111, Inc. Reports Second Quarter 2025 Financial Performance Amid Challenges

111, Inc. Reports Second Quarter 2025 Financial Performance

111, Inc. (NASDAQ: YI), a prominent healthcare technology platform, has revealed its unaudited financial performances for the second quarter ending June 30, 2025. The company is steadfast in its mission to transform the healthcare industry's value chain through digital empowerment.

Financial Highlights

In the recently concluded quarter, 111, Inc. reported total operating expenses of RMB 185.3 million (approximately US$25.9 million), showcasing a significant year-on-year improvement of 9.3% from RMB 204.3 million. This marked a positive trajectory in operational efficiency, with operating expenses decreasing to 5.8% of net revenues, down from 6.0% in the same quarter last year.

The income from operations for Q2 was RMB 0.1 million (US$0.01 million), a notable decrease from RMB 3.3 million during the corresponding quarter of the prior year. When examining non-GAAP income from operations, the figures stood at RMB 3.0 million (US$0.4 million), down from RMB 8.5 million year-on-year. This represented 0.1% of net revenues for the quarter, compared to 0.2% the year prior.

Operational Resilience

Mr. Junling Liu, Co-Founder and CEO of 111, asserted, “Despite navigating through challenging macroeconomic conditions, we’ve upheld operational profitability and sustained positive cash flow in the first half of the year. The ongoing reduction of operating expenses is a testament to our commitment to efficiency.”
The company’s strategic initiatives are reflected in the impressive 53.6% growth in sales revenue from marketing promotional products, enhancing access for pharmacies nationwide through digital marketing channels. Moreover, customer engagement saw a healthy 19% rise year-on-year.

111, Inc. has also made considerable strides in its general agency business model, particularly as a distributor of a cutting-edge anti-infection medication. Monthly sales have dramatically surged, reaching seven times their initial volume since the project launched in Q1 2025.

Supply Chain Enhancements

112, Inc. has prioritized strengthening its supply chain through the 'MANTIANXING' initiative. By the close of Q2, 19 fulfillment centers had been established across the country, leading to an inventory value of RMB 355 million and achieving a gross merchandise value increase of 58.2% from Q1.

Looking Forward

The company’s focus remains firmly on leveraging technology to enhance the healthcare value chain. Continuous investments in AI and digital solutions are expected to deepen customer engagement and solidify 111's role as a frontrunner in the tech-enabled healthcare sphere. The company’s robust performance amidst market challenges demonstrates its capability to achieve its long-term objectives and drive sustainable value for its shareholders.

Financial Overview

As of the end of Q2 2025, net revenues were reported at RMB 3.2 billion (approximately US$447.5 million), marking a 6.4% decline from RMB 3.4 billion in Q2 2024. The gross segment profit was RMB 185.4 million (US$25.9 million), reflecting a 10.7% drop from RMB 207.6 million a year prior. Operating costs fell in line with the drop in net revenues, decreasing by 6.3% year-on-year.

Although the company reported a net loss of RMB 7.3 million (US$1.0 million) for the quarter, it signifies an increase from RMB 2.1 million in the same timeframe last year. Non-GAAP net loss attributable to ordinary shareholders was RMB 16.7 million (US$2.3 million), compared to RMB 8.8 million one year earlier.

In conclusion, 111, Inc. is navigating a significant transition in the healthcare landscape, with technology at the helm of revolutionizing its operations. The ongoing effort for operational excellence and digital transformation is tangible, reshaping how healthcare services are delivered to meet the growing demand across China.