111, Inc. Reports First Quarter 2025 Unaudited Financial Results

• Maintained Quarterly Operational Profitability
• Operating Expenses as a Percentage of Revenues Decreased 30 Basis Points YoY
• Maintained Quarterly Positive Operating Cash Flow

SHANGHAI, June 19, 2025 /PRNewswire/ — 111, Inc. (YI), a tech-enabled healthcare platform company, today unveiled its unaudited financial results for the first quarter ended March 31, 2025.

First Quarter 2025 Highlights

• Net revenues were RMB3.5 billion ($486.3 million), remaining relatively flat compared to the same quarter last year.
• Total operating expenses were RMB195.0 million ($26.9 million), an improvement of 4.8% compared to RMB204.8 million in the same quarter of last year. As a percentage of net revenues, total operating expenses decreased by 30 basis points to 5.5% from 5.8% in the same quarter of last year, demonstrating continuous improvement in the Company’s operational efficiency.
• Income from operations was RMB0.1 million ($0.02 million), compared to RMB3.7 million in the same quarter of last year. As a percentage of net revenues, income from operations accounted for 0.004% this quarter as compared to 0.1% in the same quarter of last year.
• Non-GAAP income from operations ⁽¹⁾ was RMB4.3 million ($0.6 million), compared to RMB8.9 million in the same quarter of last year. As a percentage of net revenues, Non-GAAP income from operations accounted for 0.1% this quarter as compared to 0.3% in the same quarter of last year.
• Net cash from operating activities was RMB112.6 million ($15.5 million), achieved another quarter of positive operating cash flow.

Mr. Junling Liu, Co-Founder, Chairman, and Chief Executive Officer of 111, commented, “In the first quarter of 2025, we successfully navigated a persistently challenging macroeconomic environment to deliver another quarter of operational profitability and positive operating cash flow. Our net revenues remained stable at RMB 3.5 billion, demonstrating the resilience of our business model amidst market headwinds. Our ability to sustain profitability is a direct result of the operational discipline and strategic focus we have cultivated across the organization.”

“Our relentless focus on efficiency continues to bear fruit. We achieved a notable 4.8% year-over-year reduction in total operating expenses. More importantly, as a percentage of net revenues, our operating expenses improved to 5.5%, a decrease of 30 basis points from the same period last year, highlighting our capacity for continued operational improvement. This was driven by significant double-digit reductions in both our selling and marketing expenses and technology expenses, reflecting our commitment to prudent cost management.”

“Looking ahead, our strategy remains centered on leveraging technology to empower the healthcare value chain. We will continue to invest strategically in AI and digital solutions to enhance our supply chain, deepen customer engagement, and pioneer a seamless, one-stop shopping experience for our partners. With our fortified financial base and a clear focus on execution, we are well-positioned to capture the immense long-term opportunities in this exciting market and build a truly defensible, next-generation platform.”

First Quarter 2025 Financial Results

Net revenues were RMB3,529 million ($486.3 million), representing an increase of 0.02% from RMB3,528 million in the same quarter of last year.

Gross segment profit ⁽²⁾ was RMB195.1 million ($26.9 million). Due to an unfavorable macroeconomic environment, gross segment profit had a 6.4% decrease year-over-year.

Operating costs and expenses were RMB3.53 billion ($486.3 million), representing an increase of 0.1% from RMB3.52 billion in the same quarter of last year.

• Cost of products sold was RMB3.33 billion ($459.5 million), representing an increase of 0.4% from RMB3.32 billion in the same quarter of last year.
• Fulfillment expenses were RMB93.6 million ($12.9 million), representing an increase of 5.7% from RMB88.5 million in the same quarter of last year. Fulfillment expenses accounted for 2.7% of net revenues this quarter as compared to 2.5% in the same quarter of last year.
• Selling and marketing expenses were RMB67.9 million ($9.4 million), representing a decrease of 15.5% from RMB80.4 million in the same quarter of last year. Excluding the share-based compensation expenses of RMB1.6 million for the quarter and RMB1.9 million for the same quarter last year, respectively, selling and marketing expenses as a percentage of net revenues accounted for 1.9% in the quarter as compared to 2.2% in the same quarter of last year.
• General and administrative expenses were RMB18.3 million ($2.5 million), representing a decrease of 3.8% from RMB19.1 million in the same quarter of last year. Excluding the share-based compensation expenses of RMB1.9 million for the quarter and RMB2.1 million for the same quarter last year, respectively, general and administrative expenses as a percentage of net revenues accounted for 0.5% this quarter, maintaining the same as last year.
• Technology expenses were RMB15.5 million ($2.1 million), representing a decrease of 15.6% from RMB18.3 million in the same quarter of last year. Excluding the share-based compensation expenses of RMB0.6 million for the quarter and RMB1.2 million for the same quarter last year, respectively, technology expenses as a percentage of net revenues accounted for 0.4% in the quarter as compared to 0.5% in the same quarter of last year.

Income from operations was RMB0.1 million ($0.02 million), compared to RMB3.7 million in the same quarter of last year. As a percentage of net revenues, income from operations accounted for 0.004% this quarter as compared to 0.1% in the same quarter of last year.

Non-GAAP income from operations was RMB4.3 million ($0.6 million), compared to RMB8.9 million in the same quarter of last year. As a percentage of net revenues, Non-GAAP income from operations accounted for 0.1% this quarter as compared to 0.3% in the same quarter of last year.

Net loss was RMB7.3 million ($1.0 million), compared to RMB2.7 million in the same quarter of last year. As a percentage of net revenues, net loss accounted for 0.2% this quarter as compared to 0.1% in the same quarter of last year.

Non-GAAP net loss was RMB3.2 million ($0.4 million), compared to Non-GAAP net income of RMB2.5 million in the same quarter of last year.

Net loss attributable to ordinary shareholders was RMB17.6 million ($2.4 million), compared to RMB13.8 million in the same quarter of last year. As a percentage of net revenues, net loss attributable to ordinary shareholders accounted for 0.5% this quarter as compared to 0.4% in the same quarter of last year.

Non-GAAP net loss attributable to ordinary shareholders was RMB13.5 million ($1.9 million), compared to RMB8.6 million in the same quarter of last year. As a percentage of net revenues, non-GAAP net loss attributable to ordinary shareholders accounted for 0.4% this quarter as compared to 0.2% in the same quarter of last year.

As of March 31, 2025, the Company held cash and cash equivalents, restricted cash and short-term investments totaling RMB556.8 million ($76.7 million), compared to RMB518.3 million as of December 31, 2024. To date, amount of RMB1.09 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 to date, the Company has reached agreements with or received commitment letters from investors representing approximately 96.79% of the total amount to reschedule the repayments, allowing for phased repayments at extended periods, if the holders exercise their redemption rights. A portion of the redemption has already been paid upon signing of these agreements. 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, 2024.

Use of Non-GAAP Financial Measures