111 Inc. achieved a revenue of 14.4 billion yuan in 2024, marking its first annual operating profit

According to Zhitong Finance APP, on March 20, 2025, 111 Inc. (YI.US) released its performance report for the full year and fourth quarter of 2024. The financial report shows that in 2024, 111 Inc. achieved revenue of 14.4 billion yuan, a Non-GAAP operating profit of 22.3 million yuan, and a GAAP operating profit of 2.1 million yuan. In the fourth quarter of 2024, 111 Inc. achieved revenue of 3.848 billion yuan, and the operating expenses as a percentage of net income in the fourth quarter significantly decreased from 10.2% in the same period last year to 5.5%. It is worth mentioning that 2024 is also the first year that 111 Inc. achieved annual operating profitability and realized a positive operating cash flow of 263 million yuan for the year.

Technology-Driven Efficiency Significantly Improved, Overall Operations Remain Steady

In 2024, despite facing challenges from a sluggish consumer market and pressure on downstream pharmacies, 111 Inc.'s performance remained robust. In 2024, 111 Inc.'s industrial scale continued to expand, with annual revenue reaching 14.4 billion yuan. In the seven years since its listing, 111 Inc. has achieved a 15-fold increase in revenue scale, growing from 959 million yuan in 2017 to 14.4 billion yuan in 2024.

In 2024, relying on its advantages in digital technology and smart supply chain, 111 Inc. continuously upgraded its fully digital operation system covering sales, procurement, operations, customer management, supply chain management, and order fulfillment, continuously improving service quality, optimizing management efficiency, and enhancing operational efficiency while reducing costs. During the reporting period, the total operating expenses of 111 Inc. as a percentage of net income decreased from 8% in the same period to 5.7%; among them, the operating expenses in the fourth quarter as a percentage of net income significantly decreased from 10.2% in the same period last year to 5.5%; the Non-GAAP operating profit for the full year of 2024 reached 22.3 million yuan, and the GAAP operating profit was 2.1 million yuan, achieving annual operating profitability for the first time, a significant leap compared to the operating loss of 350 million yuan in 2023.

Through innovative technology and system optimization, 111 Inc. has significantly reduced costs and increased efficiency on the supply chain side, with order fulfillment costs as a percentage of net income continuously optimized, decreasing from 2.7% in the same period last year to 2.6%.

During the reporting period, 111 Inc. continuously enhanced its core competitive capabilities in the field of digital technology, deepening exploration in AI technology applications, and significantly driving business intelligence upgrades and efficiency improvements through multi-scenario innovations. In the fourth quarter, the company added 4 invention patents, bringing the total number of patents to 33.

On the supply chain side, 111 Inc.'s self-developed price index tool based on AI large models successfully predicted the optimal pricing strategy for products, resulting in a 465% surge in the number of products recruited through a 10 billion yuan subsidy and a 223% increase in merchant sales. In the field of data intelligence, the Boguang data platform integrates AI large models with sales forecasting algorithms, accurately introducing over 7,000 new products, contributing a total transaction value of over 900 million yuan, and reducing the product out-of-stock rate from 4.9% to 2.4%, with a 10-fold increase in demand list generation efficiency.

At the same time, the company's self-developed product master data large model performed excellently in the pharmaceutical classification scenario, with the entity recognition accuracy rate of five vertical industry models exceeding 95%, significantly enhancing the standardization capability of the supply chain. To lower the data usage threshold, the company also launched the generative AI product ChatBI "Orca," leveraging LLM technology to enable self-service data analysis for all employees, empowering efficient decision-making Ledao AI replaces traditional customer service systems with large language models, significantly optimizing customer interaction experiences. 111 Inc. is using AI as its core engine, deepening technological penetration across the entire link from pricing optimization and product selection decisions to customer service, achieving a dual breakthrough in business efficiency and scale, while also validating the scalable application potential of AI in the pharmaceutical e-commerce sector, setting a benchmark for the industry's intelligent transformation.

Supply Chain Network Continues to Upgrade, Constantly Enhancing Supply and Order Fulfillment Capabilities

In 2024, the company's key project, the Kunpeng Pharmaceutical Logistics Network, has shown significant results, utilizing a digital trunk and last-mile delivery model to establish a direct network deployment between order fulfillment centers nationwide, connecting the company's major "super hubs" in eastern, central, southern, northern, and southwestern China. By integrating first-mile and last-mile services, the company has achieved end-to-end supply chain management, establishing a comprehensive and efficient pharmaceutical logistics network. In the fourth quarter, the company continued to expand the scale of trunk lines and the coverage of last-mile delivery services, having opened 28 transportation routes to date, reducing delivery damage rates by 56% and shortening average delivery times by nearly a full day, helping to address the industry's pain points of "mixed goods, high damage rates, and inefficient acceptance."

In the fourth quarter, 111 Inc. continued to expand its order fulfillment centers nationwide, with seven new centers in Guangzhou, Wuhan, Shijiazhuang, Jinan, Chongqing, Urumqi, and Changsha commencing operations. To date, the company's order fulfillment centers have increased to 18. The company stated that it plans to add another 15 order fulfillment centers by 2025, further accelerating the expansion of its supply chain network and enhancing supply and order fulfillment capabilities. The new order fulfillment centers will greatly shorten delivery times for local customers, further enhancing the company's ability to cover 890 counties and cities nationwide within 24 hours.

In 2024, the operating centers under 111 Inc. received multiple honors across various regions, showcasing the company's strong business performance and influence in these markets. Among them, the Wuhan operating center was awarded one of the top 100 private service enterprises in Hubei Province and one of the top 100 private enterprises in Wuhan; the Guangzhou operating center was listed among the top 100 private enterprises in Guangdong Province and one of the top 50 private service enterprises in Guangdong Province; the Chongqing operating center was selected as one of the top 100 private service enterprises in Chongqing and one of the top 100 private enterprises in Chongqing. Additionally, 111 Inc. was recognized as the most investment-worthy pharmaceutical and medical company, a demonstration platform for industrial internet in Shanghai, a demonstration enterprise for e-commerce in Shanghai for the 2023-2024 period, and an excellent case for productive internet service platforms in Shanghai's Pudong New Area.

Dr. Yu Gang, co-founder and executive chairman of 111 Inc., stated: "In the past year of 2024, facing the complex challenges of the international and domestic environment, 111 Inc. has steadfastly promoted the digitalization of the pharmaceutical industry, continuously empowering and creating value for the upstream and downstream of the industry, and has achieved annual operational profitability and positive operating cash flow for the first time, marking an important milestone in the company's development process. In 2025, we will continue to strive forward, driving development through technology, leveraging artificial intelligence and other technologies to empower the digital and intelligent development of the pharmaceutical and health industry, ensuring that high-quality pharmaceutical and health products and services benefit thousands of households."