# EDGAR Filing Document

**Accession Number:** 0001738906
**File Stem:** 0000950103-25-016208
**Filing Date:** 2025-12
**Character Count:** 34006
**Document Hash:** 85b70c49b83fa20b20c4a6506ca26e0b
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000950103-25-016208.hdr.sgml**: 20251217

**ACCESSION NUMBER**: 0000950103-25-016208

**CONFORMED SUBMISSION TYPE**: 6-K

**PUBLIC DOCUMENT COUNT**: 11

**CONFORMED PERIOD OF REPORT**: 20251217

**FILED AS OF DATE**: 20251217

**DATE AS OF CHANGE**: 20251217

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** 111, Inc.
- **CENTRAL INDEX KEY:** 0001738906
- **STANDARD INDUSTRIAL CLASSIFICATION:** RETAIL-DRUG STORES AND PROPRIETARY STORES [5912]
- **ORGANIZATION NAME:** 07 Trade & Services
- **EIN:** 000000000
- **STATE OF INCORPORATION:** E9
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 6-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-38639
- **FILM NUMBER:** 251577195

**BUSINESS ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** 3-4/F, NO.295 ZUCHONGZHI ROAD
- **STREET 2:** PUDONG NEW AREA
- **CITY:** SHANGHAI
- **PROVINCE COUNTRY:** F4
- **ZIP:** 201203
- **BUSINESS PHONE:** 862120536666

**MAIL ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** 3-4/F, NO.295 ZUCHONGZHI ROAD
- **STREET 2:** PUDONG NEW AREA
- **CITY:** SHANGHAI
- **PROVINCE COUNTRY:** F4
- **ZIP:** 201203

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** New Peak Group
- **DATE OF NAME CHANGE:** 20180427

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

**FORM 6-K**

**REPORT OF FOREIGN ISSUER<br> PURSUANT TO RULE 13a-16 OR 15d-16 OF<br> THE SECURITIES EXCHANGE ACT OF 1934**

**For the month of December 2025**

**Commission file number: 001-38639**

**111, Inc.**

**3-4/F, No.295 ZuChongZhi Road, Pudong New Area**

**Shanghai, 201203**

**The People's Republic of China**

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F ☒ Form 40-F ☐

**EXHIBIT INDEX**

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| [99.1](dp238799_ex9901.htm) | [111, Inc. Announces Third Quarter 2025 Unaudited Financial Results](dp238799_ex9901.htm) |

---

**Signature**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | 111, INC. | 111, INC. | 111, INC. |
| Date: | December 17, 2025 | By: | /s/ Junling Liu | /s/ Junling Liu |
|  |  |  | Name: | Junling Liu |
|  |  |  | Title: | Chief Executive Officer |

---

## Exhibit 99.1

**Exhibit 99.1**

**111, Inc. Announces Third Quarter 2025 Unaudited Financial Results**

&nbsp;&nbsp;&nbsp;&nbsp;· **Transition from An Asset-Heavy Business Model to An Asset-Light Business Model** 

&nbsp;&nbsp;&nbsp;&nbsp;· **Achieved Quarterly Non-GAAP Net Profitability** 

&nbsp;&nbsp;&nbsp;&nbsp;· **Maintained Non-GAAP Operational Profitability for Three Consecutive Quarters** 

&nbsp;&nbsp;&nbsp;&nbsp;· **Achieved Quarterly Positive Operating Cash Flow** 

SHANGHAI, December 17, 2025 /PRNewswire/ – 111, Inc. ("111" or the "Company") (NASDAQ: YI), a leading tech-enabled healthcare platform company committed to reshaping the value chain of healthcare industry by digitally empowering the upstream and downstream in China, today announced its unaudited financial results for the third quarter ended September 30, 2025.

**Third Quarter 2025 Highlights**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· **Total operating expenses** were RMB180.3 million (US$25.3 million), representing a decrease of 13.4%
compared to RMB208.2 million in the same quarter of last year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· **Non-GAAP income from operations <sup>(1)</sup>** was RMB0.2 million
(US$0.03 million), compared to RMB7.1 million in the same quarter of last year . As a percentage of net revenues, non-GAAP income
from operations accounted for 0.01% this quarter as compared to 0.2% in the same quarter of last year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· **Non-GAAP net income** **<sup>(2)</sup>** was RMB1.1 million (US$0.2 million), compared to RMB1.3 million in the same quarter of last year. As a percentage of net revenues, non-GAAP net income accounted for 0.04% this quarter, consistent with
the same quarter last year .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· **Net cash from operating activities** was RMB38.1 million (US$5.4 million). The Company also generated
positive operating cash flow of RMB89.3 million (US$12.5 million) on a year-to-date basis.

<sup>(1) Non-GAAP income from operations represents income from operations excluding share-based compensation expenses.</sup> 

<sup>(2) Non-GAAP net income represents net income excluding share-based compensation expenses, net of tax. Considering the impact of accretion of redeemable non-controlling interest for the third quarter 2025, non-GAAP net income is used as a meaningful measurement of the operation performance of the Company.</sup>

Mr. Junling Liu, Co-Founder, Chairman, and Chief Executive Officer of 111, commented, "In the third quarter of 2025, we once again demonstrated resilience despite a challenging macroeconomic landscape. I am pleased to report that we have achieved non-GAAP operational profitability for the third consecutive quarter and generated positive operating cash flow both in the quarter and on a year-to-date basis."

"We are decisively executing a strategic shift towards an asset-light business model. During and subsequent to the quarter, we completed the divestiture of three self-operated subsidiaries. Crucially, this represents a change in ownership structure, not a reduction in service capability. These facilities have now joined our ecosystem as fulfillment partners and will be dedicated to service our customers exclusively. While this structural optimization may create a temporary headwind for our top-line revenue, it meaningfully strengthens our liquidity and profitability. It allows us to maintain a robust logistics network without the associated capital burden, accelerating our transition from an asset-heavy model to a high-margin, technology-enabled service model."

"Our strategic initiatives are delivering strong results. We have made substantial progress in enhancing our supply chain capabilities through the ongoing "MANTIANXING" initiative. The nationwide network of fulfillment centers continues to grow. As of the end of the quarter, the initiative has generated inventory value of RMB498 million, driving growth of 20.5% in GMV and 31.0% in customer count compared to Q2. In optimizing our supply chain, we have systematically enhanced overall competitiveness through initiatives such as traceability code scanning, relay picking by warehouse personnel, and optimal carrier matching. These measures have significantly improved operational efficiency, reduced total fulfillment costs, and provided a solid, reliable foundation for our business growth."

![](image_005.jpg)

"Looking ahead, our vision is to build the industry's AI-powered transaction platform for pharmaceutical procurement. We are actively leveraging AI capabilities to create a unified, intelligent platform that optimizes decision-making for pharmacies and maximizes reach for suppliers. By aggregating industry information and streamlining transactions on a single interface, we are committed to providing a superior customer experience which will unlock long-term value for our shareholders."

**Third Quarter 2025 Financial Results**

**Net revenues** were RMB3.0 billion (US$421.5 million), representing a decrease of 16.7% from RMB3.6 billion in the same quarter of last year.

**Gross segment profit <sup>(3)</sup>** was RMB178.0 million (US$25.0 million), representing a decrease of 15.5% from RMB210.6 million in the same quarter of last year.

---

| | | | |
|:---|:---|:---|:---|
| (In thousands RMB)<br>| For the three months ended September 30,  | For the three months ended September 30,  | For the three months ended September 30,  |
|  | 2024  | 2025  | YoY  |
| **B2B Net Revenue** |  |  |  |
| Product | 3514298 | 2925641 | -16.8% |
| Service | 21731 | 14245 | -34.4% |
| Sub-Total | 3536029 | 2939886 | -16.9% |
| Cost of Products Sold <sup>(4)</sup> | 3340998 | 2773020 | -17.0% |
| **Segment Profit** | 195031 | 166866 | -14.4% |
| **Segment Profit %** | 5.5% | 5.7% |  |

---

---

| | | | |
|:---|:---|:---|:---|
| <br>(In thousands RMB)<br>| For the three months ended September 30, | For the three months ended September 30, | For the three months ended September 30, |
|  | 2024 | 2025 | YoY |
| **B2C Net Revenue** |  |  |  |
| Product | 61031 | 58294 | -4.5% |
| Service | 3615 | 2640 | -27.0% |
| Sub-Total | 64646 | 60934 | -5.7% |
| Cost of Products Sold | 49061 | 49765 | 1.4% |
| **Segment Profit** | 15585 | 11169 | -28.3% |
| **Segment Profit %** | 24.1% | 18.3% |  |

---

<sup>(3) Gross segment profit represents net revenues less cost of goods sold.</sup>

<sup>(4) For segment reporting purposes, purchase rebates are allocated to the B2B segment and B2C segments primarily based on the amount of cost of products sold for each segment. Cost of products sold does not include other direct costs related to cost of product sales such as shipping and handling expense, payroll and benefits of logistic staff, logistic centers rental expenses and depreciation expenses, which are recorded in the fulfillment expenses. Cost of service revenue is recorded in the operating expense.</sup>

![](image_006.jpg)

**Operating costs and expenses** were RMB3.0 billion (US$421.8 million), representing a decrease of 16.5% from RMB3.6 billion in the same quarter of last year, broadly in line with the decline in net revenues.

&nbsp;&nbsp;&nbsp;&nbsp;· **Cost of products sold** was RMB2.8 billion (US$396.5 million), representing a decrease
of 16.7% from RMB3.4 billion in the same quarter of last year.<br>

&nbsp;&nbsp;&nbsp;&nbsp;· **Fulfillment expenses** were RMB87.4 million (US$12.3 million), representing a decrease
of 12.6% from RMB100.0 million in the same quarter of last year. Fulfillment expenses accounted for 2.9% of net revenues this
quarter as compared to 2.8% in the same quarter of last year.<br>

&nbsp;&nbsp;&nbsp;&nbsp;· **Selling and marketing expenses** were RMB61.8 million (US$8.7
million), representing a decrease of 19.7 % from RMB 77.0 million in the same quarter
of last year. Excluding the share-based compensation expenses of RMB0.8 million for the quarter and RMB1.6 million for the same quarter
last year, selling and marketing expenses accounted for 2.0% of net revenues this quarter as compared to 2.1% in the same quarter of last
year.<br>

&nbsp;&nbsp;&nbsp;&nbsp;· **General and administrative expenses** were RMB15.7 million (US$2.2 million), representing
an increase of 9.2% from RMB14.4 million in the same quarter of last year. Excluding the share-based compensation expenses of
RMB1.5 million for the quarter and RMB2.3 million for the same quarter last year, respectively, general and administrative expenses as
a percentage of net revenues accounted for 0.5% this quarter as compared to 0.3% in the same quarter of last year.<br>

&nbsp;&nbsp;&nbsp;&nbsp;· **Technology expenses** were RMB15.3 million (US$2.1 million), representing a decrease of 12.8% from RMB17.5 million in the same quarter of last year. Excluding the share-based compensation expenses of RMB0.2 million for the quarter and RMB0.9 million for the same quarter last
year, respectively, technology expenses as a percentage of net revenues accounted for 0.5% this quarter, maintaining the same as last
year.

**Loss from operations** was RMB2.3 million (US$0.3 million), compared to income from operations of RMB2.4 million in the same quarter of last year.

**Non-GAAP income from operations** was RMB0.2 million (US$0.03 million), compared to RMB7.1 million in the same quarter of last year. As a percentage of net revenues, non-GAAP income from operations accounted for 0.01% this quarter as compared to 0.2% in the same quarter of last year.

**Net loss** was RMB1.5 million (US$0.2 million), representing an improvement of 58.0% from RMB3.5 million in the same quarter of last year.

**Non-GAAP net income** was RMB1.1 million (US$0.2 million), compared to RMB1.3 million in the same quarter of last year. As a percentage of net revenues, non-GAAP net income accounted for 0.04% this quarter, consistent with the same quarter last year.

**Net loss attributable to ordinary shareholders** was RMB13.0 million (US$1.8 million), compared to RMB17.1 million in the same quarter of last year. As a percentage of net revenues, net loss attributable to ordinary shareholders accounted for 0.4% this quarter as compared to 0.5% in the same quarter of last year.

**Non-GAAP net loss attributable to ordinary shareholders <sup>(5)</sup>** was RMB10.5 million (US$1.5 million), compared to RMB12.4 million in the same quarter of last year. As a percentage of net revenues, non-GAAP net loss attributable to ordinary shareholders accounted for 0.3% of net revenues this quarter, consistent with the same period last year.

<sup>(5) Non-GAAP net loss attributable to ordinary shareholders represents net loss attributable to ordinary shareholders excluding share-based compensation expenses, net of tax.</sup>

**As of September 30, 2025, the Company held cash and cash equivalents, restricted cash and short-term investments** totaling RMB557.5 million (US$78.3 million), compared to RMB518.3 million as of December 31, 2024. To date, amount of RMB1.1 billion has been included in the balances of redeemable non-controlling interests and accrued expenses and other current liabilities. This amount is owed to a group of investors of 1 Pharmacy Technology pursuant to equity investments made in 2020, as previously disclosed. 111 has received redemption requests from certain of such investors in accordance with the terms of their initial investments in 1 Pharmacy Technology. Following communication and negotiation, the Company has reached agreements with, or received commitment letters from, all investors to reschedule the repayments, allowing for phased repayments at extended periods, if the investors exercise their redemption rights. A portion of the redemption has been paid upon signing of these agreements. For further details about such investors' investments in 1 Pharmacy Technology, please see "Item 4. Information on the Company-A. History and Development of the Company" in the Company's annual report for the fiscal year ended December 31, 2024.

![](image_007.jpg)

**Executing Strategic Optimization: Embraces Asset-Light Partnership Network Growth**

In the third quarter of 2025 and subsequent to third quarter, the Company proactively executed a strategic structural optimization by divesting its 100% equity interests in three subsidiaries, namely Shanxi Yihao Yaofang Pharmacy Co., Ltd., Liaoning Yihao Pharmacy Co., Ltd. and Tianjin Yihao Pharmacy Co., Ltd. to several independent third-party buyers. In connection with the divestiture, these buyers continue to operate on our platform as warehouse partners, providing fulfillment services to our customers exclusively, as part of our core warehouse partnership strategy to drive asset-light, high-margin growth.

This transaction was as part of our broader strategic initiative to shift away from a capital-intensive, self-operated warehouse business model (which put pressure on our overall profitability and liquidity) toward an asset-light partnership structure. Historically, the three subsidiaries were operated as self-run facilities and incurred operating losses. In 2024, they generated a total revenue of RMB2.86 billion and a total net loss of RMB417 million and RMB407 million in net liabilities as of the divestment date. Through the divestiture of these entities and the transition of our business model to a warehouse partnership model—where we generate recurring commission income rather than assuming the operational and capital burdens—we have strengthened our ability to further improve our profitability and liquidity profile.

We believe that this transaction reinforces our focus on pursuing asset-light, profitable growth, strengthening our ability to scale the warehouse partnership network efficiently while maintaining a healthier financial structure.

**Use of Non-GAAP Financial Measures**

In evaluating the business, the Company considers and uses non-GAAP income from operations, non-GAAP net income (loss), non-GAAP net loss attributable to ordinary shareholders, and non-GAAP loss per ADS, as supplemental measures to review and assess its operating performance. The Company defines non-GAAP income from operations as income from operations excluding share-based compensation expenses. The Company defines non-GAAP net income (loss) as net loss excluding share-based compensation expenses, net of tax. The Company defines non-GAAP net loss attributable to ordinary shareholders as net loss attributable to ordinary shareholders excluding share-based compensation expenses, net of tax. The Company defines non-GAAP loss per ADS as net loss attributable to ordinary shareholders per ADS excluding share-based compensation expenses, net of tax per ADS. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP.

The Company believes that non-GAAP income from operations, non-GAAP net income (loss), non-GAAP net loss attributable to ordinary shareholders, and non-GAAP loss per ADS help identify underlying trends in its business that could otherwise be distorted by the effect of certain expenses that it includes in income from operations and net loss. Share-based compensation expenses is a non-cash expense that varies from period to period. As a result, management excludes the items from its internal operating forecasts and models. Management believes that the adjustments for share-based compensation expenses provide investors with a reasonable basis to measure the company's core operating performance, in a more meaningful comparison with the performance of other companies. The Company believes that non-GAAP income from operations, non-GAAP net income (loss), non-GAAP net loss attributable to ordinary shareholders, and non-GAAP loss per ADS provide useful information about its operating results, enhances the overall understanding of its past performance and future prospects and allow for greater visibility with respect to key metrics used by the management in their financial and operational decision-making.

The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools. One of the key limitations of using non-GAAP income from operations, non-GAAP net income (loss), non-GAAP net loss attributable to ordinary shareholders, or non-GAAP loss per ADS is that it does not reflect all items of income and expense that affect the Company's operations. Further, the non-GAAP financial measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited.

![](image_008.jpg)

The Company compensates for these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP measures, all of which should be considered when evaluating the Company's performance. The Company encourages you to review its financial information in its entirety and not rely on a single financial measure.

Reconciliation of the non-GAAP financial measures to the most comparable U.S. GAAP measures is included at the end of this press release.

**Exchange Rate Information Statement** 

This announcement contains translations of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB7.1190 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of September 30, 2025.

**Forward-Looking Statements**

This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "target," "confident" and similar statements. Among other things, the Business Outlook and quotations from management in this announcement, as well as 111's strategic and operational plans, contain forward-looking statements. 111 may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Such statements are based upon management's current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company's control. Forward-looking statements involve inherent risks, uncertainties and other factors that could cause actual results to differ materially from those contained in any such statements. Potential risks and uncertainties include, but are not limited to, uncertainties as to the Company's ability comply with extensive and evolving regulatory requirements, its ability to compete effectively in the evolving PRC general health and wellness market, its ability to manage the growth of its business and expansion plans, its ability to achieve or maintain profitability in the future, its ability to control the risks associated with its pharmaceutical retail and wholesale businesses, and the Company's ability to meet the standards necessary to maintain listing of its ADSs on the Nasdaq Global Market, including its ability to cure any non-compliance with Nasdaq's continued listing criteria. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and 111 does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

**About 111, Inc.**

111, Inc. (NASDAQ: YI) ("111" or the "Company") is a leading tech-enabled healthcare platform company committed to reshaping the value chain of healthcare industry by digitally empowering the upstream and downstream in China. The Company provides consumers with better access to pharmaceutical products and healthcare services directly through its online retail pharmacy, 1 Pharmacy, and indirectly through its offline virtual pharmacy network. The Company also offers online healthcare services through its internet hospital, 1 Clinic, which provides consumers with cost-effective and convenient online consultation, electronic prescription service, and patient management service. In addition, the Company's online platform, 1 Medicine, serves as a one-stop shop for pharmacies to source a vast selection of pharmaceutical products. With the largest virtual pharmacy network in China, 111 enables offline pharmacies to better serve their customers with cloud-based services. 111 also

![](image_009.jpg)

provides an omni-channel drug commercialization platform to its strategic partners, which includes services such as digital marketing, patient education, data analytics, and pricing monitoring.

For more information on 111, please visit: <u>http://ir.111.com.cn/</u>.

**For more information, please contact:**

111, Inc.

Investor Relations

Email: ir@111.com.cn

111, Inc.

Media Relations

Email: press@111.com.cn

Phone: +86-021-2053 6666 (China)

---

| | | | |
|:---|:---|:---|:---|
| <br>**111, Inc.** <br> **UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS**<br>**(In thousands, except for share and per share data)** | <br>**111, Inc.** <br> **UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS**<br>**(In thousands, except for share and per share data)** | <br>**111, Inc.** <br> **UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS**<br>**(In thousands, except for share and per share data)** | <br>**111, Inc.** <br> **UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS**<br>**(In thousands, except for share and per share data)** |
|  | **As of** | **As of** | **As of** |
|  | **December 31, 2024** | **September 30, 2025** | **September 30, 2025** |
|  | **RMB** | **RMB** | **US$** |
| **ASSETS** |  |  |  |
| **Current assets:** |  |  |  |
| Cash and cash equivalents | 462289 | 463615 | 65124 |
| Restricted cash | 56043 | 63934 | 8981 |
| Short-term investments |  | 30000 | 4214 |
| Accounts receivable, net | 413101 | 281549 | 39549 |
| Notes receivable | 78827 | 76786 | 10786 |
| Inventories | 1387403 | 1253988 | 176147 |
| Prepayments and other current assets | 251994 | 218534 | 30697 |
| **Total current assets** | **2649657** | **2388406** | **335498** |
| Property and equipment, net | 32903 | 23630 | 3319 |
| Intangible assets, net | 1437 | 1022 | 144 |
| Long-term investments |  |  |  |
| Other non-current assets | 14682 | 11537 | 1621 |
| Operating lease right-of-use assets | 89071 | 57788 | 8117 |
| **Total assets** | **2787750** | **2482383** | **348699** |
| **LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' DEFICIT** |  |  |  |
| **Current liabilities:** |  |  |  |
| Short-term borrowings | 160981 | 170000 | 23880 |
| Accounts payable | 1721425 | 1550309 | 217771 |
| Accrued expense and other current liabilities | 460173 | 506350 | 71127 |
| **Total current liabilities** | **2342579** | **2226659** | **312778** |
| Long-term operating lease liabilities | 55448 | 34730 | 4878 |
| Other non-current liabilities | 8961 | 2181 | 306 |
| **Total liabilities** | **2406988** | **2263570** | **317962** |
| **MEZZANINE EQUITY** |  |  |  |
| Redeemable non-controlling interests | **1038914** | **923141** | **129673** |
| **SHAREHOLDERS' DEFICIT** |  |  |  |
| Ordinary shares Class A | 33 | 34 | 5 |
| Ordinary shares Class B | 25 | 25 | 3 |
| Treasury shares | (5887) | (5887) | (827) |
| Additional paid-in capital | 3172820 | 3183053 | 447121 |
| Accumulated deficit | (3883992) | (3934163) | (552629) |
| Accumulated other comprehensive income | 74357 | 73045 | 10261 |
| Total shareholders' deficit | (642644) | (683893) | (96066) |
| Non-controlling interest | (15508) | (20435) | (2870) |
| **Total deficit** | **(658152)** | **(704328)** | **(98936)** |
| **Total liabilities, mezzanine equity and deficit** | **2787750** | **2482383** | **348699** |

---

**111, Inc.**

**UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS**

**(In thousands, except for share and per share data)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the three months ended September 30,**  | **For the three months ended September 30,**  | **For the three months ended September 30,**  | **For the nine months ended September 30,**  | **For the nine months ended September 30,**  | **For the nine months ended September 30,**  |
|  | **2024**  | **2025**  | **2025**  | **2024**  | **2025**  | **2025**  |
|  | **RMB**  | **RMB**  | **US$**  | **RMB**  | **RMB**  | **US$**  |
| **Net revenues** | **3600675** | **3000820** | **421523** | **10553474** | **9735859** | **1367588** |
| **Operating costs and expenses:** |  |  |  |  |  |  |
| Cost of products sold | (3390059) | (2822785) | (396514) | (9926727) | (9177349) | (1289135) |
| Fulfillment expenses | (99977) | (87396) | (12276) | (276559) | (271164) | (38090) |
| Selling and marketing expenses | (76954) | (61827) | (8685) | (237724) | (195897) | (27517) |
| General and administrative expenses | (14367) | (15685) | (2203) | (50747) | (51428) | (7224) |
| Technology expenses | (17549) | (15294) | (2148) | (54225) | (45622) | (6408) |
| Other operating income (expenses), net | 602 | (129) | (18) | 1941 | 3545 | 498 |
| **Total Operating costs and expenses** | **(3598304)** | **(3003116)** | **(421844)** | **(10544041)** | **(9737915)** | **(1367876)** |
| **Income (Loss) from operations** | **2371** | **(2296)** | **(321)** | **9433** | **(2056)** | **(288)** |
| Interest income | 1533 | 682 | 96 | 5574 | 2953 | 415 |
| Interest expense | (7810) | (7053) | (991) | (23067) | (24243) | (3405) |
| Foreign exchange gain (loss) | 642 | 181 | 25 | 40 | 290 | 41 |
| Other (loss) income, net | (193) | 7032 | 988 | (116) | 7043 | 989 |
| **Loss before income taxes** | **(3457)** | **(1454)** | **(203)** | **(8136)** | **(16013)** | **(2248)** |
| Income tax expense | (5) |  |  | (93) | (13) | (2) |
| **Net loss** | **(3462)** | **(1454)** | **(203)** | **(8229)** | **(16026)** | **(2250)** |
| Net loss (income) attributable to non-controlling interest | 848 | 2192 | 308 | (431) | 3885 | 546 |
| Net loss (income) attributable to redeemable non-controlling interest | 438 | (100) | (14) | 1168 | 790 | 111 |
| Adjustment attributable to redeemable non-controlling interest | (14931) | (13611) | (1912) | (37410) | (38820) | (5453) |
| **Net loss attributable to ordinary shareholders** | **(17107)** | **(12973)** | **(1821)** | **(44902)** | **(50171)** | **(7046)** |
| **Other comprehensive loss** |  |  |  |  |  |  |
| Unrealized gains of available-for-sale securities, | (407) |  |  | (753) |  |  |
| Realized gains of available-for-sale debt securities | 407 |  |  | 896 |  |  |
| Foreign currency translation adjustments | (1184) | (377) | (53) | (55) | (1312) | (184) |
| **Comprehensive loss** | **(18291)** | **(13350)** | **(1874)** | **(44814)** | **(51483)** | **(7230)** |
| **Loss per ADS:** |  |  |  |  |  |  |
| Basic and diluted | (2.00) | (1.40) | (0.20) | (5.20) | (5.80) | (0.80) |
| **Weighted average number of shares used in computation of loss per share** |  |  |  |  |  |  |
| Basic and diluted | 171938537 | 174218134 | 174218134 | 171526062 | 173639805 | 173639805 |

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**111, Inc.**

**UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(In thousands)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the three months ended September 30,**  | **For the three months ended September 30,**  | **For the three months ended September 30,**  | **For the nine months ended September 30,**  | **For the nine months ended September 30,**  | **For the nine months ended September 30,**  |
|  | **2024**  | **2025**  | **2025**  | **2024**  | **2025**  | **2025**  |
|  | **RMB** | **RMB** | **US$** | **RMB** | **RMB** | **US$** |
| **Net cash provided by operating activities** | 109865 | 38082 | 5351 | 311563 | 89271 | 12538 |
| **Net cash provided by (used in) investing activities** | 49845 | (29974) | (4211) | (141) | (31285) | (4394) |
| **Net cash (used in) provided by financing activities** | (110510) | 6553 | 920 | (370453) | (47755) | (6707) |
| **Effect of exchange rate changes on cash and cash equivalents, and restricted cash** | (313) | (210) | (29) | (106) | (1014) | (142) |
| **Net increase (decrease) in cash and cash equivalents, and restricted cash** | 48887 | 14451 | 2031 | (59137) | 9217 | 1295 |
| **Cash and cash equivalents, and restricted cash at the beginning of the period** | 515524 | 513098 | 72074 | 623548 | 518332 | 72810 |
| **Cash and cash equivalents, and restricted cash at the end of the period** | 564411 | 527549 | 74105 | 564411 | 527549 | 74105 |

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![](image_013.jpg)

**111, Inc.**

**Unaudited Reconciliation of GAAP and Non-GAAP Results**

**(In thousands, except for share and per share data)**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the three months ended September 30,** | **For the three months ended September 30,** | **For the three months ended September 30,** | **For the nine months ended September 30,**  | **For the nine months ended September 30,**  | **For the nine months ended September 30,**  |
|  | **2024**  | **2025**  | **2025**  | **2024**  | **2025**  | **2025**  |
|  | **RMB**  | **RMB**  | **US$**  | **RMB**  | **RMB**  | **US$**  |
| Income (Loss) from operations | 2371 | (2296) | (321) | 9433 | (2056) | (288) |
| Add: Share-based compensation expenses | 4756 | 2521 | 354 | 15122 | 9503 | 1335 |
| **Non-GAAP income from operations** | **7127** | **225** | **33** | **24555** | **7447** | **1047** |
| Net loss | (3462) | (1454) | (203) | (8229) | (16026) | (2250) |
| Add: Share-based compensation expenses, net of tax | 4756 | 2521 | 354 | 15122 | 9503 | 1335 |
| **Non-GAAP net income (loss)** | **1294** | **1067** | **151** | **6893** | **(6523)** | **(915)** |
| Net loss attributable to ordinary shareholders | (17107) | (12973) | (1821) | (44902) | (50171) | (7046) |
| Add: Share-based compensation expenses, net of tax | 4756 | 2521 | 354 | 15122 | 9503 | 1335 |
| **Non-GAAP net loss attributable to ordinary shareholders** | **(12351)** | **(10452)** | **(1467)** | **(29780)** | **(40668)** | **(5711)** |
| Loss per ADS<sup>(6)</sup>: Basic and diluted | (2.00) | (1.40) | (0.20) | (5.20) | (5.80) | (0.80) |
| Add: Share-based compensation expenses per ADS<sup>(6)</sup>, net of tax | 0.60 | 0.20 | 0.00 | 1.80 | 1.00 | 0.20 |
| **Non-GAAP loss per ADS<sup>(6)</sup>** | **(1.40)** | **(1.20)** | **(0.20)** | **(3.40)** | **(4.80)** | **(0.60)** |

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<sup>(6) Every one ADS represents twenty Class A ordinary shares.</sup>