111, Inc. Reports Narrowed Q4 Loss and Shift to Adjusted Operational Profit

111, Inc. (YI) has reported a narrowing net loss for the fourth quarter, driven primarily by a significant reduction in operating expenses and the absence of previous share-based compensation costs. The results highlight a strategic shift toward operational efficiency as the company navigates a challenging revenue environment. For the quarter, the company posted a net loss attributable to ordinary shareholders of RMB 16.22 million, or RMB 1.80 per ADS. This represents an improvement over the RMB 19.84 million loss, or RMB 2.20 per ADS, recorded in the same period last year. In U.S. dollar terms, the attributable net loss stood at $2.32 million. Operational performance showed a notable turnaround, with adjusted profit from operations reaching RMB 0.223 million ($0.032 million), a sharp reversal from the RMB 2.292 million loss reported a year prior. This shift was supported by a 26.8% decrease in operating costs and expenses, which fell to RMB 2.82 billion ($403.32 million). However, the company continues to face headwinds regarding top-line growth. Quarterly net revenues declined to RMB 2.82 billion ($403.28 million), down from RMB 3.85 billion in the prior year. Despite the revenue contraction, investors reacted positively to the improved cost discipline, with shares closing Wednesday up 4.18% at $6.48.