111, Inc. Announces Fourth Quarter and Fiscal Year 2025 Financial Results

Rhea-AI Summary

111, Inc. (NASDAQ: YI) reported Q4 and fiscal 2025 unaudited results on April 9, 2026, after executing an asset-light shift and divesting several subsidiaries.

Key highlights: FY2025 net revenues RMB12.6B (-12.8% YoY); Q4 net revenues RMB2.8B (-26.7% YoY); maintained non-GAAP operating profitability for Q4 and FY; positive operating cash flow in Q4 (RMB29.9M) and FY (RMB119.1M); B2B gross margin expanded to 5.6% in Q4 (+60 bps) and to 5.5% FY (+10 bps); cash and equivalents RMB611.3M (+17.9%).

Positive

• Non-GAAP operating profitability maintained in Q4 and FY 2025
• Positive operating cash flow: Q4 RMB29.9M; FY RMB119.1M
• B2B gross margin expansion: Q4 +60 bps to 5.6%; FY +10 bps to 5.5%
• Cash and short-term investments increased by 17.9% to RMB611.3M
• Marketing-promoted product revenue +76.2% and gross profit +81.7% in Q4
• GMV for flagship product rose 368.2% in 2025

Negative

• Revenue contraction: Q4 net revenues down 26.7% YoY; FY down 12.8% YoY
• Intentional scale reduction from divestitures created top-line headwind
• Non-GAAP income from operations fell FY to RMB7.7M from RMB22.3M
• Non-GAAP net loss widened to RMB12.5M in 2025 from RMB0.6M in 2024

News Market Reaction – YI

-1.08%

2 alerts

-1.08% Session close to close

$59.55M Market Cap

0.2x Rel. Volume

In the Apr 9 session, YI declined 1.08%, reflecting a mild negative market reaction. Our momentum scanner triggered 2 alerts that day, indicating moderate trading interest and price volatility.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement highlights 111, Inc.’s continued transition to an asset-light warehouse partnershi...

Analysis

This announcement highlights 111, Inc.’s continued transition to an asset-light warehouse partnership model, with non-GAAP operating profitability and positive operating cash flow in both Q4 and FY 2025. While net revenues declined, B2B margins expanded and cash and investments rose to RMB611.3 million. Prior earnings showed similar themes of cost control and cash generation. Investors may watch future reports for sustained margin gains, progress on obligations totaling RMB1.12 billion, and stability of promotional product growth.

Key Figures

Q4 2025 net revenues: RMB2.8 billion (US$403.3 million), -26.7% YoY Q4 B2B gross margin: 5.6% (from 5.0%) FY 2025 net revenues: RMB12.6 billion (US$1.8 billion), -12.8% YoY +5 more

8 metrics

Q4 2025 net revenues RMB2.8 billion (US$403.3 million), -26.7% YoY Fourth quarter 2025

Q4 B2B gross margin 5.6% (from 5.0%) Fourth quarter 2025 vs Q4 2024

FY 2025 net revenues RMB12.6 billion (US$1.8 billion), -12.8% YoY Fiscal year 2025 vs 2024

FY 2025 non-GAAP op income RMB7.7 million (US$1.1 million) Maintained non-GAAP operating profitability in 2025

FY operating cash flow RMB119.1 million (US$17.0 million) Net cash from operating activities in 2025

Cash & investments RMB611.3 million (US$87.4 million) Balance as of Dec 31, 2025; +17.9% vs end of 2024

Marketing-promoted rev growth Revenue +76.2%, gross profit +81.7% Promotional products vs same quarter last year

Cravit GMV growth GMV +368.2% YoY; 20,000 to 290,000 boxes/month peak Flagship promotional product performance in 2025

Previous Earnings Reports

5 past events · Latest: Dec 17 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Dec 17	Q3 2025 earnings	Positive	+2.9%	Asset-light shift and improved cash generation despite lower revenues.
Sep 17	Q2 2025 earnings	Neutral	-6.2%	Lower revenues and higher net loss but maintained operating profitability.
Jun 19	Q1 2025 earnings	Neutral	+1.2%	Stable revenues with small operating profit and higher net loss YoY.
Mar 20	FY 2024 results	Positive	-7.8%	First-ever annual operating profit and strong operating cash flow.
Nov 27	Q3 2024 earnings	Positive	+49.5%	Third consecutive quarter of operating profit and solid cash generation.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Earnings releases often led to noticeable moves for YI, with mostly positive or neutral fundamentals and price reactions that are usually aligned, though occasionally sharply divergent on strong reports.

Recent Company History

Over the last year, 111, Inc. has repeatedly highlighted a shift to an asset-light, partnership-driven model, focusing on operating efficiency and cash generation. Prior earnings showed positive operating cash flow, reduced expenses, and several quarters of non-GAAP operating profitability, even as net revenues contracted. Some strong milestones, such as the first-ever annual operating profit in 2024, saw mixed share-price responses. Today’s Q4/FY 2025 results continue that narrative with margin expansion, sustained non-GAAP profitability, and higher cash balances despite lower revenue scale.

Key Terms

non-gaap, gross segment profit, basis points, gmv, +1 more

5 terms

non-gaap financial

"Delivered Non-GAAP Operating Profitability in Both Q4'25 and FY'25"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

gross segment profit financial

"Net revenues were RMB2.8 billion ... and gross segment profit (1) was RMB164.9 million"

Gross segment profit measures the money a particular business unit or division earns after subtracting the direct costs of producing its goods or services, but before taking out shared corporate expenses, interest, taxes and other company-wide charges. It matters to investors because it shows how efficiently an individual part of a company generates profit on its own—like seeing how much a single store makes before paying for the company headquarters—helping assess which divisions drive value and deserve investment.

basis points financial

"B2B gross profit margin reached 5.6%, representing an improvement of 60 basis points"

Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.

gmv financial

"GMV generated by the product in 2025 also increased by 368.2% on a year-over-year basis."

Gross merchandise value (GMV) is the total dollar value of all goods and services sold through a platform or marketplace over a given period, measured before deducting fees, returns, or discounts. Investors watch GMV to gauge the raw size and growth of customer activity—like counting every ticket sold at a concert before subtracting organizer costs—while remembering it is not the same as revenue or profit.

redeemable non-controlling interests financial

"amount of RMB1.12 billion has been included in the balances of redeemable non-controlling interests"

Redeemable non-controlling interests are ownership stakes in a company’s unit held by outside investors that can be forced to be bought back by the parent company for cash or a set value. Think of it like a part-owner who has the contractual right to ‘cash out’ their share; for investors this matters because it can create a future cash obligation, change reported equity versus debt, and affect earnings and ownership percentages.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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• Continuing Transition to an Asset-Light Business Model to Improve Overall Efficiency
• Delivered Non-GAAP Operating Profitability in Both Q4'25 and FY'25
• Generated Positive Operating Cash Flow for Both Q4'25 and FY'25
• Continued Gross Profit Margin Expansion for B2B Business in Both Q4'25 and FY'25

SHANGHAI, April 9, 2026 /PRNewswire/ -- 111, Inc. ("111" or the "Company") (NASDAQ: YI), a leading tech-enabled healthcare platform company committed to reshaping the value chain of healthcare industry by digitally empowering the upstream and downstream in China, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2025.

2025 Executing Strategic Optimization: Embraces Asset-Light Partnership Network Growth

In 2025, the Company proactively implemented strategic structural optimization by divesting its 100% equity interests in several subsidiaries. While this structural optimization created a temporary headwind for top-line revenue, these facilities have now joined our ecosystem as fulfillment partners and are dedicated to serving our customers exclusively. Through the divestiture of these entities and our transition to a warehouse partnership model—where we generate recurring commission income rather than bearing the operational and capital burdens—we have successfully driven continued margin expansion. By optimizing our network and selectively exiting underperforming fulfillment centers, we have strengthened our ability to further improve our profitability and liquidity profile in the future.

Fourth Quarter 2025 Highlights

• Net revenues were RMB2.8 billion (US$403.3 million) and gross segment profit ⁽¹⁾ was RMB164.9 million (US$23.6 million). Due to the strategic optimization, gross margin continued to expand. B2B gross profit margin reached 5.6%, representing an improvement of 60 basis points from 5.0% in the same quarter of 2024.

• Total operating expenses were RMB165.2 million (US$23.6 million), representing a decrease of 21.3% compared to RMB209.8 million in the same quarter of 2024, highlighting continued cost optimization and efficiency gains.

• Non-GAAP income from operations ⁽²⁾ was RMB0.2 million (US$0.03 million), compared to a non-GAAP loss from operations of RMB2.3 million in the same quarter of 2024. The Company achieved non-GAAP operating profitability in the quarter, marking a year-over-year turnaround from loss to profit.

• Net cash provided by operating activities was RMB29.9 million (US$4.3 million). The Company achieved a meaningful operating cash flow turnaround, moving from negative to positive year-over-year, underscoring stronger business fundamentals and improved financial health.

Fiscal Year 2025 Highlights

• Net revenues were RMB12.6 billion (US$1.8 billion) and gross segment profit was RMB723.4 million (US$103.4 million). Due to the strategic optimization, B2B gross profit margin rose 10 basis points from 5.4% to 5.5% year-over-year, reflecting continued optimization of core operations.

• Total operating expenses were RMB725.8 million (US$103.8 million), representing a decrease of 12.3% compared to RMB827.1 million in the prior year. The Company continued to focus on operational efficiency and disciplined cost management.

• Non-GAAP income from operations was RMB7.7 million (US$1.1 million), compared to RMB22.3 million in 2024. The year-over-year decrease reflected the intentional reduction in revenue scale resulting from the strategic transition, partially offset by continued gross margin expansion. Importantly, the Company maintained non-GAAP operating profitability for both 2025 and 2024, marking a key milestone on the path toward sustainable earnings.

• Net cash provided by operating activities was RMB119.1 million (US$17.0 million). The Company delivered annual positive operating cash flow for both 2025 and 2024, demonstrating improved financial discipline and business quality.

• Cash and cash equivalents, restricted cash and short-term investments amounted to RMB611.3 million (US$87.4 million) as of December 31, 2025, representing an increase of 17.9% compared to the end of 2024.

(1) Gross segment profit represents net revenues less cost of goods sold.

(2) Non-GAAP income (loss) from operations represents income (loss) from operations excluding share-based compensation expenses.

Mr. Junling Liu, Co-Founder, Chairman, and Chief Executive Officer of 111, commented, "2025 marked a pivotal year for 111, as we steadily advanced our transition to a warehouse partnership model and achieved a key profitability milestone. We delivered non-GAAP operating profitability and positive operating cash flow for both the quarter and the full year. These results underscore the strength of our platform and validate the strategic direction we have set for the Company."

"In 2025, we proactively implemented strategic structural optimization by divesting 100% equity interests in several subsidiaries. Through the divestiture of these entities and our transition to a warehouse partnership model—where we generate recurring commission income rather than bearing operational and capital burdens—we achieved sustained gross margin expansion for the B2B business. We believe this initiative reinforces our focus on pursuing asset-light, profitable growth, strengthening our ability to scale the warehouse partnership network efficiently while maintaining a healthier financial structure."

"Our strategic initiatives are yielding significant results. Promotional products are rapidly reaching pharmacies nationwide through the 111 digital marketing platform. Revenue from all marketing-promoted products increased by 76.2% and gross profit rose 81.7% compared to the same quarter last year. As a notable promotional product, "Cravit" has become our flagship star product, whose monthly sales volume rose sharply from 20,000 boxes at launch in March to a monthly peak of 290,000 boxes in November 2025. GMV generated by the product in 2025 also increased by 368.2% on a year-over-year basis. This success underscores our unique marketing capabilities and has delivered strong momentum to both our upstream and downstream partners."

"Looking ahead, with our solid foundation and strategic optimization, we are well positioned for sustainable, high-quality growth. We have deeply integrated AI applications across our operations to drive meaningfully enhanced efficiency, and will continue to focus on leading the Company's evolution from a digital to an intelligent ecosystem—creating durable long-term opportunities for our partners, customers, and shareholders. Through a more streamlined and intelligent operating model, we aim to drive consistent margin expansion, improve profitability, and deliver enduring value to all stakeholders."

Fourth Quarter 2025 Financial Results

Net revenues were RMB2.8 billion (US$403.3 million), representing a decrease of 26.7% from RMB3.8 billion in the same quarter of 2024.

(In thousands RMB)	For the three months ended December 31,
	2024		2025		YoY
B2B Net Revenue
Product	3,759,824		2,742,449		-27.1 %
Service	21,771		21,721		-0.2 %
Sub-Total	3,781,595		2,764,170		-26.9 %
Cost of Products Sold (3)	3,592,588		2,609,356		-27.4 %
Segment Profit	189,007		154,814		-18.1 %
Segment Profit %	5.0 %		5.6 %
(In thousands RMB)	For the three months ended December 31,
	2024		2025		YoY
B2C Net Revenue
Product	62,480		53,027		-15.1 %
Service	3,700		2,967		-19.8 %
Sub-Total	66,180		55,994		-15.4 %
Cost of Products Sold	52,705		45,912		-12.9 %
Segment Profit	13,475		10,082		-25.2 %
Segment Profit %	20.4 %		18.0 %

(3) For segment reporting purposes, purchase rebates are allocated to the B2B segment and B2C segments primarily based on the amount of cost of products sold for each segment. Cost of products sold does not include other direct costs related to cost of product sales such as shipping and handling expense, payroll and benefits of logistic staff, logistic centers rental expenses and depreciation expenses, which are recorded in the fulfillment expenses.

Operating costs and expenses were RMB2.8 billion (US$403.3 million), representing a decrease of 26.8% from RMB3.9 billion in the same quarter of 2024.

• Cost of products sold was RMB2.7 billion (US$379.7 million), representing a decrease of 27.2% from RMB3.6 billion in the same quarter of 2024.
   
• Fulfillment expenses were RMB74.1 million (US$10.6 million), representing a decrease of 29.1% from RMB104.5 million in the same quarter of 2024. Fulfillment expenses accounted for 2.6% of net revenues this quarter as compared to 2.7% in the same quarter of 2024.
   
• Selling and marketing expenses were RMB62.7 million (US$9.0 million), representing a decrease of 17.6% from RMB76.2 million in the same quarter of 2024. Excluding the share-based compensation expenses of RMB0.6 million for the quarter and RMB1.8 million for the same quarter of 2024, respectively, selling and marketing expenses as a percentage of net revenues accounted for 2.2% in the quarter as compared to 1.9% in the same quarter of 2024.
   
• General and administrative expenses were RMB18.0 million (US$2.6 million), representing a decrease of 10.6% from RMB20.2 million in the same quarter of 2024. Excluding the share-based compensation expenses, general and administrative expenses as a percentage of net revenues accounted for 0.6% in the quarter as compared to 0.5% in the same quarter of 2024.
   
• Technology expenses were RMB14.8 million (US$2.1 million), representing a decrease of 4.2% from RMB15.4 million in the same quarter of 2024. Excluding the share-based compensation expenses of RMB0.1 million for the quarter and RMB1.0 million for the same quarter 2024, respectively, technology expenses as a percentage of net revenues accounted for 0.5% in the quarter as compared to 0.4% in the same quarter of 2024.

Loss from operations was RMB0.3 million (US$0.05 million), representing a significant 95.6% narrowing compared to a loss of RMB7.3 million in the same quarter of 2024. As a percentage of net revenues, loss from operations accounted for 0.01% in the quarter, down from 0.2% in the same quarter of 2024.

Non-GAAP income from operations was RMB0.2 million (US$0.03 million), compared to a non-GAAP loss from operations of RMB2.3 million in the same quarter of 2024, marking a year-over-year turnaround from loss to profit.

Net loss was RMB6.5 million (US$0.9 million), representing an improvement of 48.3% from RMB12.5 million in the same quarter of 2024. As a percentage of net revenues, net loss accounted for 0.2% in the quarter, down from 0.3% in the same quarter of 2024.

Non-GAAP net loss ⁽⁴⁾ was RMB5.9 million (US$0.9 million), representing an improvement of 20.9% from RMB7.5 million in the same quarter of 2024. As a percentage of net revenues, non-GAAP net loss accounted for 0.2% in the quarter, consistent with the same period last year.

Net loss attributable to ordinary shareholders was RMB16.2 million (US$2.3 million), representing an improvement of 18.2% from RMB19.8 million in the same quarter of 2024. As a percentage of net revenues, net loss attributable to ordinary shareholders accounted for 0.6% in the quarter as compared to 0.5% in the same quarter of 2024.

Non-GAAP net loss attributable to ordinary shareholders ⁽⁵⁾ was RMB15.7 million (US$2.2 million), compared to RMB14.8 million in the same quarter of last year. As a percentage of net revenues, non-GAAP net loss attributable to ordinary shareholders accounted for 0.6% in the quarter as compared to 0.4% in the same quarter of 2024.

(4) Non-GAAP net loss represents net loss excluding share-based compensation expenses, net of tax. Considering the impact of accretion of redeemable non-controlling interest for the fourth quarter and fiscal year ended December 31, 2025, non-GAAP net loss is used as a meaningful measurement of the operation performance of the Company.

(5) Non-GAAP net loss attributable to ordinary shareholders represents net loss attributable to ordinary shareholders excluding share-based compensation expenses, net of tax.

Fiscal Year 2025 Financial Results

Net revenues were RMB12.6 billion (US$1.8 billion), representing a decrease of 12.8% from RMB14.4 billion in the previous year.

(In thousands RMB)	For the year ended December 31,
	2024		2025		YoY
B2B Net Revenue
Product	14,033,543		12,247,430		-12.7 %
Service	89,609		73,775		-17.7 %
Sub-Total	14,123,152		12,321,205		-12.8 %
Cost of Products Sold	13,357,617		11,641,681		-12.8 %
Segment Profit	765,535		679,524		-11.2 %
Segment Profit %	5.4 %		5.5 %
(In thousands RMB)	For the year ended December 31,
	2024		2025		YoY
B2C Net Revenue
Product	261,197		223,217		-14.5 %
Service	16,900		11,601		-31.4 %
Sub-Total	278,097		234,818		-15.6 %
Cost of Products Sold	214,403		190,936		-10.9 %
Segment Profit	63,694		43,882		-31.1 %
Segment Profit %	22.9 %		18.7 %

 

Operating costs and expenses were RMB12.6 billion (US$1.8 billion), representing a decrease of 12.8% from RMB14.4 billion in 2024.

• Cost of products sold was RMB11.8 billion (US$1.7 billion), representing a decrease of 12.8% from RMB13.6 billion in 2024.
   
• Fulfillment expenses were RMB345.2 million (US$49.4 million), representing a decrease of 9.4% from RMB381.0 million in 2024. Fulfillment expenses accounted for 2.7% of net revenues in 2025 as compared to 2.6% in 2024.
   
• Selling and marketing expenses were RMB258.6 million (US$37.0 million), representing a decrease of 17.6% from RMB313.9 million in the previous year. Excluding the share-based compensation expenses of RMB4.0 million for 2025 and RMB6.9 million for 2024, respectively, selling and marketing expenses as a percentage of net revenues, decreased to 2.0% in 2025 from 2.1% in 2024.
   
• General and administrative expenses were RMB69.5 million (US$9.9 million), representing a decrease of 2.0% from RMB70.9 million in 2024. Excluding the share-based compensation expenses of RMB4.9 million for 2025 and RMB9.2 million for 2024, respectively, general and administrative expenses accounted for 0.5% of net revenues in 2025 as compared to 0.4% in 2024.
   
• Technology expenses were RMB60.4 million (US$8.6 million), representing a decrease of 13.3% from RMB69.6 million in 2024. Excluding the share-based compensation expenses of RMB1.1 million for 2025 and RMB4.0 million for 2024, respectively, technology expenses accounted for 0.5% of net revenues in 2025, maintaining the same percentage as 2024.

Loss from operations was RMB2.4 million (US$0.3 million), compared to income from operations of RMB2.1 million in 2024.

Non-GAAP income from operations was RMB7.7 million (US$1.1 million), compared to RMB22.3 million in 2024. As a percentage of net revenues, non-GAAP income from operations accounted for 0.1% in 2025 as compared to 0.2% in 2024.

Net loss was RMB22.5 million (US$3.2 million), compared to RMB20.8 million in 2024. As a percentage of net revenues, net loss accounted for 0.2% in 2025 as compared to 0.1% in 2024.

Non-GAAP net loss was RMB12.5 million (US$1.8 million), compared to RMB0.6 million in 2024. As a percentage of net revenues, non-GAAP net loss accounted for 0.1% in 2025 as compared to 0.004% in 2024.

Net loss attributable to ordinary shareholders was RMB66.4 million (US$9.5 million), compared to RMB64.7 million in 2024. As a percentage of net revenues, net loss attributable to ordinary shareholders accounted for 0.5% in 2025 as compared to 0.4% in 2024.

Non-GAAP net loss attributable to ordinary shareholders was RMB56.3 million (US$8.1 million), compared to RMB44.6 million in 2024.  As a percentage of net revenues, non-GAAP net loss attributable to ordinary shareholders accounted for 0.4% in 2025, up from 0.3% in 2024.

As of December 31, 2025, the Company held cash and cash equivalents, restricted cash and short-term investments totaling RMB611.3 million (US$87.4 million), compared to RMB518.3 million as of December 31, 2024. To date, amount of RMB1.12 billion has been included in the balances of redeemable non-controlling interests and accrued expenses and other current liabilities. This amount is owed to a group of investors of 1 Pharmacy Technology pursuant to equity investments made in 2020, as previously disclosed. 111 has received redemption requests from certain of such investors in accordance with the terms of their initial investments in 1 Pharmacy Technology. Following communication and negotiation, the Company has further reached agreements with, or received commitment letters from, all investors to reschedule the repayments, allowing for phased repayments at extended periods, if the investors exercise their redemption rights. In February 2026, the Company made repayments of approximately RMB189.0 million (US$27.0 million) to all investors of 1 Pharmacy Technology. For further details about such investors' investments in 1 Pharmacy Technology, please see "Item 4. Information on the Company-A. History and Development of the Company" in the Company's annual report for the fiscal year ended December 31, 2024.

Use of Non-GAAP Financial Measures

In evaluating the business, the Company considers and uses non-GAAP income (loss) from operations, non-GAAP net loss, non-GAAP net loss attributable to ordinary shareholders, and non-GAAP loss per ADS, as supplemental measures to review and assess its operating performance. The Company defines non-GAAP income (loss) from operations as income (loss) from operations excluding share-based compensation expenses. The Company defines non-GAAP net loss as net loss excluding share-based compensation expenses, net of tax. The Company defines non-GAAP net loss attributable to ordinary shareholders as net loss attributable to ordinary shareholders excluding share-based compensation expenses, net of tax. The Company defines non-GAAP loss per ADS as net loss attributable to ordinary shareholders per ADS excluding share-based compensation expenses, net of tax per ADS. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP.

The Company believes that non-GAAP income (loss) from operations, non-GAAP net loss, non-GAAP net loss attributable to ordinary shareholders, and non-GAAP loss per ADS help identify underlying trends in its business that could otherwise be distorted by the effect of certain expenses that it includes in income (loss) from operations and net loss. Share-based compensation expenses is a non-cash expense that varies from period to period. As a result, management excludes the items from its internal operating forecasts and models. Management believes that the adjustments for share-based compensation expenses provide investors with a reasonable basis to measure the company's core operating performance, in a more meaningful comparison with the performance of other companies. The Company believes that non-GAAP income (loss) from operations, non-GAAP net loss, non-GAAP net loss attributable to ordinary shareholders, and non-GAAP loss per ADS provide useful information about its operating results, enhances the overall understanding of its past performance and future prospects and allow for greater visibility with respect to key metrics used by the management in their financial and operational decision-making.

The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools. One of the key limitations of using non-GAAP income (loss) from operations, non-GAAP net loss, non-GAAP net loss attributable to ordinary shareholders, or non-GAAP loss per ADS is that it does not reflect all items of income and expense that affect the Company's operations. Further, the non-GAAP financial measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited.

The Company compensates for these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP measures, all of which should be considered when evaluating the Company's performance. The Company encourages you to review its financial information in its entirety and not rely on a single financial measure.

Reconciliation of the non-GAAP financial measures to the most comparable U.S. GAAP measures is included at the end of this press release.

Exchange Rate Information Statement

This announcement contains translations of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB6.9931 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of December 31, 2025.

Forward-Looking Statements

This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "target," "confident" and similar statements. Among other things, the Business Outlook and quotations from management in this announcement, as well as 111's strategic and operational plans, contain forward-looking statements. 111 may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Such statements are based upon management's current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company's control. Forward-looking statements involve inherent risks, uncertainties and other factors that could cause actual results to differ materially from those contained in any such statements. Potential risks and uncertainties include, but are not limited to, uncertainties as to the Company's ability comply with extensive and evolving regulatory requirements, its ability to compete effectively in the evolving PRC general health and wellness market, its ability to manage the growth of its business and expansion plans, its ability to achieve or maintain profitability in the future, its ability to control the risks associated with its pharmaceutical retail and wholesale businesses, and the Company's ability to meet the standards necessary to maintain listing of its ADSs on the Nasdaq Global Market, including its ability to cure any non-compliance with Nasdaq's continued listing criteria. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and 111 does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

About 111, Inc.

111, Inc. (NASDAQ: YI) ("111" or the "Company") is a leading tech-enabled healthcare platform company committed to reshaping the value chain of healthcare industry by digitally empowering the upstream and downstream in China. The Company provides consumers with better access to pharmaceutical products and healthcare services directly through its online retail pharmacy, 1 Pharmacy, and indirectly through its offline virtual pharmacy network. The Company also offers online healthcare services through its internet hospital, 1 Clinic, which provides consumers with cost-effective and convenient online consultation, electronic prescription service, and patient management service. In addition, the Company's online platform, 1 Medicine, serves as a one-stop shop for pharmacies to source a vast selection of pharmaceutical products. With the largest virtual pharmacy network in China, 111 enables offline pharmacies to better serve their customers with cloud-based services. 111 also provides an omni-channel drug commercialization platform to its strategic partners, which includes services such as digital marketing, patient education, data analytics, and pricing monitoring.

For more information on 111, please visit: http://ir.111.com.cn/.

For more information, please contact:

111, Inc. 
Investor Relations 
Email: ir@111.com.cn 

111, Inc. 
Media Relations 
Email: press@111.com.cn
Phone: +86-021-2053 6666 (China)

 

111, Inc.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except for share and per share data)
	As of			As of
	December 31, 2024			December 31, 2025
	RMB			RMB		US$
ASSETS
Current assets:
Cash and cash equivalents	462,289			510,967		73,067
Restricted cash	56,043			50,337		7,198
Short-term investments	-			50,031		7,154
Accounts receivable, net	413,101			259,686		37,135
Notes receivable	78,827			58,617		8,382
Inventories	1,387,403			998,465		142,779
Prepayments and other current assets	251,994			196,756		28,136
Total current assets	2,649,657			2,124,859		303,851
Property and equipment, net	32,903			21,108		3,018
Intangible assets, net	1,437			868		124
Long-term investments	-			-		-
Other non-current assets	14,682			9,285		1,328
Operating lease right-of-use assets	89,071			44,122		6,309
Total assets	2,787,750			2,200,242		314,630
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' DEFICIT
Current liabilities:
Short-term borrowings	160,981			187,631		26,831
Accounts payable	1,721,425			1,282,368		183,376
Accrued expense and other current liabilities	460,173			483,676		69,164
Total current liabilities	2,342,579			1,953,675		279,371
Long-term operating lease liabilities	55,448			29,965		4,285
Other non-current liabilities	8,961			2,181		312
Total liabilities	2,406,988			1,985,821		283,968
MEZZANINE EQUITY
Redeemable non-controlling interests	1,038,914			935,917		133,834
SHAREHOLDERS' DEFICIT
Ordinary shares Class A	33			34		5
Ordinary shares Class B	25			25		3
Treasury shares	(5,887)			(5,887)		(842)
Additional paid-in capital	3,172,820			3,181,343		454,926
Accumulated deficit	(3,883,992)			(3,950,384)		(564,897)
Accumulated other comprehensive income	74,357			72,635		10,387
Total shareholders' deficit	(642,644)			(702,234)		(100,418)
Non-controlling interest	(15,508)			(19,262)		(2,754)
Total deficit	(658,152)			(721,496)		(103,172)
Total liabilities, mezzanine equity and deficit	2,787,750			2,200,242		314,630

 

 

111, Inc.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(In thousands, except for share and per share data)
	For the three months ended December 31,						For the year ended December 31,
	2024		2025				2024		2025
	RMB		RMB		US$		RMB		RMB		US$
Net revenues	3,847,775		2,820,164		403,278		14,401,249		12,556,023		1,795,488
Operating costs and expenses:
Cost of products sold	(3,645,293)		(2,655,268)		(379,698)		(13,572,020)		(11,832,617)		(1,692,042)
Fulfillment expenses	(104,476)		(74,058)		(10,590)		(381,035)		(345,222)		(49,366)
Selling and marketing expenses	(76,173)		(62,746)		(8,973)		(313,897)		(258,643)		(36,985)
General and administrative expenses	(20,160)		(18,031)		(2,578)		(70,907)		(69,459)		(9,933)
Technology expenses	(15,410)		(14,769)		(2,112)		(69,635)		(60,391)		(8,636)
Other operating income, net	6,418		4,387		627		8,359		7,932		1,134
Total operating costs and expenses	(3,855,094)		(2,820,485)		(403,324)		(14,399,135)		(12,558,400)		(1,795,828)
(Loss) Income from operations	(7,319)		(321)		(46)		2,114		(2,377)		(340)
Interest income	1,467		932		133		7,041		3,885		556
Interest expense	(5,264)		(11,329)		(1,620)		(28,331)		(35,572)		(5,087)
Foreign exchange (loss) gain	(949)		190		27		(909)		480		69
Other (loss) income, net	(479)		4,039		578		(595)		11,082		1,585
Loss before income taxes	(12,544)		(6,489)		(928)		(20,680)		(22,502)		(3,217)
Income tax expense	(3)		-		-		(96)		(13)		(2)
Net loss	(12,547)		(6,489)		(928)		(20,776)		(22,515)		(3,219)
Net loss attributable to non-controlling interest	8,829		209		30		8,398		4,094		585
Net loss attributable to redeemable non-controlling interest	824		316		45		1,992		1,106		158
Adjustment attributable to redeemable non-controlling interest	(16,947)		(10,257)		(1,467)		(54,357)		(49,077)		(7,018)
Net loss attributable to ordinary shareholders	(19,841)		(16,221)		(2,320)		(64,743)		(66,392)		(9,494)
Other comprehensive loss
Unrealized (loss) gain of available-for-sale securities,	(320)		677		97		1,074		677		97
Realized gain (loss) of available-for-sale debt securities	321		(646)		(92)		(1,217)		(646)		(92)
Foreign currency translation adjustments	1,754		(441)		(63)		1,986		(1,753)		(251)
Comprehensive loss	(18,086)		(16,631)		(2,378)		(62,900)		(68,114)		(9,740)
Loss per ADS:
Basic and diluted	(2.20)		(1.80)		(0.20)		(7.60)		(7.60)		(1.00)
Weighted average number of shares used in computation of loss per share
Basic and diluted	172,757,611		175,251,218		175,251,218		171,835,632		174,026,392		174,026,392

 

 

111, Inc.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
	For the three months ended December 31,						For the year ended December 31,
	2024		2025				2024		2025
	RMB		RMB		US$		RMB		RMB		US$
Net cash (used in) provided by operating activities	(48,547)		29,871		4,271		263,016		119,142		17,036
Net cash provided by (used in) investing activities	37,517		(22,438)		(3,208)		37,376		(53,723)		(7,681)
Net cash (used in) provided by financing activities	(35,783)		26,561		3,797		(406,236)		(21,194)		(3,031)
Effect of exchange rate changes on cash and cash equivalents, and restricted cash	734		(239)		(34)		628		(1,253)		(179)
Net (decrease) increase in cash and cash equivalents, and restricted cash	(46,079)		33,755		4,826		(105,216)		42,972		6,145
Cash and cash equivalents, and restricted cash at the beginning of the period	564,411		527,549		75,439		623,548		518,332		74,120
Cash and cash equivalents, and restricted cash at the end of the period	518,332		561,304		80,265		518,332		561,304		80,265

 

 

111, Inc.
Unaudited Reconciliation of GAAP and Non-GAAP Results
(In thousands, except for share and per share data)
	For the three months ended December 31,						For the year ended December 31,
	2024		2025				2024		2025
	RMB		RMB		US$		RMB		RMB		US$
(Loss) Income from operations	(7,319)		(321)		(46)		2,114		(2,377)		(340)
Add: Share-based compensation expenses	5,027		544		78		20,149		10,047		1,437
Non-GAAP (loss) income from operations	(2,292)		223		32		22,263		7,670		1,097
Net loss	(12,547)		(6,489)		(928)		(20,776)		(22,515)		(3,219)
Add: Share-based compensation expenses, net of tax	5,027		544		78		20,149		10,047		1,437
Non-GAAP net loss	(7,520)		(5,945)		(850)		(627)		(12,468)		(1,782)
Net loss attributable to ordinary shareholders	(19,841)		(16,221)		(2,320)		(64,743)		(66,392)		(9,494)
Add: Share-based compensation expenses, net of tax	5,027		544		78		20,149		10,047		1,437
Non-GAAP net loss attributable to ordinary shareholders	(14,814)		(15,677)		(2,242)		(44,594)		(56,345)		(8,057)
Loss per ADS (6): Basic and diluted	(2.20)		(1.80)		(0.20)		(7.60)		(7.60)		(1.00)
Add: Share-based compensation expenses per ADS (6), net of tax	0.60		0.00		0.00		2.40		1.20		0.20
Non-GAAP loss per ADS (6)	(1.60)		(1.80)		(0.20)		(5.20)		(6.40)		(0.80)
(6) Every one ADS represents twenty Class A ordinary shares.

 

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SOURCE 111, Inc

FAQ

What were 111, Inc. (YI) Q4 2025 revenues and how did they change year-over-year?

Q4 2025 net revenues were RMB2.8 billion, a 26.7% decline year-over-year. According to the company, the drop reflects strategic divestitures and the transition to an asset-light warehouse partnership model that temporarily reduced top-line scale.

Did 111, Inc. (YI) achieve profitability or positive cash flow in FY2025?

Yes. 111 reported non-GAAP operating profitability and positive operating cash flow for both Q4 and FY2025. According to the company, FY operating cash flow was RMB119.1 million, supporting improved financial discipline.

How did 111, Inc.'s (YI) B2B gross margins perform in Q4 and FY2025?

B2B gross profit margin expanded to 5.6% in Q4 2025, a 60 basis-point improvement, and rose to 5.5% for FY2025. According to the company, margin gains reflect the shift to a commission-based warehouse partnership model.

What impact did marketing-promoted products have on 111, Inc.'s (YI) results in 2025?

Marketing-promoted product revenue grew 76.2% and gross profit rose 81.7% in the reported quarter. According to the company, successful digital marketing—highlighted by the Cravit launch—drove strong GMV and partner momentum.

How much cash did 111, Inc. (YI) hold at year-end 2025 and did liquidity improve?

As of December 31, 2025, cash, restricted cash and short-term investments totaled RMB611.3 million, up 17.9% year-over-year. According to the company, the increase reflects improved liquidity after strategic optimization and cost discipline.