SHANGHAI, Aug. 20, 2020 /PRNewswire/ -- 111, Inc.
("111" or the "Company") (NASDAQ: YI), a company dedicated to
digitally connecting patients with drugs and healthcare services in
China, today announced its
unaudited financial results for the second quarter ended
June 30, 2020.
Second Quarter 2020 Highlights
- Net revenues were RMB1.62
billion (US$229.6 million),
representing an increase of 93.5% year-over-year.
- Operating expenses[1] were RMB177.5 million (US$25.1
million), representing an increase of 24.2% year-over-year.
Operating expenses accounted for 10.9% of net revenue this quarter
as compared to 17.0% in the same quarter of last year.
- Number of pharmacies served increased to more than
280,000 as of June 30, 2020, compared
to more than 190,000 pharmacies as of June
30, 2019.
- Quarterly pharmacy order numbers reached 557,000,
representing an increase of 188.6% year-over-year.
[1] Operating
expense consists of fulfillment expenses, selling and marketing
expenses, general and administrative expenses, technology expenses
and other operating expenses.
|
"Sustaining on the strong momentum from the previous quarter,
the Company once again delivered strong financial results in the
second quarter of 2020, and made tremendous progress on our path to
sustainable profitability. Net revenue was RMB1.62 billion, representing a year-over-year
increase of 93.5%. Gross profit increased by 101.3%, and the
non-GAAP net loss continued to narrow from 10.1% last year to 4.9%
as a percentage of net revenue, another step closer to
profitability," said Mr. Junling
Liu, Co-Founder, Chairman, and Chief Executive Officer of
111.
"We delivered strong performances across all of our business
segments, a testament to the success of our multifaceted growth
strategy. In our B2B segment, revenue grew by 113.7% to
RMB1.39 billion, while orders saw an
increase of 188.6% over the same period last year. Our extensive
virtual pharmacy network is the largest in the country, covering
more than 50% of total drugstores in China. In the quarter, the network expanded to
more than 280,000 retail pharmacies, an increase of 47%
year-over-year," Mr. Liu said.
"In our B2C segment where the lifetime value of a customer is
largely driven by recurring services such as online consultations
and e-prescriptions, during this period, service revenue grew by
46% year-over-year to RMB6.2 million,
while product revenue showed steady growth over the last two
quarters. Our omni-channel drug commercialization services for
global pharmaceutical companies have also seen encouraging early
results. We are pleasantly surprised by the performance of Eli
Lilly's diabetes drug Trulicity and Novartis' Cosentyx on our
platform. Both drugs are blockbusters in their respective
categories in the United States,
and we are confident that we can help them achieve their potential
in the Chinese market."
He continued, "Driven by the strong demand from pharmaceutical
product online retailers, revenue for our E-Channel segment grew by
112.8% year over year to RMB63.7
million, while the number of orders increased by 216% over
the same period last year."
"As we seek to accelerate growth, we're continually exploring
new strategic opportunities that can leverage our existing
infrastructure while deepening our core competency in digital
healthcare. Towards that end, we're building the capability to
extend our omni-channel healthcare ecosystem beyond today's focus
on treatment of minor ailments to a support system for patients in
their ongoing management of medical conditions. This allows us to
have a more comprehensive view of each patient, which we believe
will help them achieve better health outcomes, while opening up a
vast new market for the Company."
"As proof of our belief in and commitment to this opportunity,
we recently launched in Shanghai
the Lung Cancer Patient Care Program for holistic management of the
disease. The program, spearheaded by the China Primary Health Care
Foundation, offers diagnostic and treatment services and resources
for lung cancer patients. Delivered via a full life-cycle
doctor-patient interactive platform to be established and operated
by 111, patients can access disease education materials, medication
guides, online consultation, follow-up consultation and clinic
visitation," he explained.
"As we further strengthen our digital healthcare infrastructure,
we bring ever-greater value to our customers. Our cloud-based,
AI-driven system enables our customers to better target and meet
the needs of their end consumers, and doing so with greater
efficiency and effectiveness. But the benefits of our digital
capabilities accrue not only to our customers, but also to our own
operations. Empowered by these industry-leading tools, our business
development team is able to provide better service to prospects and
customers alike, achieving higher conversion rates and customer
loyalty."
"To support our ongoing investments in these strategic growth
opportunities, we have taken steps to strengthen our financial
flexibility. On August 17, 2020, we
completed the capital injection from new investors with an
aggregate of RMB419.2 million
(US$60.49 million) in our principal
subsidiary Yao Fang Information Technology (Shanghai) Co., Ltd. at a pre-money valuation
of RMB8.33 billion (US$1.2 billion). In addition, we announced today
our strategic plan to pursue a listing of this principal subsidiary
on the Shanghai Stock Exchange's 'STAR Market' to access to
China's capital markets."
"While we are grateful that life is slowly returning to some
form of normalcy, given the Chinese Government's effective control
of the pandemic, risks remains given the fluidity of the situation
and uncertainties around the global economy. Particularly in face
of these unprecedented challenges, our results in the first half of
2020 once again demonstrated the power of our technology-enabled
and integrated model, and the effectiveness of our disciplined
execution. Looking forward to the rest of the year and beyond, we
will continue to stay focused on executing against our four growth
pillars to deliver long-term value to our shareholders. With our
strengthened financial position from the capital injection, we have
greater flexibility to seek out and capitalize on strategic market
opportunities, further strengthening our digital capabilities,
accelerating our business growth and expediting our next phase of
expansion," Mr. Liu concluded.
Share Repurchase Program
On August 14, 2019, the Company's
Board of Directors approved a share repurchase program of up to
US$10 million, as a vote of
confidence in the Company's prospects. As of June 30, 2020, the Company had repurchased
998,810 ADSs for a total consideration of US$4.9 million.
Second Quarter 2020 Financial Results
Net revenues were RMB1.62
billion (US$229.6 million),
representing an increase of 93.5% from RMB838.2
million in the same quarter of last year.
Prior to January 1, 2020, the
Group had two reportable segments, including B2C segment and B2B
segment. Based on its assessment of 2020, the Group changed its
reportable segment presentation to include its E-Channel sales as a
separate reportable segment and allocated its service revenue into
B2B and B2C segments. As of June 30,
2020, the Group's three reportable segments include B2C
segment, B2B segment, and E-Channel segment. The Company has
updated segment results in prior comparative periods to conform to
the current segment presentation as follows:
|
|
|
|
|
|
(In thousands
RMB)
|
For the three months
ended June 30,
|
|
|
|
|
|
|
|
2019
|
|
2020
|
|
YoY
|
B2B
Revenue
|
|
|
|
|
|
Product
|
649,936
|
|
1,387,557
|
|
113.5%
|
Service
|
1,004
|
|
3,249
|
|
223.5%
|
|
|
|
|
|
|
Sub-Total
|
650,940
|
|
1,390,806
|
|
113.7%
|
|
|
|
|
|
|
Cost of Products
Sold[2]
|
643,725
|
|
1,345,697
|
|
109.0%
|
|
|
|
|
|
|
Segment
Profit
|
7,215
|
|
45,109
|
|
525.3%
|
Segment Profit
%
|
1.1%
|
|
3.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands
RMB)
|
For the three months
ended June 30,
|
|
|
|
|
|
|
|
2019
|
|
2020
|
|
YoY
|
B2C
Revenue
|
|
|
|
|
|
Product
|
153,092
|
|
161,206
|
|
5.3%
|
Service
|
4,215
|
|
6,152
|
|
46.0%
|
|
|
|
|
|
|
Sub-Total
|
157,307
|
|
167,358
|
|
6.4%
|
|
|
|
|
|
|
Cost of Products
Sold[2]
|
124,498
|
|
132,129
|
|
6.1%
|
|
|
|
|
|
|
Segment
Profit
|
32,809
|
|
35,229
|
|
7.40
|
Segment Profit
%
|
20.9%
|
|
21.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands
RMB)
|
For the three months
ended June 30,
|
|
|
|
|
|
|
|
2019
|
|
2020
|
|
YoY
|
E-Channel
Revenue
|
|
|
|
|
|
Product
|
29,914
|
|
63,652
|
|
112.8%
|
|
|
|
|
|
|
Cost of Products
Sold[2]
|
27,843
|
|
59,245
|
|
112.8%
|
|
|
|
|
|
|
Segment
Profit
|
2,071
|
|
4,407
|
|
112.8%
|
Segment Profit
%
|
6.9%
|
|
6.9%
|
|
|
|
|
|
|
|
|
|
|
[2] For segment
reporting purposes, purchase rebate is allocated to B2C segment,
B2B segment and E-Channel segment primarily based on the amount of
cost of products sold for
each segment. Cost of products sold does not include other direct
costs related to cost of product sales such as shipping and
handling expense, payroll and benefits of logistic staff,
logistic centers rental expenses and depreciation expenses, which
are recorded in the fulfillment expenses
|
Operating costs and expenses were RMB1.71
billion (US$242.7 million),
representing an increase of 82.6% from RMB939.0
million in the same quarter of last year.
- Cost of products sold was RMB1.54
billion (US$217.6 million),
representing an increase of 93.1% from RMB796.1
million in the same quarter of last year. The increase was
primarily due to our rapid revenue growth in B2B business, which
increased by 113.5% as compared to the same quarter last year.
- Fulfillment expenses were RMB43.6
million (US$6.2 million),
representing an increase of 59.1% from RMB27.4 million in
the same quarter of last year. Fulfillment expenses accounted for
2.7% of net revenues this quarter as compared to 3.3% in the same
quarter of last year.
- Selling and marketing expenses were RMB81.2
million (US$11.5 million),
representing an increase of 8.2% from RMB75.0 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 the
B2B business. As a percentage of net revenues, selling and
marketing expense further reduced to 5.0% in the quarter from 8.9%
in the same quarter of last year.
- General and administrative
expenses were RMB38.3 million (US$5.4 million), representing an increase of
34.4% from RMB28.5 million in the same quarter of last
year. As a percentage of net revenues, general and administrative
expense reduced to 2.4% in the quarter from 3.4% in the same
quarter of last year.
- Technology expenses were RMB18.4
million (US$2.6 million),
representing an increase of 49.6% from RMB12.3 million in
the same quarter of last year, mainly due to our increased
investment in technology. Technology expenses accounted for 1.1% of
net revenues this quarter as compared to 1.5% in the same quarter
of last year.
Loss from operations was RMB92.7
million (US$13.1 million),
compared to RMB100.8 million in the same quarter of last
year. As a percentage of net revenues, loss from operations further
decreased to 5.7% in the quarter from 12.0% in same quarter of last
year.
Non-GAAP Loss from
operations[3] was RMB78.8 million (US$11.2
million), compared to RMB85.3 million in the same
quarter of last year. As a percentage of net revenues, non-GAAP
loss from operations decreased to 4.9% in the quarter from 10.2% in
same quarter of last year.
Net loss attributable to ordinary
shareholders was RMB92.7 million (US$13.1 million),
compared to RMB100.2 million in the same quarter of last
year. As a percentage of net revenues, net loss attributable to
ordinary shareholders decreased to 5.7% in the quarter from 12.0%
in same quarter of last year.
Non-GAAP net loss attributable to ordinary
shareholders[4] was RMB78.8 million (US$11.2 million),
compared to RMB84.7 million in the same quarter of last
year. As a percentage of net revenues, non-GAAP net loss
attributable to ordinary shareholders decreased to 4.9% in the
quarter from 10.1% in same quarter of last year.
Loss per ADS was RMB1.12 (US$0.16), compared to RMB1.22 for the
same quarter of last year.
Non-GAAP Loss per
ADS[5] was RMB0.95
(US$0.14), compared
to RMB1.03 for the same quarter of last year.
As of June 30, 2020, the Company had cash and cash
equivalents, and restricted cash of RMB743.5
million (US$105.2 million),
compared to RMB697.7 million as of December 31,
2019.
[3] Non-GAAP
loss from operations represents loss from operations excluding
share-based compensation expenses.
|
[4] Non-GAAP
net loss attributable to ordinary shareholders represents net loss
attributable to ordinary shareholders excluding share-based
compensation expenses and impairment loss of long-term
investment.
|
[5] Non-GAAP
loss per ADS represents loss per ADS excluding share-based
compensation expenses and impairment loss of long-term investment
per ADS.
|
Business Outlook
For the third quarter of 2020, the Company expects its total net
revenues to be between RMB2 billion
and RMB2.17 billion, representing a
year-over-year growth of approximately 80.1% to 95.4%.
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 changes.
Conference Call
111's management team will host an earnings conference call at
7:30 AM U.S. Eastern Time on
Thursday, August 20, 2020
(7:30 PM Beijing Time on August 20, 2020).
Details for the conference call are as follows:
Event
Title:
|
111, Inc. Second
Quarter 2020 Earnings Conference Call
|
Registration
Link:
|
http://apac.directeventreg.com/registration/event/7482148
|
All participants must use the link provided above to complete
the online registration process in advance of the conference call.
Upon registering, each participant will receive a set of
participant dial-in numbers, the Direct Event passcode, and a
unique Registration ID, which can be used to join the conference
call.
Please dial in 15 minutes before the call is scheduled to begin
and provide the Direct Event passcode and unique Registration ID
you have received upon registering to join the call.
A telephone replay of the call will be available after the
conclusion of the conference call until August 28, 09:59 P.M.
ET on:
United
States:
|
+1-855-452-5696
|
International:
|
+61-2-8199-0299
|
Conference
ID:
|
7482148
|
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 expenses. The Company defines non-GAAP net loss
attributable to ordinary shareholders as net loss attributable to
ordinary shareholders excluding share-based compensation expenses
and impairment loss of long-term investment. The Company defines
non-GAAP loss per ADS as loss per ADS excluding share-based
compensation expenses 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 expenses is a non-cash expense that varies
from period to period. Impairment loss of long-term investment is a
non-cash, non-recurring expense that occurred in the historical
period. As a result, management excludes these two items from its
internal operating forecasts and models. Management believes that
the adjustments for share-based compensation expenses and
impairment loss of long-term investment provide investors with a
reasonable basis to measure the company's core operating
performance, in a more meaningful comparison with the performance
of other companies. 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 most comparable 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 RMB7.0651 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 June 30,
2020.
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 company
dedicated to digitally connecting patients with drugs and
healthcare services 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:
http://ir.111.com.cn/.
For more information, please contact:
111, Inc.
Investor Relations
Email: ir@111.com.cn
111, Inc.
Media Relations
Email: press@111.com.cn
Phone: +86-021-2053 6666 (China)
GCM Strategic Communications
IR Counsel
Email: 111.ir@gcm.international
111,
Inc.
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(In thousands,
except for share and per share data)
|
|
|
|
|
|
|
As
of
|
|
As
of
|
|
December 31,
2019
|
|
June 30,
2020
|
|
RMB
|
|
RMB
|
|
US$
|
ASSETS
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
581,281
|
|
703,713
|
|
99,604
|
Restricted
cash
|
116,441
|
|
39,787
|
|
5,631
|
Accounts receivable,
net
|
65,247
|
|
140,897
|
|
19,943
|
Notes receivable,
net
|
23,587
|
|
12,953
|
|
1,833
|
Inventories
|
486,271
|
|
599,863
|
|
84,905
|
Prepayments and other
current assets
|
208,604
|
|
260,677
|
|
36,896
|
Total current
assets
|
1,481,431
|
|
1,757,890
|
|
248,812
|
Property and
equipment, net
|
29,836
|
|
28,598
|
|
4,048
|
Intangible
assets
|
8,022
|
|
7,985
|
|
1,130
|
Long-term
investments
|
140
|
|
140
|
|
20
|
Other non-current
assets
|
3,009
|
|
3,426
|
|
485
|
Operating lease
right-of-use assets
|
87,855
|
|
87,570
|
|
12,395
|
Total
Assets
|
1,610,293
|
|
1,885,609
|
|
266,890
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
Current
liabilities including amounts of the
consolidated VIE without recourse to the company
|
|
|
|
|
|
Short-term
borrowings
|
95,081
|
|
149,700
|
|
21,189
|
Accounts
payable
|
444,334
|
|
852,959
|
|
120,729
|
Accrued expense and
other current liabilities
|
234,008
|
|
232,372
|
|
32,890
|
Total Current
liability
|
773,423
|
|
1,235,031
|
|
174,808
|
Long-term operating
Lease Liabilities
|
57,011
|
|
54,542
|
|
7,720
|
Other non-current
Liabilities
|
5,936
|
|
4,836
|
|
684
|
Total
Liabilities
|
836,370
|
|
1,294,409
|
|
183,212
|
|
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
|
|
Ordinary
shares
|
55
|
|
55
|
|
8
|
Treasury
shares
|
(22,991)
|
|
(34,972)
|
|
(4,950)
|
Additional paid in
capital
|
2,606,486
|
|
2,640,533
|
|
373,743
|
Accumulated
deficit
|
(1,883,335)
|
|
(2,100,680)
|
|
(297,332)
|
Accumulated other
Comprehensive Income
|
76,441
|
|
90,189
|
|
12,765
|
Total
shareholders' equity
|
776,656
|
|
595,125
|
|
84,234
|
Non-controlling
interest
|
(2,733)
|
|
(3,925)
|
|
(556)
|
Total
equity
|
773,923
|
|
591,200
|
|
83,678
|
Total liabilities
and equity
|
1,610,293
|
|
1,885,609
|
|
266,890
|
111,
Inc.
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
LOSS
|
(In thousands,
except for share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months ended June 30,
|
|
For the six months
ended June 30,
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
Net
Revenues
|
838,161
|
|
1,621,816
|
|
229,553
|
|
1,493,762
|
|
3,197,484
|
|
452,574
|
Operating Costs
and expenses:
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Cost of products
sold
|
(796,066)
|
|
(1,537,071)
|
|
(217,558)
|
|
(1,418,400)
|
|
(3,025,141)
|
|
(428,181)
|
Fulfillment
expenses
|
(27,421)
|
|
(43,616)
|
|
(6,173)
|
|
(48,674)
|
|
(99,219)
|
|
(14,044)
|
Selling and marketing
expenses
|
(75,038)
|
|
(81,199)
|
|
(11,493)
|
|
(150,499)
|
|
(176,950)
|
|
(25,046)
|
General and
administrative expenses
|
(28,510)
|
|
(38,290)
|
|
(5,420)
|
|
(56,044)
|
|
(67,946)
|
|
(9,617)
|
Technology
expenses
|
(12,299)
|
|
(18,404)
|
|
(2,605)
|
|
(27,329)
|
|
(39,441)
|
|
(5,583)
|
Other operating
income (expenses), net
|
334
|
|
4,052
|
|
574
|
|
(162)
|
|
4,806
|
|
680
|
Total Operating
costs and expenses
|
(939,000)
|
|
(1,714,528)
|
|
(242,675)
|
|
(1,701,108)
|
|
(3,403,891)
|
|
(481,791)
|
Loss from
operations
|
(100,839)
|
|
(92,712)
|
|
(13,122)
|
|
(207,346)
|
|
(206,407)
|
|
(29,217)
|
Interest
income
|
1,419
|
|
1,121
|
|
159
|
|
3,360
|
|
1,409
|
|
199
|
Interest
expense
|
(70)
|
|
(2,067)
|
|
(293)
|
|
(349)
|
|
(3,671)
|
|
(520)
|
Foreign exchange
(loss) gain
|
(3,165)
|
|
30
|
|
4
|
|
(6,010)
|
|
(10,966)
|
|
(1,551)
|
Total Finance
expenses
|
(1,816)
|
|
(916)
|
|
(130)
|
|
(2,999)
|
|
(13,228)
|
|
(1,872)
|
Investment
Impairment
|
-
|
|
-
|
|
-
|
|
(11,000)
|
|
-
|
|
-
|
Other Income,
net
|
1,959
|
|
551
|
|
78
|
|
1,746
|
|
1,099
|
|
156
|
Loss before income
taxes
|
(100,696)
|
|
(93,077)
|
|
(13,174)
|
|
(219,599)
|
|
(218,536)
|
|
(30,933)
|
Income tax
expense
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Net
Loss
|
(100,696)
|
|
(93,077)
|
|
(13,174)
|
|
(219,599)
|
|
(218,536)
|
|
(30,933)
|
Net Loss attributable
to non-controlling interest
|
470
|
|
344
|
|
49
|
|
883
|
|
1,191
|
|
169
|
Net Loss
attributable to ordinary shareholders
|
(100,226)
|
|
(92,733)
|
|
(13,125)
|
|
(218,716)
|
|
(217,345)
|
|
(30,764)
|
Other comprehensive
loss
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Unrealized gains of
available -for-sale securities,
net of tax of nil for the period end
|
2,465
|
|
-
|
|
-
|
|
4,220
|
|
-
|
|
-
|
Realized loss of
available-for-sale debt securities,
net of tax
|
(511)
|
|
-
|
|
-
|
|
(598)
|
|
-
|
|
-
|
Foreign currency
translation adjustments
|
19,173
|
|
(558)
|
|
(79)
|
|
(3,400)
|
|
13,720
|
|
1,942
|
Comprehensive
loss
|
(79,099)
|
|
(93,291)
|
|
(13,204)
|
|
(218,494)
|
|
(203,625)
|
|
(28,822)
|
Loss per
share:
|
|
|
|
|
-
|
|
-
|
|
-
|
|
-
|
Basic and
diluted
|
(0.61)
|
|
(0.56)
|
|
(0.08)
|
|
(1.34)
|
|
(1.32)
|
|
(0.19)
|
Loss per
ADS:
|
|
|
|
|
-
|
|
-
|
|
-
|
|
-
|
Basic and
diluted
|
(1.22)
|
|
(1.12)
|
|
(0.16)
|
|
(2.68)
|
|
(2.64)
|
|
(0.37)
|
Weighted average
number of shares used in
computation of loss per share
|
|
|
|
|
-
|
|
-
|
|
-
|
|
-
|
Basic and
diluted
|
163,750,044
|
|
164,791,574
|
|
164,791,574
|
|
163,435,631
|
|
164,566,125
|
|
164,566,125
|
111,
Inc.
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months ended June 30,
|
|
For the six months
ended June 30,
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
Net cash
(used)/provided in operating activities
|
(93,495)
|
|
126,036
|
|
17,839
|
|
(152,815)
|
|
14,089
|
|
1,994
|
Net cash used in
investing activities
|
(52,570)
|
|
(2,922)
|
|
(414)
|
|
(58,999)
|
|
(7,091)
|
|
(1,004)
|
Net cash provided
by financing activities
|
21,491
|
|
95,154
|
|
13,468
|
|
42,290
|
|
30,695
|
|
4,345
|
Effect of exchange
rate changes on cash and cash
equivalents, and restricted cash
|
11,342
|
|
218
|
|
31
|
|
(5,995)
|
|
8,085
|
|
1,144
|
Net
(decrease)/increase in cash and cash equivalents,
and restricted cash
|
(113,232)
|
|
218,486
|
|
30,924
|
|
(175,519)
|
|
45,778
|
|
6,479
|
Cash and cash
equivalents, and restricted cash at the
beginning of the period
|
791,453
|
|
525,014
|
|
74,311
|
|
853,740
|
|
697,722
|
|
98,756
|
Cash and cash
equivalents, and restricted cash at the end
of the period
|
678,221
|
|
743,500
|
|
105,235
|
|
678,221
|
|
743,500
|
|
105,235
|
|
111,
Inc.
|
|
Unaudited
Reconciliation of GAAP and Non-GAAP Results
|
|
(In thousands,
except for share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months ended June 30,
|
|
For the six months
ended June 30,
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
Loss from
operations
|
100,839
|
|
92,712
|
|
13,122
|
|
207,346
|
|
206,407
|
|
29,217
|
Add:
Share-based compensation
expenses
|
(15,576)
|
|
(13,907)
|
|
(1,968)
|
|
(26,803)
|
|
(29,107)
|
|
(4,120)
|
Non-GAAP loss from
operations
|
85,263
|
|
78,805
|
|
11,154
|
|
180,543
|
|
177,300
|
|
25,097
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss attributable
to ordinary
shareholders
|
100,226
|
|
92,733
|
|
13,125
|
|
218,716
|
|
217,345
|
|
30,764
|
Add:
Share-based compensation
expenses
|
(15,576)
|
|
(13,907)
|
|
(1,968)
|
|
(26,803)
|
|
(29,107)
|
|
(4,120)
|
Impairment loss of
long-term
investment
|
-
|
|
-
|
|
-
|
|
(11,000)
|
|
-
|
|
-
|
Non-GAAP net Loss
attributable
to ordinary shareholders
|
84,650
|
|
78,826
|
|
11,157
|
|
180,913
|
|
188,238
|
|
26,644
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per
ADS:
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
1.22
|
|
1.12
|
|
0.16
|
|
2.68
|
|
2.64
|
|
0.37
|
Add:
Share-based compensation
expenses and impairment loss of
long-term investment per ADS
|
(0.19)
|
|
(0.17)
|
|
(0.02)
|
|
(0.47)
|
|
(0.35)
|
|
(0.05)
|
Non-GAAP Loss per
ADS
|
1.03
|
|
0.95
|
|
0.14
|
|
2.21
|
|
2.29
|
|
0.32
|
View original
content:http://www.prnewswire.com/news-releases/111-inc-announces-second-quarter-2020-unaudited-financial-results-301115482.html
SOURCE 111, Inc.