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    一号药网公布2019年年报

    SHANGHAI, China, March 07, 2019 (GLOBE NEWSWIRE) -- 111, Inc. ("111" or the "Company") (NASDAQ: YI), a leading integrated online and offline healthcare platform in China, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2018.

    Fourth Quarter 2018 Highlights

    • Net revenues were RMB557.4 million (US$81.1 million), representing an increase of 102.1% year-over-year.
       
    • Operating expenses1 were RMB155.3 million (US$22.6 million), representing an increase of 75.8% year-over-year.
       
    • Number of pharmacies served increased to more than 150,000 as of December 31, 2018, compared to more than 130,000 pharmacies as of September 30, 2018.
       
    • Broadened supplier sources resulted in direct sourcing from 93 pharmaceutical companies, compared to 80 pharmaceutical companies as of September 30, 2018, respectively.

    Fiscal Year 2018 Highlights

    • Net revenues were RMB1,786.0 million (US$259.8 million), representing an increase of 86.1% year-over-year.
       
    • Operating expenses were RMB504.6 million (US$73.4 million), representing an increase of 46.4% year-over-year.

    Mr. Junling Liu, Co-Founder, Chairman, and Chief Executive Officer of 111, commented, “I am pleased to report strong results for the fourth quarter and full-year of 2018. Net revenues for the fourth quarter grew at 102.1% year-over-year which exceeded our guidance and were driven primarily by the growth in B2B segment which increased by 424.7% year-over-year.  As of December 31, 2018, we have developed a fast growing virtual pharmacy network in China by serving more than 150,000 pharmacies. We have been also making a great progress in building the strategic partnerships with insurance companies, pharmaceutical companies as well as local municipal health commissions.  Our operating efficiency continued to improve during the quarter, which I believe, demonstrates our effectiveness at executing our growth strategy. Meanwhile, we have restructured our B2C business with a more customer-centric organization structure to enable us to meet the specific needs of different customer segments. Heading into 2019, we will continue to enhance the virtual pharmacy network by adding approximately 80,000 new pharmacies in 2019, which will lead to a network of total 230,000 pharmacies representing more than 50% of the market2.  We will further strengthen our core capabilities in smart supplier chain, medical expertise, big data and cloud solutions, to enable our various partners within our integrated online and offline healthcare ecosystem.  We have confidence to continue our strong revenue growth and further reduce our operating costs and expenses in 2019 and years ahead.”

    Fourth Quarter 2018 Financial Results

    Net revenues were RMB557.4 million (US$81.1 million), representing an increase of 102.1% from RMB275.8 million in the same quarter of last year. The increase was mainly due to the significant increase in product revenues from B2B segment, which increased by 424.7% to RMB330.2 million (US$48.0 million) from RMB62.9 million in the same quarter of last year. Product revenues from B2C segment increased by 6.1% to RMB222.7 million (US$32.4 million) from RMB209.9 million in the same quarter of last year.

    Operating costs and expenses were RMB689.6 million (US$100.3 million), representing an increase of 101.7% from RMB341.9 million in the same quarter of last year.

    • Cost of products sold was RMB534.3 million (US$77.7 million), representing an increase of 110.7% from RMB253.6 million in the same quarter of last year. The increase was primarily due to the increase in sales and a change in revenue mix with a much higher proportion of B2B business.
       
    • Fulfillment expenses were RMB22.0 million (US$3.2 million), representing an increase of 51.0% from RMB14.6 million in the same quarter of last year, primarily as a result of growth in B2B business. Fulfillment expenses accounted for 4.0% of net revenue this quarter as compared to 5.3% in the same quarter of last year.
       
    • Selling and marketing expenses were RMB78.2 million (US$11.4 million), representing an increase of 67.5% from RMB46.7 million in the same quarter of last year, mainly due to increase in the number of sales staffs and expenses associated with the expansion of B2B business. Selling and marketing expenses accounted for 14.0% of net revenue this quarter as compared to 16.9% in the same quarter of last year.
       
    • General and administrative expenses were RMB34.1 million (US$5.0 million), representing an increase of 102.2% from RMB16.8 million in the same quarter of last year, mainly due to increases in managerial staffs and share-based compensation expenses.  Non-GAAP general and administrative expenses3, which exclude the share-based compensation expenses of RMB7.6 million this quarter and RMB1.6 million in the same quarter of last year, were RMB26.5 million this quarter, increased 74.3% from the same quarter of last year. Non-GAAP General and administrative expenses accounted for 4.8% of net revenue this quarter as compared to 5.5% in the same quarter of last year. 
       
    • Technology expenses were RMB20.4 million (US$3.0 million), representing an increase of 74.8% from RMB11.7 million in the same quarter of last year, mainly due to investments in platform and product development, including the recruitment of technology-related staffs. Technology expenses accounted for 3.7% of net revenue this quarter as compared to 4.2% in the same quarter of last year.

    Loss from operations was RMB132.2 million (US$19.2 million), compared to RMB66.1 million in the same quarter of last year.

    Non-GAAP Loss from operations4 was RMB115.9 million (US$16.9 million), compared to RMB63.1 million in the same quarter of last year.  Non-GAAP loss from operations accounted for 20.8% of net revenue this quarter as compared to 22.9% in the same quarter of last year. 

    Net loss attributable to ordinary shareholders was RMB125.9 million (US$18.3 million), compared to RMB64.4 million in the same quarter of last year.

    Non-GAAP net loss attributable to ordinary shareholders5 was RMB109.6 million (US$15.9 million), compared to RMB61.3 million in the same quarter of last year.  Non-GAAP net loss attributable to ordinary shareholders accounted for 19.7% of net revenue this quarter as compared to 22.2% in the same quarter of last year. 

    Loss per ADS was RMB1.54 (US$0.22), compared to RMB1.78 for the same period of last year.

    Non-GAAP Loss per ADS6 was RMB1.34 (US$0.19), compared to RMB1.70 for the same period of last year.

    As of December 31, 2018, the Company had cash and cash equivalents and short-term investments of RMB1,106.5 million (US$160.9 million), compared to RMB461.2 million as of December 31, 2017, primarily due to the cash provided by the Company’s initial public offering.

    Fiscal Year 2018 Financial Results

    Net revenues were RMB1,786.0 million (US$259.8 million), representing an increase of 86.1% from RMB959.5 million last year. The increase was mainly due to the significant increase in product revenues from B2B segment, which increased by 962.0% to RMB922.8 million (US$134.2 million) from RMB86.9 million last year. Product revenues from B2C segment decreased by 1.7% to RMB847.5 million (US$123.3 million) from RMB862.3 million last year.

    Operating costs and expenses were RMB2,186.3 million (US$318.0 million), representing an increase of 80.2% from RMB1,213.5 million last year.

    • Cost of products sold was RMB1,681.7 million (US$244.6 million), representing an increase of 93.6% from RMB868.7 million last year. The increase was primarily due to growth in sales and a change in revenue mix with a much higher proportion of B2B business.
       
    • Fulfillment expenses were RMB73.9 million (US$10.8 million), representing an increase of 32.3% from RMB55.9 million last year, primarily as a result of growth in B2B business.  Fulfillment expenses accounted for 4.1% of net revenue in 2018 as compared to 5.8% last year.
       
    • Selling and marketing expenses were RMB260.0 million (US$37.8 million), representing an increase of 36.8% from RMB190.1 million last year, mainly due to increase in sales staff and expenses associated with the expansion of B2B business.  Selling and marketing expenses accounted for 14.6% of net revenue in 2018 as compared to 19.8% last year.
       
    • General and administrative expenses were RMB98.8 million (US$14.4 million), representing an increase of 84.8% from RMB53.4 million last year, mainly due to increases in managerial staffs, IPO consulting fees, and share-based compensation expenses.  Non-GAAP general and administrative expenses, which exclude the share-based compensation expenses of RMB22.5 million for this year and RMB5.2 million for last year, were RMB76.3million, increased 58.1% from last year. Non-GAAP General and administrative expenses accounted for 4.3% of net revenue in 2018 as compared to 5.0% last year. 
       
    • Technology expenses were RMB71.2 million (US$10.4 million), representing an increase of 48.0% from RMB48.1 million last year, mainly due to investments in platform and product development, including the recruitment of technology-related staffs.  Technology expenses accounted for 4.0% of net revenue in 2018 as compared to 5.0% last year.

    Loss from operations was RMB400.4 million (US$58.2 million), compared to RMB254.0 million last year.

    Non-GAAP Loss from operations was RMB349.0 million (US$50.8 million), compared to RMB244.1 million last year.  Non-GAAP loss from operations accounted for 19.5% of net revenue in 2018 as compared to 25.4% last year. 

    Net loss attributable to ordinary shareholders was RMB380.1 million (US$55.3 million), compared to RMB248.6 million in 2017.

    Non-GAAP net loss attributable to ordinary shareholders was RMB328.7 million (US$47.8 million), compared to RMB238.7 million last year.  Non-GAAP net loss attributable to ordinary shareholders accounted for 18.4% of net revenue in 2018 as compared to 24.9% last year. 

    Loss per ADS was RMB7.64 (US$1.12), compared to RMB6.90 for the same period of last year.

    Non-GAAP Loss per ADS was RMB6.61 (US$0.97), compared to RMB6.62 for the same period of last year.

    Business Outlook

    For the first quarter of 2019, the Company expects total net revenues to be between RMB600 million and RMB640 million, representing year-over-year growth of approximately 81.7% to 93.8%.

    The above outlook is based on the current market conditions and reflects the Company’s current and preliminary estimates of market and operating conditions and customer demand, which are all subject to change.