111, Inc.

What they do

111, Inc. operates online retail and wholesale pharmacies in China. Its 1 Medicine Marketplace (formerly 1 Drugstore) serves consumers directly, while 1 Pharmacy (formerly 1 Drug Mall) serves as an online wholesale platform for pharmacies and other buyers. The company also offers New Retail services that integrate its online retail pharmacy with offline pharmacy networks through a smart supply chain.

Revenue drivers

• B2C retail (1 Medicine Marketplace) — Sells pharmaceutical and health products directly to consumers online; revenue from product sales under the direct sales model.
• B2B wholesale (1 Pharmacy) — Online wholesale pharmacy distributing products to independent pharmacies, chains, and clinic/hospital in-house pharmacies; revenue from direct sales and marketplace commissions.
• Marketplace services — Generates revenue by enabling third-party merchants to sell on its platforms, likely through commissions or service fees, though the filing excerpt does not quantify the split.

Recent performance

Annual revenue declined from $2.11B in 2023 to $1.97B in 2024 and further to $1.80B in 2025, a decrease of about 8.6% year-over-year. Net loss per diluted share improved from $-0.33 in 2023 to $-0.05 in both 2024 and 2025. Operating cash flow turned positive in 2024 at $36.0M, then dropped to $17.0M in 2025. As of December 31, 2025, total assets were $314.6M, total liabilities $284.0M, and shareholder equity was negative at $-100.4M.

Strategy

The company emphasizes its 'New Retail' strategy, combining online retail with offline pharmacy networks via a smart supply chain. It aims to improve efficiency through cloud-based inventory management and supply chain analytics. The filing mentions leveraging its fulfillment infrastructure to support growth across both B2B and B2C channels. No specific new investments or priorities are detailed in the provided excerpt.

Risks

• Negative equity — Shareholder equity was -$100.4M as of December 31, 2025, indicating accumulated losses exceed assets.
• Declining revenue — Revenue fell from $2.11B in 2023 to $1.80B in 2025, a two-year decline of approximately 14.7%.
• Dependence on China operations — All operations are based in China, subject to PRC regulatory, economic, and geopolitical risks.
• Thin cash position — Cash and equivalents were $73.1M at year-end 2025, which may limit flexibility given operating cash flow of $17.0M.

Outlook

The filing does not contain explicit forward-looking guidance. Given the revenue decline and improved net loss per share, management may focus on stabilizing revenue while maintaining cost discipline. The company continues to invest in its smart supply chain and New Retail model to drive efficiency.