111, Inc. Announces Second Quarter 2026 Unaudited Financial Results

111’s transition to an asset-light, AI-enabled platform cut costs and boosted service and promotional product revenues, but revenue and earnings declined.

Rhea-AI Summary

111 (YI) reported second quarter 2026 net revenue of RMB2.3 billion, down 28.3% year-over-year, as it continues a strategic shift to a more asset-light, platform-oriented model and exits underperforming subsidiaries.

Total marketplace service revenue for the first half of 2026 grew 18.2% year-over-year, while net revenue from promotional products rose to RMB60.7 million, up 121%, with gross profit from these products up 120%. Fulfillment expenses fell to RMB63.6 million, down 29.5%, improving to 2.76% of net revenue. Total operating expenses were RMB155.5 million, a 16.1% decline. However, gross segment profit fell 28.6% to RMB132.3 million, and the company swung to a loss from operations of RMB23.2 million and a net loss of RMB31.7 million. Cash, restricted cash and short-term investments declined to RMB381.1 million at June 30, 2026.

Positive

• Marketplace service revenue up 18.2% year-over-year for first half 2026
• Promotional product net revenue RMB60.7 million, up 121% year-over-year; gross profit up 120%
• Flagship Cravit quarterly revenue RMB28.1 million, up 157% year-over-year
• Total operating expenses RMB155.5 million, down 16.1% year-over-year
• Fulfillment expenses RMB63.6 million, down 29.5%; 2.76% of net revenue vs 2.81%
• Investors holding 63.8% of 1 Pharmacy redemption principal agreed to extended restructuring terms

Negative

• Net revenue RMB2.3 billion, down 28.3% year-over-year
• Gross segment profit RMB132.3 million, down 28.6% year-over-year
• Loss from operations RMB23.2 million vs income of RMB0.1 million a year ago
• Net loss RMB31.7 million (1.4% of revenue) vs RMB7.3 million (0.2%) a year ago
• Cash, restricted cash and short-term investments RMB381.1 million vs RMB611.3 million at December 31, 2025
• Redemption-related obligation of RMB956.7 million recorded in redeemable non-controlling interests and current liabilities

News Explained

A disclosed RMB956.7 million redemption obligation remains alongside June 30 cash resources; 63.8% of principal holders agreed to extended periods if rights are exercised.

As of June 30, 2026, 111 reported RMB956.7 million included in redeemable non-controlling interests and accrued expenses and other current liabilities, alongside RMB381.1 million of cash, restricted cash and short-term investments, and the release therefore adds a disclosed redemption-related obligation to the reported liquidity position.

111 said it had repaid approximately RMB282.2 million to investors who exercised redemption rights, while investors representing 63.8% of the outstanding principal amount agreed to extend the redemption periods if holders exercise those rights.

The release refers readers to Item 5, “Liquidity and Capital Resources,” of the annual report for the fiscal year ended December 31, 2025 for the arrangement’s detailed terms.

Market Context

The prior Q1 2026 earnings release was followed by a 10.27% 24-hour decline; like this report, it pa...

Analysis

The prior Q1 2026 earnings release was followed by a 10.27% 24-hour decline; like this report, it paired asset-light transition progress with revenue contraction and marketplace-service growth.

Key Figures

Net revenue: RMB2.3 billion Marketplace service revenue: +18.2% Promotional products revenue: RMB60.7 million +5 more

Net revenue

RMB2.3 billion

2Q26; down 28.3% year over year

Marketplace service revenue

+18.2%

First half of 2026 year over year

Promotional products revenue

RMB60.7 million

2Q26; up 121% year over year

Operating expenses

RMB155.5 million

2Q26; down 16.1% year over year

Fulfillment expenses

RMB63.6 million

2Q26; down 29.5% year over year

Loss from operations

RMB23.2 million

2Q26; versus RMB0.1 million operating income in 2Q25

Net loss

RMB31.7 million

2Q26; versus RMB7.3 million in 2Q25

Cash and equivalents

RMB381.1 million

As of June 30, 2026; versus RMB611.3 million at December 31, 2025

Previous Earnings Reports

5 past events · Latest: Jun 04

Same Type 5 events

1. Jun 04

   Q1 earnings report

   24h Move

   -10.3%

   Revenue declined while marketplace revenue and promotional products grew

2. Apr 09

   FY2025 earnings report

   24h Move

   -1.1%

   Operating profitability and positive operating cash flow were maintained

3. Dec 17

   Q3 earnings report

   24h Move

   +2.9%

   Divestitures supported liquidity while operating cash flow remained positive

4. Sep 17

   Q2 earnings report

   24h Move

   -6.2%

   Revenue declined and the company reported a wider net loss

5. Jun 19

   Q1 earnings report

   24h Move

   +1.2%

   Revenue remained stable while net loss increased year over year

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

Key Terms

non-gaap, redeemable non-controlling interests, american depositary shares, redemption rights

4 terms

non-gaap financial

"Non-GAAP loss from operations (4) was RMB20.5 million"

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

redeemable non-controlling interests financial

"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.

american depositary shares financial

"Non-GAAP loss per ADS represents net loss"

American depositary shares (ADSs) are a way for investors in the United States to buy shares of foreign companies without dealing with international markets directly. They represent ownership in a foreign company's stock and are traded on U.S. stock exchanges, making it easier for American investors to buy, sell, and own parts of companies from around the world.

redemption rights financial

"as a result of the holders exercising their redemption rights"

Redemption rights are contractual provisions that allow a holder of a security—such as preferred shares, bonds, or certain fund units—to require the issuer to buy back the security under specified conditions, often at a set price or by a defined formula. For investors they act like a return policy that offers a forced exit or downside protection, affecting a security’s value, liquidity and the issuer’s cash planning.

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

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• Transition from An Asset-Heavy Business Model to An Asset-Light Business Model
• Ongoing Investment and Adoption of AI Agents Making Workforce Streamlining Possible
• Net Revenue of Promotional Products ⁽¹⁾ Increased by 121% and Gross Profit Rose by 120% Year-over-Year
• Total Marketplace (MP) Service Revenue Increased by 18.2% Year-over-Year for the First Half of 2026
• Fulfillment Expenses as a Percentage of Revenue Improved by 5 Basis Points Year-over-Year

SHANGHAI, Sept. 17, 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 second quarter ended June 30, 2026.

Second Quarter 2026 Highlights

• Net revenue amounted to RMB2.3 billion (US$339.0 million), representing a 28.3% decrease from RMB3.2 billion in the prior-year quarter. This decline was primarily attributable to the Company's ongoing strategic transition toward a more asset-light and operationally efficient business model. As part of this initiative, the Company divested several underperforming subsidiaries last year, under which the Company can generate more service-based commission income and reduce operational and capital risks to a certain extent. Total marketplace (MP) service revenue increased by 18.2% year-over-year for the first half of 2026, demonstrating growth of the Company's marketplace service business and enhanced revenue quality. Through such strategic optimization, the Company continues to pursue further improvements in its profitability and liquidity profile.

• Net revenue of promotional products amounted to RMB60.7 million (US$8.9 million), representing 121% year-over-year growth, accompanied by an increase of 120% in gross profit. To further diversify the portfolio of such products, the Company has partnered with a growing number of pharmaceutical manufacturers to secure distribution rights for products targeting small and medium-sized chain pharmacies. Among such products, Levofloxacin Tablets (Cravit^®) from JNOVA Pharmaceutical (Beijing) Co., Ltd., has already become the flagship offering, whose quarterly sales volume grew from 364,000 boxes to 1,041,000 boxes year-over-year, while the quarterly revenue posted a 157% increase, reaching RMB28.1 million. In addition, other priority products with secured distribution rights like Rivaroxaban Tablets (Pusitong^®) from Qilu Pharmaceutical Co., Ltd. and Xinkeshu Tablets from Shandong Wohua Pharmaceutical Co., Ltd. also delivered solid sales performance this quarter, with each reaching 60,000 boxes. These performances underscore the Company's marketing expertise and has created strong growth momentum for both upstream suppliers and downstream partners.

• Total operating expenses amounted to RMB155.5 million (US$22.9 million), representing a 16.1% decrease compared to RMB185.3 million in the prior-year quarter. Notably, ongoing investment in and adoption of AI agents have made workforce streamlining possible. As part of organizational initiatives to enhance cost-efficiency, the Company incurred substantial severance costs in the quarter in connection with workforce streamlining primarily within back-end support functions. Excluding the share-based compensation expenses and severance costs, total operating expenses accounted for 4.2% of total GMV this quarter as compared to 4.5% in the prior-year quarter.

• Fulfillment expenses amounted to RMB63.6 million (US$9.4 million), representing a decrease of 29.5% from RMB90.2 million in the prior-year quarter, outpacing the revenue decline. As a percentage of net revenue, fulfillment expenses improved to 2.76%, compared with 2.81% in the prior-year quarter, reflecting continued enhancement in operational efficiency and disciplined cost management.

(1) Promotional products include the Company's core promoted pharmaceuticals and those for which the Company has secured distribution rights. All such products have mainstream market positioning and high gross margins.

Mr. Junling Liu, Co-Founder, Chairman, and Chief Executive Officer of 111, commented, "During the second quarter of 2026, we continued to execute our strategic transition toward a more asset-light and platform-oriented operating model. The 18.2% year-over-year increase in total marketplace (MP) service revenue for the first half of 2026 demonstrates steady progress in the strategic initiative and underscores our pursuit of high-quality, scalable and cost-efficient growth. As our ongoing investment in and adoption of AI agents have enabled workforce streamlining, we incurred certain severance costs in the quarter, largely within back-end support functions, as part of efficiency-focused organizational initiatives."

"Our promotional products have rapidly penetrated pharmacies nationwide via the 111 digital marketing platform, with the product lineup continuously expanding. Net revenue and gross profit from those products delivered high year-over-year growth. A growing number of pharmaceutical companies have partnered with us to secure general distribution rights for products targeting small and medium-sized chain pharmacies. We remain committed to adding more pharmaceutical products such as "Cravit" to our distribution portfolio to consolidate our market standing and maintain steady performance."

"By optimizing our network and selectively exiting underperforming fulfillment centers, our fulfillment expenses declined by 29.5% year-over-year, outpacing the decrease in revenue. Meanwhile, fulfillment expenses as a percentage of net revenue improved by 5 basis points year-over-year, highlighting our capacity for sustained operational improvement and reflecting our commitment to prudent cost management."

"Looking ahead, we believe these initiatives are gradually reshaping 111 from a transaction-driven pharmaceutical distributor into a more technology-enabled and intelligent healthcare platform business. We will continue to integrate AI-enabled capabilities across multiple operational scenarios, including intelligent demand forecasting, inventory optimization, fulfillment routing and merchant operation management. More importantly, we are deploying AI agent-based solutions in pharmacies and healthcare service scenarios to help customers better manage day-to-day operations. Leveraging a lean, intelligent operating model, we aim to expand margins, lift profitability and deliver long-term value to stakeholders."

Second Quarter 2026 Financial Results

Net revenues were RMB2.3 billion (US$339.0 million), representing a decrease of 28.3% from RMB3.2 billion in the same quarter of last year mainly attributable to the strategic optimization.

Gross segment profit ⁽²⁾ was RMB132.3 million (US$19.5 million), representing a decrease of 28.6% from RMB185.4 million in the same quarter of last year.

(In thousands RMB)	For the three months ended June 30,
	2025		2026		YoY
B2B Net Revenue
Product	3,122,073		2,220,777		-28.9 %
Service	20,838		21,424		2.8 %
Sub-Total	3,142,911		2,242,201		-28.7 %
Cost of Products Sold (3)	2,970,558		2,120,702		-28.6 %
Segment Profit	172,353		121,499		-29.5 %
Segment Profit %	5.5 %		5.4 %
(In thousands RMB)	For the three months ended June 30,
	2025		2026		YoY
B2C Net Revenue
Product	59,584		55,224		-7.3 %
Service	3,265		2,692		-17.5 %
Sub-Total	62,849		57,916		-7.8 %
Cost of Products Sold	49,822		47,143		-5.4 %
Segment Profit	13,027		10,773		-17.3 %
Segment Profit %	20.7 %		18.6 %

 

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

(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. Cost of service revenue is recorded in the operating expense.

Operating costs and expenses were RMB2.3 billion (US$342.4 million), representing a decrease of 27.5% from RMB3.2 billion in the same quarter of last year, broadly in line with the decline in net revenues.

• Cost of products sold was RMB2.2 billion (US$319.5 million), representing a decrease of 28.2% from RMB3.0 billion in the same quarter of last year.
   
• Fulfillment expenses were RMB63.6 million (US$9.4 million), representing a decrease of 29.5% from RMB90.2 million in the same quarter of last year. Fulfillment expenses as a percentage of net revenues accounted for 2.76% this quarter as compared to 2.81% in the same quarter of last year.
   
• Selling and marketing expenses were RMB58.1 million (US$8.6 million), representing a decrease of 12.2% from RMB66.2 million in the same quarter of last year. Excluding the share-based compensation expenses and severance costs, selling and marketing expenses as a percentage of net revenues accounted for 2.4% this quarter as compared to 2.0% in the same quarter of last year.
   
• General and administrative expenses were RMB17.6 million (US$2.6 million), representing a slight increase of 1.1% from RMB17.4 million in the same quarter of last year. Excluding the share-based compensation expenses and severance costs, general and administrative expenses as a percentage of net revenues accounted for 0.6% this quarter as compared to 0.5% in the same quarter of last year.
   
• Technology expenses were RMB19.0 million (US$2.8 million), representing an increase of 28.0% from RMB14.9 million in the same quarter of last year. Excluding the share-based compensation expenses and severance costs, technology expenses as a percentage of net revenues accounted for 0.6% this quarter as compared to 0.5% in the same quarter of last year.

Loss from operations was RMB23.2 million (US$3.4 million), compared to income from operations of RMB0.1 million in the same quarter of last year.

Non-GAAP loss from operations ⁽⁴⁾ was RMB20.5 million (US$3.0 million), compared to non-GAAP income from operations of RMB3.0 million in the same quarter of last year.

Net loss was RMB31.7 million (US$4.7 million), compared to RMB7.3 million in the same quarter of last year. As a percentage of net revenues, net loss accounted for 1.4% this quarter as compared to 0.2% in the same quarter of last year.

Non-GAAP net loss ⁽⁵⁾ was RMB28.9 million (US$4.3 million), compared to RMB4.4 million in the same quarter of last year. As a percentage of net revenues, non-GAAP net loss accounted for 1.3% this quarter as compared to 0.1% in the same quarter of last year.

Net loss attributable to ordinary shareholders was RMB39.1 million (US$5.8 million), compared to RMB19.5 million in the same quarter of last year. As a percentage of net revenues, net loss attributable to ordinary shareholders accounted for 1.7% this quarter as compared to 0.6% in the same quarter of last year.

Non-GAAP net loss attributable to ordinary shareholders ⁽⁶⁾ was RMB36.4 million (US$5.4 million), compared to RMB16.7 million in the same quarter of last year. As a percentage of net revenues, non-GAAP net loss attributable to ordinary shareholders accounted for 1.6% of net revenues this quarter as compared to 0.5% in the same quarter of last year.

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

(5) Non-GAAP net income (loss) represents net income (loss) excluding share-based compensation expenses, net of tax. Considering the impact of accretion of redeemable non-controlling interest for the second quarter 2026, non-GAAP net income (loss) is used as a meaningful measurement of the operation performance of the Company.

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

As of June 30, 2026, the Company held cash and cash equivalents, restricted cash and short-term investments totaling RMB381.1 million (US$56.2 million), compared to RMB611.3 million as of December 31, 2025. Amount of RMB956.7 million 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 in the Company's annual report. To date, 111 had repaid approximately RMB282.2 million to all investors in 1 Pharmacy Technology as a result of the holders exercising their redemption rights. Following further discussions, investors representing 63.8% of the total outstanding principal amount have agreed to further restructure the redemption obligation at extended periods, if the holders exercise their redemption rights. For further details on the terms of 111's arrangements with these investors, please see "Item 5. Operating and Financial Review and Prospects—B. Liquidity and Capital Resources" in the Company's annual report for the fiscal year ended December 31, 2025.

Use of Non-GAAP Financial Measures

In evaluating the business, the Company considers and uses non-GAAP income (loss) from operations, non-GAAP net income (loss), non-GAAP net loss attributable to ordinary shareholders, and non-GAAP loss per ADS ⁽⁷⁾, as supplemental measures to review and assess its operating performance. The Company defines non-GAAP income (loss) from operations as income from operations excluding share-based compensation expenses. The Company defines non-GAAP net income (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 income (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 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 income (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 income (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.

(7) Non-GAAP loss per ADS represents net loss, excluding share-based compensation, divided by the weighted-average number of outstanding American Depositary Shares. Each ADS represents twenty Class A ordinary shares.

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 RMB6.7851 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 June 30, 2026.

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, 2025			June 30, 2026
	RMB			RMB		US$
ASSETS
Current assets:
Cash and cash equivalents	510,967			295,247		43,514
Restricted cash	50,337			25,859		3,811
Short-term investments	50,031			60,024		8,846
Accounts receivable, net	259,686			183,033		26,976
Notes receivable	58,617			74,785		11,022
Inventories	998,465			896,690		132,156
Prepayments and other current assets	196,756			187,447		27,626
Total current assets	2,124,859			1,723,085		253,951
Property and equipment, net	21,108			20,223		2,981
Intangible assets, net	868			713		105
Other non-current assets	9,285			7,827		1,154
Operating lease right-of-use assets	44,122			37,050		5,460
Total assets	2,200,242			1,788,898		263,651
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' DEFICIT
Current liabilities:
Short-term borrowings	187,631			260,000		38,319
Accounts payable	1,282,368			1,084,032		159,767
Accrued expense and other current liabilities	483,676			261,218		38,499
Total current liabilities	1,953,675			1,605,250		236,585
Long-term operating lease liabilities	29,965			21,978		3,239
Other non-current liabilities	2,181			2,181		321
Total liabilities	1,985,821			1,629,409		240,145
MEZZANINE EQUITY
Redeemable non-controlling interests	935,917			956,734		141,005
SHAREHOLDERS' DEFICIT
Ordinary shares Class A	34			35		5
Ordinary shares Class B	25			25		4
Treasury shares	(5,887)			(5,887)		(868)
Additional paid-in capital	3,181,343			3,184,680		469,364
Accumulated deficit	(3,950,384)			(4,026,559)		(593,441)
Accumulated other comprehensive income	72,635			71,449		10,530
Total shareholders' deficit	(702,234)			(776,257)		(114,406)
Non-controlling interest	(19,262)			(20,988)		(3,093)
Total deficit	(721,496)			(797,245)		(117,499)
Total liabilities, mezzanine equity and deficit	2,200,242			1,788,898		263,651

 

111, Inc.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(In thousands, except for share and per share data)
	For the three months ended June 30,						For the six months ended June 30,
	2025		2026				2025		2026
	RMB		RMB		US$		RMB		RMB		US$
Net revenues	3,205,760		2,300,117		338,995		6,735,039		4,661,701		687,049
Operating costs and expenses:
Cost of products sold	(3,020,380)		(2,167,845)		(319,501)		(6,354,564)		(4,403,471)		(648,991)
Fulfillment expenses	(90,202)		(63,607)		(9,375)		(183,768)		(124,831)		(18,398)
Selling and marketing expenses	(66,162)		(58,084)		(8,561)		(134,070)		(116,108)		(17,112)
General and administrative expenses	(17,402)		(17,602)		(2,594)		(35,743)		(30,238)		(4,457)
Technology expenses	(14,869)		(19,027)		(2,804)		(30,328)		(33,413)		(4,924)
Other operating income	3,350		2,804		413		3,674		3,150		464
Total operating costs and expenses	(3,205,665)		(2,323,361)		(342,422)		(6,734,799)		(4,704,911)		(693,418)
Income (Loss) from operations	95		(23,244)		(3,427)		240		(43,210)		(6,369)
Interest income	1,017		574		85		2,271		1,307		193
Interest expense	(8,458)		(8,888)		(1,310)		(17,190)		(16,746)		(2,468)
Foreign exchange gain (loss)	67		273		40		109		548		81
Other income (loss), net	11		(368)		(54)		11		(347)		(51)
Loss before income taxes	(7,268)		(31,653)		(4,666)		(14,559)		(58,448)		(8,614)
Income tax expense	3		-		-		(13)		-		-
Net loss	(7,265)		(31,653)		(4,666)		(14,572)		(58,448)		(8,614)
Net loss (income) attributable to non-controlling interest	(52)		1,055		155		1,693		1,816		268
Net loss (income) attributable to redeemable non-controlling interest	445		1,871		276		890		3,543		522
Adjustment attributable to redeemable non-controlling interest	(12,677)		(10,407)		(1,534)		(25,209)		(23,086)		(3,402)
Net loss attributable to ordinary shareholders	(19,549)		(39,134)		(5,769)		(37,198)		(76,175)		(11,226)
Other comprehensive loss
Unrealized gains of available-for-sale securities,	-		194		29		-		310		46
Realized gains of available-for-sale debt securities	-		(183)		(27)		-		(317)		(47)
Foreign currency translation adjustments	(855)		(577)		(85)		(935)		(1,179)		(174)
Comprehensive loss	(20,404)		(39,700)		(5,852)		(38,133)		(77,361)		(11,401)
Loss per ADS:
Basic and diluted	(2.20)		(4.40)		(0.60)		(4.20)		(8.60)		(1.20)
Weighted average number of shares used in computation of loss per share
Basic and diluted	173,569,631		176,463,585		176,463,585		173,345,848		176,182,383		176,182,383

 

111, Inc.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
	For the three months ended June 30,						For the six months ended June 30,
	2025		2026				2025		2026
	RMB		RMB		US$		RMB		RMB		US$
Net cash (used in) provided by operating activities	(61,410)		(11,436)		(1,685)		51,189		(103,158)		(15,204)
Net cash (used in) provided by investing activities	(223)		(40,855)		(6,022)		(1,311)		(11,505)		(1,695)
Net cash provided by (used in) financing activities	18,673		(2,894)		(427)		(54,308)		(124,919)		(18,411)
Effect of exchange rate changes on cash and cash equivalents, and restricted cash	(774)		(295)		(43)		(804)		(616)		(91)
Net decrease in cash and cash equivalents, and restricted cash	(43,734)		(55,480)		(8,177)		(5,234)		(240,198)		(35,401)
Cash and cash equivalents, and restricted cash at the beginning of the period	556,832		376,586		55,502		518,332		561,304		82,726
Cash and cash equivalents, and restricted cash at the end of the period	513,098		321,106		47,325		513,098		321,106		47,325

 

111, Inc.
Unaudited Reconciliation of GAAP and Non-GAAP Results
(In thousands, except for share and per share data)
	For the three months ended June 30,						For the six months ended June 30,
	2025		2026				2025		2026
	RMB		RMB		US$		RMB		RMB		US$
Income (Loss) from operations	95		(23,244)		(3,427)		240		(43,210)		(6,369)
Add: Share-based compensation expenses, net of tax	2,867		2,713		400		6,982		3,840		566
Non-GAAP income (loss) from operations	2,962		(20,531)		(3,027)		7,222		(39,370)		(5,803)
Net loss	(7,265)		(31,653)		(4,666)		(14,572)		(58,448)		(8,614)
Add: Share-based compensation expenses, net of tax	2,867		2,713		400		6,982		3,840		566
Non-GAAP net loss	(4,398)		(28,940)		(4,266)		(7,590)		(54,608)		(8,048)
Net loss attributable to ordinary shareholders	(19,549)		(39,134)		(5,769)		(37,198)		(76,175)		(11,226)
Add: Share-based compensation expenses, net of tax	2,867		2,713		400		6,982		3,840		566
Non-GAAP net loss attributable to ordinary shareholders	(16,682)		(36,421)		(5,369)		(30,216)		(72,335)		(10,660)
Loss per ADS: Basic and diluted	(2.20)		(4.40)		(0.60)		(4.20)		(8.60)		(1.20)
Add: Share-based compensation expenses per ADS, net of tax	0.40		0.40		0.00		0.80		0.40		0.00
Non-GAAP loss per ADS	(1.80)		(4.00)		(0.60)		(3.40)		(8.20)		(1.20)

 

 

View original content:https://www.prnewswire.com/news-releases/111-inc-announces-second-quarter-2026-unaudited-financial-results-302881371.html

SOURCE 111, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How did 111’s B2B and B2C segments perform in the second quarter of 2026?

For the three months ended June 30, 2026, B2B net revenue was RMB2,242.2 million, down 28.7% year-over-year, with segment profit of RMB121.5 million and a margin of 5.4% versus 5.5% a year earlier. B2C net revenue was RMB57.9 million, down 7.8%, with segment profit of RMB10.8 million and a margin of 18.6% versus 20.7% in the prior-year quarter.

What cost trends did 111 report beyond fulfillment expenses?

Selling and marketing expenses were RMB58.1 million, down 12.2% year-over-year. General and administrative expenses were RMB17.6 million, up 1.1%, and technology expenses were RMB19.0 million, up 28.0%. The company said that, excluding share-based compensation and severance, total operating expenses were 4.2% of GMV versus 4.5% a year earlier.

How is 111 using AI and workforce streamlining in its operations?

The company stated it is investing in and adopting AI agents, which has enabled workforce streamlining, primarily in back-end support functions, and led to severance costs in the quarter. It also plans to deploy AI capabilities in demand forecasting, inventory optimization, fulfillment routing, merchant operation management, and AI agent-based solutions in pharmacies and healthcare service scenarios.

What non-GAAP measures does 111 highlight for the quarter?

111 reported non-GAAP loss from operations of RMB20.5 million, compared with non-GAAP income from operations of RMB3.0 million a year earlier. Non-GAAP net loss was RMB28.9 million versus RMB4.4 million, and non-GAAP net loss attributable to ordinary shareholders was RMB36.4 million versus RMB16.7 million. These non-GAAP metrics exclude share-based compensation expenses, net of tax.