111, Inc. Q1 Revenue Falls 33.1%; Promotional Products Up 70.2%
YI•111, Inc. reported Q1 net revenue of RMB2.4 billion, a 33.1% year-over-year decline, while total marketplace service revenue rose 24.7% and promotional products revenue jumped 70.2% with a 75.0% gross profit gain. Fulfillment expenses fell 34.6% to RMB61.2 million, improving cost efficiency by 10 basis points.
1. First Quarter Financial Performance
111, Inc. generated net revenue of RMB2.4 billion in Q1 2026, a 33.1% decrease from the prior-year quarter. Gross segment profit fell 35.4% to RMB126.0 million, while fulfillment expenses declined 34.6% to RMB61.2 million, improving the expense ratio to 2.6%.
2. Strategic Asset-Light Transition
The company advanced its shift to an asset-light operating model by divesting underperforming subsidiaries and expanding warehouse partnerships. This strategy emphasizes recurring commission income over capital-intensive operations, driving enhanced operational efficiency and reduced burdens.
3. Marketplace and Promotional Segment Growth
Total marketplace service revenue climbed 24.7% year-over-year, demonstrating stronger service margins. Promotional products revenue surged 70.2% to RMB28.9 million with a 75.0% gross profit increase, led by flagship product Cravit sales rising from 84,000 to 710,000 boxes.
4. Technology Integration and Outlook
111, Inc. plans to deploy AI for demand forecasting, inventory optimization and fulfillment routing, and introduce AI agent solutions in pharmacies. These technology initiatives aim to expand margins, lift profitability and support scalable, intelligent growth.
