Shares in Pharma Retailer 111 Inc. Inch Up 2% After Earnings
The stock of 111, Inc. (Nasdaq: YI) closed up more than 2 percent Thursday, at $8.45 per American depositary share, after reporting its revenue nearly doubled in the first quarter.
The Shanghai-based company, China's largest pharmaceutical retailer, said in a statement today that its revenue for the three months through March reached $97.7 million, at an increase of 99 percent year-over-year.
Net loss, it said, was $15.9 million, or 22 cents per share, up 60 percent from the same period a year ago.
The co-founder, chairman, and chief executive officer of 111, Junling Liu, said in the report that the fulfillment cost as a percentage of revenue was 3.2 percent as compared to 4 percent in the last quarter, validating the advantages of its smart supply chain technology.
He added, "We are embracing the recent healthcare reforms initiated by the Chinese government and it's our belief that China will ultimately have one of the most efficient healthcare systems in the world. 111 is ideally positioned to benefit from this given the unique capabilities we have built, including our smart supply chain, the nationwide footprint of our largest virtual pharmacy network, and our integrated B+C platform. Our value proposition remains focused on the basis of transparency and efficiency. As a leading integrated online and offline healthcare platform in China, we play the role of enabling the pharmaceutical ecosystem through our unique T2B2C2 business model to drive improvements in both consumer and business-oriented healthcare services."
Operating expenses in the company were $113.6 million, up 104.6 percent from a year ago, the company said.
Looking forward, 111 said it expects total revenue in sencond quarter to be between $112 million and $117 million, representing an increase of between 92 and 101 percent from 2018.