Operational Profitability
111 maintained operational profitability for 3 consecutive quarters, with income from operations in Q3 reaching RMB 2.4 million compared to an operating loss of RMB 80.4 million in the same quarter last year.
Reduction in Operating Expenses
Total operating expenses in Q3 were 5.8% of net revenues, a 160 basis points decrease from the prior year, demonstrating improved operational efficiency.
Positive Operating Cash Flow
The company reported positive operating cash flow of RMB 110 million for the third consecutive quarter.
Digital and AI Advancements
The company made significant advancements in digital and AI technologies, including a 100% increase in product categories and a record high customer conversion rate of over 13%. AI model accuracy for herbal medicine content matching improved from 43% to 96%.
Expansion of Supply Chain and Logistics
Expansion of the Kunpeng network and completion of the Guangzhou Fulfillment Center relocation project projected to save RMB 800,000 monthly.