Recent Updates — YI
The special committee of independent directors at 111, Inc. has retained Houlihan Lokey China Limited as its independent financial advisor and Kirkland & Ellis as U.S. legal counsel. This appointment supports the review and evaluation of a preliminary, non-binding proposal letter dated September 16, 2026, as well as other potential strategic alternatives. The board cautioned that no decisions have been made regarding the proposal or any alternative options, with no assurance that a definitive offer will be received or consummated. 111, Inc. operates a technology-enabled healthcare platform in China, connecting consumers, pharmacies, and pharmaceutical companies through digitalization and artificial intelligence.
111, Inc. announced the establishment of a Special Committee comprising three independent directors to evaluate a preliminary, non-binding proposal letter dated September 16, 2026, as well as other potential strategic alternatives. The Board cautioned that no decisions have been made and there is no assurance that any definitive offer or agreement will be executed. This filing relates to the tech-enabled healthcare platform industry in China.
111, Inc. reported unaudited financial results for the second quarter ended June 30, 2026. Net revenue decreased 28.3% year-over-year to RMB2.3 billion (US$339.0 million), driven by a strategic transition from an asset-heavy model that involved divesting underperforming subsidiaries. Promotional product net revenue surged 121% to RMB60.7 million, while total marketplace service revenue grew 18.2% in the first half of 2026. The company incurred substantial severance costs due to workforce streamlining enabled by AI agent adoption. Total operating expenses fell 16.1% to RMB155.5 million, and fulfillment expenses declined 29.5% to RMB63.6 million. Net loss widened to RMB31.7 million (US$4.7 million) from RMB7.3 million in the prior-year quarter. As of June 30, 2026, cash and short-term investments totaled US$56.2 million. Investors representing 63.8% of outstanding principal agreed to restructure redemption obligations for its 1 Pharmacy Technology subsidiary. 111, Inc. operates as a tech-enabled healthcare platform in China, providing online retail pharmacy services, internet hospital consultations, and B2B pharmaceutical sourcing.
111, Inc. received an unsolicited preliminary non-binding proposal from co-founders Dr. Gang Yu and Mr. Junling Liu, along with Huadeng Tech BioArray Ventures Ltd, to acquire all outstanding Class A ordinary shares not currently held by the buyers in a going-private transaction. The proposed purchase price is US$0.226 per share or US$4.52 per ADS, representing a 29.5% premium to the September 15 closing price and a 20% premium to the 60-day average. The buyer group intends to fund the acquisition using equity capital, including rollover equity from the co-founders and cash contributions from the sponsor, with no debt financing required. The Board has not yet evaluated the proposal or made any decisions regarding its response.