Mission Statement, Vision, & Core Values of 111, Inc. (YI)

Understanding the Mission Statement, Vision, and Core Values of 111, Inc. (YI) is how you map their long-term strategy against their near-term financial performance. With a Trailing Twelve Months (TTM) revenue of $1.97 Billion USD for 2025, the company is clearly operating at scale, but the reported net loss of -$10.31 million for the twelve months ending June 30, 2025, shows the pressure on their digital-first healthcare model. Are you confident that their core mission-to build the largest integrated online and offline healthcare platform in China-justifies the continued investment in scale over immediate profitability?

111, Inc. (YI) Overview

You're looking for the real story behind 111, Inc., past the stock ticker, and the truth is they're a major player in China's digital healthcare revolution, not just an e-commerce site. The company, co-founded in 2010 by Dr. Gang Yu and Mr. Junling Liu, set out to tackle the complex, inefficient traditional healthcare system in China by building a comprehensive, integrated online and offline platform. They went public on NASDAQ in September 2018, marking a pivotal moment as one of the first Chinese internet health companies to list in the US.

Their business model is built on what they call the S2B2C model-a 'Supply chain platform' that enables 'Businesses' (like pharmacies and doctors) to better serve 'Consumers.' This isn't just about selling pills; it's a full-stack digital solution.

• 1 Drugstore: The online B2C (Business-to-Consumer) pharmacy platform.
• 1 Drug Mall: The online B2B (Business-to-Business) pharmacy platform for wholesale.
• 1 Clinic: Their Internet hospital offering telemedicine and e-prescription services.

Their current sales reflect this focus on product and service integration. For the last twelve months ending June 30, 2025, 111, Inc.'s total revenue was approximately CNY14.18 billion. That's a massive scale, still, the market is competitive and their revenue growth has been challenging recently.

Latest Financial Performance and Operational Efficiency

Let's talk numbers, because that's what really matters. In the first quarter of 2025, 111, Inc. delivered net revenues of RMB3.5 billion (or about US$486.3 million), which was relatively flat compared to the same period last year. Honestly, in a persistently challenging macroeconomic environment, simply maintaining that revenue level is a win.

The real story here isn't the top line; it's the bottom line and operational discipline. The company achieved sustained operational profitability and positive operating cash flow in Q1 2025. Non-GAAP income from operations was a solid RMB4.3 million (approximately US$0.6 million). Here's the quick math: they reduced total operating expenses by 4.8% year-over-year, which means they are squeezing more efficiency out of every dollar they spend. That's smart management.

The bulk of their sales, which drive that revenue, comes from product sales-prescription and over-the-counter drugs, supplements, and medical devices. The cost of products sold in Q1 2025 was RMB3.33 billion (US$459.5 million), showing just how central the B2B and B2C product distribution is to their entire revenue stream. They are defintely focused on cost management.

A Leader in China's Digital Health Ecosystem

So, why do we call 111, Inc. a leader? It's not about the current market capitalization of $31.72 million USD as of November 2025, which is small in the global context. It's about their strategic position and technology-driven model within the highly regulated and rapidly digitizing Chinese healthcare market. They are a 'leading tech-enabled healthcare platform company' because their integrated S2B2C system is actively reshaping the industry's value chain.

They are digitally empowering the entire upstream and downstream supply chain-from pharmaceutical companies to local pharmacies and, finally, to the patient. This combination of a smart supply chain, online pharmacy, and internet hospital services sets them apart from pure-play e-commerce or traditional distributors. They are building the infrastructure for the future of Chinese healthcare.

To understand the full picture of their financial resilience and strategic moves, you need to dig into the details of their balance sheet and cash flow. Find out more about how they are managing their debt and liquidity: Breaking Down 111, Inc. (YI) Financial Health: Key Insights for Investors

111, Inc. (YI) Mission Statement

You're looking for the bedrock of 111, Inc.'s strategy-the core statement that guides every capital allocation and technology investment. The company's mission is clear and drives its aggressive expansion: to build the largest integrated online and offline healthcare platform in China powered by technology.

This isn't just a feel-good statement; it's a strategic roadmap. It dictates their push into digital tools and their relentless focus on supply chain efficiency. This mission is the lens through which we should view their operational successes, like maintaining quarterly operational profitability throughout the first half of the 2025 fiscal year.

The significance of this mission is in its dual focus: scale (largest platform) and enablement (powered by technology). It's a clear mandate to reshape the pharmaceutical value chain (S2B2C model-Supply chain platform to enable Businesses to better serve Consumers), which ultimately translates into better access and value for millions of consumers. You can see the full scope of this strategy here: 111, Inc. (YI): History, Ownership, Mission, How It Works & Makes Money.

Core Component 1: Digital Empowerment and Innovation

The first, and arguably most critical, pillar of the mission is the commitment to being 'powered by technology.' This is where 111, Inc. (YI) moves from being a simple distributor to a tech-enabled healthcare platform, digitally empowering (or giving tools to) partners upstream and downstream in the value chain.

Their investment in artificial intelligence (AI) and cloud-based solutions is defintely not abstract. It's a direct play for efficiency and scale. For example, the company's Q1 2025 results showed total operating expenses decreased by 4.8% year-over-year to RMB195.0 million (US$26.9 million), a direct result of this digital operational discipline. They are using technology to cut costs, not just add features.

• Leverage AI to optimize inventory.
• Deploy cloud solutions for partners.
• Reduce operating expenses by 30 basis points in Q1 2025.

The tech investment is paying for itself in operational leverage.

Core Component 2: Integrated Online and Offline Ecosystem

The second component-building the 'largest integrated online and offline healthcare platform'-is all about market coverage and access. This integration is vital in a market like China, where offline pharmacies still dominate but digital penetration is rapidly accelerating. 111, Inc. connects its online retail pharmacy (1 Pharmacy) and internet hospital (1 Clinic) with its massive offline virtual pharmacy network.

This ecosystem approach is the key to their B2B segment, which serves as a one-stop shop for pharmacies to source products via the 1 Drug Mall. Their success here is measurable in partner engagement: sales revenue from marketing promotional products increased by a staggering 53.6% year-over-year in Q2 2025, with the customer count rising by 19.0%. That kind of growth shows partners are actively using the platform to reach consumers.

The goal is a seamless experience, whether you are a patient using the 1 Clinic for an e-prescription or an independent pharmacy restocking their shelves.

Core Component 3: Delivering Quality and Value through Supply Chain Excellence

The final, actionable component is the commitment to delivering high-quality products and services, which 111, Inc. translates into supply chain excellence and cost-effectiveness. When you promise the 'largest' platform, you must back it up with a logistics network that can perform.

The company's Kunpeng Network is the concrete example here. Through strategic expansion and optimization, they have significantly improved service quality and cost efficiency. For example, the network's improvements led to a 15% reduction in delivery costs and cut the delivery damage rate by 55%. That is a tangible improvement in product quality and reliability for their partners.

Here's the quick math on service improvement: new fulfillment centers allow delivery to over 300 major cities within 24 hours, with national coverage guaranteed within 72 hours. This speed and reliability for pharmaceutical products is a direct measure of high-quality service, ensuring patients and pharmacies get what they need, fast. The focus on operational efficiency is also evident in Q2 2025, where total operating expenses as a percentage of net revenues decreased by 20 basis points to 5.8%. That efficiency is passed on as value.

111, Inc. (YI) Vision Statement

You're looking for the bedrock principles that guide 111, Inc.'s strategy, and the most direct takeaway is this: the company's vision is a focused, technology-driven mandate to dominate the Chinese digital healthcare supply chain. They aren't just selling pills; they are building the infrastructure-a 'digital highway'-that connects manufacturers, pharmacies, and patients, all while relentlessly cutting costs and driving toward profitability.

The formal Vision Statement is best understood through its three core strategic components, which are the real drivers of their capital allocation and operational focus. This isn't corporate fluff; it's a blueprint for how they plan to capture market share in a complex, highly regulated industry. For a deeper dive into how these strategies translate to the balance sheet, you should check out Breaking Down 111, Inc. (YI) Financial Health: Key Insights for Investors.

Reshaping the Healthcare Value Chain Digitally

The foundational mission is to digitally reshape China's healthcare value chain, which is historically fragmented and inefficient. This means using technology to eliminate friction between the pharmaceutical companies (upstream) and the pharmacies and patients (downstream). Their entire business model hinges on this digital empowerment, and the 2025 numbers show the strategy is yielding operational efficiency, even as top-line revenue remains challenging.

Here's the quick math on efficiency: In the second quarter of 2025, total operating expenses fell to RMB 185.3 million (US$25.9 million), an improvement of 9.3% year-over-year. As a percentage of net revenues, that key expense figure dropped by 20 basis points to just 5.8%. That's defintely a sign of a leaner, more digitally optimized operation taking hold.

• Reduce costs for manufacturers and pharmacies.
• Increase access to medicine for consumers.
• Drive efficiency through digital tools.

The S2B2C Model: Supply Chain, Business, Consumer

The mechanism for achieving their vision is the next-generation S2B2C model, which stands for 'Supply chain platform' to enable 'Businesses' to better serve 'Consumers'. This isn't just a catchy acronym; it's how they integrate their three main business lines: 1 Drugstore (online B2C), 1 Drug Mall (online B2B), and 1 Clinic (Internet hospital). The B2B segment, 1 Drug Mall, is the muscle here, serving approximately 0.58 million pharmacies nationwide.

The opportunity is clear: they are becoming the essential, one-stop sourcing platform for independent pharmacies, which is a massive, underserved market. This is a critical point because the B2B scale allows them to negotiate better direct procurement deals with over 500 globally renowned pharmaceutical companies. That leverage is what ultimately drives the lower costs for the end-user, reinforcing the core mission.

Building the Largest Healthcare Platform in China

The ultimate vision is simple and ambitious: to build the largest healthcare platform in China. This is the 'North Star' metric for shareholders, and it's being executed through aggressive supply chain expansion. The physical infrastructure-the smart supply chain-is what underpins the digital platform.

By the end of the first half of 2025, the company had established 18 fulfillment centers. Their aggressive near-term action is the plan to add at least 14 more fulfillment centers in 2025 to expand their logistics coverage. This expansion is a capital-intensive move, but it's necessary to secure the 'largest platform' title and maintain a positive operating cash flow, which they managed to do in the first half of 2025. Still, investors should note the Non-GAAP Net Loss attributable to ordinary shareholders was RMB 16.7 million (US$2.3 million) in Q2 2025, a reminder that scale comes with a cost.

111, Inc. (YI) Core Values

If you're looking at 111, Inc. (YI), you need to see past the stock ticker and understand the three core operational values driving their strategy. The company's mission is to reshape the healthcare value chain, and they do this by relentlessly focusing on Digital Empowerment, Patient Access, and Supply Chain Efficiency. This focus is what allows a tech-enabled platform to maintain financial stability in a tough market.

What this means for investors and strategists is that every major initiative, from their B2B platform to their internet hospital, is a direct execution of these values. For a deeper dive into the company's history and financial model, you can check out 111, Inc. (YI): History, Ownership, Mission, How It Works & Makes Money.

Digital Empowerment and Innovation

The first core value is all about using technology to fix a broken system. The traditional healthcare model is complex and inefficient, so 111, Inc. is committed to 'digitally empowering the upstream and downstream' of the industry. This isn't just a buzzword; it's the engine behind their profitability.

The company's primary mechanism for this is the S2B2C model (Supply chain platform to enable Businesses to better serve Consumers). This platform interconnects all parties-pharmaceutical companies, doctors, and patients-to create a unified, omni-channel platform. A concrete example of this commitment in 2025 is the strategic cooperation memorandum signed with Eli Lilly and Company in January. The goal is to roll out a 'fourth sales channel' solution, which leverages 111, Inc.'s cloud-based solutions for things like online diagnosis and e-prescription services, helping Lilly fully comply with prescription drug distribution regulations. This move solidifies 111, Inc.'s role as a leading enabler in the pharmaceutical ecosystem.

• Integrate online and offline channels.
• Use big-data analytics for better decision-making.
• Provide cost-effective, convenient online consultation.

Here's the quick math: by controlling operating expenses as a percentage of revenues-which decreased by 30 basis points year-over-year in the first quarter of 2025-the company defintely shows that digital efficiency translates directly to better financial control. [cite: 11 (from previous search)]

Patient Access and Convenience

A healthcare platform is useless if it doesn't serve the patient. The second value is a commitment to providing consumers with better access to pharmaceutical products and healthcare services. This is an empathetic value, but it's also a clear market opportunity, especially in underserved regions.

This value is executed through their B2C (Business-to-Consumer) segment, primarily the online retail pharmacy, 1 Drugstore, and their internet hospital, 1 Clinic. The 1 Clinic offers online consultation, electronic prescription service, and patient management, which drastically cuts down on the friction of traditional healthcare. The entire platform is designed to connect hundreds of millions of consumers with the drugs and services they need, either directly or through their offline virtual pharmacy network. [cite: 8 (from previous search)]

The financial results for the first half of 2025 show this model is sustainable, as the company maintained quarterly operational profitability and positive operating cash flow. This stability is crucial, because it means the company can continue to invest in expanding its network and services without immediate liquidity concerns. For the last twelve months (LTM) ending in 2025, the company reported an operating cash flow of approximately $15.70 million (USD). [cite: 2 (from previous search)]

Supply Chain Efficiency and Value

You can't deliver better access without a smarter supply chain. The third core value is about reshaping the entire flow of pharmaceutical products to reduce costs and increase reliability. This is where the B2B (Business-to-Business) segment shines.

The core initiative here is 1 Drug Mall, the online wholesale pharmacy that acts as a one-stop shop for other pharmacies to source a vast selection of products. This smart supply chain network transforms how pharmaceutical products flow, modernizing how offline pharmacies serve their customers. In June 2024, the strategic direct supply partnership with Beijing Scrianen Pharmaceutical Co., Ltd. was announced, which leverages big data and cloud services to broaden drug accessibility and add efficiency. This partnership is a clear demonstration of using their platform to drive more efficient and effective product commercialization for their partners.

What this estimate hides is the sheer scale of the operation, which is critical for driving down per-unit costs. The company's 2024 revenue was approximately 14.40 billion (CNY), a massive volume that underpins the efficiency of their B2B platform. [cite: 5 (from previous search)] By integrating the front and back ends of the supply chain, 111, Inc. offers a tangible value proposition: lower costs and better stock management for the pharmacies they serve. This is a classic example of a platform business maximizing returns by reducing friction for its business users.