SHANGHAI - 111, Inc. (NASDAQ: YI), a leading tech-enabled healthcare platform in China, has been notified by Nasdaq that its share price has fallen below the minimum requirement. The company's American depositary shares (ADSs) have closed below the $1.00 threshold for 30 consecutive business days, triggering a notice from the Nasdaq Stock Market.
The notification, dated September 26, 2024, does not currently affect the trading of 111's ADSs on the market. However, the company must boost its share price to meet the Nasdaq's minimum bid price rule by March 24, 2025. To regain compliance, the closing bid price of 111's ADSs must be at or above $1.00 for at least ten consecutive business days within this 180-day period.
If the company fails to meet this requirement by the March deadline, it may be granted an additional 180 days to comply, subject to Nasdaq's discretion. 111 has stated that its business operations remain unaffected by this development and plans to take appropriate measures to restore its compliance with Nasdaq's listing rules.
This announcement is considered forward-looking and reflects the company's intentions based on current market conditions and business strategies. These statements are subject to risks and uncertainties that could impact the company's ability to maintain its Nasdaq listing and address regulatory challenges in the healthcare market in China.
The information disclosed is based on a press release statement from 111, Inc. and does not necessarily reflect future results or occurrences.
In other recent news, China's tech-enabled healthcare platform, 111, Inc., has experienced a rise in profitability and growth. The company's co-founders, Dr. Gang Yu and Mr. Junling Liu, have initiated the purchase of shares using personal funds and plan to continue doing so. This move coincides with 111, Inc.'s report of sustained financial growth, with the company achieving operational profitability for the second consecutive quarter.
111, Inc. reported an operational income of RMB3.3 million (US$0.5 million) for Q2 2024, a significant turnaround from a loss of RMB41.4 million in Q2 2023. In addition, the company reported total net revenues of RMB 3.4 billion and a gross segment profit of RMB 207.6 million.
The company has also announced the acquisition of four new patents, bringing its total to 28. These patents are expected to enhance the competitive edge of 111, Inc. and support its long-term growth.
Furthermore, the company is making significant investments in digital transformation, including advancements in AI technology and the expansion of its logistics network and private label offerings. These recent developments are part of 111, Inc.'s strategic initiatives to drive growth and profitability.
InvestingPro Insights
To provide further context to 111, Inc.'s (NASDAQ: YI) Nasdaq listing challenges, recent data from InvestingPro offers additional insights into the company's financial health and market performance.
As of the latest available data, 111, Inc. has a market capitalization of $57.41 million, reflecting its current valuation in the market. The company's revenue for the last twelve months as of Q2 2024 stands at $2,026.4 million, with a modest revenue growth of 0.38% over the same period. However, the company is currently not profitable, with an operating income of -$38.51 million for the last twelve months.
InvestingPro Tips highlight that 111, Inc. holds more cash than debt on its balance sheet, which could provide some financial flexibility as it navigates its current challenges. Additionally, analysts predict that the company will be profitable this year, which could potentially help in addressing its share price issues.
The stock's recent performance aligns with the Nasdaq notification, as InvestingPro data shows that the price has fallen significantly over the last year, with a one-year price total return of -73.19% as of the most recent data point. The stock is currently trading at 27.99% of its 52-week high, further illustrating the downward pressure on its share price.
For investors seeking a more comprehensive analysis, InvestingPro offers 14 additional tips for 111, Inc., providing a deeper understanding of the company's financial position and market dynamics.
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