SHANGHAI, Dec. 31, 2019 /PRNewswire/ -- China's Ministry of Science and Technology has
named 111, Inc. (NASDAQ: YI) ("111" or the "Company") a "National
High-tech Enterprise", the Company announced today. The designation
is one of the highest awards for Chinese technology companies and
makes 111 eligible for government benefits as a strategic
high-technology company. The designation is also a recognition of
111's depth of talent, technological expertise, and innovative role
in China's pharmaceutical and
healthcare sector.
Smart retailing driven by advanced digital technology
Currently, 111's largest investment focus is to create a
world-leading IT infrastructure, data analytics and business smart
systems and is reflected in its continuing investment in R&D,
as demonstrated by the Company's allocation of capital. 111 has an
R&D team of over 300 people, which has developed proprietary
applications, including client relationship management (CRM)
systems, data analytics solutions, precision marketing, and supply
chain management software, in order to bolster the Company's smart
systems and operational capabilities.
111's Smart Sourcing System (SSS) is based on more than 30
proprietary smart systems, which include a procurement management
system, warehouse management system, stock management system,
transportation management system and price intelligence system. SSS
thus serves as the backbone for 111's nationwide smart supply chain
network, and is 111's most sophisticated, complex and widely used
application. 111 has established 5 SSS-powered smart supply chain
centers in Eastern, Northern, Central, Western, and Southern China, providing 24-hour delivery
services for users in 23 major provinces and cities.
111 has also launched an intelligent pharmacopeia system to
ensure safe and secure prescriptions in the drug purchasing
process. If a patient orders a drug that is contraindicated for the
patient's condition, the system will automatically flag and suspend
the purchase. 111 has also developed the "HawkEye" System, an
automated tool that uses data analytics to help the Company's
business development team boost efficiency through the management
of pharmacy customers and tasks.
Using smart technologies to reduce cost
111 uses smart technologies to reduce costs and improve
operational efficiency. In the third quarter of 2019, 111's
operating expense as of a percentage of its net revenue was 14.9%,
down from 29.1% in the same period in 2018. Fulfillment costs as a
percentage of its net revenue was 2.8%, down from 4.2% in the same
period in 2018. In addition to cost reductions, technology has
helped 111 increase its customer stickiness; in the third quarter
of 2019, orders in the Company's B2B segment were up 45.1% compared
to the second quarter, up to 280,000 orders, of which same-store
growth contributed 24.6%.
111's One-Click Stock-In System
solution makes it possible for pharmacies to place purchase orders
within 15 minutes, a process which would otherwise take several
hours. After uploading purchase orders, pharmacies are availed
111's smart supply chain system -supported artificial intelligence
analytics. In addition, 111 provides smart product recommendations
and smart purchasing, helping pharmacies optimize their product mix
and speed up inventory turnover. According to the Company's
data, pharmacies using the Smart Sourcing System see their purchase
volume and product offerings double on average.
Dr. Gang Yu, Co-founder and Executive Chairman of 111 commented,
"The national high-tech enterprise designation reflects national
recognition of our technology and innovations. Technology has
accelerated our growth as a business. Going forward, we will
continue to use our leading technologies to empower our partners in
the healthcare ecosystem, and better serve pharmaceuticals,
pharmacies, doctors and insurance providers in carrying out the
government's Healthy China strategy."
About 111, Inc.
111, Inc. (NASDAQ: YI) ("111" or the "Company") is a
leading integrated online and offline healthcare platform
in China. The Company provides hundreds of millions of
consumers with better access to pharmaceutical products and
healthcare services directly through its online retail pharmacy and
indirectly through its offline pharmacy network. 111 also offers
online healthcare services through its internet hospital, 1 Clinic,
which provides consumers with cost-effective and convenient online
consultation and electronic prescription services. In addition to
providing direct services to consumers through its online retail
pharmacy, 111 also enables offline pharmacies to better serve their
customers. The Company's online wholesale pharmacy, 1 Drug Mall,
serves as a one-stop shop for pharmacies to source a vast selection
of pharmaceutical products. The Company's new retail platform, by
integrating the front and back ends of the pharmaceutical supply
chain, has formed a smart supply chain, which transforms the flow
of pharmaceutical products to pharmacies and modernizes how they
serve their customers.
For more information on 111, please
visit http://ir.111.cn.
For more information, please contact:
111, Inc.
IR Director
Ms. Monica Mu
E-mail: ir@111.cn
Christensen
In China
Mr. Christian Arnell
Phone: +86-10-5900-1548
E-mail: carnell@christensenir.com
In US
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: lbergkamp@christensenir.com
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SOURCE 111, Inc.