111, Inc. Announces Additional Round of New Capital Injection

111, Inc. ("111" or the "Company") (NASDAQ: YI), a leading digital healthcare platform company committed to digitally connecting patients with medicine and healthcare services in China, today announced the successful completion of new capital injection in its principal PRC subsidiary by a selected group of strategic and mission-driven investors.

On December 22, 2020, 1 Pharmacy Yaofang Technology (Shanghai) Co., Ltd. (previously known as Yao Fang Information Technology (Shanghai) Co., Ltd.) ("Yao Fang Shanghai"), the principal operating subsidiary of 111 in China, completed a new round of capital injection from strategic investors. According to the investment agreements, the investors invested in Yao Fang Shanghai an aggregate of RMB515 million (approximately US$78.75 million*), at a pre-money valuation of RMB10 billion (approximately US$1.53 billion*). This round of funding follows a RMB419.82 million (approximately US$60.49 million) first round secured in August 2020, bringing total funds raised to-date to RMB934.82 million (approximately US$142.84 million*). This funding aims at supporting the company in its business expansion, including its capacity to address the growing needs of millions of patients for digital solutions in healthcare.

In addition to the existing shareholders from previous round of financing, namely, Youkai Investment, Shanghai Strategy Fund, Liangji Industrial as well as a few other investment firms, 111 welcomes newly joined investors including SAIF Partners, Shenli Investment, Huasai Fund, Zhangjiang Torch Venture Investment, GeniLink Capital, Shanghai Science & Technology Venture Capital, Renmin Pudong Investment, Ideate Investments, and Zhangjiang Technology Venture Investment, Huazhi Capital in this second round.

Mr. Junling Liu, Co-Founder, Chairman, and Chief Executive Officer of 111, commented, "We are very proud of the strong support 111 has received from investors as they continue to embrace digital healthcare innovation.  We see the investments from these distinguished new investors as a strong testament to the confidence these investors have in 111 and its expected contribution in advancing digitalization in healthcare delivery.  111 is committed to fulfilling its mission on digitally connecting patients with medicine and healthcare services in China."

"Our biggest challenge today is responding to the overwhelming number of opportunities with which we are being confronted." Mr. Liu continued, "As we close this investment round, we will continue to seek out and capitalize on strategic market opportunities, solidify our leadership in China's digital healthcare market, accelerate business growth and expedite our next phase of expansion. Furthermore, 111 will continue to pursue its plan to list the shares of Yao Fang Shanghai on the STAR Market, subject to regulatory approvals and market conditions. Again, we are thrilled that our innovative business model keeps on attracting high quality and mission driven investors interests on a continuous basis."