111, Inc. [NASDAQ: YI] has reported its unaudited financial results for the third quarter completed September 30, 2021. The company has recorded net revenues of RMB3.35 billion (US$519.3 million). It implies a surge of 41.6% YOY. The Gross profit of the company surged 85% YOY and gross margin increases from 3.8% to 5.0%, among which gross profit for the B2B segment grew 145% YOY.
111 disclosed that the Q3 of 2021 signifies another period of strong growth, as net revenue grew 41.6% YOY to RMB 3.3 billion. It indicates the 13th consecutive quarter of growth for 111 since the company’s NASDAQ IPO. The top-and bottom-line growth this quarter was propelled by its B2B business, which witnessed YOY revenue and gross margin surge of 46% and 145%, respectively.
Furthermore, the Service revenue surged 106% YOY, among which B2B service revenue grew 336% YOY. The technology expenses reached RMB56.1 million (US$8.7 million). It represents a surge of 155.4% YOY. Moreover, the cash and cash equivalents, restricted cash, and short-term investments rose to RMB 1.1 billion (US$168.1 million) as of September 30, 2021.
In addition, the company believed that its recently introduced ‘1 Health Membership’ program continues to win strong drive with its clients. This program enables members to pay yearly fees to get exclusive benefits. Moreover, at the end of the third quarter, the company had over 11,000 participating stores, surpassing its internal target of 10,000.