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Exhibit 99.1 111 , Inc. Announces Second Quarter 2026 Unaudited Financial Results Transition from An Asset - Heavy Business Model to An Asset - Light Business Model Ongoing Investment and Adoption of Al Agents Making Workforce Streamlining Possible Net Revenue of Promotional Products ( 1 ) Increased by 121 % and Gross Profit Rose by 120 % Year - over - Year Total Marketplace ( MP ) Service Revenue Increased by 18.2 % Year - over - year for the First Half of 2026 Fulfillment Expenses as a Percentage of Revenue Improved by 5 Basis Points Year - over - year SHANGHAI , Sept. 17 , 2026 / PRNewswire / 111 , Inc. ( “ 111 " or the " Company " ) ( NASDAQ : YI ) , a leading tech - enabled healthcare platform company committed to reshaping the value chain of healthcare industry by digitally empowering the upstream and downstream in China , today announced its unaudited financial results for the second quarter ended June 30 , 2026 . Second Quarter 2026 Highlights Net revenue amounted to RMB2.3 billion ( US $ 339.0 million ) , representing a 28.3 % decrease from RMB3.2 billion in the prior - year quarter . This decline was primarily attributable to the Company's ongoing strategic transition toward a more asset - light and operationally efficient business model . As part of this initiative , the Company divested several underperforming subsidiaries last year , under which the Company can generate more service - based commission income and reduce operational and capital risks to a certain extent . Total marketplace ( MP ) service revenue increased by 18.2 % year - over - year for the first half of 2026 , demonstrating growth of the Company's marketplace service business and enhanced revenue quality . Through such strategic optimization , the Company continues to pursue further improvements in its profitability and liquidity profile . Net revenue of promotional products amounted to RMB60.7 million ( US $ 8.9 million ) , representing 121 % year- over - year growth , accompanied by an increase of 120 % in gross profit . To further diversify the portfolio of such products , the Company has partnered with a growing number of pharmaceutical manufacturers to secure distribution rights for products targeting small and medium - sized chain pharmacies . Among such products , Levofloxacin Tablets ( CravitⓇ ) from JNOVA Pharmaceutical ( Beijing ) Co. , Ltd. , has already become the flagship offering , whose quarterly sales volume grew from 364,000 boxes to 1,041,000 boxes year - over - year , while the quarterly revenue posted a 157 % increase , reaching RMB28.1 million . In addition , other priority products with secured distribution rights like Rivaroxaban Tablets ( PusitongⓇ ) from Qilu Pharmaceutical Co. , Ltd. and Xinkeshu Tablets from Shandong Wohua Pharmaceutical Co. , Ltd. also delivered solid sales performance this quarter , with each reaching 60,000 boxes . These performances underscore the Company's marketing expertise and has created strong growth momentum for both upstream suppliers and downstream partners . Total operating expenses amounted to RMB155.5 million ( US $ 22.9 million ) , representing a 16.1 % decrease compared to RMB185.3 million in the prior - year quarter . Notably , ongoing investment in and adoption of Al agents have made workforce streamlining possible . As part of organizational initiatives to enhance cost - efficiency , the Company incurred substantial severance costs in the quarter in connection with workforce streamlining primarily within back - end support functions . Excluding the share - based compensation expenses and severance costs , total operating expenses accounted for 4.2 % of total GMV this quarter as compared to 4.5 % in the prior - year quarter . Fulfillment expenses amounted to RMB63.6 million ( US $ 9.4 million ) , representing a decrease of 29.5 % from RMB90.2 million in the prior - year quarter , outpacing the revenue decline . As a percentage of net revenue , fulfillment expenses improved to 2.76 % , compared with 2.81 % in the prior - year quarter , reflecting continued enhancement in operational efficiency and disciplined cost management . ( 1 ) Promotional products include the Company's core promoted pharmaceuticals and those for which the Company has secured distribution rights . All such products have mainstream market positioning and high gross margins . 1