11st, Q2 Deficit Widens "Strengthening Delivery and Overseas Products... Boosting Efforts in Second Half" (Comprehensive)

Q2 Operating Loss of 45 Billion KRW, Deficit Widens
Sales 141.8 Billion KRW... Slight Increase YoY
"Expanding Shooting Delivery & Strengthening Amazon Global Store Assortment"
"Aiming for Profit and Growth, Will Pursue 'Investment for Growth'"

[Asia Economy Reporter Yuri Kim] 11st announced on the 16th that its operating loss in the second quarter of this year widened to 45 billion KRW compared to the same period last year (operating loss of 14 billion KRW). During the same period, sales increased by 3% to 141.8 billion KRW.

11st explained that it is maintaining steady sales growth thanks to the expansion of the Shooting Delivery service focused on direct purchasing in the second quarter and strengthening the product selection of the Amazon Global Store. The increase in operating loss was attributed to higher marketing costs due to intensified competition, increased operating expenses including one-time fixed costs, and reflection of financial product valuation losses due to interest rate hikes.

11st emphasized that it strengthened competitiveness through investment in new growth engines and the introduction of differentiated services amid the tectonic shifts in the e-commerce market. As a result, it has recorded year-on-year sales growth for three consecutive quarters since the fourth quarter of last year. Sales in the first half of the year have also maintained an upward trend over the past three years.

According to Nielsen Korean Click, 11st's mobile application (app) monthly active users (MAU) in the second quarter averaged approximately 9.4 million, an increase of about 770,000 users (9%) compared to the same period last year. 11st's direct purchase-centered retail business grew by 35% compared to the first quarter.

The company expects that the strengthening of Shooting Delivery (next-day delivery for orders placed before midnight) started in June and the opening of the Apple Brand Store, where customers can receive genuine Apple products the next day, will be reflected, leading to full-scale business expansion in the second half of the year.

11st Amazon Global Store expanded its product selection tailored to domestic demand by adding new brands. Recently, it launched the 'Uju Pass Slim,' a subscription product specialized for the Amazon Global Store priced at 2,900 KRW per month, offering benefits such as overseas shipping.

11st plans to achieve balanced growth centered on this year's core business strategies and strategically proceed with 'investment for growth' to secure both profitability and growth, thereby enhancing its corporate value as a leading e-commerce company in the market.