Jack Wang's questions to 111 (YI) leadership • Q1 2024
Question
Asked how the new joint venture warehouse model supports growth and about future plans for it, and whether the current sub-6% operational expense ratio is the industry's lowest and if it can be further improved.
Answer
The JV warehouse model accelerates expansion into remote provinces by partnering with local leaders, leveraging their existing assets for faster, more localized service and sourcing, with plans to expand the model in 2024. The sub-6% operating expense ratio is believed to be the best in the industry, a significant achievement given the company's smaller scale and low average order value compared to peers. The company is not satisfied with the status quo and believes there is still room for further optimization.