111 (NASDAQ:YI), a leading tech-enabled healthcare platform in China, reported its unaudited financial results for the fourth quarter and full fiscal year ended December 31, 2025, on April 9, 2026.
For the full year 2025, 111 generated net revenues of RMB12.6 billion, representing a 12.8% decrease compared to the previous year.
Fourth-quarter revenues followed a similar trend, totaling RMB2.8 billion.
The company attributed the revenue contraction primarily to its deliberate transition away from capital-intensive business lines in favor of higher-margin, technology-driven services.
Despite the top-line decline, the company successfully maintained non-GAAP operating profitability for both the fourth quarter and the full fiscal year.
This achievement was supported by a notable expansion in B2B gross margins, which rose to 5.6% in the fourth quarter and 5.5% for the full year.
The margin improvement reflects the company's enhanced bargaining power and the optimization of its supply chain through advanced data analytics.
Meanwhile, the company’s focus on financial discipline resulted in positive operating cash flow for the year, reaching RMB119.1 million.
This contributed to a robust liquidity position at year-end, with cash, cash equivalents, and restricted cash totaling RMB611.3 million—a 17.9% increase over the prior year.
Operationally, 111 continues to leverage its "S2B2C" (Supply chain to Business to Consumer) model to connect pharmaceutical companies with retail pharmacies and consumers.
By divesting non-core subsidiaries, management has concentrated resources on its core B2B platform, which serves as a critical infrastructure layer for independent pharmacies across China.
The company also highlighted its ongoing investment in AI-driven tools for pharmacy management and patient services.