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flag 111, Inc. posted a 16.7% revenue drop in Q3 2025 but stayed profitable, boosted by a strategic shift and a new AI drug platform.

flag 111, Inc. reported third-quarter 2025 financial results showing a 16.7% revenue drop to RMB3.0 billion, but maintained non-GAAP profitability for the third straight quarter with RMB0.2 million in income from operations and RMB1.1 million in net income. flag Operating expenses fell 13.4% to RMB180.3 million, and the company generated RMB38.1 million in operating cash flow for the quarter. flag This follows a strategic shift to an asset-light model after divesting three self-operated units, now fulfillment partners, improving liquidity. flag The "MANTIANXING" supply chain initiative boosted gross merchandise value by 20.5% and customer count by 31% from Q2. flag The company plans to launch an AI-powered pharmaceutical procurement platform to enhance supply chain efficiency.

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