What were 111 (NASDAQ:YI)’s total revenues for Q1 2026?

111 reported net revenue of RMB2.4 billion for Q1 2026, representing a 33.1% decline compared to the same period in 2025. The drop reflects strategic divestments and reduced reliance on heavy-asset distribution.

Why did 111’s revenue decline so sharply year-over-year?

The decline was primarily due to the company divesting underperforming subsidiaries and shifting away from capital-intensive inventory operations toward a warehouse partnership model, which prioritizes recurring commission income.

Which segments showed growth despite the overall revenue drop?

Marketplace service revenue rose 24.7% YoY, and promotional product revenue surged 70.2%, with a 75% increase in gross profit in that category, highlighting the success of the platform-driven approach.

How profitable was 111 in Q1 2026?

The company reported an operating loss of RMB20 million and a net loss of RMB26.8 million, reflecting continued investment in restructuring and technology-focused operations.

Did 111 achieve any operational efficiencies?

Yes. Fulfillment costs fell 34.6% to RMB61.2 million, representing 2.6% of net revenue, demonstrating improved efficiency under the warehouse partnership model.

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111 revenue slips 33% as strategic shift to asset-light model continues

Written by Jon CuthbertPublished Jun. 4 2026Last Updated Jun. 4 2026

111 (NASDAQ:YI) reported unaudited financial results for the first quarter of 2026 today, signaling the company's deepening transition toward a more lean and technology-oriented operating structure.

The shift, designed to prioritize operational efficiency over top-line growth, saw net revenue reach RMB2.4 billion, a 33.1% decline compared to the same period in 2025.

The decrease in overall net revenue is largely attributed to the company's strategic decision to divest underperforming subsidiaries and reduce reliance on heavy-asset distribution.

In its place, the firm is expanding its reliance on a warehouse partnership model, which focuses on generating recurring commission income rather than assuming the capital and operational burdens of traditional inventory management.

Despite the contraction in top-line figures, specific segments of the business demonstrated marked growth.

Total marketplace service revenue rose 24.7% year-over-year, underscoring the success of the platform-driven approach.

Additionally, revenue from promotional products surged 70.2%, with a corresponding 75.0% increase in gross profit within that category.

Operational efficiencies were also evident in the firm's fulfillment costs, which fell 34.6% to RMB61.2 million, improving to 2.6% of net revenue.

During the period under review, the company reported an operating loss of RMB20 million and a net loss of RMB26.8 million for the quarter.

As of the end of the period, 111 held RMB396.6 million in cash, restricted cash, and short-term investments.

The company also disclosed that it maintains RMB0.95 billion in obligations to investors in its 1 Pharmacy Technology subsidiary under existing redemption arrangements.