Inc. Announces Fourth Quarter and Fiscal Year 2020 Unaudited Financial Results SHANGHAI

111, Inc. Announces Fourth Quarter and

Fiscal Year 2020 Unaudited Financial Results

March 18, 2021 /PRNewswire/ - 111, Inc. ("111" or the "Company") (NASDAQ: YI), "), a leading tech-enabled

healthcare platform company committed to digitally connecting patients with medicine and healthcare services in China, today announced

its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2020.

Quarter 2020 Highlights

Year 2020 Highlights

was another strong year for us, with net revenue in Q4 rising by 96.1% YoY to RMB2.64 billion. Despite the challenges of the pandemic,

we were able to sustain a consecutive net revenue growth since our IPO, bringing net revenue for the year to RMB8.2 billion, more

than doubling the net revenue of RMB3.95 billion in FY 2019. Non-GAAP net loss attribute to ordinary shareholders as a percentage

of net revenues also decreased significantly, from 22.3% in our first quarter post IPO to 3.7% in this latest quarter,"

said Mr. Junling Liu, Co-Founder, Chairman, and Chief Executive Officer of 111.

business recorded a close to nine-fold increase from RMB959.5 million in FY2017. This stellar performance was set in motion by

our S2B2C model, which has continued to drive our multi-faceted growth strategy, and has allowed us to lead the charge in the

digital transformation of the healthcare system in the new era of industry internet in China."

advantages of our S2B2C model continues to attract new partners and has led to the rapid growth of our ecosystem in 2020. The

number of global and domestic pharmaceutical companies we have a direct relationship with totaled over 330 as of 4Q 2020, while

our network of retail pharmacy customers is now the largest virtual network in China. With the support of our eight regional fulfilment

centers, we provide 24-hour delivery to more than 300 cities in China and 72-hour delivery nationwide. As we increase the number

of our fulfilment centers and upgrade our logistic management, fulfilment costs as a percentage of net revenue improved significantly

- from 3.6% in Q4 2019 to 2.6% in Q4 2020. For the full year 2020, it improved from 3.3% to 2.8% YoY."

addition to pharmaceutical companies, market participants such as marketplace vendors, medicine distributors, CSO organizations,

commercial medical insurance companies and others have significantly strengthened our supply chain platform. Coupled with the

capabilities we have built out over the past few years we are in a very unique position to enable pharmacies and doctors to better

service their customers. Doctors are able to enjoy our service modules of cloud clinic, cloud pharmacy, doctor-patient platform

to digitally serve their patients in a manner never existed in the past. Today, pharmacies across the country can access a vast

selection of medicine with volume-based pricing, supply chain financing, and a variety of SaaS based services on our platform

which enable them to deliver greater user experience to their patients."

"Looking ahead to 2021, we will focus on strengthening every facet of our S2B2C model and advancing our strategic plan to

expedite business expansion. We will continue to improve the AI and data processing capabilities of our technology to empower

doctors and pharmacies. We will make significant investment in our technology to bring more services to retail pharmacies so that

we can deepen our share of wallet. The platform's enhanced capability will also allow us to virtually deploy more digital

medical reps to further improve the effectiveness of our commercialization capability and provide better tools to doctors so they

can access the latest innovations in medical science."

2020, we continued to build on our momentum and deepen our market positions through our main operating subsidiary, Yao Fang Shanghai,

which has raised two rounds of financing that amounted to approximately USD142.8 million from third-party investors, with the

second round financing at a pre-money valuation of RMB10 billion (US$1.5 billion) in connection with IPO on Shanghai Stock Exchange's

Sci-Tech Innovation Board (STAR). We believe that there are significant opportunities for us in the age of industry internet to

expediate the digital transformation of the healthcare system in China. We will work relentlessly to strengthen this model and

pursue growth opportunities, delivering ever-greater value to our shareholders," he concluded.

2020 Financial Results

revenues were RMB2.64 billion (US$405.1 million),

representing an increase of 96.1% from RMB1.35 billion in the same quarter of last year.

of December 31, 2020, the Group has two reporting segments that includes B2B segment and B2C segment. Revenue contribution from

E-Channel was previously disclosed as a separate segment, but was incorporated in B2B segment since last quarter. The Company

revised prior comparative periods to conform to the current period segment presentation as follows:

costs and expenses were RMB2.79 billion (US$427.1 million), representing an increase of 83.8% from RMB1.52

billion in the same quarter of last year.

from operations was RMB144.7 million (US$22.2 million), compared to RMB168.1 million in the same

quarter of last year. As a percentage of net revenues, loss from operations further decreased to 5.5% in the quarter from 12.5%

in same quarter of last year.

loss from operations[5] was RMB112.3 million (US$17.2 million), compared to RMB154.2 million in

the same quarter of last year. As a percentage of net revenues, non-GAAP

loss from operations decreased to 4.2% in the quarter from 11.4% in same quarter of last year.

loss attributable to ordinary shareholders was RMB130.6 million (US$20.0 million), compared to RMB157.6

million in the same quarter of last year. As a percentage of net revenues, net loss

attributable to ordinary shareholders decreased to 4.9% in the quarter from 11.7% in same quarter of last year.

net loss attributable to ordinary shareholders was RMB98.2 million (US$15.1 million), compared to RMB143.7

million in the same quarter of last year. As a percentage of net revenues, non-GAAP

net loss attributable to ordinary shareholders decreased to 3.7% in the quarter from 10.7% in same quarter of last year.

ADS was RMB1.58 (US$0.24), compared to RMB1.92 for the same quarter of last year.

Loss per ADS[6] was RMB1.19 (US$0.18), compared to RMB1.75 for the same quarter of last

2020 Financial Results

revenues were RMB8.20 billion (US$1.26 billion),

representing an increase of 107.6% from RMB3.95 billion last year.

costs and expenses were RMB8.68 billion (US$1.33 billion), representing an increase of 95.1% from RMB4.45

from operations was RMB473.3 million (US$72.5 million), compared to RMB493.5 million last year. As

a percentage of net revenues, loss from operations further decreased to 5.8% in 2020 from 12.5% last year.

loss from operations was RMB397.6 million (US$60.9 million), compared to RMB439.2 million last year. As

a percentage of net revenues, non-GAAP loss from operations decreased to 4.8% in 2020 from

loss attributable to ordinary shareholders was RMB456.5 million (US$70.0 million), compared to RMB499.6

million last year. As a percentage of net revenues, net loss attributable to ordinary

shareholders decreased to 5.6% in 2020 from 12.6% last year.

net loss attributable to ordinary shareholders was RMB380.8 million (US$58.4 million), compared to RMB434.3

million last year. As a percentage of net revenues, non-GAAP

net loss attributable to ordinary shareholders decreased to 4.6% in 2020 from 11.0% last year.

ADS was RMB5.54 (US$0.84), compared to RMB6.10 of last year.

Loss per ADS was RMB4.62 (US$0.70), compared to RMB5.30 of last year.

of December 31, 2020, the Company had cash and cash equivalents, restricted cash and

short-term investments of RMB1.62 billion (US$248.1

million), compared to RMB697.7 million as of December 31, 2019.

the first quarter of 2021, the Company expects its total net revenues to be between RMB2.53 billion and RMB2.6 billion, representing

a year-over-year growth of approximately 61% to 65%, or 87% to 93% if excluding the impacts of certain one-off sales of pandemic

supplies in first quarter 2020.

above outlook is based on the current market conditions and reflects the Company's current and preliminary estimates of market

and operating conditions and customer demand, which are all subject to changes.

team will host an earnings conference call at 7:30 AM U.S. Eastern Time on Thursday, March 18, 2021 (7:30 PM Beijing Time on the

the conference call are as follows:

Inc. Fourth Quarter 2020 Earnings Conference Call

Link: http://apac.directeventreg.com/registration/event/3260659

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.

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