111, Inc. Achieves Q4 Operating Profit, B2B Margin Jumps 60bp to 5.6%
111, Inc. posted Q4 net revenues of RMB2.8 billion and non-GAAP operating profit of RMB0.2 million, reversing a RMB2.3 million loss as B2B gross margin climbed 60 bp to 5.6%. Fiscal 2025 revenue was RMB12.6 billion with operating cash flow of RMB119.1 million via an asset-light warehouse partnership model.
1. Strategic Asset-Light Transition
In 2025, 111, Inc. divested its 100% equity interests in several subsidiaries, converting them into exclusive warehouse partners. This shift to a commission-based, asset-light partnership model reduced operational burdens and capital expenditures, enabling recurring commission income and fostering gross margin expansion in B2B operations.
2. Fourth Quarter Financial Highlights
In Q4 2025, 111, Inc. generated net revenues of RMB2.8 billion and gross segment profit of RMB164.9 million, while total operating expenses fell 21.3% to RMB165.2 million. The company achieved a non-GAAP operating profit of RMB0.2 million versus a RMB2.3 million loss year-over-year, and delivered positive operating cash flow of RMB29.9 million.
3. Fiscal Year 2025 Performance
Full-year 2025 revenue was RMB12.6 billion with gross segment profit of RMB723.4 million, and B2B gross margin improved by 10 basis points to 5.5%. Operating expenses declined 12.3% to RMB725.8 million, supporting non-GAAP operating income of RMB7.7 million and annual positive operating cash flow of RMB119.1 million, while cash and equivalents rose 17.9% to RMB611.3 million.