111 (YI) Q2 2025 earnings summary

Executive summary

• Achieved operational profitability for the quarter and maintained positive operating cash flow in the first half of the year.

• Continued cost discipline led to a 9.3% year-over-year reduction in total operating expenses.

• Strategic initiatives drove a 53.6% increase in marketing promotional product sales revenue and a 19.0% rise in customer count year-over-year.

• Expanded fulfillment centers to 19 locations, with GMV up 58.2% sequentially from Q1.

Financial highlights

• Net revenues were RMB3.2 billion ($447.5 million), down 6.4% year-over-year.

• Gross segment profit was RMB185.4 million ($25.9 million), down 10.7% year-over-year.

• Income from operations was RMB0.1 million, compared to RMB3.3 million in the prior year quarter.

• Non-GAAP income from operations was RMB3.0 million, down from RMB8.5 million year-over-year.

• Net loss was RMB7.3 million ($1.0 million), compared to RMB2.1 million in the same quarter last year.

• Net loss attributable to ordinary shareholders was RMB19.5 million ($2.7 million), compared to RMB14.0 million year-over-year.

Outlook and guidance

• Strategy remains focused on leveraging technology and digital solutions to optimize the supply chain and deepen customer engagement.

• Management expresses confidence in executing long-term vision despite market headwinds.