#Inc. #111 #healthcare platform #NASDAQ: YI

111, Inc. Reports Third Quarter 2025 Financial Results and Strategic Transition Update

111, Inc. Reports Third Quarter 2025 Financial Results

111, Inc. (NASDAQ: YI), a leading tech-enabled healthcare platform in China, recently announced its unaudited financial results for the third quarter of 2025, ended September 30. This period marks significant developments for the company as it continues to reshape its business model in response to evolving market conditions.

Key Highlights of Q3 2025

- Operating Expenses: For the third quarter, total operating expenses were reported at RMB 180.3 million (approximately US$25.3 million), down 13.4% from RMB 208.2 million in Q3 2024.
- Profitability: Despite facing a challenging macroeconomic environment, the company achieved non-GAAP operational profitability for the third consecutive quarter, with a non-GAAP income from operations of RMB 0.2 million, compared to RMB 7.1 million in the same quarter last year.
- Positive Cash Flow: The company generated a net cash inflow from operating activities of RMB 38.1 million (about US$5.4 million), contributing to a year-to-date positive operating cash flow of RMB 89.3 million (US$12.5 million).

These results demonstrate resilience in operations, affirming the company's strategic decision to pivot towards an asset-light model.

Transitioning to an Asset-Light Model

One of the pivotal shifts in 111, Inc.’s strategy has been transitioning from an asset-heavy business model to one that is asset-light. This transformation was underscored by the divestiture of three self-operated subsidiaries in the recent quarter, which have now become partners in the company's supply chain, providing exclusive fulfillment services to customers. The decision to restructure these operations was not just about downsizing; it was about optimizing their logistics framework while reducing capital expenses.

Co-Founder and CEO, Junling Liu, stated, “While this strategic restructuring may pose a short-term revenue challenge, it bifurcates our operational costs from service delivery, allowing for more focused growth and enhanced profitability.” The divestment resulted in a more flexible and agile operational framework, alleviating some of the financial burdens associated with self-operated facilities.