According to the Securities Times app, recently, 111 inc's new operation centers in South China and Central China are officially operational, located in Guangzhou, Guangdong Province and Wuhan, Hubei Province, respectively, further enhancing the scale and advantages of the existing operation centers in South China and Central China. It is worth mentioning that through innovative and upgraded models, the new operation centers will achieve faster and more efficient operations. As of now, 111 inc has established 13 operation centers nationwide, forming a nationwide warehousing and distribution network, and further upgrading the layout of the national supply chain network.

The new operation centers in South China and Central China this time adopt innovative models to accelerate the company's warehouse capacity expansion in a more cost-effective manner, significantly reducing the operating costs of the company's single fulfillment centers. The establishment of the new operation centers will also rapidly improve the operational and distribution efficiency in the South and Central regions, directly reducing the logistics time to less than 24 hours in most areas. With the further enhancement of its nationwide radiation capacity, 111 inc can achieve delivery within 24 hours in over 300 major cities nationwide and complete delivery to other cities nationwide within 72 hours.

In addition, 111 inc's national logistics network "Kunpeng" continues to strengthen, using digital trunk lines and on-site delivery models to connect the direct network deployment between national single fulfillment centers, reducing the distribution cost by 15%, reducing the damage rate by 55%, helping solve the industry's pain points of 'slow efficiency, high damage, and low acceptance efficiency', and providing professional pharmaceutical logistics distribution services to partners in the pharmaceutical supply chain.

Benefiting from the company's expanding business areas and continuously enhancing technological capabilities, 111 inc's operational efficiency has significantly improved, and cost expenses have continued to decrease. In the second quarter, the company's operating expenses as a percentage of net income decreased from 7.2% in the same period last year to 6.0% this quarter. Among them, 111 inc's supply chain fulfillment costs have continued to decrease based on big data and algorithm optimization. Through algorithm optimization, the overall efficiency of national fulfillment centers has increased by 11%; picking paths have been reduced by 15%, further improving the outbound efficiency.

111 inc's efficient supply chain management system benefits from continuous technological drive. Among 111 inc's many intelligent systems, the Intelligent Supply Chain Management System has the highest technological content, the most complex system, and the most frequent applications. With more than 30 sets of intelligent supply chain management systems developed independently, including procurement systems, warehouse management systems, inventory management systems, distribution management systems, and price intelligent systems, 111 inc provides strong support for its nationwide intelligent supply chain network.

Technology empowerment has not only become a strategic driving force for 111 inc to achieve accelerated development but also its core competitive advantage, providing strong technological support for 111 inc's intelligent and refined operations. This significantly enhances customer experience while improving operational efficiency.

Thanks to the effective asia vets supply chain management and refined operation, 111 inc has achieved operating profitability for two consecutive quarters in 2024, and has continuously achieved positive operational cash flow. According to the Q2 performance report in 2024, 111 inc achieved revenue of 3.424 billion RMB; Non-GAAP operating profit was 8.5 million RMB, and GAAP operating profit reached 3.3 million RMB.

In addition, through the steadfast promotion of industrial internet plus-related strategy, 111 inc has also established a nationwide network of virtual pharmacies, serving approximately 0.47 million pharmacies nationwide, and has established partnership relationships with over 500 well-known domestic and foreign pharmaceutical companies and over 4500 distributors.