111 Inc. Achieves Quarterly Non-GAAP Net Profitability in Q3 2025 Amid Shift to Asset-Light Model

111 Inc. Reports Q3 2025 Results, Driven by Expense Reduction and Strategic Pivot

111, Inc. ("111" or the "Company") (NASDAQ: YI), a tech-enabled healthcare platform committed to digitally empowering the healthcare value chain in China, announced its unaudited financial results for the third quarter ended September 30, 2025, on December 17, 2025. The results highlight a successful strategic transition, with the company achieving quarterly non-GAAP net profitability.

The core of the positive results stems from the Company's shift from an asset-heavy business model to an asset-light business model. This pivot has been instrumental in driving efficiency and profitability metrics.

Key Financial and Operational Highlights

The third quarter of 2025 marked several significant financial milestones for the Shanghai-based company:

• Quarterly Non-GAAP Net Profitability: 111 Inc. achieved non-GAAP net profitability for the quarter.
• Sustained Operational Profitability: The Company maintained non-GAAP operational profitability for the third consecutive quarter.
• Positive Cash Flow: 111 Inc. achieved quarterly positive operating cash flow.

The most material data point driving these results was the substantial reduction in operational costs. Total operating expenses for Q3 2025 were RMB180.3 million (US$25.3 million). This figure represents a significant decrease of 13.4% compared to RMB208.2 million reported in the same quarter of the previous year.

Strategic Transition and Market Impact

The transition to an asset-light model is a critical strategic move for healthcare platforms operating in the competitive Chinese market. By focusing on digital empowerment and streamlining operations, 111 Inc. is attempting to reshape the value chain by reducing capital intensity and improving margin profiles.

“The successful transition from an asset-heavy to an asset-light model has allowed us to realize quarterly non-GAAP net profitability,” the company stated. “This achievement, coupled with three consecutive quarters of non-GAAP operational profitability, validates our strategic focus on efficiency and sustainable growth.”

The sustained profitability and positive operating cash flow signal improved financial health and reduced reliance on external financing, which is generally viewed favorably by investors tracking growth-stage technology companies in the healthcare sector. The reduction in operating expenses suggests effective cost control measures are in place, providing a stronger foundation for future expansion within China's digitally evolving healthcare ecosystem.