111, Inc. Transitions to Asset-Light Model, Achieves Non-GAAP Profitability for Three Consecutive Quarters

Written by Emily J. Thompson, Senior Investment Analyst

Source: Newsfilter

Updated: Dec 17 2025

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Source: Newsfilter

Financial Performance: 111, Inc. reported third-quarter net revenues of RMB 3.0 billion (approximately $421.5 million), a 16.7% year-over-year decline, yet achieved non-GAAP net income of RMB 1.1 million (about $0.2 million), demonstrating resilience in profitability amidst market challenges.
Cost Control: Operating expenses decreased to RMB 180.3 million (approximately $25.3 million), down 13.4% from the previous year, reflecting effective structural optimization and a shift to an asset-light model that enhances liquidity and profitability.
Strategic Transition: The company divested three self-operated subsidiaries, moving towards an asset-light partnership network, which is expected to improve operational efficiency and reduce capital burdens, thereby supporting future high-margin growth.
Supply Chain Optimization: The

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About YI

111 Inc is an investment holding company primarily engaged in the operation of integrated online and offline healthcare platform. The Company mainly operates its business through two segments. The Business to Customer (B2C) segment is engaged in the sale of pharmaceutical and other health and wellness products through 1 Medicine Marketplace, mobile apps, other online channels and offline pharmacies to consumers and certain enterprise customers. The Business to Business (B2B) segment is engaged in the sale of pharmaceutical products to pharmacies on 1 Pharmacy. The Company also provides customers with online consultation and electronic prescription services through the Internet hospital 1 Clinic. The Company’s products include drugs, nutritional supplements, medical supplies and devices and other products. The Company mainly conducts its business in the domestic market.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.

111, Inc. Reports Narrower Q4 Net Loss Driven by Lower Expenses

Apr 09 2026NASDAQ.COM

Narrowed Net Loss: 111, Inc. reported a net loss attributable to ordinary shareholders of RMB 16.22 million (RMB 1.80 per ADS) for Q4, an improvement from RMB 19.84 million (RMB 2.20 per ADS) in the same quarter last year, indicating effective cost control measures.
Improved Operating Profit: The adjusted profit from operations was RMB 0.223 million (approximately $0.032 million), contrasting with a loss of RMB 2.292 million a year earlier, showcasing significant progress in operational efficiency despite declining revenues.
Decreased Operating Costs: Operating costs and expenses for the fourth quarter were RMB 2.82 billion (approximately $403.32 million), a 26.8% decrease from last year, supporting the narrowed net loss and demonstrating successful cost management strategies.
Revenue Decline: Quarterly net revenues fell to RMB 2.82 billion (approximately $403.28 million) from RMB 3.85 billion a year prior, reflecting market challenges and revenue pressures faced by the company.

111, Inc. Releases Financial Results for Fiscal Year 2025

Apr 09 2026PRnewswire

Strategic Optimization Impact: 111, Inc. successfully transitioned to a warehouse partnership model by divesting 100% equity interests in several subsidiaries, which, while temporarily impacting revenue, has strengthened profitability and liquidity, positioning the company for sustained future growth.
Revenue and Profit Changes: In Q4 2025, net revenues were RMB 2.8 billion, a 26.7% decrease year-over-year; however, non-GAAP operating profit turned positive, demonstrating the company's success in optimizing its operational structure.
Sales Growth: Revenue from promotional products surged 76.2% year-over-year, with flagship product

111 Reports Q4 Financial Results

Apr 09 2026seekingalpha

Financial Highlights: 111 reported a Q4 Non-GAAP EPS of -$0.20, indicating significant profitability challenges, with a year-over-year decline of 26.7% reflecting ongoing operational difficulties.
Revenue Decline: The company's revenue for Q4 was $403.28 million, down 26.7% year-over-year, suggesting weak market demand that could adversely affect future growth prospects.
Cash Flow Status: Net cash provided by operating activities was RMB 29.9 million (approximately $4.3 million), indicating positive cash flow but also revealing cash flow pressures compared to previous performance, which may impact liquidity management.
Future Outlook: Given the current economic environment, 111 must implement effective strategies to reverse the revenue decline trend to restore investor confidence and ensure sustainable growth.

111 Inc. Reports Significant Financial Improvement for FY 2025

Apr 09 2026Newsfilter

Financial Recovery: In FY 2025, 111 Inc. reported net revenues of RMB 12.6 billion (US$1.8 billion), reflecting a 12.8% year-over-year decline; however, strategic optimization and an asset-light model have significantly improved profitability and cash flow.
Operational Efficiency Gains: The company achieved a non-GAAP operating profit of RMB 0.2 million (US$0.03 million) in Q4, marking a substantial turnaround from a loss of RMB 2.3 million (US$0.33 million) in Q4 2024, showcasing success in operational efficiency and cost control.
Margin Expansion: The B2B gross profit margin rose to 5.5% in FY 2025, up 10 basis points from 5.4% in 2024, reflecting ongoing efforts in core operational optimization and enhancing market competitiveness.
Cash Flow Improvement: The company generated RMB 119.1 million (US$17.0 million) in operating cash flow for FY 2025, demonstrating significant improvements in financial discipline and business quality, laying a solid foundation for sustainable growth.

111, Inc. Achieves Non-GAAP Profitability for Third Consecutive Quarter

Dec 17 2025PRnewswire

Financial Performance: 111, Inc. reported net revenues of RMB 3.0 billion (approximately $421.5 million) for Q3 2025, reflecting a 16.7% year-over-year decline, yet achieved non-GAAP operational profitability for the third consecutive quarter amidst macroeconomic challenges.
Strategic Shift: The company divested 100% equity interests in three self-operated subsidiaries, which may temporarily impact revenue but strengthens liquidity and profitability by transitioning to an asset-light model, enhancing long-term financial health.
Supply Chain Optimization: Through the ongoing 'MANTIANXING' initiative, the fulfillment center network has expanded, generating RMB 498 million in inventory value, driving 20.5% GMV growth and 31.0% increase in customer count, significantly enhancing overall competitiveness.
Future Outlook: 111, Inc. aims to build an AI-powered pharmaceutical procurement transaction platform, leveraging AI to optimize decision-making and enhance customer experience, which is expected to unlock long-term value for shareholders.