SHANGHAI - 111, Inc. (NASDAQ: YI), a prominent healthcare platform company in China, has officially appointed Grant Thornton Zhitong Certified Public Accountants LLP as its new independent registered public accounting firm, effective today.
The decision to replace Deloitte Touche Tohmatsu Certified Public Accountants LLP with Grant Thornton followed a comprehensive review and has received the approval of the company’s board of directors and audit committee.
Grant Thornton will be responsible for auditing and reporting on 111's consolidated financial statements for the fiscal year ending December 31, 2024, as well as assessing the effectiveness of the company's internal control over financial reporting as of the same date. This transition in auditors is part of 111’s ongoing efforts to ensure the highest standards of financial compliance and transparency.
In other recent news, 111 Inc. has reported its first operational profitability in Q1 2024, a significant turnaround from the RMB21.7 million loss of the same period last year. The company attributes this to strategic initiatives such as enhancing operational efficiency, optimizing costs, and leveraging AI and advanced algorithms.
This has led to improved order conversion rates and streamlined operations. The company's private label products also saw a substantial 89% year-over-year growth, contributing to sustainable profits.
In the same vein, 111 Inc. has made strides in its supply chain innovation, reducing costs and damage rates by up to 60%. The company is also exploring all listing options, including a potential dual listing in Hong Kong.
On the analyst side, Water Tower Research inquired about the joint venture warehouse model and plans for expansion in 2024, with 111 Inc. indicating success in delivering faster service and lower damage rates.
Looking forward, 111 Inc. plans to maintain profitability through a continued focus on operational efficiency and customer value delivery. The company also plans to capitalize on China's healthcare reforms and anti-corruption campaign to increase market share. Furthermore, 111 Inc. is set to continue investing in private label products, targeting high margins and sustainable profits.
InvestingPro Insights
As 111, Inc. (NASDAQ: YI) streamlines its financial oversight by appointing Grant Thornton, it's crucial for investors to consider the company's current financial standing and market performance. With a market capitalization of $89.09 million, the healthcare platform company is navigating through a challenging financial landscape, as reflected in its negative P/E ratio of -1.67 and an adjusted P/E ratio of -1.71 for the last twelve months as of Q1 2024.
Despite these figures, InvestingPro offers a glimpse of optimism. One of the InvestingPro Tips highlights that 111, Inc. is expected to see net income growth this year, which could signal a potential turnaround from its previous performance. Additionally, the company is recognized as a prominent player in the Consumer Staples Distribution & Retail industry, which could provide a stable backdrop for growth.
Nevertheless, investors should be aware of the company's gross profit margin, which stands at a relatively low 2.94% for the same period. This is coupled with a significant price drop over the past year, with the stock currently trading near its 52-week low at 30.95% of its high. Moreover, the stock has experienced a notable decline, with a one-year price total return of -66.77%.
For those looking to delve deeper into the financial metrics and strategic insights of 111, Inc., InvestingPro provides additional analysis and tips. With the promo code PRONEWS24, investors can get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, offering access to a total of 17 InvestingPro Tips for a comprehensive understanding of the company's prospects.
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