Key Highlights

  • Shares are trading at $3.67 in pre-market activity, up 8.58% from Wednesday's close of $3.38.
  • The company's co-founders and Huadeng Tech BioArray Ventures submitted an unsolicited, non-binding proposal to take 111 private at $4.52 per ADS in cash.
  • Second-quarter net Revenue fell 28.3% year over year to RMB2.3 billion as the company continues its shift to an asset-light Business model.
  • Net revenue from promotional products grew 121% year over year, with total marketplace service revenue up 18.2% for the first half of 2026.

Buyout Proposal From Founders Drives the Pre-Market Jump

111 (NASDAQ:YI) shares jumped in pre-market trading Thursday after the company's Board of Directors disclosed it received an unsolicited, preliminary non-binding proposal to take the company private. The proposal, submitted by co-founders Dr. Gang Yu and Junling Liu along with Huadeng Tech BioArray Ventures, offers to acquire the outstanding Class A shares not already owned by the group at $4.52 per American depositary share in cash, a premium to Wednesday's closing price. 111 is a Shanghai-based tech-enabled healthcare platform company that digitally connects patients, pharmacies, and healthcare providers across China through its online-to-offline pharmacy and marketplace businesses.

The Board said it has only just received the proposal and has not yet had the opportunity to evaluate its terms, cautioning that there is no assurance a definitive offer or agreement will follow.

Second-Quarter Results Show a Mixed Picture

The buyout news landed alongside second-quarter results in which net revenue fell 28.3% year over year to RMB2.3 billion, a decline the company attributed to its ongoing strategic shift toward a more asset-light, commission-based business model after divesting several underperforming subsidiaries. Net loss attributable to ordinary shareholders widened to RMB39.1 million from RMB19.5 million a year earlier.

Promotional Products and AI-Driven Efficiency Stand Out

Within the broader revenue decline, net revenue from promotional products grew 121% year over year, with total marketplace service revenue up 18.2% for the first half of 2026, and total operating expenses fell 16.1% as the company credited ongoing Investment in AI agents with making workforce streamlining possible, though the effort included associated severance costs.

Outlook: Board Review of the Proposal Is the Next Catalyst

With the going-private proposal still in its earliest stages, 111 shares are likely to track developments in the Board's review process more closely than underlying operating results in the near term. Any further detail on deal financing or a formal response from the Board will likely be the next catalyst for the stock.