million outflow in 2023.

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

Outlook and guidance

• Confident in long-term growth opportunities from healthcare digitalization, retail pharmacy expansion, and the aging population.

• Plans to add 15 new fulfillment centers in 2025 and further leverage AI and digital platforms.

• Focus on supply chain expansion, customer engagement, and innovative marketing to drive growth.

• Expect continued cost optimization and sustainable profitability.