1111 Health Releases 2015 Annual Report: Internet Revenue Exceeds RMB 15.75 Million, User Base Surges to 68 Million

On the evening of April 18, JiuYi160 (Ningyuan Technology: 834750), the first publicly listed internet healthcare company, released its first annual report since listing on the National Equities Exchange and Quotations (NEEQ). The report showed that JiuYi160 achieved an operating revenue of RMB 23.7198 million in 2015, with internet-related revenue exceeding RMB 15.75 million, representing a year-on-year increase of 106.18%. According to the Prospectus disclosed during its listing last year, the company’s main business revenue for January–June 2015 was RMB 7.9769 million. Based on this calculation, the revenue for the second half of 2015 reached RMB 15.7429 million, nearly double that of the first half.

In addition to revenue, the rapid growth of Jiuyi 160 is also reflected in its user base expansion. The report shows that the number of Jiuyi 160 users increased from 12 million at the beginning of 2015 to 68 million by the end of the year.

Thanks to the introduction of Series B financing in 2015 and rapid growth in operating revenue, Jiuyi 160’s total assets increased from RMB 16.9885 million to RMB 94.2853 million, representing a surge of 454.99%. According to its annual report, Jiuyi 160 incurred losses to some extent last year. In response, Luo Ningzheng, CEO of Jiuyi 160, stated that although the company recorded a loss last year, it currently maintains ample cash flow and is steadily advancing its Series C financing round.

It is reported that in 2015, Jiuyi160 invested substantial funds in the expansion and operation of hospital and user resources, the development of online hospital products, and team expansion. Specifically regarding hospital resources, the number of hospitals partnered with the Jiuyi160 platform rose from over 600 at the end of 2014 to 2,187 in 2015 (including nearly 800 Grade A tertiary hospitals), representing a growth rate of 263%. Most of these investments were one-time expenditures and will not increase future costs.

From an industry perspective, most internet companies, especially mobile health firms, undergo a period of strategic losses in their early stages to expand market share and acquire a massive user base. Compared with other mobile health enterprises of similar scale, JiuYi 160 has burned through cash at a relatively lower rate, relying primarily on its own funds and revenue to develop the market. According to disclosures from JiuYi 160, the 56 million new users added last year were acquired without any subsidies, resulting in a customer acquisition cost of only RMB 1.27 per user.

As of December 31, 2015, the services of the Juyi 160 platform had covered more than 200 cities, including Beijing, Shanghai, Guangzhou, Shenzhen, Hong Kong, Changsha, Zhengzhou, Hefei, Chengdu, Wuhan, Nanjing, and Haikou, spanning 31 provinces (with only Tibet not yet covered); it served 2,187 hospitals and over 440,000 doctors; there were more than 68 million real-name registered users; the cumulative number of patients who made appointments exceeded 52 million; the total number of service instances surpassed 150 million; and the proportion of mobile-based services exceeded 60%.

In 2015, the company further upgraded its product into an “Online Hospital.” According to CEO Luo Ningzheng, the “Online Hospital” leverages a unified appointment registration platform with open external connectivity. Starting from essential needs such as patient and hospital appointment scheduling and in-clinic payments, it extends upstream to disease prevention and downstream to personal health management, forming a medical and healthcare service platform centered on the user’s entire lifecycle. Furthermore, by establishing seamless connections among patients, doctors, and hospitals, Juyi 160 is building a comprehensive big-health ecosystem. It integrates all life-related medical and healthcare services—including health management, chronic disease management, and commercial insurance—onto a single platform, thereby driving the expansion of the medical and healthcare ecosystem.

Luo Ningzheng also mentioned that in 2016, Juyi160 would align with national policy requirements across China, supporting the government’s efforts to decentralize high-quality urban medical resources and deploy medical personnel to grassroots levels, thereby enhancing healthcare service capacity and improving patient satisfaction.

In terms of “Online Hospital” implementation, in 2015, Juyi160 partnered with large Grade-A tertiary hospitals such as Shenzhen Children’s Hospital and Dongguan Kanghua Hospital to successfully launch online hospital solutions nationwide for the first time, including in-consultation payment and electronic report delivery. Meanwhile, Juyi160 was officially designated as a Shenzhen Demonstration Base for New Media Health Communication. Notably, the “Shenzhen Model” of online hospitals created by the company has cumulatively served Shenzhen residents over 20 million times, helping Shenzhen become the city with the highest volume of online appointment registrations via internet platforms in China.

In addition, in 2015, Juyi 160 partnered with Tencent WeChat to launch WeChat City Services, and entered into comprehensive collaborations with internet giants such as Baidu, Ali Health, Mobile QQ, and 360, thereby driving traffic growth for Juyi 160.

Earlier this year, JiuYi160 held a strategic press conference, establishing the creation of an open “Medical Internet Plus” ecosystem as its strategic direction for future development. According to Luo Ningzheng, in 2016, JiuYi160 formally partnered with authoritative medical institutions in the United States, Japan, and South Korea to launch cross-border medical services, catering to diverse healthcare needs. Featured offerings include consultations and treatment for critical conditions in the U.S., premium health check-ups and cancer screening in Japan, and cosmetic surgery in South Korea, along with a variety of other health and medical programs available in the U.S. and Japan. Users can book appointments with multiple accredited overseas medical institutions through the JiuYi160 website. Furthermore, JiuYi160 will deepen its collaborations with healthcare service providers and strengthen partnerships with pharmaceutical companies and insurance firms.

Jiuyi160 stated that its open ecosystem had already attracted 200 partners in 2015, and the company aims to reach 1,000 partners by the end of this year.