111 Bundle
What is the history of 111, Inc.?
111, Inc. is a leading integrated online and offline healthcare platform in China. Founded in 2010, it aims to improve healthcare accessibility and affordability through technology. A key milestone was its NASDAQ listing in September 2018.
The company was established in Shanghai by Dr. Gang Yu and Mr. Junling Liu with the goal of creating China's largest integrated healthcare ecosystem. Their innovative 'S2B2C' model connects various healthcare stakeholders.
What is Brief History of 111 Company?
Founded in Shanghai in 2010 by Dr. Gang Yu and Mr. Junling Liu, 111, Inc. set out to revolutionize China's healthcare landscape. The company's core mission was to build the largest integrated online and offline healthcare platform, digitally connecting patients with essential drugs and medical services. This ambitious vision aimed to streamline a complex and often inefficient traditional healthcare system by creating a comprehensive ecosystem. This ecosystem includes online pharmacies, virtual consultation services, and an extensive network of physical retail pharmacies. The company's operational framework is built upon an innovative 'S2B2C' model, which facilitates seamless connections between pharmaceutical manufacturers, pharmacies, healthcare professionals, and patients. This model is crucial for understanding the company's market strategy and its approach to providing accessible healthcare solutions. A significant achievement in the company's history was its public listing on the NASDAQ in September 2018, making it the first Chinese internet health company to be listed on a U.S. stock exchange.
As of the first quarter of 2025, 111, Inc. reported net revenues of RMB 3.5 billion, equivalent to approximately US$486.3 million. This financial performance highlights the company's continued growth and resilience in a competitive market. The company's strategic focus on digital transformation and integrated healthcare solutions positions it as a key player in China's evolving healthcare sector. For a deeper understanding of its competitive positioning, consider an 111 Porter's Five Forces Analysis.
What is the 111 Founding Story?
The 111 company history began on May 25, 2010, in Shanghai, China, with the establishment of 111, Inc. by co-founders Dr. Gang Yu and Mr. Junling Liu. Their vision was to address the inefficiencies in China's traditional healthcare system by leveraging internet technology for better access to pharmaceuticals and medical advice.
Founding Story of 111 Company
The 111 company origins trace back to the identification of a significant gap in China's healthcare landscape. Dr. Gang Yu and Mr. Junling Liu, both possessing substantial entrepreneurial and operational experience, recognized the potential to revolutionize pharmaceutical distribution and healthcare services through an online platform. This initiative aimed to create a more accessible and efficient system for consumers.
- 111 company was founded on May 25, 2010, in Shanghai, China.
- Co-founders Dr. Gang Yu and Mr. Junling Liu brought extensive experience from companies like Dangdang Inc. and Dell Inc.
- The initial problem addressed was the fragmented and inefficient traditional healthcare system in China.
- The early business model focused on an online pharmacy platform, initially known as 1 Pharmacy, for direct-to-consumer medication delivery.
- The company's name, 111, reflects its integrated healthcare ecosystem approach: '1 Pharmacy', '1 Clinic', and '1 Drug Mall'.
- In 2016, the company secured a significant Series B funding of US$100 million to support its expansion efforts.
- The founding principles of the 111 company were centered on leveraging technology to improve healthcare accessibility and efficiency.
- The history of 111 company showcases a strategic evolution towards building a comprehensive online healthcare ecosystem.
- This commitment to innovation and accessibility is further detailed in the Mission, Vision & Core Values of 111.
111 SWOT Analysis
- Complete SWOT Breakdown
- Fully Customizable
- Editable in Excel & Word
- Professional Formatting
- Investor-Ready Format
What Drove the Early Growth of 111?
The early days of the 111 company saw a strategic focus on building a robust online pharmacy presence. This foundational work laid the groundwork for its expansion into broader direct-to-consumer healthcare services.
Founding of 1 Pharmacy and Initial Expansion
The company established its initial online pharmacy, 1 Pharmacy, becoming a pioneer in China's online retail pharmacy sector. This was followed by the launch of 1 Clinic for online consultations and electronic prescriptions, and 1 Drug Mall, a B2B platform for pharmacies.
Series B Funding and NASDAQ IPO
A significant milestone in the 111 company history was the 2016 Series B funding round, which secured US$100 million. This capital fueled further development and expansion. On September 12, 2018, the company made history by becoming the first Chinese internet health company to list on the NASDAQ, raising approximately US$100 million at an issue price of US$14.00 per ADS.
Digitalization of Offline Pharmacies and S2B2C Model
Following its IPO, the company shifted its focus in 2019 to the digitalization of offline pharmacies, extending its cloud-based solutions. This strategic move in 2020 led to the development of its 'S2B2C' model, connecting various stakeholders in the healthcare ecosystem through its omni-channel platform.
Financial Performance and Efficiency Gains
The company achieved its first quarterly operational income in Q1 2024. In Q1 2025, despite economic challenges, it maintained stable net revenues of RMB 3.5 billion. Operating expenses were reduced by 4.8% year-over-year, with selling and marketing expenses down 15.5% and technology costs down 15.6%, reflecting a strong focus on operational efficiency. This period highlights the evolution of 111 company.
111 PESTLE Analysis
- Covers All 6 PESTLE Categories
- No Research Needed – Save Hours of Work
- Built by Experts, Trusted by Consultants
- Instant Download, Ready to Use
- 100% Editable, Fully Customizable
What are the key Milestones in 111 history?
The history of 111 company is marked by significant milestones and innovations, particularly its proprietary 'S2B2C' model designed to digitally empower businesses in serving consumers. This model integrates the supply chain with pharmaceutical companies, pharmacies, doctors, and patients, aiming to streamline drug commercialization and improve patient access. The company's commitment to technological advancement is evident in its growing patent portfolio and recent AI applications in pharmaceutical review processes, enhancing efficiency. These developments contribute to the ongoing evolution of 111 company.
| Year | Milestone |
|---|---|
| September 2024 | Acquired four new patents, increasing its total to 28. |
| Fiscal Year 2024 | Achieved its first-ever annual operating profit. |
| February 2025 | Regained compliance with NASDAQ's minimum share price requirement. |
| Q1 2025 | Achieved innovative applications of AI in pharmaceutical qualification review, improving efficiency by over 100%. |
Key innovations include the 'S2B2C' model, which digitally empowers businesses by integrating the supply chain with various healthcare stakeholders to enhance drug commercialization and patient access. Furthermore, the company has successfully implemented AI technologies, including OCR, knowledge graphs, and large model upgrades, to significantly improve efficiency in pharmaceutical qualification review scenarios, demonstrating a strong focus on technological advancement in its operations.
'S2B2C' Business Model
This proprietary model digitally empowers businesses by integrating the supply chain platform with pharmaceutical companies, pharmacies, doctors, and patients. It aims to streamline drug commercialization and enhance patient access.
Patent Portfolio Expansion
In September 2024, the company acquired four new patents, bringing its total to 28. This expansion strengthens its competitive advantages and supports long-term growth.
AI in Pharmaceutical Review
In the first quarter of 2025, the company achieved innovative applications of AI in pharmaceutical qualification review scenarios. This significantly improved efficiency by over 100% through OCR, knowledge graphs, and large model technology upgrades.
Operational Profitability
The company has consistently maintained operational profitability for multiple consecutive quarters, including Q3 2024 and Q1 2025. This achievement was further solidified by its first-ever annual operating profit in fiscal year 2024.
NASDAQ Compliance
In February 2025, the company successfully regained compliance with NASDAQ's minimum share price requirement. This move boosted investor confidence and signaled improved financial stability.
Cost Efficiency
Operational efficiency was enhanced by a 4.8% decrease in total operating expenses year-over-year in Q1 2025. This focus on cost management supports its overall financial strategy.
The company faces challenges from a dynamic regulatory environment in China and intense competition from other digital health platforms. Macroeconomic headwinds have also impacted revenue growth, with the B2C division experiencing a 28% year-over-year revenue decline in Q1 2025, despite total net revenues reaching RMB 3.5 billion. Additionally, the company has managed redemption obligations totaling RMB 1.09 billion, which have been largely rescheduled but remain a point of attention.
Regulatory Environment
Navigating China's evolving regulatory landscape presents a continuous challenge. Adapting to new policies and compliance requirements is crucial for sustained operations and growth.
Competitive Landscape
The company operates in a highly competitive market, facing pressure from established digital health platforms. Maintaining a competitive edge requires continuous innovation and strategic market positioning.
Macroeconomic Headwinds
Broader economic conditions have influenced revenue streams, particularly impacting the B2C segment. This necessitates agile financial management and strategic adjustments to mitigate economic volatility.
Redemption Obligations
Managing redemption obligations, totaling RMB 1.09 billion and largely rescheduled, remains a financial consideration. This requires careful planning and execution to ensure financial stability.
Revenue Performance
While overall revenues were RMB 3.5 billion in Q1 2025, a 28% year-over-year decline in the B2C division highlights specific segment challenges. This underscores the need for targeted strategies to bolster performance in all business areas, as discussed in the Growth Strategy of 111.
111 Business Model Canvas
- Complete 9-Block Business Model Canvas
- Effortlessly Communicate Your Business Strategy
- Investor-Ready BMC Format
- 100% Editable and Customizable
- Clear and Structured Layout
What is the Timeline of Key Events for 111?
The journey of 111, Inc. began in 2010, marking the start of its presence as an online pharmacy. Incorporated in Shanghai in May 2013, the company quickly progressed, securing a significant US$100 million in Series B funding in 2016 to fuel its expansion. A pivotal moment arrived on September 12, 2018, when it became the first Chinese internet health company to list on the NASDAQ, raising approximately US$100 million. The following year, 2019, saw a strategic shift towards digitizing offline pharmacies, a move further supported in 2020 by the expansion of cloud-based solutions for partner pharmacies. The company's commitment to growth and market access was underscored by a capital injection and strategic plan announced in August 2020. Key partnerships, such as the one with Beilin Pharmaceutical in March 2022 for direct supply, have been instrumental in broadening market reach. The company achieved its first quarterly operational income in Q1 2024, followed by operational profitability for two consecutive quarters in Q2 and Q3 2024, alongside acquiring four new patents, bringing its total to 28. The fiscal year 2024 concluded with the company achieving its first-ever annual operating profit and positive operating cash flow, reporting net revenues of US$2.0 billion. By February 10, 2025, the company regained compliance with NASDAQ's minimum share price requirement. Financial results for Q1 2025, reported on June 19, 2025, showed net revenues of RMB 3.5 billion, with continued operational profitability and positive operating cash flow, and cash and cash equivalents, restricted cash, and short-term investments totaling RMB 556.8 million (US$76.7 million) as of March 31, 2025.
| Year | Key Event |
|---|---|
| 2010 | Co-founded as an online pharmacy. |
| 2013 | Incorporated in Shanghai, China. |
| 2016 | Secured US$100 million in Series B funding. |
| 2018 | First Chinese internet health company to list on NASDAQ. |
| 2019 | Shifted focus to digitalizing offline pharmacies. |
| 2020 | Expanded cloud solutions for pharmacies. |
| 2022 | Formed strategic partnership with Beilin Pharmaceutical. |
| 2024 | Achieved first quarterly operational income and annual operating profit. |
| 2025 | Regained NASDAQ compliance and reported strong Q1 revenues. |
Digitalization and Expansion Strategy
The company is committed to enhancing China's healthcare landscape through digital and integrated solutions. This includes expanding online pharmacy and healthcare services, leveraging AI for optimization across the value chain.
Logistics Network Enhancement
By 2025, plans include adding at least 14 more fulfillment centers to its 'Penglai' logistics network. This expansion aims to significantly improve pharmaceutical distribution services and coverage.
Commitment to Operational Excellence
Leadership emphasizes operational discipline and strategic focus to capitalize on long-term opportunities. The goal is to build a robust, next-generation platform for healthcare services.
Vision for a Connected Healthcare Ecosystem
The core vision remains to digitally connect patients with necessary drugs and healthcare services. This strategy aims to establish the largest healthcare platform in China, impacting the Target Market of 111.
111 Porter's Five Forces Analysis
- Covers All 5 Competitive Forces in Detail
- Structured for Consultants, Students, and Founders
- 100% Editable in Microsoft Word & Excel
- Instant Digital Download – Use Immediately
- Compatible with Mac & PC – Fully Unlocked
- What is Competitive Landscape of 111 Company?
- What is Growth Strategy and Future Prospects of 111 Company?
- How Does 111 Company Work?
- What is Sales and Marketing Strategy of 111 Company?
- What are Mission Vision & Core Values of 111 Company?
- Who Owns 111 Company?
- What is Customer Demographics and Target Market of 111 Company?
Disclaimer
All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.
We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.
All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.