SHANGHAI - 111, Inc. (NASDAQ: YI), a prominent tech-enabled healthcare platform in China, disclosed today that its co-founders, Dr. Gang Yu and Mr. Junling Liu, have initiated the purchase of shares using personal funds and plan to continue doing so. The timing and volume of these market purchases are at the co-founders' discretion, who currently hold 42.7% of the company's total issued share capital.
This development accompanies the company's report of sustained financial growth, having achieved operational profitability for the second consecutive quarter. For Q2 2024, 111 reported an operational income of RMB3.3 million (US$0.5 million), a significant turnaround from a loss of RMB41.4 million in Q2 2023. The non-GAAP income from operations also saw an increase to RMB8.5 million (US$1.2 million). The company has also reported positive operating cash flow for the same period, marking its financial resilience.
In addition to financial growth, 111 announced the acquisition of four new patents, increasing its total to 28, which are expected to enhance its competitive edge and support long-term growth. The co-founders have expressed their belief in the company's potential and vision to transform healthcare through technology and innovation, stating that the current market price of their ADSs does not reflect the intrinsic value of their core businesses.
The purchases by the co-founders are subject to market conditions, legal limitations, and regulations, including the Securities Exchange Act of 1934, specifically Rule 10b-5-1 and Rule 10b-18, where applicable.
This announcement is based on a press release statement by 111, Inc., and it contains forward-looking statements which are subject to risks and uncertainties. These could cause actual results to differ materially from those projected. The company cautions that these forward-looking statements are not guarantees of future performance and involve known and unknown risks.
111, Inc. is a leader in digital healthcare in China, providing access to pharmaceuticals and healthcare services through its online and offline platforms. It aims to empower the healthcare value chain with digital solutions, serving consumers, pharmacies, and partners with a range of services including marketing, patient education, and data analytics.
InvestingPro Insights
In light of the recent strategic moves by 111, Inc. (NASDAQ: YI), including the co-founders' share purchase and the company's reported operational profitability, InvestingPro data and tips provide a deeper understanding of the company's financial health and market position. With a market capitalization of $52.83 million, 111, Inc. is recognized as a prominent player in the Consumer Staples Distribution & Retail industry. Despite a challenging market, the company's net income is expected to grow this year, underpinning the co-founders' confidence in its value and long-term prospects.
According to InvestingPro data, the company has shown a modest revenue growth of 0.38% over the last twelve months as of Q2 2024, which aligns with the operational profitability mentioned in the company's report. However, the gross profit margin stands at 3.0%, reflecting the company's weak gross profit margins, an area that could be of interest for investors looking at the company's ability to convert sales into profits.
InvestingPro Tips suggest that the stock is currently in oversold territory, with the Relative Strength Index (RSI) indicating potential undervaluation. Additionally, the stock is trading near its 52-week low, which could present a buying opportunity for investors who believe in the company's fundamentals and future growth potential. For those interested in further analysis, InvestingPro offers additional tips on the company's financials and market performance, which can be found at: https://www.investing.com/pro/YI.
Investors and stakeholders may consider these insights as they evaluate the company's recent developments and the co-founders' investment actions. With 17 InvestingPro Tips available, users can gain a more comprehensive understanding of 111, Inc.'s financial and market position.
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