111 (YI) Q4 2025 earnings summary

Executive summary

• Achieved non-GAAP operating profitability and positive operating cash flow for both Q4'25 and FY'25, marking a turnaround from prior losses.

• Transitioned to an asset-light warehouse partnership model, divesting subsidiaries and focusing on recurring commission income, which drove margin expansion.

• Revenue declined due to strategic optimization, but gross profit margins improved, especially in the B2B segment.

• Marketing-promoted product revenue grew 76.2% and gross profit rose 81.7% year-over-year in Q4'25.

Financial highlights

• Q4'25 net revenues: RMB2.8 billion ($403.3M), down 26.7% year-over-year; FY'25 net revenues: RMB12.6 billion ($1.8B), down 12.8%.

• Q4'25 B2B gross profit margin: 5.6% (up 60 bps YoY); FY'25 B2B gross profit margin: 5.5% (up 10 bps YoY).

• Q4'25 non-GAAP income from operations: RMB0.2M (vs. loss of RMB2.3M YoY); FY'25 non-GAAP income from operations: RMB7.7M (vs. RMB22.3M YoY).

• Q4'25 net loss: RMB6.5M (improved 48.3% YoY); FY'25 net loss: RMB22.5M (vs. RMB20.8M YoY).

• Q4'25 operating expenses: RMB165.2M (down 21.3% YoY); FY'25 operating expenses: RMB725.8M (down 12.3% YoY).

• Cash and equivalents at year-end: RMB611.3M ($87.4M), up 17.9% from prior year.

Outlook and guidance

• Management expects continued margin expansion and profitability improvements through the asset-light model and AI integration.

• Focus remains on sustainable, high-quality growth and further digital-to-intelligent ecosystem evolution.