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 ...
