1 111 Inc. achieved revenue of 3.2 billion yuan in the second quarter, continuously achieving operational profitability

According to Zhitong Finance APP, on September 17, 111 Inc. (YI.US) released its Q2 2025 earnings report. The report shows that 111 Inc. achieved revenue of 3.2 billion yuan in this quarter; Non-GAAP operating profit was 3 million yuan, achieving operational profitability for consecutive quarters, and maintained positive operating cash flow in the first half of the year.

AI-empowered Supply Chain   Enhancing Business Operational Efficiency

During the reporting period, 111 Inc. continued to invest in AI innovation and digitalization, leveraging AI to continuously improve operational efficiency. In the second quarter, the percentage of operating expenses to net income decreased from 6% in the same period last year to 5.8% this quarter. In terms of AI-empowered supply chain, the company optimized warehousing efficiency using an AI order entry system, supporting automatic entry of various forms of documents such as images and files through image recognition and text parsing technology, completing the generation of purchase/sales documents in 3 seconds, with efficiency improved by over 60%, significantly enhancing product listing efficiency.

The company also utilized AI for precise introduction of new products by analyzing customer profiles and market trends, real-time mining of new product opportunities, and providing precise decision support for new product introductions, with efficiency improved by 83%, empowering upstream and downstream supply-demand matching capabilities.

Additionally, the company built an AI agent matrix, developing and launching medication guidance agents, merchant operation analysis agents, and procurement category analysis agents based on key business scenarios of the platform, helping to enhance business operational efficiency.

Accelerating the Construction of Digital Order Fulfillment Centers   Supporting Pharmaceutical Companies' Out-of-Hospital Sales

In the second quarter, 111 Inc.'s nationwide digital supply chain network infrastructure continued to upgrade, with 19 digital order fulfillment centers established to date, capable of covering over 890 counties and cities nationwide within 24 hours. The national logistics network "Kunpeng" built by 111 Inc. continued to make strides, utilizing digital trunk lines and distribution models to connect the deployment of direct networks between national order fulfillment centers, providing professional pharmaceutical logistics distribution services for upstream and downstream partners in the pharmaceutical supply chain.

During the reporting period, 111 Inc. insisted on empowering upstream and downstream partners in the pharmaceutical industry chain through digital technology. Through 111 Inc.'s digital marketing platform, marketing and promotional products quickly reached pharmacies across the country. Sales revenue related to marketing and promotional products increased by 53.6% year-on-year, and the number of customers grew by 19.0% year-on-year. 111 Inc. has empowered hundreds of well-known pharmaceutical companies and thousands of distributors in areas such as multi-channel drug commercialization, digital marketing, and market insights. Furthermore, 111 Inc.'s brand general agent model is experiencing strong development momentum, helping the company become a core strategic cooperation platform for pharmaceutical companies' out-of-hospital sales. As a general agent for mid-sized chains of first-line original research anti-infection drugs, customer numbers and sales volume have continued to grow monthly, with monthly sales increasing more than sevenfold compared to the project's launch.

Dr. Yu Gang, co-founder and executive chairman of 111 Inc., stated: "In the second quarter, filled with challenges in the macroeconomic environment, we achieved operational profitability and positive operating cash flow again in the first half of the year thanks to our efficient operational capabilities. We have made significant progress in the application of artificial intelligence, especially in the development and implementation of multiple cost-reducing and efficiency-enhancing AI agents, effectively improving overall operational efficiency. Looking ahead, we will continue to increase our investment in artificial intelligence and digital solutions, committed to creating sustainable long-term value for our customers, upstream and downstream partners, and shareholders ”