Jessie Lu's questions to 111 (YI) leadership • Q3 2024
Question
Asked about the potential for further reduction in the operating expense to revenue ratio and the key drivers behind the improvement in gross profit margin despite flat revenue.
Answer
The company confirmed that OpEx will continue to be reduced through technology, smart staffing, and innovative business models like franchised fulfillment centers. The gross margin improvement is attributed to dynamic assortment and category management to favor more profitable products, and securing better deals from upstream pharmaceutical suppliers.