111 (YI) investor relations material

Executive summary

• Net revenue for Q2 2026 was RMB2.3 billion ($339.0 million), a 28.3% decrease year-over-year, mainly due to a strategic shift to an asset-light model and divestiture of underperforming subsidiaries.

• Marketplace service revenue grew 18.2% year-over-year for the first half of 2026, reflecting a focus on higher-quality, service-based income.

• Promotional products revenue surged 121% year-over-year, with gross profit up 120%, driven by expanded partnerships and flagship product performance.

• Fulfillment expenses declined 29.5% year-over-year, outpacing the revenue drop, and improved as a percentage of revenue.

• Workforce streamlining, enabled by AI adoption, led to severance costs but improved cost efficiency.

Financial highlights

• Gross segment profit was RMB132.3 million ($19.5 million), down 28.6% year-over-year.

• Loss from operations was RMB23.2 million ($3.4 million), compared to a small profit last year.

• Net loss was RMB31.7 million ($4.7 million), up from RMB7.3 million in Q2 2025; net loss attributable to ordinary shareholders was RMB39.1 million ($5.8 million), up from RMB19.5 million.

• Non-GAAP net loss attributable to ordinary shareholders was RMB36.4 million ($5.4 million), compared to RMB16.7 million last year.

• Cash and equivalents, restricted cash, and short-term investments totaled RMB381.1 million ($56.2 million) as of June 30, 2026, down from RMB611.3 million at year-end 2025.

Outlook and guidance

• Management expects continued transformation into a technology-enabled healthcare platform, with further AI integration in operations and customer-facing solutions.

• Focus remains on expanding margins, improving profitability, and delivering long-term stakeholder value.