111, Inc. (YI) stock was popping high in the pre-market following the release of second-quarter 2021 unaudited financial results. YI stock saw a push of 6.02% to reach $7.05 a share at the time of this writing. The stock also went high in the previous trade and closed at $6.65 per share with a 1.22% gain at closing. Let’s discuss the recent events in detail.
Second Quarter 2021 Financial Results:
- 111, Inc generated net revenue of RMB3.0 billion in the second quarter which represents an increase of 86.5% year-over-year.
- Operating expenses of YI stock increased by 82.2% year-over-year to reach RMB323.4 million in the reported quarter.
- 111 stock spent RMB52.6 million in technology expenses in three months period ended June 30, 2021. These expenses were 186.0% as compared to the same prior-year period.
- Loss from operations increased to RMB188.8 million in Q2,2021 as compared to RMB92.7 million in Q2,2020.
- 111, Inc bore RMB147.9 million non-GAAP loss from operations in Q2,2021 as compared to RMB78.8 in Q2,2020.
- Non-GAAP net loss attributable to ordinary shareholders of the YI stock jumped from RMB92.7 million in Q1,2020 to RMB159.0 million in Q1,2021.
- YI stock reported RMB1.2 billion (US$186.7 million), cash, cash equivalents, restricted cash, and short-term investments by the end of this quarter. This amount was RMB1.6 billion by the end of December 2020.
Business Outlook of YI stock:
The management has projected total net revenue of 111, Inc. in the range of RMB3.31 billion to RMB3.55 billion for the third quarter of 2021. This means that YI stock is expecting 40% to 50% year-over-year growth. This outlook is based on the current market conditions of YI stock and is subject to change with changing market conditions.
Overall Progress of YI stock:
111 stock’s B2B business has driven its top and bottom-line growth. The revenue grew by 99% over the year while the gross profit showed 120% improvement year-over-year. 111’s services demand increased in this tenure which resulted in 125% year-over-year services revenue growth. YI stock has expanded its business at both domestic and global levels and increased its partner from 259 to 381. The stock has significantly invested in technology to meet the industry standards.
Wrap Up:
Positive Q2,2021 financial results of 111, Inc has added the hype in increasing its per-share price today. The management is not only keen to improve topline growth but also striving hard to improve margins. In a nutshell, this stock can outperform in the future but one should not ignore the actions of the Chinese government before making any decision.
