SHANGHAI, March 12, 2020
/PRNewswire/ -- 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, 2019.
Fourth Quarter 2019 Highlights
- Net revenues were RMB1.35
billion (US$193.6 million),
representing an increase of 141.8% year-over-year and an increase
of 21.4% quarter-over-quarter, beating high-end of previous
guidance of RMB1.24 billion.
- Operating expenses[1] were RMB210.6 million (US$30.2
million), representing an increase of 35.6% year-over-year.
Operating expenses accounted for 15.6% of net revenue this quarter
as compared to 27.9% in the same quarter of last year.
- Number of pharmacies served increased to more than
235,000 as of December 31, 2019,
successfully accomplished the company's strategic goal of reaching
230,000 by end of 2019.
- Quarterly pharmacy order numbers reached 366,000,
representing an increase of 201% year-over-year.
Fiscal Year 2019 Highlights
- Net revenues were RMB3.95
billion (US$567.7 million),
representing an increase of 121.3% year-over-year.
- Operating expenses[1] were RMB658.7 million (US$94.6
million), representing an increase of 30.5% year-over-year.
Operating expenses accounted for 16.7% of
net revenue in 2019 as compared to 28.3% last year.
- Annual pharmacy order numbers reached 982,000,
representing an increase of 237% year-over-year.
[1]
Operating expense consists of fulfillment expenses, selling and
marketing expenses, general and administrative expenses, technology
expenses and other operating expenses (net).
|
Mr. Junling Liu, Co-Founder,
Chairman, and Chief Executive Officer of 111, commented, "Our
fourth quarter capped off a strong year for the company as we
achieved record high growth rate of 141.8%. On a full year
basis, we achieved net revenue of RMB3.95
billion, representing an increase of 121.3% year-over-year.
In addition to the accelerated revenue growth and the rapid scaling
of our business, we have made substantial progress in improving
gross profit and further
narrowing operating losses as a percentage of net
revenue.
2019 was a year of considerable strategic progress where we
continue to break down barriers to accessible healthcare by
offering transformative novel model to serve the vast demand in
China's multi-trillion healthcare
industry. Firstly, 1 Drugstore, the pioneer in online drugstore
model in China has become a
well-recognized and trusted brand. Instead of tediously adjusting
their schedules around an antiquated healthcare system, customers
can now obtain drugs and other medical services in the privacy of
their homes.
Secondly, in an ongoing effort to offer healthcare services to
as many people as possible and to provide the largest selection to
our consumers, we substantially expanded our network, ending the
year covering more than 235,000 pharmacies (approximately 50% of
the pharmacy market), which makes 111 the largest virtual pharmacy
network in China. In addition, we
established direct purchasing relationships with 188 drug
manufacturers, expanded our technology-enabled infrastructure that
includes a nationwide network of five fulfillment centers, and
reinforced our commitment for a best-in-class supply chain
infrastructure. Finally, we continued to strengthen our ecosystem
through strategic partnerships with insurance companies and other
healthcare providers.
2019 was also a year of major regulatory changes in our sector
with sweeping reforms enacted to improve efficiency and
affordability of healthcare delivery to China's large and geographically dispersed
aging population. Many of these reforms are providing a strong
tailwind for our business and we believe we are uniquely positioned
as we strive to build a comprehensive healthcare services platform
to meet the growing demand in every city.
In 2020, we will continue to scale our operations, further
growing our network of pharmacies, drug manufacturers and
doctors. In addition, we plan to expand into public hospitals
across China, with a particular
focus on tier three to six cities where we believe the need for our
services is the most acute. We will also continue to develop novel
services and tools that will educate and empower our customers and
partners to make better informed decisions.
We are the only company in our industry with the capacity
to provide nationwide, omni-channel coverage in China in the drug commercialization space.
Every year, new life saving or life improving drugs are being
approved and we can ensure that these drugs reach the people in
need. The "111 omni-channel model" will offer multiple channels for
pharmaceutical companies to simultaneously reach healthcare
providers nationwide and educate them about new drugs and
therapies. This will significantly reduce time, resources, and
cost, which will allow drugs to be distributed efficiently, and
quickly. Imagine a platform that can deliver innovative drugs to a
vast pool of patients in every city across China simultaneously! That is the power of the
111 omni-channel model."
Environment, Social and Governance
On January 20, 2020, in response
to the Coronavirus disease (COVID-19) outbreak, 111 established an
anti-epidemic command team, and senior executives led their teams
to the front lines of the epidemic in Hubei province to provide medical supplies and
resources. All of 111's employees worked overtime during
the Chinese New Year holiday to meet the needs of the
nation.
On January 24, 2020, 111's
Internet hospital was one of the first Internet-based healthcare
companies to offer free online medical consultations to the public
in Wuhan and subsequently to the
entire Hubei province. It was also
among the first to provide free online drug refill services to
individuals with chronic conditions. 111 worked with both
pharmaceutical manufacturers and logistics companies to ensure
supplies are delivered to those in need, whether it is in
Wuhan, Hubei province, or nationwide. Our
ability to act quickly and effectively alleviated pressure on
overburdened hospitals and helped to curtail the further spread of
COVID-19 by allowing people with chronic illnesses and COVID-19
patients who do not have any life-threatening symptoms to receive
medical care without visiting a hospital. In addition, 111 donated
100,000 protective masks and other drug products to the people in
Wuhan. We also launched a channel featuring real-time
information about COVID-19, with news updates and advice from
medical professionals on containing the virus and preventing
infection. Finally, 111 is currently offering our "Medical
Supply Assurance Service" to help businesses protect their
employees as they begin to resume their operations and recover from
the impact of the epidemic.
Fourth Quarter 2019 Financial Results
Net revenues were RMB1.35 billion (US$193.6 million), representing an increase
of 141.8% from RMB557.4 million in
the same quarter of last year. Product revenues from B2B segment
increased by 247.5% to RMB1.15
billion (US$164.8 million)
as compared to RMB330.2 million
in the same quarter of last year.
Operating costs and
expenses were RMB1,515.9 million (US$217.7 million), representing an increase
of 119.8% from RMB689.6 million in the same quarter of
last year.
- Cost of products sold was RMB1,305.3 million (US$187.5million), representing an increase of
144.3% from RMB534.3 million in the
same quarter of last year. The increase was primarily due to our
rapid revenue growth in B2B business, which increased by 247.5% as
compared to same quarter last year.
- Fulfillment expenses were RMB48.7 million (US$7.0 million), representing an increase of
120.8% from RMB22.0 million in the
same quarter of last year. Fulfillment expenses accounted for 3.6%
of net revenue this quarter as compared to 4.0% in the same quarter
of last year.
- Selling and marketing expenses were RMB102.9 million (US$14.8
million), representing an increase of 31.6% from
RMB78.2 million in the same quarter
of last year, mainly due to increase in the number of sales staff
and expenses associated with the expansion of B2B business. Selling
and marketing expenses accounted for 7.6% of net revenue this
quarter as compared to 14.0% in the same quarter of last year.
- General and administrative expenses were RMB35.5 million (US$5.1
million), representing an increase of 4.2% from RMB34.1 million in the same quarter of last year,
mainly due to increases in professional service fee. General and
administrative expenses accounted for 2.6% of net revenue this
quarter as compared to 6.1% in the same quarter of last year.
- Technology expenses were RMB19.9
million (US$2.9 million),
representing a decrease of 2.8% from RMB20.4
million in the same quarter of last year, mainly due to
improvements in our system development efficiency and
implementation of automation tools. Technology expenses accounted
for 1.5% of net revenue this quarter as compared to 3.7% in the
same quarter of last year.
The Company will continue to make infrastructure investments to
support its rapid revenue growth and expects operational efficiency
and effectiveness to continue to improve.
Loss from operations was RMB168.1 million (US$24.1 million), compared to RMB132.2 million in the same quarter of last
year. Loss from operations accounted for 12.5% of net revenue
this quarter as compared to 23.7% in the same quarter of last
year.
Non-GAAP Loss from operations[2] was
RMB154.2 million (US$22.1 million), compared to RMB115.9 million in the same quarter of
last year. Non-GAAP loss from operations accounted for
11.4% of net revenue this quarter as compared to 20.8% in the
same quarter of last year.
Net loss attributable to ordinary shareholders was
RMB157.6 million (US$22.6 million), compared to RMB125.9 million in the same quarter of last
year. Net loss attributable to ordinary shareholders
accounted for 11.7% of net revenue this quarter as compared to
22.6% in the same quarter of last year.
Non-GAAP net loss attributable to ordinary
shareholders[3] was RMB143.7 million (US$20.6million), compared to RMB109.6 million in the same quarter of last
year. Non-GAAP net loss attributable to ordinary shareholders
accounted for 10.7% of net revenue this quarter as compared to
19.7% in the same quarter of last year.
Loss per ADS was RMB1.92 (US$0.28), compared to RMB1.54 for the same period of last year.
Non-GAAP Loss per
ADS[4] was RMB1.75 (US$0.26), compared to RMB1.34 for the same period of last
year.
As of December 31, 2019, the Company had cash and cash
equivalents, restricted cash and short-term
investments of RMB697.7
million (US$100.2 million),
compared to RMB1,106.5
million as of December 31,
2018.
[2]
Non-GAAP loss from operations represents loss from operations
excluding share-based compensation.
|
[3]
Non-GAAP net loss attributable to ordinary shareholders represents
net loss attributable to ordinary shareholders excluding
share-based compensation and impairment loss of long-term
investment.
|
[4]
Non-GAAP loss per ADS represents loss per ADS excluding share-based
compensation and impairment loss of long-term investment per
ADS.
|
Fiscal Year 2019 Financial Results
Net revenues were RMB3.95 billion (US$567.7 million), representing an increase
of 121.3% from RMB1.79 billion.
Product revenues from B2B segment increased by 243.2% to
RMB3.17 billion (US$454.8 million) as compared to
RMB922.8 million last year. Product
revenues from B2C segment decreased by 9.9% to RMB763.3 million (US$109.6 million) as compared to
RMB847.5 million last year.
Operating costs and
expenses were RMB4,445.6 million (US$638.6 million), representing an increase of
103.3% from RMB2,186.3
million last year.
- Cost of products sold was RMB3,786.9 million (US$543.9 million), representing an increase of
125.2% from RMB1,681.7 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 RMB129.0 million (US$18.5
million), representing an increase of 74.5% from
RMB73.9 million last year, primarily
as a result of growth in B2B business. Fulfillment expenses
accounted for 3.3% of net revenue in 2019 as compared to 4.1% last
year.
- Selling and marketing expenses were RMB340.6 million (US$48.9
million), representing an increase of 31.0% from
RMB260.0 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 8.6% of net revenue in 2019 as compared to 14.6% last
year.
- General and administrative expenses were RMB123.5 million (US$17.7
million), representing an increase of 25.1% from
RMB98.8 million last year, mainly due
to increases in managerial staffs and professional service fee.
General and administrative expenses accounted for 3.1% of net
revenue in 2019 as compared to 5.5% last year.
- Technology expenses were RMB61.9
million (US$8.9 million),
representing a decrease of 13.1% from RMB71.2 million last year, mainly due to
improvements in our system development efficiency and
implementation of automation tools. Technology expenses accounted
for 1.6% of net revenue in 2019 as compared to 4.0% last year.
Loss from operations was RMB493.5 million (US$70.9 million), compared to RMB400.4 million last year. Loss
from operations accounted for 12.5% of net revenue in 2019 as
compared to 22.4% last year.
Non-GAAP Loss from operations was RMB439.2 million (US$63.1 million), compared to RMB349.0 million last year. Non-GAAP
loss from operations accounted for 11.1% of net revenue in 2019 as
compared to 19.5% last year.
Net loss attributable to ordinary shareholders was
RMB499.6 million (US$71.8 million), compared to RMB380.1 million last year. Net loss
attributable to ordinary shareholders accounted for 12.6% of net
revenue this quarter as compared to 21.3% in the same quarter of
last year.
Non-GAAP net loss attributable to ordinary
shareholders was RMB434.3
million (US$62.4million),
compared to RMB328.7 million last
year. Non-GAAP net loss attributable to
ordinary shareholders accounted for 11.0% of net revenue in
2019 as compared to 18.4% last year.
Loss per ADS was RMB6.10 (US$0.88), compared to RMB7.64 last year.
Non-GAAP Loss per ADS was RMB5.30 (US$0.77), compared to RMB6.61 last year.
Update on Share Repurchase
Under the share repurchase program announced on August 15,
2019, the Company has been authorized to repurchase an aggregate
value of up to US$10 million worth of
its own class A ordinary shares in the form of American depositary
shares ("ADSs") in the next twelve months following the
announcement. As of December 31,
2019, the Company had repurchased 742,931 ADSs for an
aggregate of US$3.26 million.
Business Outlook
For the first quarter of 2020, the Company expects total net
revenues to be between RMB1.40
billion and RMB1.48 billion,
representing year-over-year growth of approximately 113.5% to
125.7%.
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.
Conference Call
111's management team will host an earnings conference call at
7:30 AM U.S. Eastern Time on
Thursday, March 12, 2020
(7:30 PM Beijing Time on March 12, 2020).
Dial-in details for the earnings conference call are as
follows:
United
States:
|
+1-845-675-0437
or 1-866-519-4004
|
Hong Kong:
|
+852-3018-6771 or
800-906-601
|
Mainland
China:
|
4006-208-038 or
8008-190-121
|
International:
|
+65-6713-5090
|
Passcode:
|
4186788
|
Please dial in 15 minutes before the call is scheduled to begin
and provide the passcode to join the call.
A telephone replay of the call will be available after the
conclusion of the conference call until 08:59 PM ET on March 20,
2020:
United
States:
|
+1-855-452-5696
|
International:
|
+61-2-8199-0299
|
Passcode:
|
4186788
|
A live and archived webcast of the conference call will be
available on the Investor Relations section of 111's website at
http://ir.111.com.cn/.
Use of Non-GAAP Financial Measures
In evaluating the business, the Company considers and uses
non-GAAP loss from operations, non-GAAP net loss attributable to
ordinary shareholders and non-GAAP loss per ADS, non-GAAP measures,
as supplemental measures to review and assess its operating
performance. The Company defines non-GAAP loss from operations as
loss from operations excluding share-based compensation. The
Company defines non-GAAP net loss attributable to ordinary
shareholders as net loss attributable to ordinary shareholders
excluding share-based compensation and impairment loss of long-term
investment. The Company defines non-GAAP loss per ADS as loss per
ADS excluding share-based compensation and impairment loss of
long-term investment per ADS. The presentation of these non-GAAP
financial measures is not intended to be considered in isolation or
as a substitute for the financial information prepared and
presented in accordance with U.S. GAAP.
The Company believes that non-GAAP loss from operations,
non-GAAP net loss attributable to ordinary shareholders and
non-GAAP loss per ADS help identify underlying trends in its
business that could otherwise be distorted by the effect of certain
expenses that it includes in loss from operations and net loss.
Share-based compensation is a non-cash expense that varies from
period to period. Impairment loss of long-term investment is a
non-cash expense that occurred in this period. As a result,
management excludes these two items from its internal operating
forecasts and models. Management believes that this adjustment for
share-based compensation and impairment loss of long-term
investment provides investors with a basis to measure the company's
core performance, including compared with the performance of other
companies, without the period-to-period variability created by
share-based compensation. The Company believes that non-GAAP loss
from operations, non-GAAP net loss attributable to ordinary
shareholders and non-GAAP loss per ADS provide useful information
about its operating results, enhances the overall understanding of
its past performance and future prospects and allow for greater
visibility with respect to key metrics used by the management in
their financial and operational decision-making.
The non-GAAP financial measures are not defined under U.S. GAAP
and are not presented in accordance with U.S. GAAP. The non-GAAP
financial measures have limitations as analytical tools. One of the
key limitations of using non-GAAP loss from operations, non-GAAP
net loss attributable to ordinary shareholders or non-GAAP loss per
ADS is that it does not reflect all items of income and expense
that affect the Company's operations. Further, the non-GAAP
financial measures may differ from the non-GAAP information used by
other companies, including peer companies, and therefore their
comparability may be limited.
The Company compensates for these limitations by reconciling the
non-GAAP financial measures to the nearest U.S. GAAP measures, all
of which should be considered when evaluating the Company's
performance. The Company encourages you to review its financial
information in its entirety and not rely on a single financial
measure.
Reconciliation of the non-GAAP financial measures to the most
comparable U.S. GAAP measures is included at the end of this press
release.
Exchange Rate Information Statement
This announcement contains translations of certain RMB amounts
into U.S. dollars at specified rates solely for the convenience of
the reader. Unless otherwise noted, all translations from RMB to
U.S. dollars are made at a rate of RMB6.9618 to US$1.00, the exchange rate set forth in the H.10
statistical release of the Board of Governors of the Federal
Reserve System as of December 31,
2019.
Safe Harbor Statement
This press release contains forward-looking statements. These
statements constitute "forward-looking" statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as
amended, and as defined in the U.S. Private Securities Litigation
Reform Act of 1995. These forward-looking statements can be
identified by terminology such as "will," "expects," "anticipates,"
"future," "intends," "plans," "believes," "estimates," "target,"
"confident" and similar statements. Among other things, the
Business Outlook and quotations from management in this
announcement, as well as 111's strategic and operational plans,
contain forward-looking statements. 111 may also make written or
oral forward-looking statements in its periodic reports to the U.S.
Securities and Exchange Commission, in its annual report to
shareholders, in press releases and other written materials and in
oral statements made by its officers, directors or employees to
third parties. Such statements are based upon management's current
expectations and current market and operating conditions and relate
to events that involve known or unknown risks, uncertainties and
other factors, all of which are difficult to predict and many of
which are beyond the Company's control. Forward-looking statements
involve inherent risks, uncertainties and other factors that could
cause actual results to differ materially from those contained in
any such statements. Potential risks and uncertainties include, but
are not limited to, uncertainties as to the Company's ability
comply with extensive and evolving regulatory requirements, its
ability to compete effectively in the evolving PRC general health
and wellness market, its ability to manage the growth of its
business and expansion plans, its ability to achieve or maintain
profitability in the future, its ability to control the risks
associated with its pharmaceutical retail and wholesale businesses,
and the Company's ability to meet the standards necessary to
maintain listing of its ADSs on the Nasdaq Global Market, including
its ability to cure any non-compliance with Nasdaq's continued
listing criteria. Further information regarding these and other
risks, uncertainties or factors is included in the Company's
filings with the U.S. Securities and Exchange Commission. All
information provided in this press release is as of the date of
this press release, and 111 does not undertake any obligation to
update any forward-looking statement as a result of new
information, future events or otherwise, except as required under
applicable law.
About 111, Inc.
111, Inc. (NASDAQ: YI) ("111" or the "Company") is a
leading integrated online and offline healthcare platform in
China. The Company provides
hundreds of millions of consumers with better access to
pharmaceutical products and medical services directly through its
online retail pharmacy and indirectly through its offline pharmacy
network. 111 also offers online medical services through its
internet hospital, 1 Clinic, which provides consumers with
cost-effective and convenient online consultation and electronic
prescription services. In addition to providing direct services to
consumers through its online retail pharmacy, 111 also enables
offline pharmacies to better serve their customers. The Company's
online wholesale pharmacy, 1 Drug Mall, serves as a one-stop shop
for pharmacies to source a vast selection of pharmaceutical
products. The Company's New Retail platform, by integrating the
front and back ends of the pharmaceutical supply chain, has formed
a smart supply chain, which transforms the flow of pharmaceutical
products to pharmacies and modernizes how they serve their
customers.
For more information on 111, please visit ir.111.com.cn
For more information, please contact:
111, Inc.
Ms. Monica
Mu
IR Director
ir@111.com.cn
Christensen
In China
Mr. Christian Arnell
Phone: +86-10-5900-1548
E-mail: carnell@christensenir.com
In the United States
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: lbergkamp@ChristensenIR.com
111,
Inc.
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(In thousands,
except for share and per share data)
|
|
|
As
of
|
|
|
|
|
|
|
December 31,
2018
|
|
|
December 31,
2019
|
|
RMB
|
|
|
RMB
|
|
US$
|
ASSETS
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
853,740
|
|
|
613,745
|
|
88,159
|
Restricted
Cash
|
-
|
|
|
83,977
|
|
12,063
|
Short-term
investments
|
252,805
|
|
|
-
|
|
-
|
Accounts receivable,
net of allowance of doubtful
accounts of nil at December 31, 2018 and
December 31, 2019
|
28,569
|
|
|
65,247
|
|
9,372
|
Note
Receivable
|
-
|
|
|
23,587
|
|
3,388
|
Inventories
|
210,836
|
|
|
486,271
|
|
69,848
|
Prepayments and other
current assets
|
161,147
|
|
|
208,604
|
|
29,965
|
Total current
assets
|
1,507,097
|
|
|
1,481,431
|
|
212,795
|
Property and
equipment
|
20,302
|
|
|
29,836
|
|
4,286
|
Intangible
assets
|
4,503
|
|
|
8,022
|
|
1,152
|
Long-term
investments
|
11,140
|
|
|
140
|
|
20
|
Other Non-Current
Assets
|
3,376
|
|
|
3,009
|
|
432
|
Operating lease
right-of-use Assets(1)
|
-
|
|
|
87,855
|
|
12,620
|
Total
Assets
|
1,546,418
|
|
|
1,610,293
|
|
231,305
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
Current
liabilities including amounts of the
consolidated VIE without recourse to the
Company
|
|
|
|
|
|
|
Short-term
borrowings
|
-
|
|
|
95,081
|
|
13,658
|
Accounts
payable
|
212,258
|
|
|
416,544
|
|
59,833
|
Note
Payable
|
-
|
|
|
27,790
|
|
3,992
|
Accrued expense and
other current liabilities(1)
|
102,261
|
|
|
234,008
|
|
33,613
|
Total Current
liability
|
314,519
|
|
|
773,423
|
|
111,096
|
Operating Lease
Liabilities(1)
|
-
|
|
|
57,011
|
|
8,189
|
Other Non-Current
Liabilities
|
8,135
|
|
|
5,936
|
|
853
|
Total
Liabilities
|
322,654
|
|
|
836,370
|
|
120,138
|
111,
Inc.
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(In thousands,
except for share and per share data)
|
|
|
As
of
|
|
|
|
December 31,
2018
|
|
December 31,
2019
|
|
RMB
|
|
RMB
|
|
US$
|
Shareholders'
Equity
|
|
|
|
|
|
|
|
|
|
|
|
Ordinary shares Class
A ($0.00005 par value per share;
800,000,000 shares authorized, 91,088,106 shares and
91,088,106 shares issued and outstanding as of December
31, 2018, 96,588,106 shares and 92,120,024 shares
issued
and outstanding as of December 31, 2019)
|
29
|
|
30
|
|
4
|
|
|
|
|
|
|
Ordinary shares Class
B ($0.00005 par value per share;
72,000,000 shares authorized, 72,000,000 shares issued
and outstanding as of December 31, 2018 and December
31, 2019, respectively)
|
25
|
|
25
|
|
4
|
|
|
|
|
|
|
Treasury
shares
|
-
|
|
(22,991)
|
|
(3,302)
|
Additional paid in
capital
|
2,540,878
|
|
2,606,486
|
|
374,398
|
Accumulated
deficit
|
(1,383,729)
|
|
(1,883,335)
|
|
(270,524)
|
Accumulated other
Comprehensive Income
|
67,073
|
|
76,441
|
|
10,980
|
Total
shareholders' equity
|
1,224,276
|
|
776,656
|
|
111,560
|
Non-controlling
interest
|
(512)
|
|
(2,733)
|
|
(393)
|
Total
equity
|
1,223,764
|
|
773,923
|
|
111,167
|
Total liabilities
and equity
|
1,546,418
|
|
1,610,293
|
|
231,305
|
|
|
|
|
|
|
111,
Inc.
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
LOSS
|
(In thousands,
except for share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months ended December 31,
|
|
For the year ended
December 31,
|
|
|
2018
|
|
|
2019
|
|
2018
|
|
|
2019
|
|
|
RMB
|
|
|
RMB
|
|
US$
|
|
RMB
|
|
|
RMB
|
|
US$
|
Net
Revenues
|
|
557,401
|
|
|
1,347,840
|
|
193,605
|
|
1,785,970
|
|
|
3,952,053
|
|
567,677
|
Operating Costs
and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of product
sold
|
|
(534,282)
|
|
|
(1,305,348)
|
|
(187,502)
|
|
(1,681,700)
|
|
|
(3,786,870)
|
|
(543,950)
|
Fulfillment
expenses
|
|
(22,045)
|
|
|
(48,683)
|
|
(6,993)
|
|
(73,930)
|
|
|
(128,996)
|
|
(18,529)
|
Selling and marketing
expenses
|
|
(78,218)
|
|
|
(102,931)
|
|
(14,785)
|
|
(260,040)
|
|
|
(340,562)
|
|
(48,919)
|
General and
administrative expenses
|
|
(34,071)
|
|
|
(35,501)
|
|
(5,099)
|
|
(98,759)
|
|
|
(123,501)
|
|
(17,740)
|
Technology
expenses
|
|
(20,444)
|
|
|
(19,878)
|
|
(2,855)
|
|
(71,248)
|
|
|
(61,902)
|
|
(8,892)
|
Other operating
expenses, net
|
|
(554)
|
|
|
(3,571)
|
|
(513)
|
|
(668)
|
|
|
(3,735)
|
|
(536)
|
Total Operating
costs and expenses
|
|
(689,614)
|
|
|
(1,515,912)
|
|
(217,747)
|
|
(2,186,345)
|
|
|
(4,445,566)
|
|
(638,566)
|
Loss from
operations
|
|
(132,213)
|
|
|
(168,072)
|
|
(24,142)
|
|
(400,375)
|
|
|
(493,513)
|
|
(70,889)
|
Interest
income
|
|
3,850
|
|
|
325
|
|
47
|
|
4,352
|
|
|
4,802
|
|
690
|
Interest
expense
|
|
-
|
|
|
(1,164)
|
|
(167)
|
|
-
|
|
|
(3,622)
|
|
(520)
|
Foreign exchange
(loss)/gain
|
|
(529)
|
|
|
4,983
|
|
716
|
|
2,459
|
|
|
(10,328)
|
|
(1,484)
|
Other Income,
net
|
|
2,722
|
|
|
5,615
|
|
806
|
|
11,531
|
|
|
834
|
|
120
|
Loss before income
taxes
|
|
(126,170)
|
|
|
(158,313)
|
|
(22,740)
|
|
(382,033)
|
|
|
(501,827)
|
|
(72,083)
|
Income tax
expense
|
|
(8)
|
|
|
-
|
|
-
|
|
(8)
|
|
|
-
|
|
-
|
Net
Loss
|
|
(126,178)
|
|
|
(158,313)
|
|
(22,740)
|
|
(382,041)
|
|
|
(501,827)
|
|
(72,083)
|
Net Loss attributable
to non-controlling
interest
|
|
287
|
|
|
722
|
|
104
|
|
1,950
|
|
|
2,221
|
|
319
|
Net Loss
attributable to ordinary
shareholders
|
|
(125,891)
|
|
|
(157,591)
|
|
(22,636)
|
|
(380,091)
|
|
|
(499,606)
|
|
(71,764)
|
Other
comprehensive loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gains of
available -for-sale
securities, net of tax of nil for the period end
|
|
2,650
|
|
|
650
|
|
93
|
|
8,734
|
|
|
7,335
|
|
1,054
|
Realized gain of
available-for-sale debt
securities, net of tax
|
|
(3,526)
|
|
|
(8,526)
|
|
(1,225)
|
|
(10,869)
|
|
|
(9,635)
|
|
(1,384)
|
Foreign currency
translation adjustments
|
|
208
|
|
|
(4,105)
|
|
(590)
|
|
21,658
|
|
|
11,668
|
|
1,676
|
Comprehensive
loss
|
|
(126,559)
|
|
|
(169,572)
|
|
(24,358)
|
|
(360,568)
|
|
|
(490,238)
|
|
(70,418)
|
Loss per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
(0.77)
|
|
|
(0.96)
|
|
(0.14)
|
|
(3.82)
|
|
|
(3.05)
|
|
(0.44)
|
Loss per
ADS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
(1.54)
|
|
|
(1.92)
|
|
(0.28)
|
|
(7.64)
|
|
|
(6.10)
|
|
(0.88)
|
Weighted average
number of shares used
in computation of loss per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
163,088,106
|
|
|
163,649,457
|
|
163,649,457
|
|
99,451,210
|
|
|
163,671,577
|
|
163,671,577
|
111,
Inc.
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
|
|
|
For the three
months ended December 31,
|
|
For the year ended
December 31,
|
|
|
2018
|
|
|
2019
|
|
2018
|
|
|
2019
|
|
|
RMB
|
|
|
RMB
|
|
US$
|
|
RMB
|
|
|
RMB
|
|
US$
|
Net cash used in
operating
activities
|
|
(127,762)
|
|
|
(69,354)
|
|
(9,962)
|
|
(343,018)
|
|
|
(510,192)
|
|
(73,286)
|
Net cash provided
in investing
activities
|
|
103,943
|
|
|
109,668
|
|
15,753
|
|
44,454
|
|
|
237,526
|
|
34,119
|
Net cash provided
by financing
activities
|
|
-
|
|
|
7,011
|
|
1,006
|
|
972,697
|
|
|
106,946
|
|
15,363
|
Effect of exchange
rate changes
on cash and cash equivalents
|
|
(2,767)
|
|
|
(6,336)
|
|
(909)
|
|
11,947
|
|
|
9,702
|
|
1,394
|
Net
(decrease)/increase in cash
and cash equivalents
|
|
(26,586)
|
|
|
40,989
|
|
5,888
|
|
686,080
|
|
|
(156,018)
|
|
(22,410)
|
Cash and cash
equivalents, and
restricted cash at the beginning
of the period
|
|
880,326
|
|
|
656,733
|
|
94,334
|
|
167,660
|
|
|
853,740
|
|
122,632
|
Cash and cash
equivalents, and
restricted cash at the end of the
period
|
|
853,740
|
|
|
697,722
|
|
100,222
|
|
853,740
|
|
|
697,722
|
|
100,222
|
111,
Inc.
|
Unaudited
Reconciliation of GAAP and Non-GAAP Results
|
(In thousands,
except for share and per share data)
|
|
|
For the three
months ended December 31,
|
|
|
For the year ended
December 31,
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
RMB
|
|
|
RMB
|
|
US$
|
|
|
RMB
|
|
|
RMB
|
|
US$
|
Loss from
operations
|
(132,213)
|
|
|
(168,072)
|
|
(24,142)
|
|
|
(400,375)
|
|
|
(493,513)
|
|
(70,889)
|
Add: Share-based
compensation expenses
|
16,291
|
|
|
13,909
|
|
1,998
|
|
|
51,359
|
|
|
54,281
|
|
7,797
|
Non-GAAP loss
from
operations
|
(115,922)
|
|
|
(154,163)
|
|
(22,144)
|
|
|
(349,016)
|
|
|
(439,232)
|
|
(63,092)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss attributable
to ordinary
shareholders
|
(125,891)
|
|
|
(157,591)
|
|
(22,636)
|
|
|
(380,091)
|
|
|
(499,606)
|
|
(71,764)
|
Add: Share-based
compensation expenses
|
16,291
|
|
|
13,909
|
|
1,998
|
|
|
51,359
|
|
|
54,281
|
|
7,797
|
Impairment loss of
long-term
investment
|
-
|
|
|
-
|
|
-
|
|
|
-
|
|
|
11,000
|
|
1,580
|
Non-GAAP net
Loss
attributable to ordinary
shareholders
|
(109,600)
|
|
|
(143,682)
|
|
(20,638)
|
|
|
(328,732)
|
|
|
(434,325)
|
|
(62,387)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per
ADS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
(1.54)
|
|
|
(1.92)
|
|
(0.28)
|
|
|
(7.64)
|
|
|
(6.10)
|
|
(0.88)
|
Add: Share-based
compensation expenses and
impairment loss of long-term
investment per ADS
|
0.20
|
|
|
0.17
|
|
0.02
|
|
|
1.03
|
|
|
0.80
|
|
0.11
|
Non-GAAP Loss per
ADS
|
(1.34)
|
|
|
(1.75)
|
|
(0.26)
|
|
|
(6.61)
|
|
|
(5.30)
|
|
(0.77)
|
View original
content:http://www.prnewswire.com/news-releases/111-inc-announces-fourth-quarter-and-fiscal-year-2019-unaudited-financial-results-301022184.html
SOURCE 111, Inc.