And also we are developing our OEM private-label products. For those product, the margin percentage is as high as 30% to 40%. And the third one is our digitalization part, our digital platform. For example, the Telescope, Junling just mentioned, provides a very comprehensive solution for pharmaceutical companies. And those services module help us to get more marketing dollars from those pharmaceutical companies. And last but not least, from the industry-wide and when I answered the previous question regarding growth, I talked about the revolution of our – the government strategy on medical services, the separation of medical treatment with – from the drug sales, these will bring actual sales to retail market from hospitals. While I believe not only in sales but also it will bring more marketing function to retail market, including patient education, DOT, etcetera.
And these marketing functions will be a very good profit for 111 as we already have the very strong capability of digital marketing through our B2C, our B2B, our S2B2C model. Thank you.
Unidentified Analyst: Thank you for your sharing, it’s clear and helpful. And one more question. How was the cash flow situation in the second quarter for the company and what is the current cash position? Thank you.
Junling Liu: Yes. On the cash position, first of all, we are very pleased to see that our non-GAAP operating loss further narrowed for the quarter to 0.5% of net revenue. But what does that mean, it means that we no longer need to burn cash to support our business. And if you look into deeper, this is a gain of good management on the working capitals, and we believe we are doing a good job and operating with high efficiency. Our accounts payable date is around 42 days to 45 days and our inventory days is about 25 days to 30 days, and our accounts receivable days is about 7 days, which give us like x days of working capital inflow. And while we further build up our business scale, we will be able to negotiate it in better trading terms with suppliers. As of June end, our cash and cash equivalent, restricted cash and short-term investments amounted to RMB736 million and we believe that we have sufficient cash reserves to support our business expansion. Thank you, Jada.
Unidentified Analyst: Thanks for the answer. We appreciate for your further performance. Thank you.
Junling Liu: Thank you.
Operator: The next question comes from Ethan Ling with Iron Harbor Capital. Please go ahead.
Ethan Ling: Hi. Ethan Ling from Iron Harbor Capital. First of all, thank you for having me Q&A section today. I have a few questions. First is, what are the company’s plans for its OEM products in the future?
HaihuiWang: Okay. OEM products, there are a couple of private label registered in 111. We have Quentn is for our chain store customers and also Quentn Zhangjiang is for our individual store customers. And also there are also some other dietary supplements, etcetera, we call it [indiscernible]. And by Q2 this year, we already launched 133 private-label SKUs. And also there are much more SKUs have been in our pipeline. Most of these products have been well affected by our customers. And as you know, a majority of our customers are individual stores or those small to medium chain stores, they don’t have the capability to establish their own brand. However, those – the top players, those Kaa, retail stores, every one of them has a very strong performance on their own private label.
So, that is a very strong demand from our customers following the private label. So, Zhangjiang [indiscernible] has become a very attractive solution for them for a very stable market and a very stable margin. Thank you.
Ethan Ling: Thank you for answering. And my next question is, what is the current progress for the company’s privatization?
Junling Liu: Yes. We understand the process of privatization is still ongoing. As you may be aware, on July 17th, the company announced the expansion of the Bayer’s Group. So, the special committee formed by three independent directors is now working with the Bayer Group on the privatization proposal. As a public company, we will – we shall make all necessary public announcements according to SEC disclosure rules.
Ethan Ling: Thank you. That’s all the questions I have today.
Operator: This concludes our question-and-answer session. In closing, on behalf of the entire 111 management team, I would like to thank you for your interest and participation in today’s call. If you require any further information or have any interest in visiting 111 in Shanghai, China, please let the company know. Thank you for joining us on the call today. This concludes the call. You may now disconnect.
