111, Inc. Q2 2023 Earnings Call Transcript

111, Inc. (NASDAQ:YI) held its Q2 2023 Earnings Call on August 24, 2023. The call featured Dr. Gang Yu, Co-Founder and Executive Chairman; Dr. Junling Liu, Co-Founder, Chairman, and CEO; Dr. Luke Chen, CEO of 111's Major Subsidiary; and Dr. Haihui Wang, COO. The company's earnings press release and presentation are available on the company's IR website. The call contained forward-looking statements and referred to the company's filings with the SEC for more information about risks. The company does not undertake any obligation to update forward-looking statements. The call also discussed the macro environment of the pharmaceutical retail market, government policies supporting digital transformation in healthcare, and the company's financial performance.

Dr. Junling Liu provided an overview of the macro environment, recent operational performance, and future strategies. He mentioned the challenges faced by the pharmaceutical retail market in Q2 2023 but expressed optimism about the industry's future rebound. He highlighted government policies supporting digital transformation in healthcare and the pharmaceutical sector. Dr. Liu emphasized 111's role as a leading healthcare tech company in China and its consistent growth in the digital health offerings sector. He discussed the company's financial results, including revenue growth and gross profit. He also mentioned strategic partnerships with Tencent and the Shanghai Data Exchange, as well as initiatives to enhance the digital supply chain and operational efficiency.

Dr. Luke Chen presented a detailed analysis of the company's financial results, including net revenues, gross segment profit, and operating expenses. He highlighted the growth in the B2B segment and the decrease in operating expenses as a percentage of net revenue. He mentioned initiatives to reduce procurement costs, optimize product assortment, and improve operational efficiency. Dr. Chen also provided information about the company's cash position and its ability to support business expansion.

The Q&A session addressed topics such as the competitive landscape, the company's digital capabilities, future growth initiatives, margin levels, and the progress of the company's privatization.