BRIEF: 111 Inc.’s revenue drops in second quarter

Drug seller 111 Inc. (YI.US) said on Wednesday its revenue fell 6.4% year-on-year to 3.2 billion yuan ($450 million) in the second quarter, as revenue for its core business of selling drugs to pharmacies and medical institutions fell by 6.2%. Its much smaller business of selling drugs directly to consumers also fell 9.6% for the quarter year-on-year.

The company’s operating costs and expenses fell by a similar 6.3% to 3.2 billion yuan from 3.4 billion yuan in the year-ago period. As a result, 111 Inc. reported positive income from operations of $100,000 for the quarter. But its net loss widened to 19.5 million yuan from 14 million yuan a year earlier.

The company’s shares fell 6.2% on Wednesday after the report’s publication. The stock is down 40% over the last six months.

By Doug Young

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