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111, Inc. Announces Third Quarter 2024 Unaudited Financial Results

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Maintained Operational Profitability for the Third Consecutive QuarterOperating Expenses as a Percentage of Revenues Decreased 160 Basis Points YoYHeld Positive Operating Cash Flow for Three Consecutive Quarters

SHANGHAI, Nov. 27, 2024 /PRNewswire/ — 111, Inc. (“111” or the “Company”) (NASDAQ: YI), a leading tech-enabled healthcare platform company committed to reshaping the value chain of healthcare industry by digitally empowering the upstream and downstream in China, today announced its unaudited financial results for the third quarter ended September 30, 2024.

Third Quarter 2024 Highlights

Net revenues were RMB3.6 billion (US$513.1 million), remaining relatively flat compared to the same quarter last year.Gross segment profit (1) was RMB 210.6 million (US$ 30.0 million) increased by 10.5% year-over-year.Total operating expenses were RMB208.2 million (US$29.7 million), an improvement of 23.2% compared to RMB271.0 million in the same quarter of last year. As a percentage of net revenues, total operating expenses decreased by 160 basis points to 5.8% from 7.4% in the same quarter of last year, demonstrating continuous improvement in the Company’s operational efficiency.Income from operations was RMB2.4 million (US$0.3 million), compared to loss from operations of RMB80.4 million in the same quarter of last year. 111 maintained operational profitability for the third consecutive quarter.Non-GAAP income from operations (2) was RMB7.1 million (US$1.0 million), compared to Non-GAAP loss from operations of RMB54.0 million in the same quarter of last year.Net cash from operating activities was RMB109.9 million (US$15.7 million). The Company has achieved positive operating cash flow for three consecutive quarters.

(1) Gross segment profit represents net revenues less cost of goods sold.

(2) Non-GAAP income from operations represents income from operations excluding share-based compensation expenses.

Mr. Junling Liu, Co-Founder, Chairman, and Chief Executive Officer of 111, commented, “While the macroeconomic environment in China continues to present challenges, we are proud of our ability to maintain operational profitability for the third consecutive quarter. This achievement is a testament to the strength of our business model as a one-stop shopping platform that offers the most comprehensive selection of pharmaceutical products at competitive prices. It also highlights our commitment to operational efficiency across the organization. As a result, income from operations in Q3 reached RMB2.4 million, a significant improvement from an operational loss of RMB80.4 million in the prior year.”

Mr. Liu added, “We gained greater operational efficiency through diligent cost management, ongoing infrastructure investments, and effective staffing arrangements, all of which has enabled us to navigate an unfavorable consumer spending environment while delivering solid performance results. Operating expenses were 5.8% of revenues, a reduction of 160 basis points compared to the previous year, while non-GAAP operating expenses as a percentage of revenues decreased by 100 basis points to 5.7%. We aim to lead the pharmaceutical e-commerce sector in efficiency and sharpen our competitive advantages. As we scale and optimize operations, we expect further cost savings, which will be reinvested into growth initiatives, including technological advancements, market expansion, and client base growth, driving future profitability.”

“We are strengthening our core competitiveness in digitalization through advancements across multiple areas, laying a strong foundation for an agile, highly efficient, and customer-centric business that can swiftly adapt to evolving industry needs. Additionally, we’ve bolstered our supply chain with an expanded transshipment network and new fulfillment centers, further enhancing our service capabilities.”

“Despite challenges, we are still confident in the long-term opportunities ahead. Our investments in AI and digital technologies are not only providing industry-leading efficiency and reshaping the healthcare value chain, but also positioning us to capture significant shifts in the pharmaceutical industry—particularly the unstoppable trend of digital transformation, the growing demand for out-of-hospital drug distribution, and the expansion of the silver economy. By deepening our partnerships with pharmaceutical companies, expanding our fulfillment network, refining our digital platforms, and prioritizing new growth engines, we are well-positioned to engage more industry stakeholders, meet the needs of a broad customer base, and generate sustained growth.”

Third Quarter 2024 Financial Results

Net revenues were RMB3.6 billion (US$513.1 million), representing a decrease of 1.8% from RMB3.7 billion in the same quarter of last year.

(In thousands RMB)

For the three months ended September 30,

2023

2024

YoY

B2B Net Revenue

Product

3,556,749

3,514,298

-1.2 %

Service

20,671

21,731

5.1 %

Sub-Total

3,577,420

3,536,029

-1.2 %

Cost of Products Sold(3)

3,406,320

3,340,998

-1.9 %

Segment Profit

171,100

195,031

14.0 %

Segment Profit %

4.8 %

5.5 %

 

(In thousands RMB)

For the three months ended September 30,

2023

2024

YoY

B2C Net Revenue

Product

82,538

61,031

-26.1 %

Service

5,287

3,615

-31.6 %

Sub-Total

87,825

64,646

-26.4 %

Cost of Products Sold    

68,301

49,061

-28.2 %

Segment Profit

19,524

15,585

-20.2 %

Segment Profit %

22.2 %

24.1 %

 

(3) For segment reporting purposes, purchase rebates are allocated to the B2B segment and B2C segments primarily based on the amount of cost of products sold for each segment. Cost of products sold does not include other direct costs related to cost of product sales such as shipping and handling expense, payroll and benefits of logistic staff, logistic centers rental expenses and depreciation expenses, which are recorded in the fulfillment expenses. Cost of service revenue is recorded in the operating expense.

Operating costs and expenses were RMB3.6 billion (US$512.8 million), representing a decrease of 3.9% from RMB3.7 billion in the same quarter of last year.

Cost of products sold was RMB3.4 billion (US$483.1 million), representing a decrease of 2.4% from RMB3.5 billion in the same quarter of last year.Fulfillment expenses were RMB100.0 million (US$14.2 million), representing a decrease of 1.6% from RMB101.6 million in the same quarter of last year. Fulfillment expenses accounted for 2.8% of net revenues this quarter, maintaining the same as last year.Selling and marketing expenses were RMB77.0 million (US$11.0 million), representing a decrease of 19.4% from RMB95.5 million in the same quarter of last year. Excluding the share-based compensation expenses of RMB1.6 million for the quarter and RMB5.1 million for the same quarter last year, respectively, selling and marketing expenses as a percentage of net revenues accounted for 2.1% in the quarter as compared to 2.5% in the same quarter of last year.General and administrative expenses were RMB14.4 million (US$2.0 million), representing a decrease of 68.7% from RMB45.8 million in the same quarter of last year. Excluding the share-based compensation expenses of RMB2.3 million for the quarter and RMB16.8 million for the same quarter last year, respectively, general and administrative expenses as a percentage of net revenues accounted for 0.3% in the quarter as compared to 0.8% in the same quarter of last year.Technology expenses were RMB17.5 million (US$2.5 million), representing a decrease of 30.9% from RMB25.4 million in the same quarter of last year. Excluding the share-based compensation expenses of RMB0.9 million for the quarter and RMB4.5 million for the same quarter last year, respectively, technology expenses as a percentage of net revenues accounted for 0.5% in the quarter as compared to 0.6% in the same quarter of last year.

Income from operations was RMB2.4 million (US$0.3 million), compared to loss from operations of RMB80.4 million in the same quarter of last year.

Non-GAAP income from operations was RMB7.1 million (US$1.0 million), compared to non-GAAP loss from operations of RMB54.0 million in the same quarter of last year.

Net loss was RMB3.5 million (US$0.5 million), representing an improvement of 96% from RMB83.5 million in the same quarter of last year. As a percentage of net revenues, net loss amounted to 0.1% in the quarter, down from 2.3% in the same quarter of last year.

Non-GAAP net income (4) was RMB1.3 million (US$0.2 million), compared to non-GAAP net loss of RMB57.1 million in the same quarter of last year.

Net loss attributable to ordinary shareholders was RMB17.1 million (US$2.4 million), representing an improvement of 82% from RMB93.3 million in the same quarter of last year. As a percentage of net revenues, net loss attributable to ordinary shareholders accounted for 0.5% in the quarter, down from 2.5% in the same quarter of last year.

Non-GAAP net loss attributable to ordinary shareholders (5) was RMB12.4 million (US$1.8 million), representing an improvement of 82% from RMB66.9 million in the same quarter of last year. As a percentage of net revenues, non-GAAP net loss attributable to ordinary shareholders, accounted for 0.3% in the quarter, down from 1.8% in the same quarter of last year.

(4) Non-GAAP net income represents net income excluding share-based compensation expenses, net of tax. Considering the impact of accretion of redeemable non-controlling interest for the third quarter 2024, non-GAAP net income is used as a meaningful measurement of the operation performance of the Company.

(5) Non-GAAP net loss attributable to ordinary shareholders represents net loss attributable to ordinary shareholders excluding share-based compensation expenses, net of tax.

As of September 30, 2024, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB614.4 million (US$87.6 million), compared to RMB673.7 million as of December 31, 2023. To date, the Company has a total outstanding amount of RMB1.1 billion, which has been included in the balances of redeemable non-controlling interests and accrued expenses and other current liabilities, owed to a group of investors of 1 Pharmacy Technology pursuant to their equity investments made in 2020 as previously disclosed. 111 received redemption requests from certain of such investors in accordance with the terms of their initial investments in 1 Pharmacy Technology. Following communication and negotiation, the Company has reached agreements and/or commitment letters with investors representing approximately 90% of the total amount to reschedule the repayments, allowing for phased repayments at extended periods, if the holders exercise their redemption right. The Company has paid a portion of the repurchase funds upon signing of the agreements. Additionally, the Company is in ongoing discussions with investors holding the remaining approximately 10% of the total amount. For more information about the terms of 111’s arrangements with these investors, see “Item 5. Operating and Financial Review and Prospects—B. Liquidity and Capital Resources” in the Company’s annual report for the fiscal year ended December 31, 2023.

Conference Call

111’s management team will host an earnings conference call at 7:30 AM U.S. Eastern Time on Wednesday, November 27, 2024 (8:30 PM Beijing Time on the same day).

Details for the conference call are as follows:

Event Title: 111, Inc. Third Quarter 2024 Unaudited Financial Results
Registration Link: https://s1.c-conf.com/diamondpass/10042738-te7sgd.html 

All participants must use the link provided above to complete the online registration process in advance of the conference call. Upon registering, each participant will receive a set of participant dial-in numbers, the Direct Event passcode, and a unique Registration ID, which can be used to join the conference call.

Please dial in 15 minutes before the call is scheduled to begin and provide the Direct Event passcode and unique Registration ID you have received upon registering to join the call.

A telephone replay of the call will be available after the conclusion of the conference call until December 4, 2024 via:

China: 4001 209 216
United States: +1 855 883 1031
International: +61 7 3107 6325
Conference ID: 10042738

A live and archived webcast of the conference call will be available on the website at https://edge.media-server.com/mmc/p/3nkscjv6.

Use of Non-GAAP Financial Measures

In evaluating the business, the Company considers and uses non-GAAP income (loss) from operations, non-GAAP net income (loss), non-GAAP net loss attributable to ordinary shareholders, and non-GAAP loss per ADS, as supplemental measures to review and assess its operating performance. The Company defines non-GAAP income (loss) from operations as income (loss) from operations excluding share-based compensation expenses. The Company defines non-GAAP net income (loss) as net loss excluding share-based compensation expenses, net of tax. The Company defines non-GAAP net loss attributable to ordinary shareholders as net loss attributable to ordinary shareholders excluding share-based compensation expenses, net of tax. The Company defines non-GAAP loss per ADS as net loss attributable to ordinary shareholders per ADS excluding share-based compensation expenses, net of tax per ADS. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP.

The Company believes that non-GAAP income (loss) from operations, non-GAAP net income (loss), non-GAAP net loss attributable to ordinary shareholders, and non-GAAP loss per ADS help identify underlying trends in its business that could otherwise be distorted by the effect of certain expenses that it includes in income (loss) from operations and net loss. Share-based compensation expenses is a non-cash expense that varies from period to period. As a result, management excludes the items from its internal operating forecasts and models. Management believes that the adjustments for share-based compensation expenses provide investors with a reasonable basis to measure the company’s core operating performance, in a more meaningful comparison with the performance of other companies. The Company believes that non-GAAP income (loss) from operations, non-GAAP net income (loss), non-GAAP net loss attributable to ordinary shareholders, and non-GAAP loss per ADS provide useful information about its operating results, enhances the overall understanding of its past performance and future prospects and allow for greater visibility with respect to key metrics used by the management in their financial and operational decision-making.

The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools. One of the key limitations of using non-GAAP income (loss) from operations, non-GAAP net income (loss), non-GAAP net loss attributable to ordinary shareholders, or non-GAAP loss per ADS is that it does not reflect all items of income and expense that affect the Company’s operations. Further, the non-GAAP financial measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited.

The Company compensates for these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP measures, all of which should be considered when evaluating the Company’s performance. The Company encourages you to review its financial information in its entirety and not rely on a single financial measure.

Reconciliation of the non-GAAP financial measures to the most comparable U.S. GAAP measures is included at the end of this press release.

Exchange Rate Information Statement

This announcement contains translations of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB7.0176 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of September 30, 2024.

Forward-Looking Statements

This press release contains forward-looking statements. These statements constitute “forward-looking” statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “target,” “confident” and similar statements. Among other things, the Business Outlook and quotations from management in this announcement, as well as 111’s strategic and operational plans, contain forward-looking statements. 111 may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Such statements are based upon management’s current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company’s control. Forward-looking statements involve inherent risks, uncertainties and other factors that could cause actual results to differ materially from those contained in any such statements. Potential risks and uncertainties include, but are not limited to, uncertainties as to the Company’s ability comply with extensive and evolving regulatory requirements, its ability to compete effectively in the evolving PRC general health and wellness market, its ability to manage the growth of its business and expansion plans, its ability to achieve or maintain profitability in the future, its ability to control the risks associated with its pharmaceutical retail and wholesale businesses, and the Company’s ability to meet the standards necessary to maintain listing of its ADSs on the Nasdaq Global Market, including its ability to cure any non-compliance with Nasdaq’s continued listing criteria. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and 111 does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

About 111, Inc.

111, Inc. (NASDAQ: YI) (“111” or the “Company”) is a leading tech-enabled healthcare platform company committed to reshaping the value chain of healthcare industry by digitally empowering the upstream and downstream in China. The Company provides consumers with better access to pharmaceutical products and healthcare services directly through its online retail pharmacy, 1 Pharmacy, and indirectly through its offline virtual pharmacy network. The Company also offers online healthcare services through its internet hospital, 1 Clinic, which provides consumers with cost-effective and convenient online consultation, electronic prescription service, and patient management service. In addition, the Company’s online platform, 1 Medicine, serves as a one-stop shop for pharmacies to source a vast selection of pharmaceutical products. With the largest virtual pharmacy network in China, 111 enables offline pharmacies to better serve their customers with cloud-based services. 111 also provides an omni-channel drug commercialization platform to its strategic partners, which includes services such as digital marketing, patient education, data analytics, and pricing monitoring.

For more information on 111, please visit: http://ir.111.com.cn/.

For more information, please contact:

111, Inc.
Investor Relations
Email: ir@111.com.cn 

111, Inc.
Media Relations
Email: press@111.com.cn
Phone: +86-021-2053 6666 (China)

 

111, Inc.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except for share and per share data)

As of

As of

December 31, 2023

September 30, 2024

RMB

RMB

US$

ASSETS

Current assets:

Cash and cash equivalents

603,523

531,981

75,807

Restricted cash

20,025

32,430

4,621

Short-term investments

50,143

50,000

7,125

Accounts receivable, net 

536,823

425,159

60,585

Notes receivable

77,598

80,853

11,521

Inventories

1,419,396

1,532,170

218,332

Prepayments and other current assets

225,823

234,295

33,388

Total current assets

2,933,331

2,886,888

411,379

Property and equipment, net

34,340

25,558

3,642

Intangible assets, net

2,256

1,643

234

Long-term investments

2,000

1,000

142

Other non-current assets

13,310

15,684

2,235

Operating lease right-of-use asset

103,799

98,909

14,094

Total assets

3,089,036

3,029,682

431,726

LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ DEFICIT

Current liabilities:

Short-term borrowings

338,075

168,517

24,013

Accounts payable

1,588,693

1,912,109

272,474

Accrued expense and other current liabilities 

818,295

569,246

81,116

Total current liabilities

2,745,063

2,649,872

377,603

Long-term operating lease liabilities

62,624

63,969

9,116

Other non-current liabilities

5,245

8,331

1,187

Total liabilities

2,812,932

2,722,172

387,906

MEZZANINE EQUITY

Redeemable non-controlling interests

870,825

943,774

134,487

SHAREHOLDERS’ DEFICIT

Ordinary shares Class A 

32

33

5

Ordinary shares Class B 

25

25

3

Treasury shares 

(5,887)

(5,887)

(839)

Additional paid-in capital

3,169,114

3,167,794

451,407

Accumulated deficit

(3,819,249)

(3,864,151)

(550,637)

Accumulated other comprehensive income

72,514

72,602

10,346

Total shareholders’ deficit

(583,451)

(629,584)

(89,715)

Non-controlling interest

(11,270)

(6,680)

(952)

Total deficit

(594,721)

(636,264)

(90,667)

Total liabilities, mezzanine equity and deficit

3,089,036

3,029,682

431,726

 

 

111, Inc.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

 (In thousands, except for share and per share data)

For the three months ended September 30,

For the nine months ended September 30,

2023

2024

2023

2024

RMB

RMB

US$

RMB

RMB

US$

Net revenues

3,665,245

3,600,675

513,092

10,839,503

10,553,474

1,503,858

Operating costs and expenses:

 Cost of products sold

(3,474,621)

(3,390,059)

(483,080)

(10,204,779)

(9,926,727)

(1,414,547)

 Fulfillment expenses

(101,602)

(99,977)

(14,247)

(299,202)

(276,559)

(39,409)

 Selling and marketing expenses

(95,523)

(76,954)

(10,966)

(274,880)

(237,724)

(33,875)

 General and administrative expenses

(45,839)

(14,367)

(2,047)

(126,235)

(50,747)

(7,231)

 Technology expenses

(25,386)

(17,549)

(2,501)

(75,243)

(54,225)

(7,727)

 Other operating (expenses) income, net

(2,696)

602

86

(2,723)

1,941

277

Total operating costs and expenses

(3,745,667)

(3,598,304)

(512,755)

(10,983,062)

(10,544,041)

(1,502,512)

(Loss) Income from operations

(80,422)

2,371

337

(143,559)

9,433

1,346

 Interest income

2,362

1,533

218

6,517

5,574

794

 Interest expense

(5,433)

(7,810)

(1,113)

(14,525)

(23,067)

(3,287)

 Foreign exchange gain (loss)

79

642

91

(1,095)

40

6

 Other income (loss), net

38

(193)

(28)

4,552

(116)

(17)

Loss before income taxes

(83,376)

(3,457)

(495)

(148,110)

(8,136)

(1,158)

 Income tax expense

(102)

(5)

(1)

(102)

(93)

(13)

Net loss

(83,478)

(3,462)

(496)

(148,212)

(8,229)

(1,171)

Net loss attributable to non-controlling interest

4,315

848

121

7,837

(431)

(61)

Net loss attributable to redeemable non-controlling interest

7,253

438

62

12,529

1,168

166

Adjustment attributable to redeemable non-controlling interest

(21,391)

(14,931)

(2,128)

(54,481)

(37,410)

(5,331)

Net loss attributable to ordinary shareholders

(93,301)

(17,107)

(2,441)

(182,327)

(44,902)

(6,397)

Other comprehensive loss

 Unrealized gains of available-for-sale securities,

1,013

(407)

(58)

3,936

(753)

(107)

 Realized gains of available-for-sale debt securities

(841)

407

58

(3,558)

896

128

 Foreign currency translation adjustments

(1,690)

(1,184)

(169)

4,234

(55)

(8)

Comprehensive loss

(94,819)

(18,291)

(2,610)

(177,715)

(44,814)

(6,384)

Loss per ADS:

 Basic and diluted

(1.10)

(0.20)

(0.02)

(2.16)

(0.52)

(0.08)

Weighted average number of shares used in computation of loss per share

 Basic and diluted

169,088,015

171,938,537

171,938,537

168,179,779

171,526,062

171,526,062

 

 

 

111, Inc.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 (In thousands)

For the three months ended September 30,

For the nine months ended September 30,

2023

2024

2023

2024

RMB

RMB

US$

RMB

RMB

US$

Net cash provided by (used in) operating activities 

35,208

109,865

15,656

(250,230)

311,563

44,397

Net cash provided by (used in) investing activities 

5,163

49,845

7,103

91,913

(141)

(20)

Net cash provided by (used in) financing activities

110,452

(110,510)

(15,748)

204,230

(370,453)

(52,789)

Effect of exchange rate changes on cash and cash equivalents, and restricted cash

2,621

(313)

(45)

3,514

(106)

(15)

Net increase (decrease) in cash and cash equivalents, and restricted cash

153,444

48,887

6,966

49,427

(59,137)

(8,427)

Cash and cash equivalents, and restricted cash at the beginning of the period

612,774

515,524

73,462

716,791

623,548

88,855

Cash and cash equivalents, and restricted cash at the end of the period

766,218

564,411

80,428

766,218

564,411

80,428

 

 

 

 111, Inc.

Unaudited Reconciliation of GAAP and Non-GAAP Results

 (In thousands, except for share and per share data)

For the three months ended September 30,

For the nine months ended September 30,

2023

2024

2023

2024

RMB

RMB

US$

RMB

RMB

US$

(Loss) Income from operations

(80,422)

2,371

337

(143,559)

9,433

1,346

Add: Share-based compensation expenses

26,402

4,756

678

74,818

15,122

2,155

Non-GAAP (loss) income from operations

(54,020)

7,127

1,015

(68,741)

24,555

3,501

Net loss

(83,478)

(3,462)

(496)

(148,212)

(8,229)

(1,171)

Add: Share-based compensation expenses, net of tax

26,402

4,756

678

74,818

15,122

2,155

Non-GAAP net (loss) income

(57,076)

1,294

182

(73,394)

6,893

984

Net loss attributable to ordinary shareholders

(93,301)

(17,107)

(2,441)

(182,327)

(44,902)

(6,397)

Add: Share-based compensation expenses, net of tax

26,402

4,756

678

74,818

15,122

2,155

Non-GAAP net loss attributable to ordinary shareholders

(66,899)

(12,351)

(1,763)

(107,509)

(29,780)

(4,242)

Loss per ADS(6): Basic and diluted

(1.10)

(0.20)

(0.02)

(2.16)

(0.52)

(0.08)

Add: Share-based compensation expenses per ADS(6), net of tax

0.32

0.06

0.00

0.88

0.18

0.02

Non-GAAP loss per ADS(6)

(0.78)

(0.14)

(0.02)

(1.28)

(0.34)

(0.06)

(6) Every one ADS represents two Class A ordinary shares.

 

 

 

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BIT Asset Management Receives FINMA Approval for Switzerland’s First and Europe’s Only Spot Bitcoin ETF

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The first exchange-traded fund under Swiss law to invest directly in bitcoin, approved for retail investors in Switzerland

ZURICH, Oct. 22, 2026 /PRNewswire/ — BIT Asset Management AG (“BIT AM”), the wholly owned Swiss asset management subsidiary of BIT (www.bit.com), announced that the Swiss Financial Market Supervisory Authority (FINMA) has approved the Bitcoin Fund ETF (Ticker: BBIT). As confirmed in FINMA’s announcement, it is the first exchange-traded fund in Switzerland to invest directly in bitcoin. It is currently Europe’s only spot bitcoin ETF.

The fund is expected to begin trading on SIX Swiss Exchange in November.

Bitcoin Fund ETF (BBIT)

A spot bitcoin ETF is designed to track the price of bitcoin and can be traded through an ordinary brokerage account. It holds bitcoin directly rather than futures or derivatives. This is the structure that brought bitcoin into mainstream portfolios in the United States, where BlackRock’s iShares Bitcoin Trust (IBIT) and ten other spot bitcoin ETFs launched in January 2024.

Most bitcoin products listed in Europe today are exchange-traded products (ETPs), which are debt instruments that carry issuer risk. The Bitcoin Fund ETF is instead a Swiss collective investment scheme. Its assets are held separately from those of the fund management company and are ring-fenced for investors. The fund is open to retail investors in Switzerland, not only qualified investors.

“Switzerland has established itself as a leading hub for digital assets, combining a strong financial sector, regulatory clarity and an innovative ecosystem,” said John Ge, CEO of BIT Group. “For BIT Group, this makes Switzerland a natural choice for our continued international expansion. Launching the first Swiss Bitcoin ETF is an important milestone for us, reflecting our long-term commitment to the Swiss market and our ambition to bridge traditional finance with emerging technologies.”

“With BBIT, we set out to create a truly Swiss Bitcoin ETF, from fund management and custody to its listing on SIX Swiss Exchange. Investors gain direct exposure to Bitcoin through a FINMA-approved Swiss investment fund, benefiting from the regulatory oversight and investor protections of Switzerland’s established collective investment scheme framework.” said Dominik Oggenfuss, CEO of BIT Asset Management. “Investors can now access bitcoin through an ordinary Swiss bank account, with Swiss fund governance, independent custody and daily transparency on holdings.”

Disclaimer: Investing in the Bitcoin Fund ETF involves a high degree of risk, and you may lose all of your capital. The fund is classified under the Swiss regulatory category “Other alternative investment funds” with particular risk and invests exclusively in Bitcoin, which is extremely volatile. The investment fund risks are not comparable to those of securities funds, and temporary borrowing may increase its total risk exposure to a maximum of 125% of its net asset value. Investors should read the fund documentation and risk warnings before investing. The fund is approved for public offering in Switzerland only. This announcement is for information only and is not an offer or solicitation in any jurisdiction. It is not directed at persons in the US or at U.S. persons.

About BIT Asset Management

BIT Asset Management AG is a Zurich-based manager of collective assets regulated by FINMA, and a wholly owned subsidiary of BIT. Formerly Crypto Finance (Asset Management) AG, it was acquired in full by the Group in 2024 and renamed Matrixport Asset Management AG before taking its current name. It offers regulated funds, exchange-traded products, actively managed certificates and discretionary asset management services, bridging traditional finance and digital assets. The company is led by CEO Dominik Oggenfuss.

About BIT

Founded in 2019 as Matrixport, BIT is an all-in-one digital asset platform headquartered in Singapore. It offers trading, investment, payment, custody and real-world asset tokenization. Through its subsidiaries, BIT holds Trust or Company Service Provider and Money Lender licences in Hong Kong, Major Payment Institution license in Singapore, and a FINMA licence as a manager of collective assets in Switzerland. Through its subsidiaries, BIT operates as an Appointed Representative in the UK, is registered as a Money Services Business in the US and is a member of the Swiss self-regulatory organisation VQF.

View original content:https://www.prnewswire.com/news-releases/bit-asset-management-receives-finma-approval-for-switzerlands-first-and-europes-only-spot-bitcoin-etf-302916555.html

SOURCE BIT Asset Management AG

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BIT Asset Management Receives FINMA Approval for Switzerland’s First and Europe’s Only Spot Bitcoin ETF

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on

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The first exchange-traded fund under Swiss law to invest directly in bitcoin, approved for retail investors in Switzerland

ZURICH, Oct. 22, 2026 /PRNewswire/ — BIT Asset Management AG (“BIT AM”), the wholly owned Swiss asset management subsidiary of BIT (www.bit.com), announced that the Swiss Financial Market Supervisory Authority (FINMA) has approved the Bitcoin Fund ETF (Ticker: BBIT). As confirmed in FINMA’s announcement, it is the first exchange-traded fund in Switzerland to invest directly in bitcoin. It is currently Europe’s only spot bitcoin ETF.

The fund is expected to begin trading on SIX Swiss Exchange in November.

Bitcoin Fund ETF (BBIT)

A spot bitcoin ETF is designed to track the price of bitcoin and can be traded through an ordinary brokerage account. It holds bitcoin directly rather than futures or derivatives. This is the structure that brought bitcoin into mainstream portfolios in the United States, where BlackRock’s iShares Bitcoin Trust (IBIT) and ten other spot bitcoin ETFs launched in January 2024.

Most bitcoin products listed in Europe today are exchange-traded products (ETPs), which are debt instruments that carry issuer risk. The Bitcoin Fund ETF is instead a Swiss collective investment scheme. Its assets are held separately from those of the fund management company and are ring-fenced for investors. The fund is open to retail investors in Switzerland, not only qualified investors.

“Switzerland has established itself as a leading hub for digital assets, combining a strong financial sector, regulatory clarity and an innovative ecosystem,” said John Ge, CEO of BIT Group. “For BIT Group, this makes Switzerland a natural choice for our continued international expansion. Launching the first Swiss Bitcoin ETF is an important milestone for us, reflecting our long-term commitment to the Swiss market and our ambition to bridge traditional finance with emerging technologies.”

“With BBIT, we set out to create a truly Swiss Bitcoin ETF, from fund management and custody to its listing on SIX Swiss Exchange. Investors gain direct exposure to Bitcoin through a FINMA-approved Swiss investment fund, benefiting from the regulatory oversight and investor protections of Switzerland’s established collective investment scheme framework.” said Dominik Oggenfuss, CEO of BIT Asset Management. “Investors can now access bitcoin through an ordinary Swiss bank account, with Swiss fund governance, independent custody and daily transparency on holdings.”

Disclaimer: Investing in the Bitcoin Fund ETF involves a high degree of risk, and you may lose all of your capital. The fund is classified under the Swiss regulatory category “Other alternative investment funds” with particular risk and invests exclusively in Bitcoin, which is extremely volatile. The investment fund risks are not comparable to those of securities funds, and temporary borrowing may increase its total risk exposure to a maximum of 125% of its net asset value. Investors should read the fund documentation and risk warnings before investing. The fund is approved for public offering in Switzerland only. This announcement is for information only and is not an offer or solicitation in any jurisdiction. It is not directed at persons in the US or at U.S. persons.

About BIT Asset Management

BIT Asset Management AG is a Zurich-based manager of collective assets regulated by FINMA, and a wholly owned subsidiary of BIT. Formerly Crypto Finance (Asset Management) AG, it was acquired in full by the Group in 2024 and renamed Matrixport Asset Management AG before taking its current name. It offers regulated funds, exchange-traded products, actively managed certificates and discretionary asset management services, bridging traditional finance and digital assets. The company is led by CEO Dominik Oggenfuss.

About BIT

Founded in 2019 as Matrixport, BIT is an all-in-one digital asset platform headquartered in Singapore. It offers trading, investment, payment, custody and real-world asset tokenization. Through its subsidiaries, BIT holds Trust or Company Service Provider and Money Lender licences in Hong Kong, Major Payment Institution license in Singapore, and a FINMA licence as a manager of collective assets in Switzerland. Through its subsidiaries, BIT operates as an Appointed Representative in the UK, is registered as a Money Services Business in the US and is a member of the Swiss self-regulatory organisation VQF.

View original content:https://www.prnewswire.com/news-releases/bit-asset-management-receives-finma-approval-for-switzerlands-first-and-europes-only-spot-bitcoin-etf-302916555.html

SOURCE BIT Asset Management AG

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ISHCMC expands academic pathways, giving students more ways to shape their futures

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New Personalized Diploma Program builds on ISHCMC’s academic legacy, offering greater choice for Grades 11 and 12 while retaining the full IB Diploma Programme.

HO CHI MINH CITY, Vietnam, Oct. 22, 2026 /PRNewswire/ — The International School Ho Chi Minh City (ISHCMC) will introduce a new Personalized Diploma Program (PDP) from August 2027, expanding academic choices for students in Grades 11 and 12 alongside its established International Baccalaureate Diploma Programme (IBDP).

Building on a learning community shaped by generations of students, educators and families since 1993, the expanded model gives students more ways to shape their senior studies around their strengths, interests and future ambitions. Through a combination of academic choice and educator guidance, ISHCMC aims to help each student make informed decisions about their next steps while contributing to a community that continues to grow with every generation.

Different pathways. A future shaped over generations.

The full IBDP will remain an important part of ISHCMC’s academic offering. The PDP provides an alternative for students seeking a different combination of subjects, bringing together individual IB Diploma courses, Advanced Placement (AP) courses and ISHCMC courses within a personalized program.

Both pathways lead to the ISHCMC High School Diploma, with additional qualifications available depending on the courses taken and assessments completed. Students completing the full IBDP may also earn the IB Diploma by meeting the International Baccalaureate’s requirements. Students following the PDP may earn individual IB course and AP certificates, depending on their course choices and assessment results.

The expanded model recognizes that students may have different interests, strengths and intended university destinations. Rather than expecting every student to follow the same route, ISHCMC will support students in exploring the options available and building an academic program suited to their goals.

“At ISHCMC, every generation benefits from what those before them have built, while adding something of their own. Expanding our academic pathways is about giving students more ways to build on their strengths, pursue their ambitions and shape their futures, supported by the experience and community that have grown here over generations.” Mr. Marco Longmore, Head of School.

Guidance that carries learning forward

Choosing a senior academic pathway is an important decision for students and their families. University requirements vary by country, institution and degree program, making informed subject selection an essential part of planning for life after school.

ISHCMC’s High School and Future Pathways teams will work with students and families to explore course options, understand relevant university entry requirements and make considered decisions about their academic direction. Both pathways can support university applications, with eligibility depending on the qualifications completed and the requirements of each university and program.

The PDP is not intended to be a less demanding alternative to the full IBDP. It offers a different way to structure senior studies around individual goals and course choices, with the expectations and requirements of each course remaining central to the student’s academic experience.

“Every student’s next steps will look different, and our role is to help them understand what those steps require. By working closely with students and families, we can connect individual interests with informed academic choices, helping students approach their future plans with greater clarity and purpose.” Mr. Kohulan Jeganathan, High School Principal.

The new model will begin in August 2027. Ahead of entry into Grades 11 and 12, ISHCMC will work with students and families to explain the available pathways, explore course options and support planning for the transition into senior school. Families can contact the ISHCMC High School and Future Pathways teams to discuss the options and relevant academic requirements.

About the International School Ho Chi Minh City

Established in 1993, the International School Ho Chi Minh City (ISHCMC) is a full-continuum IB international school in Ho Chi Minh City, Vietnam, offering education from Early Years through Grade 12. Its community brings together families from more than 60 nationalities.

View original content to download multimedia:https://www.prnewswire.com/apac/news-releases/ishcmc-expands-academic-pathways-giving-students-more-ways-to-shape-their-futures-302916587.html

SOURCE International School Ho Chi Minh City

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