111 (YI) Q3 2025 earnings summary

Executive summary

• Transitioned from an asset-heavy to an asset-light business model, divesting three subsidiaries and converting them into exclusive fulfillment partners.

• Achieved non-GAAP operational profitability for the third consecutive quarter and generated positive operating cash flow both in the quarter and year-to-date.

• Strategic initiatives, including the "MANTIANXING" supply chain project, drove a 20.5% increase in GMV and 31.0% growth in customer count compared to Q2.

Financial highlights

• Net revenues were RMB3.0 billion ($421.5 million), down 16.7% year-over-year.

• Gross segment profit was RMB178.0 million ($25.0 million), down 15.5% year-over-year.

• Non-GAAP net income was RMB1.1 million ($0.2 million), compared to RMB1.3 million in the same quarter last year.

• Net loss attributable to ordinary shareholders was RMB13.0 million ($1.8 million), improved from RMB17.1 million last year.

• Net cash from operating activities was RMB38.1 million ($5.4 million) for the quarter, and RMB89.3 million ($12.5 million) year-to-date.

• Cash, cash equivalents, restricted cash, and short-term investments totaled RMB557.5 million ($78.3 million) as of September 30, 2025.

Outlook and guidance

• Focused on building an AI-powered transaction platform for pharmaceutical procurement, aiming to optimize decision-making for pharmacies and suppliers.

• Management expects the asset-light model to strengthen liquidity and profitability, despite temporary top-line revenue headwinds.