Q2 2024 111 Inc Earnings Call
Speaker Change: Hello everyone and thank you for joining one-one-one conference call today.
Speaker Change: On the call today from the company, a doctor, Yang Yu, co-founder and executive chairman, Mr. Junling Liu, co-founder, chairman and CEO, Mr. Luke Chen, CFO of 111 major subsidiary, and Mr. Harvey Wang, CLO.
Speaker Change: As a reminder, today's conference goes being broadcast live by a webcast.
Speaker Change: The company's earnings cost release was distributed earlier today, and together with the earnings presentation are available on the company's IR website.
Speaker Change: Boi, for the conference call did started, let me remind you that this call may contain forward looking statements made under the same power of provisions as the private security certification of the format of 1995.
Speaker Change: Sets statements are based upon management's current expectations and current market and operating conditions and a light to invent, that is all unknown and unknown this and then certainties and other factors, all of which would cause actual results to differ materially.
Speaker Change: for more information about these risks, please refer to the company's filing with the FET.
Speaker Change: 1-1, there's not a mistake any obligations have to be done for the case statement as a result of new information, future events or otherwise, except as required under applicable law.
Speaker Change: Please note that all numbers are in R&D and all comparisons refer to year or the year comparisons, unless otherwise taken. Please also refer to the earnings press release or detailed information of the Comparative Financial Performance on a year or the year basis.
Speaker Change: Did that? I will turn the color to 111.0. This is your menu.
Speaker Change: Good morning and good evening everyone. Thank you for joining our second quarter of the 24 earnings call.
Speaker Change: The information we will be discussing is also available in the slide posted earlier today and they can come inside.
Speaker Change: I encourage you to download the presentation as well as the earnings reports from our invests relations website at IR.111.com.com.com.
Speaker Change: [inaudible]
Speaker Change: That's our performance in the quarter, we're pleased to report that they achieve operational profitability for the second consecutive quarter, which was driven by our ongoing improvements in operational efficiency that overroads challenges in the micro-economic environment.
Speaker Change: In today's call, I will discuss the current micro-inmanence, highlight the opportunity to head and present our key financial achievements.
Speaker Change: and also cover how we are leveraging new technologies to enhance operations, distance, patterns, milestones, and our efforts on the supply side.
Speaker Change: Finally, I will outline our future great strategy before handing over a 12-year-old Mr. Luke Chen, who will provide a detailed analysis of our financial performance.
Speaker Change: First, China's complex economic situation is impacting many industries, and the healthcare is not immune. The Chinese environment is pumping in this pre-sectorate to explore innovative models for lethal development.
Speaker Change: is responsible for how conditions there are object trains in the healthcare industry that present valuable opportunities.
Speaker Change: The National Anti-Corruption Campaign in the healthcare sector initiated in May 2023 in intensifying this year.
Liu: Liu's development indicates a border and more comprehensive approach with regulatory and ethical oversight now part of the country's entire industry chain.
Speaker Change: Wants to participate back in this rigorous scrutiny will evolve in sort of long-term process for great-for-confinity and integrity in health care and actions, particularly in hospital procurement.
Speaker Change: The key outcome of this campaign is the acceleration of positioning front wheels and the prescription to repair promises, which offer a more accessible and the transparent alternative to the traditional hospital system.
Speaker Change: This is the ship, strongly encouraged by the state.
Speaker Change: and I have said in the out-of-hustle pharmaceutical market, the well-positioned to capitalize on the significant growth of Chinese leadership going over the long term.
Speaker Change: along with the expected continued expansion of way to a pharmacy store across China.
Speaker Change: by offering a comprehensive and cost-efficient product range coupled with an online-related commitment to cost-event experience. We aim to boost a market share in this sector where challenges and opportunities co-exist.
Speaker Change: In parallel with digital transformation of the healthcare value chain is continuing to gain momentum.
Speaker Change: The progress is supported by strong initiatives for the industry's high quality development in June China's state council issue key parks for the pending for deepening medical and health system reform in 2022.
Speaker Change: The focus is on integrated development and the governance of medical insurance, health care, and pharmaceuticals, while highlighting the critical role of information technology and the visualization in driving these reforms.
Speaker Change: and the leader in this political revolution, we are dedicated to transforming the industry through our full enterprise operating system.
Speaker Change: by providing both of the upstream and the upstream customers with advanced digital technologies which enables them to further cut operating costs and increase efficiency.
Speaker Change: and the Department of Health and Health and Health and Health, we are now in the
Speaker Change: The meaningful progress we made earlier this year have persisted into Q2. On the scoring, our ongoing success in digitization.
Speaker Change: As the four mentions, even with these macro-economic challenges, we generated profits from operations for two conceptive coffers reflecting the effectiveness of our growth, strategy, and a business model.
Speaker Change: In a second quarter, our income from operations reached 3.3 million RMB compared with the loss from operations of 41.4 million RMB a year ago.
Speaker Change: Nongga income from operations was 8.5 million RMB compared with Nongga loss from operations of 17.2 million RMB in the same quarter of last year.
Speaker Change: [inaudible]
Speaker Change: The profitability is primarily driven by ongoing improvements in operational efficiency, supported by consistent enhancements across nearly all business functions.
Speaker Change: In the second quote, total operating expenses are counting about 6% of the number of enemies that we create a hundred and twenty basis points from the previous year.
Speaker Change: is a secret, it's made a significant reduction in various extensive categories.
Speaker Change: If managed to cut fulfilment expenses to 2.6% of the net revenues during the quarter down from 2.7% a year earlier, reflecting a decrease in fulfilment costs by 7.3%.
Speaker Change: and the administrative expenses fell to 0.5% of that revenue from 1.1% a year ago.
Speaker Change: 2.3% as a percentage of matter that is from 2.6% in the previous year.
Speaker Change: Captain Mollige expected was 0.5% of that resistance as well, down from 0.7% of the year ago.
Speaker Change: Excluding shared this compensation operating expenses as a percentage of a matter of a news grow up to 70% to 5% base percent.
Speaker Change: are operating cash floor in the positive of the second consecutive quarter.
Speaker Change: Our operational efficiency stands for strategic investments in infrastructure and an optimal staffing allocation with a focus on key areas that drive long-term sustainable growth.
Speaker Change: Over the years, we've developed highly sophisticated, beautiful capabilities that allow us to deliver exceptional value and performance to our customers, while significantly reducing both technology and staffing experiences.
Speaker Change: We have always aimed to become the most efficient healthcare e-commerce operator in the industry.
Speaker Change: is five-hour relatively small revenue, we've already achieved a level of operational efficiency that can compete against a sum of the most established players.
Speaker Change: The Committee for setting an industry benchmark for efficiency, live and maintaining, and improving profitability.
Speaker Change: As we grow and we find our operations, we expect further reductions in operating costs, driving even higher efficiency.
Speaker Change: Our commitment to this call is on-way grant, as it will be a key competitive advantage on how fast the bill is a unique business note.
Speaker Change: and also in West, there is the savings from increased efficiency into others strategic areas, such as innovation, market expansion, and the customer engagement to support future growth.
Speaker Change: Next, let's move to how we adopt the noble technology approaches to drive significant improvements across various operational factors.
Speaker Change: Continuers technology advancement is a cornerstone of our strategy in limiting us to be at a more resilient, efficient and accustomed eccentric business, towards the full grateful returns in the future in the evolving half-cat e-commerce industry.
Liu: Liu, the first with develop merchant bidding tools and an automated operating system and integrated approximately 3,5 days later, to deliver intelligent merchant pricing.
Speaker Change: is not only a win-off to 911, but also in hands to procurement efficiency.
Speaker Change: Hello, everybody. We're now reviewing investment promotion platform and the billing subsidy campaign as the core operational strategies. The procurement conversion rate has risen to historical high of over 32%.
Speaker Change: This has significant improved customer satisfaction and lots of loyalty, which are crucial as the sustainable growth.
Speaker Change: Second, our slides and experiments take a single remarkable improvement in cost reduction and efficiency management through technology improvement and enhancements.
Speaker Change: The optimization of algorithms has led to a multiple 11% increase in overall efficiency in warehouse shelving and replenishment and is strategic adjustments in automatic grouping have reduced victim parts by 15%.
Speaker Change: and the first thing I will be teaching you.
Speaker Change: Additionally, the implementation of a digital logistics network for last-mile delivery has caught the speaking cost by over 5% on the scoring our commitment to operational excellence.
Speaker Change: Hello, I'm application of the AI in product management has significantly elevated the accuracy and efficiency offering not only in pharmaceutical products, but also in medical devices and in the health supplement product.
Speaker Change: The creation of comprehensive databases on the development of sophisticated, inconceiveration, and similar to models have doubled the matching rate.
Speaker Change: We are very very concerned and continuously advanced and upgrade our technological capabilities.
Speaker Change: Li, which position us as an industry leader in operational efficiency, cost reduction, and the customer satisfaction.
Speaker Change: Please to announce the acquisition of the four new patents, bringing our total to 28th.
Speaker Change: Among these, they have been mentioned patent for a method for processing human resource demand and a personnel skeleton system, which offers after-risk predictions and an intelligent scheduling, significantly enhancing the child management efficiency and supporting the decision making.
Speaker Change: At this moment, the security of grateful persons from adaptive anti-challel method and its system based on information categories.
Speaker Change: This technology focuses our faith of protection efforts, reducing the risk of which is your own operational cost and an incredible raw efficiency to an automated comfort measures.
Speaker Change: We also attend two more invention patterns.
Speaker Change: In Darkham, we feel more method and the system based on principle, components, respect, respect, hope, and your existence, and a system that contains in quite low-famming, is done by dual-level group in granularity.
Speaker Change: This difficult technology and relations serve improves our operational efficiency, reinforcing our pursuit of quality and growth.
Speaker Change: Correctively, these patterns not only safeguard our intellectual property but also enhance our market competitiveness providing those asked technical support for our long-term growth and the driving and the digital transformation of the pharmaceutical industry.
Speaker Change: Furthermore, it continued to strengthen the supply side during the second quarter.
Speaker Change: First, our plastic-made model, Quimpong, had the streamlined logistics and reduced transportation costs. The new framework will thus progress.
Speaker Change: from the Department of Health and Health and Health and Health and Health.
Speaker Change: and the Lord in turn of this vision past.
Speaker Change: is also added to the external supply chain showcasing our commitment to leveraging digital technology to empower the sector.
Speaker Change: Additionally, Compung the Proach is particularly cost-effective for penetrating the remote region of China, and the remote offered itself is an outlet offered itself to mention
Speaker Change: In the second quarter, we established a very important network across five major fulfillment centers.
Speaker Change: It's China, San Francisco China, South China, North China, and it's the best China. It's a truck-class branch delivery model.
Speaker Change: This is paving the way for a national component pharmaceutical logistics network. Ensuring efficient last mile delivery in the supply fence area, with full control of the supply chain.
Speaker Change: Hong Kong will now offer a country-trumped transportation routes.
Speaker Change: and the first mile warehouse and services, servicing 72 external clients are 55% from the 37 in Q1.
Speaker Change: The network supports our business scale of over 200 million modern data on how to achieve total cost savings of 2.9,000,000 in our update today.
Speaker Change: [inaudible] Junling Liu, Junling Liu, Junling Liu, Junling Liu,
Speaker Change: has helped clients reduce cost about the existing percent.
Speaker Change: and also addresses industry pain points like mixed tobacco hammering, high damage rates, and inefficient acceptance processes with a 55% reduction in delivered damage rates.
Speaker Change: This improves our service quality and enhances our customer engagement, satisfying our world as a key in labor in a pharmaceutical supply chain.
Speaker Change: and Yang Chen, Junling Liu, Junling Liu, Junling Liu, Junling Liu, Junling Liu,
Speaker Change: with the expansion of the component logistics network and the last mile delivered facilities, delivery expenses decreased.
Speaker Change: [inaudible]
Speaker Change: Moreover, to support future growth and advance our strategy for the nationwide control logistics network, we plan to add two multi-v-puffing centers in a third-quarter, bringing the portal to 13.
Speaker Change: This expansion includes a second center in Wuhan and a new center in Wuhan, and will achieve a city in the most vast.
Speaker Change: Reexpected the expansion of off-hood human fenders will enhance our logistics network and pull the service across diverse regions, reduce delivery times, and increase overall efficiency.
Speaker Change: Our supplies that our goods are also demonstrated in our expanded cooperation.
Speaker Change: [inaudible]
Speaker Change: First, in the second quarter, we intend into a strategic, direct, supply partnership with comprehensive pharmaceutical enterprise, Beijing, Syrian, pharmaceutical to enhance nation-wide drug accessibility and distribution, particularly the Syrian flagship products like Syrian, Holy, acid, headloats.
Speaker Change: The partnership based on our existing collaboration since 2017, utilizing big data, digital marketing, and cloud services to help soaring medications and attacking into a related product which have bothered market more efficiently.
Junling Liu: and Junling Liu is admitted to A.C. Hall Pharmaceutical Code, the company engaged in discussions with several pharmaceutical firms regarding various partnership opportunities. This resulted in the formation of an alliance named by some of us.
Speaker Change: The deputy of the Vipalines is to foster innovative collaboration and address market challenges through joint efforts.
Speaker Change: The partnership aims to build a comprehensive, high-level and a diversity-bound network by focusing on products with expensive features such as exclusivity, Lansing Commemands, Traditional Challenge, Medicine and the insurance coverage.
Speaker Change: This initiative highlights one-one commitment to expanding its partnership network on a broader scale.
Speaker Change: Finally, let us dive into our strategies for growth in the revenue, margin and profit.
Speaker Change: Our core strategy is to provide highly efficient, cost-effective, once-of-a-a-fuck-and-experience that aggressive customer needs and solidify our competitive position.
Speaker Change: by Huntington Beach Analytics and not the research. We can find Junling our product portfolio to match customer's preferences while prioritizing low prices for intelligent digital tools.
Speaker Change: and I will continue to strengthen our partnership network with pharmaceutical companies.
Speaker Change: by expanding cooperation, we plan to broaden our extensive medicine offerings on our beautiful technology and powerful driving shared growth through enhanced affairs, especially in lower tier cities.
Speaker Change: Our beautiful marketing network plays the pivotal role in this tragedy, providing a robust platform to highlight our partners' problems.
Speaker Change: [inaudible]
Speaker Change: This is strategic expansion of our partnership network, not only benefits our pharmaceutical partners, but also strengthen our position as a leading e-commerce platform in the pharmaceutical sector, which is a foundation for sustaining the long-term growth.
Speaker Change: As we drive higher safety levels and optimize our product offerings, we receive a positive impact on our overall productivity.
Speaker Change: is our father's label business, which generally is pleasingly about us.
Speaker Change: Given by increasing demand from customers, it's run on the event of 30% from the previous year in the first half.
Speaker Change: It's run of business featuring three players, offers customers by about this range of products, where it's the company, enjoy the healthy growth margin of 29%.
Speaker Change: is also a link is in the outline of the equity and the bill is in the trust.
Speaker Change: [inaudible]
Speaker Change: Mo Rola, we will expedite our investment in the KVP platform.
Speaker Change: This innovative model has been increasingly attracting new partners, and the significantly expanding our product lineup, highlighting its compelling value proposition and effectiveness in Beijing there is a fake hole.
Speaker Change: by including the platform to better meet the needs of our partners and expand the needs reach or anticipate a broader and more diverse partner base leading to increased product offerings and save opportunities.
Speaker Change: I do a continuing to refine and escape the platform with the leading level strength and our competitive position and become a critical catalyst to long-term growth and profitability.
Speaker Change: Office of Investigations is central to our strategy and we permit it to invest in a couple of basic technologies to streamline processes, minimize waste and hourly productivity.
Speaker Change: and the Office of AI Engelations and a big evaluation is crucial.
Speaker Change: In betting AI and fully digitized, and fully digitized, digitized, digitized, and throughout our operations, we aim to generate even greater operational efficiency, enhance customer engagement and a faster new product and services.
Speaker Change: We are confident that we passage the little cement in our market leadership, as well as the cement in our growth opportunities.
Speaker Change: Please be cognizant and important to our future, knowing that these values are administrative, even operational efficiency.
Speaker Change: with our internal operating system being 100% digital, which not only improves our financial performance, but also establish that as a transforming force to relate the entire industry.
Speaker Change: Our technological ecosystem extends beyond our operations throughout both upstream and downstream customers, with access to our Wednesday Digital Tools and Expertise.
Speaker Change: Looking ahead, the release of continued focus on digitization of women 10, how competitive age and the market leadership in living us to achieve higher level and profit levels.
Speaker Change: Good night, our hands are cold, so Mr. Luke Chen, to walk through the hall for an angel results. Thank you.
Speaker Change: and Good Morning, are even everyone.
Speaker Change: Liu, moving to the financials.
Speaker Change: My prepared remarks were forced on a few key business in financial highlights.
Liu: The details are set in four to twenty twenty forty-four results, which is 30 slides, 17 reporting, the Section 2 of our presentations. Again, our comparisons are a year over year, and all numbers are in line B and less otherwise stated.
Liu: Let's talk in a second or the results.
Junling Liu: and Junling Liu, who was in the 2007.6 million yuan to the flat compared to the same quarter last year.
Junling Liu: The President, Junling Liu, has been a part of the report that was done to 6% down 7.2% as we continue to enhance our operation efficiency.
Speaker Change: and Liu Chen, Junling Liu, Liu Chen, and Liu Chen, and Liu Chen, Liu Chen, Liu Chen, Liu Chen,
Speaker Change: The marketing trend is at the percentage of net revenue for the quarter year, it's 2% 3% down from 2% 6% in the same product last year.
Speaker Change: The general and administrative expenses accounted for years on 5% of net revenue is now from 1% in the same quarter last year.
President: President, I'm honored to see you for 5% on that planet, down from 0.7% in the same quarter of last year.
Liu: Liu, who is a result income the operations or IMBC points 3 million compared to last the operations of IMBC 141.5 million in the same kind of last year.
Liu: [inaudible]
Liu: [inaudible]
Liu: As the percentage is not running in the gas demand loss, which you feel is the total audience shareholder's decrease to 0.3% in the quarter from 0.9% in the same quarter of last year.
Speaker Change: As you can see, we're improving our financial performance, quarter by quarter, and maintain our regional profitability for the second consecutive quarter.
Speaker Change: 3, 3, 3, 5, 21 to 25 of the panic section for selected financial statements.
Speaker Change: A quick note on our test position as of June 30, 2004, he had a car and a cash equivalent, with civic cash in the shortening investment of I-615.5 minutes.
Speaker Change: and he agreed to report positive opportunity cash flow of two consecutive quarters.
Speaker Change: As a part of the state of the study release, the company had a total outstanding amount of IMB-1.1 billion, which has the included imbalance of the reasonable, then completely interest and recruited expenses and other livelihoods.
Speaker Change: According to a group of investors or one-foxy technology, consumers to their equity investment made in 2020 as previous proposed.
Speaker Change: and the state of discerning release, we haven't seen the dentures pressed from certain such investors for a total redemption amount of reals on two billion in their copies with the turns of their initial investment in one pharmacy's technology.
Junling Liu: and Junling Liu, the company has entered into the meeting and our criminal matters with the masses. We're presenting to the majority of the total in telling a mark.
Junling Liu: The continued negotiating with the factors too.
Junling Liu: [inaudible]
Speaker Change: Please conclude our prepared remarks. Thank you. Although we are now ready to begin the Q&A session.
Speaker Change: Please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you want to speak your phone, please pick up the handset to ask your question. Your first question comes from Zaiteng. Thanks for watching.
Speaker Change: Hi, this is Shifeng from Tennessee, and thank you for taking my question and congratulations on the Co-op main program. Well, I have two questions about fine anchors, the first one is, I see that the OPEX ratio in the second-corder decrees.
Speaker Change: Comparer 2 that up the second quarter in 2023, so what's your guidance on the extensive ratio in the long launch?
Speaker Change: and my lucky question is, well, we noticed that the company achieved uplifting profit in a second quarter, so I just wanted what's the driver behind the results? And let's look at them for my project of the year.
Speaker Change: Thanks.
Speaker Change: I'm a little punk, yeah, I'm going to speak to you on the call. Thank you for the questions.
Speaker Change: Yes, let me ask a question first, with regards to the old tax.
Liu: Liu, you know, how we run a main operation, festival, we have an in-house developed operating system which comprises dozens and dozens of other systems.
Speaker Change: 800% bigot. At any given time, anywhere, the management can access real-time operations.
Speaker Change: and I have either it for sales in various reasons or different types of customers, categories and products, allocation of the tasks to sales teams, for food and operation and architecture.
Speaker Change: The call operation is transparent and the real time data available we can make decisions and the dustment faster.
Speaker Change: Continuous optimization of operations led to an operational efficiency that can act somewhat of a balanced average of giants in the industry.
Speaker Change: and I've compared to those big guys, we have to sell the hundreds of billions and I'll reckon it would still relatively small at 15 billion last year.
Speaker Change: I'm...
Speaker Change: Well, with a bigger help line, we can further scale down our operational expenditure. We are very confident about it.
Liu: Liu, we are going to discuss about our estimate is that if we can run sales at a scale or a 10-cyddy-in, R&D or more, we should be able to operate on the flight percent.
Speaker Change: I would request your second question, you know, how we grow into profitability. It's really, you know, like what I said in an accessible operational efficiency, is our core confidence.
Speaker Change: and our principle is to provide customers with the richest selection, with the competitive doctors and its good services.
Speaker Change: In a movie into the future, they will continue to invest to build a bigger supply base to ensure that our product has something to meet customers needs.
Speaker Change: and of course.
Speaker Change: Liu, one of the cost packages this year is not that we've been a relentless way to pursue competitive or competitive process.
Speaker Change: Li, this will drive custom loyalty, this will drive more and more customers. Li, this will really increase our food.
Speaker Change: Liu, the operational efficiency, we're really in a good position to achieve our goal and to sustain profitability at least for 2024. It's the market conditions remain the same.
Speaker Change: Thank you.
Speaker Change: OK, that's very clear in the show and thanks for the shooting.
Speaker Change: Hello, next question comes from Zoe B and Good City.
Zoe B: Hello, thank you, Amanda. I'm going to go taking off option and this is going to be a very exciting stage. I'm not having three options. It's the first time.
Zoe B: [inaudible]
Speaker Change: I've given that the offline pharmacy has a operating structure this year and I want to know, in case the overall customer demand, it could be the quality, it could be the penetration rate into the pharmacist's client.
Speaker Change: and the second question is, if you are kind of strategy, you are trying to improve the level of confidence in the style of the revenue period.
Speaker Change: and with the approach and the legal price, the legal job price, comparison quality.
Speaker Change: of Fact-Wall One's Law of Creation. Thank you.
Speaker Change: Right. So, Zoe, hi. You're lying.
Liu: Liu, you know, not very clear. If I hold you correctly, let me just repeat the question first, you know, like a saying that the offline families is on the pressure and how we can improve our chemistry.
Speaker Change: Second question is, is a profit, the biggest priority for the company and the third is how did it deal with the price comparisons from pharmacy to procurement team?
Speaker Change: Watch.
Speaker Change: OK, so if I think the questions, let me just a question one by one. First of all, you know, we anticipate that in the short term, our interest knows we'll experience some challenges and is it the hard to maintain the same small sales as in the past?
Speaker Change: and I'll have a big opportunity for my mobile life to help this pharmacist to overcome the challenges.
Wendee: Wendee, our power is a tiny tiny floor where we focus on profitability. In the meantime, we are optimizing our selection to ensure that our offerings can meet our customers' demand.
Speaker Change #100: and a lot of athletes have been made on the supply site and have been made at tremendous progress on providing the richest selection for our customers to make it a lunch box shop. They believe that shopping experience is crucial especially for the small-to-beating chains.
Speaker Change #101: and this way they can continue to grow our knowledge here.
Speaker Change #102: and I'm actually a price comparison.
Speaker Change #103: We have always anticipated that the fact that modern-mode customers are going to multiple platforms to compare classes before the police be ordered.
Litzia: Litzia would made a low prices as they build an optional strategy operationally, although it's the way to the market in the market, it's to offer the greatest selection of the low prices.
Speaker Change #105: Let me also add, although the industry is on the pressure, if you look around, this is one of the broad industries, as more and more stores are dependent.
Speaker Change #106: The recent beta show has got to the overall number of promises had reached to 700,000. You know, a last year was due in a 500, some space, right? And this is the jet that is in the right industry.
Speaker Change #106: [inaudible]
Speaker Change #107: and with the recent anti-corruption campaign going on, I also anticipate that the growth from the hospital doctors with peak and a more and more medicines will be sold through our line and offline pharmacies in the long term.
Speaker Change #108: and the Bachelor of Law and Law and his belt position to take advantage of.
Speaker Change #109: Hello, we are next question, come from the faculty who will take that please.
Speaker Change #109: Thank you for taking my question. This is Jesse from HSBC and congratulations on another follow-it quarter. I have two questions.
Jesse: The first one is on financials we saw that the net cash generated by operating activity was nearly on the 100 million in this quarter, so can help us understand the key factors that help you contribute to this.
Jesse: The second question is on your Quim Pong Logistic model. We saw that not only it helps the company to reduce costs and improve efficiency, it also empowers industry train. Can management share more color and update on the development of the system? Thank you.
Speaker Change #111: and how did we get to Luke?
Speaker Change #111: Kironan.
Speaker Change #112: I mean, let's see a first question.
Speaker Change #112: [inaudible]
Speaker Change #113: So we have been very careful to improve our working capitals. Specifically, our townspeople will turn it over and I will even turn it over to date.
Liu: Liu, compared our country's sea level balance, and a human child balance between June 30 and March end, and we will see clearly that we made improvements.
Speaker Change #114: and I'm particularly well-suited to introduce the Pantain Finance, the Pantain Party, to our customers, the Pantain Finance, so they are using the Pantain Finance to make the Pantain payments.
Speaker Change #115: to us for purchase of drugs.
Speaker Change #116: Now, this is a really new situation.
Speaker Change #116: [inaudible]
Speaker Change #116: the Wing for this set of party finance institutions in the debate, get customers and our wing for us is also we get payments immediately and they do the purchase.
Speaker Change #117: I will move forward. We will continue to pay particular attention on the old-looking capital items. I specifically said that the human trees, the turnovers, that comes with the turnovers, as well as that comes with periodal turnovers.
Speaker Change #118: and we are quite confident that we will continue to see positive and casual and over-cassel in the coming quarters.
Speaker Change #119: OK, now he gets in any take of the分鐘 project question.
Speaker Change #119: and this year, I will start with this project.
Speaker Change #120: So basically we optimize our allocation of products, of course, all of our Goldsmith's efforts.
Speaker Change #121: We have the Nau Thurgy Infiltration Center.
Speaker Change #122: I'm the nation.
Speaker Change #122: and that's what I've put right for us in the right fulfillment centers to both get closer to the customer. I think time to minimize the transportation, all the fulfillment costs.
Speaker Change #122: So, I believe that we have to try and shift from workhouse to workhouse.
Speaker Change #123: So, we started by doing the treatment of our health care health test, five major where healthy.
Speaker Change #124: and we found that the treatment cost in the past, we lie on third-party logistics. We found that cost was high, and thankfully was there high. Then we stepped y'all.
Speaker Change #125: Rao for the tournament.
Speaker Change #125: We found that, you know, the car we used to click in three, I think, on the ventilator, it used by 55 percent.
Speaker Change #125: [inaudible]
Speaker Change #125: and now we are reserved for a more than 70 times with a 200 minutes in scale and the way it is that that business model will continue and the way it is serveable and more customers.
Speaker Change #125: and now you have to say comes with about 15 percent of the cost.
Speaker Change #126: Thank you.
Speaker Change #126: [inaudible]
Speaker Change #127: Hi, thanks for taking my questions.
Speaker Change #128: and I have three actually, if I may. Let me start with the first question. Could you provide some more details on one more once, plans for building youth fulfillment centers in the second of the year?
Speaker Change #129: How do you send us these plans to wear it and where will I be located?
Speaker Change #129: OK, this is Maria Diartich. You want me to take your question first, OK? The Fukuiang fan is? Yeah. OK.
Speaker Change #130: County, we have already launched 11th of women's standards across the country.
Speaker Change #131: and as you mentioned about future plans by sharing in the second half of the year. Actually, in the next quarters, we will expedite our process of setting up those social movements standards.
Speaker Change #131: [inaudible]
Speaker Change #131: and we will work with local partners to set up JD's performance standards and also franchise performance standards.
Speaker Change #132: So far, besides the 11th, besides the 11th at C-World, they have. There are 7 new ones already in a pre-opening process.
Speaker Change #133: like you know warehouse decoration, suction, system passing, even for any in-bound logistics project.
Lee: Lee, 7th of November, located in a Paris province including Guangdong, Shandong, Kuebei, Xinjiang, Wubei.
Lee: Hong Nan and Chongqing.
Leigh: Leigh Target to open, I think, from September.
Speaker Change #136: to popry the vendor, the vendor, yeah, in the next 3 format.
Speaker Change #136: Li Stevan, Junling Senza, will be open.
Speaker Change #137: and design this 7 which already almost ready for launch. They are more new to the machine that is not pipeline. Most of them are in North East or South West of China.
Speaker Change #138: and we believe that the staff of this human family, we will be able to provide a much better selection and better tribes and also at the SLA, as well as customers across the country's country in the sub-PSD.
Robert: Robert, I have a second question. Strengthening partnerships is one of the company's key load stretches. So could you share some updates on new partnerships with pharmaceutical companies?
Robert: Yes, we have already set up the direct social relationships with more than 400 pharmaceutical companies, which brings the rapid growth of our central purchase business.
Speaker Change #140: I think your question is more and more than that, you know, besides the simple buyer and seller model, we are doing a full process and to help leave pharmaceutical companies on.
Speaker Change #140: I think you know Mark Wu had a better day
Speaker Change #141: For example, we launch an ecosystem with clockwise panic scope.
Speaker Change #141: or a crisis, a visualization of distribution data across and networks of more than 20,000 pharmacies, those at the end point, natural life.
Speaker Change #142: Besides those distribution status, it also visualized the dynamics, consumer and sales status, and also the sales price, which those are some two-thirds companies, which will be very interested.
Eva Overs: and Eva Overs, a market, and the future analysis, and many sort of both provinces and 6th, 15th, 15th, 15th.
Eva Overs: [inaudible]
Winnie: for Winnie.
Speaker Change #145: Panic group and other digital tours.
Speaker Change #146: We are confident to go to strengthen our strategic partnership with some of the social companies, which has the nation from a traditional, multi-tiered distribution and a traditional, multi-room model.
Robert: Thank you, Robert.
Speaker Change #147: Thank you, and I have a final question, obviously digital technology is at the core of your business model, so couldn't you discuss the progress you've made in digital technology in the second quarter and also particularly focus on the application of AI technology in your platform.
Speaker Change #148: OK, thank you, Robert.
Speaker Change #149: He checks not the head-on in our court conference, and I've made a written investment in it, and also I have achieved...
Speaker Change #150: I don't think that's in very far. I can be mention to you a few and let me just...
Speaker Change #151: and the United States, the United States of New Zealand.
Speaker Change #152: The first one about the baby system, so we have a merchant platform, but our merchant is to be on the platform, but we provide them that also may be eating, giving them the pricing that or intelligent pricing.
Speaker Change #152: [inaudible]
Liu: Liu will go towards this puppet.
Speaker Change #153: We found that the food and this food system that the total conversion rate, as he pulls from the size of 278 per time, now we need to reach higher, 30 per per time.
Speaker Change #154: I speak in.
Speaker Change #155: and we also use various optimization modeling and algorithms for authorized hours of hiking.
Speaker Change #156: In the information that we offer my picking path, we offer my order.
Speaker Change #156: and the older mixing for the time to make shopping and the retirement, but we have induced the cost of picking by 15 percent and the retirement cost is by 11 percent.
Speaker Change #157: and also let me mention about the AI technology, how we apply.
Speaker Change #158: is a year ago when you launched.
Speaker Change #158: I'm Shun Hai, there is change.
Speaker Change #159: I'm a medical data for medicine and we'll have extended our technology to my home to pro-class.
Speaker Change #159: and one that is for mental-to-life database, the other is for health-applied database that we use.
Liu: Liu, the AI technology heavy in that algorithm for matching products, for increasing the efficiency. In fact, we increase the matching rate and accuracy by 60 percent.
Junling Liu: and Junling Liu.
Speaker Change #160: Yes, thank you very much, that's very great, and we love these blows, so I will jump back on the line.
Speaker Change #160: [inaudible]
Speaker Change #161: You are next question, come to a Michael now with an individual investor.
Speaker Change #161: and Yang Chen, Junling Liu, and Yang Chen
Speaker Change #162: Thanks for sharing, I have two craftsmen.
Speaker Change #163: First, there's a home-made new pension used to cure residentally, home-made tenants, this dual-component current today having total.
Speaker Change #164: The second impression is how many private labor products this new company have understood and where you folks are accelerating your private labor business here. Please provide more detail on how the company plans to achieve this. Thank you.
Yang Chen: Yang Chen, you have sent me a letter about a patent question. So, Junimation, that's a large quarter of a loan we acquired of a whole patent.
Speaker Change #166: and now we have a total 28 page.
Speaker Change #167: and this actually answered the question, part of what's rubber is for him.
Speaker Change #167: [inaudible]
Speaker Change #168: or lead to application AI technology. For example, we'll first use the...
Speaker Change #169: Voice recognition combined with large language models to improve our voice services for our customers and for our sales training, so that's what I'm having. Also, I have a pattern for voice.
Speaker Change #170: for the day to start with the three of us, based on the picture of the...
Netson: the Barsby University there. The system will recognize what Netson is, it is. So that uses quite some AI technology for large data with our fifth data.
Netson: [inaudible]
Michael Boyle: and Michael Boyle.
Michael Boyle: in the second part of the training at the time later.
Michael Boyle: Currently, I know they are about 200 final label HQU registered and launched in 111.
Michael Boyle: and we have a couple of a brand, one dollar for our chance or customers.
Huang Xiaolong: Huang Xiaolong, who is a lawyer, all of us, is for our individual staff and many of us, it's for us.
Speaker Change #174: That's a refufflement.
Speaker Change #174: In the past year have been well accepted by our long-term pharmacy customers.
Speaker Change #175: and they are now as well-thought-in.
Speaker Change #176: There is somebody across the country, including very, very remote areas like Xi Tang or Xinjiang.
Speaker Change #176: [inaudible]
Speaker Change #176: and we all know for all those.
Chen: Chen, so almost the top PA, a private label product has seen a very important margin contributor and also revenue contributor of their sales.
Chen: and which we can find in our financial report.
Chen: But for our customers, we are mainly small or medium-sized or even individual stores.
Lei: Lei don't have the capability to establish their own friends.
Speaker Change #179: So, all of the brand like Guangzhou or Guangzhou, we all become a very attractive solution for them to differentiate with North and South, and also to differentiate with those big K.A. Chen's all.
Speaker Change #179: Welcome to Conclusion, I'm Lai Wong for that.
Speaker Change #179: [inaudible]
Liu: Liu, we were continuing our investment, and I read a mention, you know, we were seeing more and more products in OTP, I, you know, and even Chinese methods. Thank you.
Liu: [inaudible]
Speaker Change #180: In closing, on behalf of 41 months management team, we'd like to thank you for your interest and participation in today's column.
Speaker Change #180: [inaudible]
Speaker Change #181: Thank you for joining us on the call today. This concludes the call.
Speaker Change #181: [inaudible]
Liu Liu: [inaudible] Liu Liu
Liu Liu: [inaudible] Liu,
Liu Liu: [inaudible] Liu
Liu Liu: [inaudible]
Liu Liu: Episode 2
Liu Liu: [inaudible]
Speaker Change #183: Hello everyone, and thank you for joining one-one-one's conference call today.
Speaker Change #184: On the call today from the company, a doctor's gang, you, co-founder and executive chairman, Mr. Junling Liu, co-founder, chairman and CEO, Mr. Luke Chen, CFO of 111 major subsidiary, and Mr. Harvey Wang, CLO.
Speaker Change #184: As a reminder, today's conference goes being broadcast live by a webcast.
Speaker Change #184: The company's earnings pass release was distributed earlier today, and together with the earnings presentation are available on the company's Iowa site.
Speaker Change #185: Board of the Comments called it started, not in your mind, do that this call, make it in forward looking statements, made under the same part of provisions as the private security interrogation of the format of 1995.
Speaker Change #186: Sets statements are based upon management's current expectations and current market and operating conditions and right to invent that involve unknown and unknown risks and then certainties and other factors, all of which would cause actual results to differ materially.
Speaker Change #186: for more information about these risks, please refer to the company's borrowing with the FET.
Speaker Change #186: 1-1, does not undertake any obligation to update in for the key statements as a result of new explanation. Future events are otherwise accepted required under applicable law.
Speaker Change #187: Please note that all numbers are in R&D and all comparisons refer to year-to-year comparisons, unless otherwise taken. Please also refer to the earnings cost release or detailed information of the Comparative Financial Performance on a year-of-year basis.
Renling Liu: I will turn the color to 111 CEO Mrs. Renling Liu.
Renling Liu: Good morning and good evening everyone. Thank you for joining our second quarter to the 24 earnings call.
Renling Liu: The information will be discussed and is also available in the slide posted earlier today on the Comparison website.
Renling Liu: and College Groups at Downloads the Presentation as well as the Endings report from our Investigation Speczai at IRBuff111.com.phm.
Renling Liu: [inaudible]
Speaker Change #189: That's our performance in the Quarter, the pleasedatory Quarter that led to operational profitability for the second consecutive Quarter, which was driven by our ongoing improvements in operational efficiency that overroads challenges in the micro-economic environment.
Speaker Change #190: In today's call, I will discuss the current Michael Immanment, Highlight the opportunity to head and present our key financial achievement.
Speaker Change #190: and also cover how we are leveraging new technologies to enhance operations with the person's milestones and our efforts on the supply side.
Henry Puyler: Banerui, by the time our outline, our future growth is spent here, before Henry Puyler at 12th therefore Mr. Luke Chen, who will provide a detailed analysis of our financial performance.
Speaker Change #192: First, China's complex economic situation is impacting many industries, and the healthcare is not immune.
Speaker Change #192: and Linus, is pumpkin and district picklates to explore innovative models for later development.
Speaker Change #192: and the United States, despite all of how conditions there are positive trends in the healthcare industry that prevents valuable opportunities.
Speaker Change #192: The National MC corruption campaign in the healthcare sector initiated in May 2023 is intensifying this year.
Speaker Change #193: Liu's development indicates a border and more comprehensive approach, lead the regulatory and ethical oversight, now part of the country's entire industry changing.
Yang: Yang, anticipate that this irregular scrutiny will evolve into a long-term process for greater transparency and integrity in health care transactions, particularly in hospital procurement.
Speaker Change #195: The key outcome of this campaign is the acceleration of positioning gut sales and the prescriptions to repair promises, which offer a more accessible and the transparent alternative to the traditional hospital system.
Speaker Change #195: is the secret strongly encouraged by the state.
Speaker Change #196: In the out-of-hustle pharmaceutical markets, they are well positioned to capitalize on the significant growth opportunities that this shift brings over the long term. Along with the expected continued expansion of way to a pharmacy store across China.
Speaker Change #197: I offering a comprehensive and cost-efficient product range, coupled with an ongoing range commitment to customer experience, we aim to boost market share in this sector where challenges and opportunities coexist.
Speaker Change #197: In parallel, the digital transformation of the healthcare value chain is continuing to gain momentum.
Speaker Change #197: The program is supported by strong initiatives for the industry's high quality development. In June, China's State Council issued key parks for the pandemic for deepening medical and health system reform in 2022.
Speaker Change #197: The focus is on integrated development and its governance of medical insurance, health care and pharmaceuticals while highlighting the critical role of information technology and digitization in driving these reforms.
Speaker Change #198: I believe that in this digital revolution, we have dedicated to transforming the industry through our fully-evalized operating system.
Speaker Change #199: by providing both of the upstream and the downstream customers with advanced digital technologies which enable them to further cut operating costs and increase efficiency.
Speaker Change #200: Our Captain had scheduled solutions enhanced every aspect of operations from sales and the procurement to customer demand analysis product inventory management and warehouse allocation.
Speaker Change #200: The meaningful progress we made earlier this year have persisted into cute things. On the scoring, our ongoing success in digitization.
Speaker Change #201: As the four mentions, even with these macro economic challenges, we generated process from operations for two consecutive quarters, reflecting the effectiveness of our growth strategies and a business model.
Speaker Change #201: In the second quarter, our income from operations reached 3.3 million RMB compared with a loss from operations of 41.4 million RMB a year ago.
Nung Dao: Nung Dao income from operations was 8.5 million RMB compared with Nung Dao loss from operations of 17.2 million RMB in the same quarter of last year.
Nung Dao: [inaudible]
Nung Dao: The profitability is primarily driven by ongoing improvement in operational efficiency, supported by consistent enhancements across nearly all business functions.
Speaker Change #203: In the second quote, total operating expenses are counted for 6% of natural revenues that re-creased a hundred and twenty basis points from the previous year.
Speaker Change #204: Pacific Lake, is made a significant reduction in various extensive categories.
Speaker Change #204: If managed to cut fulfilment expenses to 2.6% of the metravenants during the process down from 2.7% a year earlier.
Speaker Change #204: reflecting a decrease in fulfilling costs by 7.3%.
Speaker Change #204: and administrative expenses fell to 0.5% of that revenue from 1.1% a year ago.
Speaker Change #204: 2.3% as a percentage of natural evidence from 2.6% in the previous year.
Speaker Change #205: K. Molligreek Specialist was 0.5% of that residence as well, down from 0.7% of the year ago.
Speaker Change #205: Excluding shared this compensation, operating expenses as a percentage of a matter of a new, throughout the 70-bit response to 5.5%
Speaker Change #205: are operating cash floor in the positive of the second consecutive quarter.
Speaker Change #206: Our operational efficiency stands for strategic investments in infrastructure and an optimal staffing allocation with the focus on key areas that drive alongside sustainable growth.
Speaker Change #207: Over the years, we've developed highly sophisticated, beautiful capabilities that allow us to deliver exceptional value and performance to our customers while significantly reducing both technology and stopping expenses.
Speaker Change #207: We have always aimed to become the most efficient healthcare e-commerce operator in the industry.
Speaker Change #208: is five hour relatively small revenue, we've already achieved a level of operational efficiency that can compete against the summer with the more established players.
Speaker Change #209: The Committee for Settling and Indicate Lunch Mark for Efficiency, Lawson and Painting, and Improving Profitability.
Liu Liu: Liu, as we grow and we find our operations, we expect further reductions in operating costs, driving even higher efficiency.
Liu Liu: Our commitment to this goal is our way of playing. As we believe, it will be a key competitive advantage on how fast the build a unique business knows.
Speaker Change #210: and also invest those savings from increased efficiency into others strategic areas such as innovation, market expansion and the customer engagement to support future growth.
Speaker Change #210: Next, let's move to how we adopt the new technology approaches to drive significant improvements across various operational factors.
Speaker Change #210: Continuous technology investment is a cornerstone of our strategy, enabling us to be at a more resilient, efficient, and customer-centric business, pours the full grateful returns in the future.
Speaker Change #210: in the Revolving Healthcare Economist Industry.
Speaker Change #210: Liu, first with develop merchant bidding tools and an automated operating system and integrated approximately 3,000 by 5,000 data to deliver intelligent merchant pricing.
Speaker Change #210: It has not only ring-posts to one-one-one value proposition in the low-cost, but also enhance the procurement efficiency.
Nutsby Lee: Nutsby Lee, without the employing investment promotion platform, the building subsidy campaign, as the core operational strategies, the procurement conversion rate has risen to a historical high of over 32 percent.
Speaker Change #212: This has a significant rate improved customer satisfaction and belongs in loyalty, which are crucial, the systemic growth.
Speaker Change #213: Second, our supply chain procurement has seen remarkable improvements in cost reduction and efficiency management through technology improvement enhancements.
Speaker Change #214: The optimization of algorithms has led to a multiple 11% increase in overall efficiency in warehouse shelving and replenishment and is strategic adjustment in automatic groupings have reduced victim parts by 15%.
Speaker Change #215: said that this thing will not be sufficient to.
Speaker Change #215: Additionally, the implementation of a digital logistics network, the last mile delivery, has caught the speaking cost by over 5% on scoring our commitment to operational excellence.
Speaker Change #216: The application of AI in product management has significantly elevated the accuracy and efficiency by offering not only pharmaceutical products, but also in medical devices and in the health supplement products.
Speaker Change #216: The creation of comprehensive databases on the development of sophisticated, incomplete recognition and similar to models have doubled the matching rate.
Speaker Change #216: [inaudible]
Speaker Change #216: We are dedicated to consistently and continuously advance and operate our technological capabilities.
Speaker Change #216: Liqif position us as an industry leader in operational efficiency, cost reduction and customer satisfaction.
Speaker Change #217: Police to announce the acquisition of the former patents, blaming our total to 28.
Speaker Change #218: Among these, it's been mentioned patterned for a message.
Liu Liu: Liu, the product and female resource demand and personnel scheduling system, which offers accurate predictions on the intelligent scheduling, significantly enhancing the child management efficiency and supporting informed decision-making.
Speaker Change #219: This knowledge is the cure of grateful patterns from that to anti-challel method, and its system based on the information of categories.
Speaker Change #220: This technology post is our data protection efforts, reducing the risk of which it's your own operational costs and improving overall efficiency through automatic comfort measures.
Speaker Change #220: We also attend two more invention patents.
Speaker Change #221: in Guacupac, the people in that boat and the system based on principle, components, that the spectral angular distance, and the system that contains in quite low-panelting, is some dual-hour booting granularity.
Speaker Change #222: This beautiful technology and levations serve improve our operational efficiency in forcing our pursuit of quality and growth.
Speaker Change #222: [inaudible]
Speaker Change #223: Furthermore, they continued to strengthen the supply side in the second quarter.
Speaker Change #224: First, our Transcimate Model, Quimpong, had the streamlined logistics and reduced transportation costs, delivering robust progress.
Speaker Change #224: by consolidating treatments to one by a half before intelligent distribution.
Speaker Change #224: [inaudible]
Speaker Change #224: is also added to the external supply chain showcasing our commitment to leveraging digital technology to empower the sector.
Speaker Change #225: is particularly cost-effective for penetrating remote regions of China and will now offer the surface, and I will offer the surface to merchants for a separate fee.
Speaker Change #225: In the second quarter, we established a medical network across five major fulfillment countries.
Speaker Change #225: He's China, San Fu China, South China, North China, and the South Best China. So, a truck plus branch delivery model.
Speaker Change #225: This is taking the way for national component pharmaceutical logistics network, ensuring efficient last mile delivery in the supply fence areas with full control of the supply chain.
Speaker Change #226: Hong Kong will now offer its country-to-run transportation routes.
Speaker Change #226: and the first mile warehouse and services, servicing 72 external clients of 15% from the 37.21.
Speaker Change #226: The network supports a business scale of over two hundred million modern data, and I had the team total costate and was supposed to point nine to five million modern data today.
Quim Puang: Quim Puang is positioning from a cost center to a profit center, enabling the external supply chains by providing professional pharmaceutical logistics and distribution services to upstream and downstream partners.
Speaker Change #228: Lates have helped clients reduce cost by the existing percent.
Speaker Change #229: is also a graphic industry 10 point, like Mix the Club of Hamilton, High Damage Race, and Immigration, Extractance Processes, with a 55% reduction in delivery of damage rates.
Speaker Change #229: This improves our service quality and enhances our customer engagement, solidifying our world as a key in labor in a pharmaceutical supply chain.
Speaker Change #229: [inaudible]
Speaker Change #230: We'd be expansion of the component logistics network and the last mile delivered facilities delivery expenses decreased.
Speaker Change #230: [inaudible]
MoRolo: MoRolo, to support future growth and advance our strategy for the nationwide control logistics network, we plan to add two multi-vivo humans in a third quarter, bringing the portal to 13.
MoRolo: This expansion includes a second center in Wuhan and a new center in Wuhan and will of the tea acidity in the north-west.
MoRolo: The expected expansion of our fulfillment sentences will enhance our logistics network and pull the service across diverse regions, reduce delivery times, and increase overall efficiency.
Speaker Change #232: I'll surprise that our goods are also very much fitted in our expanded cooperation.
Speaker Change #232: [inaudible]
Speaker Change #233: First, in the second quarter, we intercept into a strategic direct supply partnership with comprehensive pharmaceutical enterprise, Beijing, Syrian and pharmaceutical to enhance nationwide drug accessibility and distribution, particularly for Syrian flagship products like Syrian and Holy acid tablets.
Speaker Change #234: The partnership is based on our existing collaboration since 2017, utilizing big data, digital marketing, and a cloud service is to help soaring medications and a technical and serulated product which have bothered market more efficiently.
Speaker Change #234: [inaudible]
Speaker Change #234: Liu, the deputy of Vipalines is to foster innovative collaboration and address market challenges to joint efforts.
Speaker Change #235: The partnership aims to build a comprehensive, high level and a fantastic art network by focusing on products with distinctive features such as exclusivity, London commitments, traditional challenges, medicine and insurance coverage.
Speaker Change #235: This initiative highlights one-one commitment to expanding its partnership network on a broader scale.
Speaker Change #236: Finally, let us dive into our strategies for growth in the revenue, margin and the profit.
Speaker Change #237: Our core strategy is to provide highly efficient, cost-effective, once-of-a-fuck-and-experience that aggressive customer needs and solidify our competitive position.
Speaker Change #238: by Huntington Big Dynamics and a Notty Research, we can find Junling our product portfolio to match customer's preferences while prioritizing low prices to intelligent digital tools.
Speaker Change #239: and I will continue to strengthen our partnership network with pharmaceutical companies.
Speaker Change #239: by expanding cooperation, we plan to broaden our extensive medicine offerings on our beautifully technology and powerful driving shared growth for enhanced affairs, especially in lower tier cities.
Luke Chen: Hello, my name is Luke Chen, I am a medical marketing network, play the pivotal role in this faculty, providing a robust platform to highlight our partners' products.
Luke Chen: [inaudible]
Speaker Change #241: This is strategic expansion of our partnership in that work, not only benefits our pharmaceutical partners, but also strengthens our position as a leading e-commerce platform in the pharmaceutical sector, which is a foundation for sustaining the long-term growth.
Speaker Change #242: As we drive high, I say the mountains and optimize our product offerings with a speed of positive impact on our overall profitability.
Speaker Change #243: is our private labor business, which generates please no results.
Speaker Change #244: is given by increasing demand from customers. It's run on a year since the 35% from the previous year in the first half.
Speaker Change #245: This run of business featuring three brands offers customers by about this range of products, where it's the company enjoy the healthy grocery margin of 29%.
Speaker Change #245: is also a release of dynamic retreat and it builds up on the cross.
Speaker Change #245: [inaudible]
Mo Rover: Mo Rover will expedite our investment in the KVP platform.
Mo Rover: This innovative model has been increasingly attracting new partners, and significantly expanding our product line-up, highlighting its compelling value proposition and effected this in Beijing various stakeholders.
Mo Rover: by including the platform to better meet the needs of our partners and expand the needs reach within the Pacific, of broader and more diverse partners, leading to increased product offerings and save the opportunity.
Junling Liu: and Junling Liu, who has been continuing to refine and escape the platform with the leaves of the strength and our competitive position, and it become a critical catalyst to
Speaker Change #247: Office of Emergency is simple to our strategy, and we permit it to invest in in cutting-edge technologies to streamline processes, minimize waste and hourly productivity.
Speaker Change #248: and the fifth on the AI Engelations and the big evaluation is crucial.
Speaker Change #248: in bedding AI and fully digitized, and fully digitized, digitized in throughout our operations within the regenerative and greater operational efficiency, enhanced customer engagement and a host of new products and services.
Speaker Change #249: Hello, we are Conference. We, that said, will soon be missed. Our market leadership, as well as we know it's our good option of this.
Speaker Change #249: This conversation is important to our future, and it is about our industry-leading operational efficiency.
Speaker Change #249: with our internal operating system being 100% digital, which not only improved our financial performance but also established as a transformative force to relate the entire industry.
Speaker Change #249: Our technological ecosystem extends beyond our operations throughout both upstream and downstream customers with access to our benefits, digital tools and expertise.
Speaker Change #250: Looking ahead, we believe our continued focus on digitization will maintain our competitive edge on the market leadership, enabling us to achieve higher level and profit levels.
Luke Chen: Good night, our hands are called to miss the Luke Chen to walk through the hall and enjoy results. Thank you.
Speaker Change #251: and Good Morning, are you any everyone?
Speaker Change #252: and moving to the financials.
Speaker Change #253: My prepared remarks will focus on a few key business and a financial highlight.
Speaker Change #254: The details are set in four to twenty four minutes before themselves, please repeat to slide 17 to 14 to be Section 2 of our presentations. Again, all comparisons are available here, and all numbers are in mind the unless otherwise stated.
Speaker Change #254: Let's start with the second order results.
Speaker Change #255: President, total net revenues will iron B-6.4 billion and a cost segment project was iron B-277.6 million, we are actively flat compared to the same order last year.
Speaker Change #255: and the report of the increase of 18-1% to 24-4-0.3 million. If the percentage of net revenue total operating expenses for the quarter was down to 6% down 7-2%. That's what continue to enhance our operating knowledge and optimize our operating efficiency.
Speaker Change #256: 2.3% is a percentage of net land for the quarter, the downturn is 2.6% from 2.7% in the same quarter of last year.
Liu Liu: Liu, the marketing firm is at the percentage of net revenue for the quarter year, it's 2.3% down from 2.6% in the same product last year.
Liu Liu: The general and the administrative expenses accounted for years on 5% of net revenue is now from 1% in the same color last year.
Liu Liu: Technology strength is amounted to zero from 5% on that value, down from 0% to 7% in the same color of last year.
Speaker Change #257: Liu, who is a result, think of the operations where I am receiving points 3 million compared to last operations of I am reporting one point 4 million in a same kind of last year.
Speaker Change #257: and then get into the operations that I am the eight-point time limit compared to being get lost for operations of I am the seven-point two-minute in a same put-up last year.
Speaker Change #257: [inaudible]
Speaker Change #258: As a percentage in that round, we will then get in there last, which you feel is the two other shareholders decrease to a year from 3% in the quarter from year to 9% in a single quarter last year.
Speaker Change #259: As you can see, we're improving our financial performance, quarter by quarter, and maintain our regional possibilities for the second concerted quarter.
Speaker Change #260: 3, 3, 3, 5, 21 to 25 of the panic section for selected financial statements.
Speaker Change #261: A quick note on our test position as of June 30, 2004, being had a cash and cash equivalent, in the city cash in the shortening investment of IMB615.5 million.
Speaker Change #261: and we are pleased to report the positive opportunity to schedule a two consecutive quarters.
Speaker Change #261: As I thought the date of this early release, the company had a total of spending a month or I am the one-on-one billion, which has the included in the balance of the between the world and the controlling interests and the increased expenses and other livelihoods, cause of legalities.
Speaker Change #262: According to a group of investors or one pharmacy technology, we see them through their equity investment made in 2020 as previously proposed.
Speaker Change #262: and the state of discerning the leaves, we have received the denture press from certain of such ambassadors for a total redemption amount of little contributed in their copies with the terms of their initial investment in one pharmacy technology.
Junling Liu: and Junling Liu, the company has ends in two different demons and our communal ladders with the masses, representing the majority of the total in telling a mark.
Junling Liu: Liu, continue the English Aiding with this English English Baptist to you.
Song Nang: Song Nang, R.T.E.
Song Nang: [inaudible]
Speaker Change #264: This concludes our prepared remarks. Thank you. Operator, we are now ready to begin the Q&A session.
Speaker Change #265: Please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you want to speak your phone, please pick up the handset to ask your question. Your first question comes from Zaytang, thanks for watching.
Shifeng Bram: Hi, this is Shifeng Bram, Tennessee and thank you for taking my question from congratulations on the COVID-19 program. Well, I have two questions about financials. The first one is, I see that the OPEX ratio in the second quarter decreased.
Shifeng Bram: Compaired to that of the second-quartering 2023, so what's your guidance on the extensive ratio in the long launch?
Shifeng Bram: and my lesson question is, well, we noticed that the company achieved updating profit in the second quarter. So, I just wanted what's the driver behind the results and what's required them for my profit for the year?
Shifeng Bram: [inaudible]
Luke Chen: [inaudible] I'm Luke Chen.
Speaker Change #267: Yes, let me ask the question first, with regards to the O-PACs.
Speaker Change #268: Liu, you know, how we run a main operation, first of all we have an in-house developed operating system which comprises dozens and dozens of other systems.
Speaker Change #268: [inaudible]
Speaker Change #268: [inaudible]
Speaker Change #269: The call-off relation is transparent and the real time data is available, we can make decisions and the customers faster.
Speaker Change #270: Continuous optimization of operations may have changed and operational efficiency, and that can match some of the developed habits to join in the industry.
Speaker Change #271: and I can perhaps though to think that we have failed hundreds of billions and I'll reckon we would still relatively small at 15 billion last year.
Speaker Change #272: We have a big work pipeline. We can further scale down our operational expenditure. We are very confident in that.
Speaker Change #272: [inaudible]
Speaker Change #272: I will read regards to your second question on how we grow into profitability. It's really, you know, like what I said in the festival of operational efficiency is our core confidence.
Speaker Change #272: and our principle is to provide customers with the richest selection, with the compacting success and its big services.
Speaker Change #273: and also moving to the future, they will continue to invest to build a bigger supply base.
Junling Liu: and Junling Liu, who are the first to ensure that time, I'll probably have a certain meat customer needs.
Junling Liu: and of course, one of the post-factions this year is not that we're going to relentlessly pursue competitive processing.
Li Stevan: Li, this will provide custom loyalty. This will provide more and more customers. This will really increase our food.
Li Stevan: [inaudible]
Speaker Change #275: Thank you.
Speaker Change #276: Liu, your next question comes from Zoe B and Good City.
Amanda: Hello, thank you, Amanda. We'll take you on our caption and we'll be very soon. We'll be very soon. We'll be very soon.
Amanda: [inaudible]
Speaker Change #278: I've given that the offline pharmacy has a operating infrastructure this year. I want to know, in case the overall customer demand is increasing poverty, please, there are counter-traumatic rates and to the pharmacy clients. And the second question is, if your kind of strategy is due, trying to improve poverty, the revenue growth.
Mr. O'Quatchen: and Mr. O'Quatchen is how the retail price, the retail drop price, comparison quality.
Fact One: of Fact One, one's location, thank you.
Fact One: Right, so, Zoe, hi, you're in line with that.
Liu Liu: Liu, you know, not very clear. If I hold you correctly, I mean, just to repeat the question first, you know, like, you were saying that the offline families are on the pressure and how we can improve our penetration rate.
Speaker Change #281: Second question is, is a profit, the biggest priority for the company, and the third is how did it deal with the price comparisons from pharmaceuticals to the Kimming team?
Speaker Change #281: [inaudible]
Speaker Change #281: Watch.
Speaker Change #282: So if I think the questions, let me just address them one by one. First of all, we anticipate that in the short term, our aim customers will experience some challenges and either the hard to maintain the same soil sales as in the past. However, this represents a big opportunity for one online, so help those pharmacists to overcome the challenges.
Speaker Change #282: When we know how power it is, it can be controlled with the focusing on profitability. In the meantime, we are optimizing our selection to ensure that our offerings can lead our customers' demand.
Speaker Change #282: and a lot of efforts have been made on the supply site and it is made at tremendous progress on providing the richest selection for our customers to make it a lunchbox shop. We believe that shopping experience is crucial, especially for the smoking medium change.
Speaker Change #283: and this way they can continue to grow our knowledge here.
Speaker Change #284: and I'll add for the price comparisons.
Speaker Change #285: We have always anticipated the fact that a more and more customers are going to monitor platforms to compare classes before the place the order is here, they've made low prices as they will be the actual strategy operationally, we always believe that the latest wind is not in the market, they've still, you know, offer the greatest selection with low prices.
Speaker Change #286: Let me also add, although the industry is on the pressure, if you look around, this is one of the broad industries as more and more stores are dependent.
Speaker Change #287: The recent beta shows that the overall number of promises had reached to 700,000. In a last year, it was still in a 500-some states' strength. This is the jet that is in the right industry.
Speaker Change #287: I leave more stores open up and now they have more opportunities to service them.
Speaker Change #288: and with the recent entry corruption campaign going on, they also anticipate that the growth from the hospital block series with peak and a more and more medicines will be solved through our line and offline pharmacies in the long term.
Speaker Change #289: and the Bachelor of Law and Law and Law and Law is bell position to face adventure jobs.
Speaker Change #289: [inaudible]
Speaker Change #290: Thank you for taking my question. This is Jesse from HSBC and congratulations on another follow-up quote I have two questions. A the first one is on financials we saw that the net cash generated by operating activity was nearly on the 100 million in this quarter. So, can you help us understand the key factors that help you contribute to this?
Speaker Change #290: The second question is on your Quim Pong Logistic Model. We saw that not only it helps the company who reduced cost and improved efficiency, it also empowers industry train. Can management share more color and update on the development of the system? Thank you.
Speaker Change #290: [inaudible]
Speaker Change #291: and how it's going to be the sweet Luke.
Liu Liu: Liu, let's go!
Speaker Change #292: I mean, let's see a first question.
Speaker Change #293: Yes, all these objects are filled with order which is very clear is to prop it and achieve positive operating catch flow. So we have been very...
Speaker Change #294: Careful to improve our working capitals, specifically our town to payable to nullivate and our inventory to nullivate.
Speaker Change #294: If you compare our country's sea level balance, an image of balance between June 30 and March end, and you will see clearly that we made improvements.
Speaker Change #294: I've recently also introduced the supply chain finance sponsored party to our customers.
Speaker Change #295: and the United States, the United States, and the United States, and the United States,
Speaker Change #296: to us for purchase of drugs.
Speaker Change #296: [inaudible]
Speaker Change #297: I'm a win for the pharmacy which you may get a fine anything to make purchase of the necessary gut, the win for this set of party finance institution in a day to get customers and my win for us is also a payment illegally when they do the purchase.
Speaker Change #298: I'm moving forward, we will continue to pay protection on all the working capital items. I specifically said the UN and trees, the turnovers that comes to the sea with turnovers, as well as that kind of comfortable turnovers.
Speaker Change #299: and we are confident that we will continue to see how this is going to catch one overcast building the coming quarters.
Speaker Change #300: OK, let me just be very take the control project question.
Speaker Change #300: and this project.
Speaker Change #301: So basically, we optimize our allocation of products, of course, all our coaching centers.
Speaker Change #301: We have now 30 full 30 centers.
Speaker Change #302: I'm the nation.
Speaker Change #302: and that's why I've put the right product in the right fulfillment sensors to both get closer to the customer. I think I have to minimize the transportation order, ultimately cost.
Speaker Change #302: So, I believe that we have to try and shift from workhouse to workhouse.
Speaker Change #302: So, we started by the development of our help for our health, the five major, our health.
Speaker Change #303: and we found that the Transhuman College in the past we rely on third-party logistics. We found that cost was high and the factory was very high. Then we stepped down.
Rao: Rao for the tournament.
Rao: and we found that, you know, the car we used to click into the ice cream tank, the denture is reduced by 55%.
Speaker Change #305: and that's what you've fetched all of the amount of major half-focusing measures and started 30 to our clients.
Speaker Change #305: and now we are reserved for a more than 70 years of time with a 200 years scale and the way it is that the business model will continue and the way it is able to serve both and more customers.
Speaker Change #305: and now we'll have say come with all 15 percent of the car.
Speaker Change #306: Thank you.
Speaker Change #306: [inaudible]
Speaker Change #306: You are next question, come join us. Robert Tassoon with Water Tower Research.
Robert Tassoon: Hi, thanks for taking my questions.
Robert Tassoon: and I have three actually, if I may. Let me start with the first question. Could you provide some more details on one of our plans for building youthful film incentives in the second half of the year?
Speaker Change #308: OK, you want me to take the question first, OK? The book you have done is, yeah, yeah, OK.
Speaker Change #309: Currently, we have already launched 11th of Women's Standards across the country.
Speaker Change #310: and as you mentioned about future plans by three in the second of the year, actually in the next quarters, we will expedite our process of setting up those social movements standards.
Liu Liu: Liu, who was the first to come back to a very new model.
Speaker Change #311: That is instead of building up a procurement center by first party model, and we will work with local partners to set up JD's procurement center and also franchise procurement center.
Speaker Change #312: So far, besides the 11th, besides the 11th, at C-World, they have. There are 7 new ones already in a pre-opening process.
Speaker Change #312: like in a warehouse decoration, functioning, and system passing, even for any in-bound logistics project.
Lee: Lee, 7th of June, stands on the page in a various province including Guangdong, Shandong, Kuebei, Xinjiang, Wubei.
Lee: Hunan and Chongqing.
Leigh: Leigh Target to open, I think, from September.
Leigh: to popry November, December, in the next 3 format.
Leigh: and Mr. Kevin, we'll be open.
Leigh: and P.C.E.7, which already almost ready for launch.
Leigh: Liu, the two-months in North Haigling, most of them are in North East or South West of China.
Speaker Change #313: and we believe that the staff of these students and us, we will be able to provide a much better selection and better tribes and also at the SOA, as well as customer across the country, especially in the sub-tier cities.
Robert Tassoon: Robert, I have a second question. Strengthening partnerships is one of the company's key growth strategies. Could you share some updates on new partnerships with pharmaceutical companies?
Robert Tassoon: We have already set up a direct talk to relationships with the moment 400 from a suitable company, which brings a very rapid growth of our central purchase business.
Speaker Change #314: I think your question is more and more than that, you know, besides the simple buyer and seller model, we are building a full process and to help these pharmaceutical companies all.
Liu Liu: Liu, you know my dream had developed here.
Speaker Change #315: For example, we launch an ecosystem with clockwise particles.
Speaker Change #316: for a crisis, a visualization of distribution of data across and network of more than 20,000 pharmacies, those end-point natural life.
Speaker Change #316: Designed the distribution status, it also visualized the dynamic consumer and sales status. And also the sales price, which those are some two-thirds companies, which are very interesting.
Speaker Change #316: and even over the market can feature analysis, and many people probably say it, and six can just ask it is.
Speaker Change #316: [inaudible]
Winnie: for Winnie.
Speaker Change #317: Hanip Gop and all the digital tours.
Speaker Change #318: We are confident to follow the trends in our strategy partnership with some of the sub-communities of the transformation from a traditional multi-tiered distribution to a digital marketing model.
mother: Thank you, mother.
Speaker Change #320: Thank you, and I have a final question, obviously digital technology is at the core of your business model, so couldn't you discuss the progress you've made in digital technology in the second quarter, and also particularly focus on the application of AI technology in your platform.
Robert Tassoon: OK, thank you, Robert.
Speaker Change #321: He's a smart, he had always seen our court conference, and I've made a written investment in it, and also I have achieved...
Speaker Change #322: I don't think that's in my response. Can you mention to you a few and let me just...
Speaker Change #323: has been a part of the meeting system. We have a version platform, but our version is to be on the platform, but we provide that ultimately the meeting of the meeting and the pricing that we're in.
Speaker Change #324: Hello and welcome to all of my there, there is total.
Speaker Change #324: Liu will go towards his puppet.
Speaker Change #325: We found that through the speaking system, that the total conversion rate has improved from May to July to 27,8 per time. Now, we need to reach higher than 30 per time.
Speaker Change #325: has taken.
Speaker Change #326: And we also use various optimization modeling algorithms for authorized hours by chance.
Speaker Change #327: in the nation that we've authorized kicking parts, we've authorized the order.
Speaker Change #327: and the older listening for the time to my shopping and the entertainment. We have reduced the cost of taking by 15 per cent. And the replacement cost is equivalent per cent.
Speaker Change #327: The year ago, we launched.
Speaker Change #327: and the services on Shanghai Daily Change.
Speaker Change #328: I'm a medical data, or medicine, and we have extended our technology to my home to go through our experience.
Speaker Change #328: and one, and it's for medical delight database, the others for health, for five database, that we use.
XI: Xi, I found it heavy in that algorithm for matching products, for increasing the efficiency. In fact, we increase the metric rate and accuracy by 60%.
XI: and Junling Liu, the answer to your question.
Junling Liu: Yes, thank you very much, that's very great, and a lot of details. So I will jump back on the line.
Speaker Change #330: Thanks for sharing, I have two craftsmen.
Speaker Change #331: First, there's a home-made new pension used to to resume home-in-a-tent this dual-company current today having total.
Speaker Change #332: The second impression is how many private labor products this new company have understood and where you folks are accelerating your private labor business here. Please provide more detail on how the company plans to achieve this. Thank you.
Yang Chen: Yang Chen, you are concerned about the patent question. So, Junimation that's not put along, we acquired a full patent.
Speaker Change #333: and now we have a total 28 patterns.
Speaker Change #334: and this actually answered the question, part of what Robert asked for.
Speaker Change #335: and General Speakers, or his parents.
Speaker Change #336: Old Lane's to application AI technology for example, with first we use the...
Speaker Change #337: Both recommendations combine with large, lengthy models.
Speaker Change #338: to improve our board services for our time and service and for our field training, so that's what I'm having. What do I have a pattern for the board?
Speaker Change #339: The former base dropped in treatment, based in a picture on the news of the...
Speaker Change #340: the Barthry, you know, the system will recognize what Netson it is. So, that uses quite some AI technology for large scale of our data.
Michael Boyle: and Michael Boyle.
Michael Boyle: Second part of the time later.
Speaker Change #341: Currently, I know they are about 200 final label HQU registered and launched in 111.
Speaker Change #341: and we have a couple of the brands, one dollar before our chance or customers.
Speaker Change #342: Huang Xiaolong Yao, who is a lawyer, former, is for our individual, so, and many years, it was a bad result in me.
Speaker Change #343: In the product, you know, in the past year have been well accepted by our long-term pharmacy customer.
Speaker Change #343: and they are now well-solving various pharmacy across the country, including very, very remote areas like Shitan or Xinjiang Soling.
Speaker Change #344: and there are more and more essayual in our pipeline including OTC, IX, Natural Establishment and also medical devices.
Speaker Change #344: and we all know for all those.
Speaker Change #344: is a very important margin contributor and also revenue contributor of their sales.
Speaker Change #344: and which we can find in our financial report.
Speaker Change #345: But for our customers, which are mainly small or medium-term, or even individual stores, they don't have the capability to establish their own brand.
Speaker Change #346: So, all of our friends like the Guangzhou, Guangzhou, we all become a very attractive solution for them to differentiate with our male competitors and also to differentiate with those big K.A. Chen's role.
Speaker Change #347: I'm Dr. Kanchu Li, I'm Dr. Lai Long, Kondak.
Speaker Change #347: [inaudible]
Speaker Change #348: Liu, we will continue our investment, and I read the mention, who are seeing more and more products in OTC, Iraq and even Chinese measures. Thank you.
Speaker Change #349: In closing, on behalf of the 41-month management team, we'd like to thank you for your interest and participation in today's call. If you're a higher further information or have any interest in visiting one-one-one's in Shanghai China, please let the company know. Thank you for joining us on the call today. This concludes the call.