111, Inc. (YI): Analyse du pilon [Jan-2025 MISE À JOUR]

Dans le paysage dynamique des soins de santé numériques chinois, 111, Inc. (YI) émerge comme une force transformatrice, naviguant dans un écosystème complexe de l'innovation technologique, des défis réglementaires et des besoins en évolution des consommateurs. Cette analyse complète du pilotage dévoile les dimensions à multiples facettes qui façonnent le positionnement stratégique de l'entreprise, révélant comment 111, Inc. équilibre magistralement les facteurs politiques, économiques, sociologiques, technologiques, juridiques et environnementaux complexes pour redéfinir l'accessibilité des soins de santé et la prestation de services numériques dans l'un des monde dans l'un des monde dans le monde Marchés les plus difficiles et prometteurs.

111, Inc. (YI) - Analyse du pilon: facteurs politiques

Environnement réglementaire dans les soins de santé et le commerce électronique chinois

111, Inc. opère dans un paysage hautement réglementé régi par plusieurs agences gouvernementales chinoises:

Corps réglementaire	Zone de surveillance	Règlements clés
Administration nationale des produits médicaux (NMPA)	Ventes pharmaceutiques	Exigences de permis de vente de médicaments en ligne
Administration du cyberespace de la Chine (CAC)	Conformité à la plate-forme numérique	Règlements sur la protection des données
Administration de l'État pour la réglementation du marché	Opérations de commerce électronique	Licence de vente au détail en ligne

Conformité de la technologie des soins de santé

Défis de conformité de la technologie des soins de santé transfrontaliers:

• Exigences strictes de localisation des données
• Règlements complexes de cybersécurité
• Protocoles de stockage de données locaux obligatoires
• Lois strictes de protection de l'information des patients

Facteurs de risque géopolitique

Évaluation de la vulnérabilité du secteur technologique et des soins de santé:

Catégorie de risque géopolitique	Niveau d'impact potentiel	Risques spécifiques
Tensions technologiques américaines-chinoises	Haut	Restrictions potentielles de transfert de technologie
Règlements sur le commerce international	Moyen	Import / exportation des technologies médicales
Chaîne d'approvisionnement des semi-conducteurs	Haut	Perturbations potentielles dans les composants des dispositifs médicaux

Règlement sur la plate-forme de santé numérique

Paramètres d'évolution réglementaire clés:

• Mise à jour continue des directives de vente pharmaceutique en ligne
• Surveillance améliorée de la plate-forme de santé numérique
• Augmentation des exigences de confidentialité et de sécurité des données
• Processus de vérification plus stricts pour les consultations médicales en ligne

111, Inc. (YI) - Analyse du pilon: facteurs économiques

Conditions du marché volatil dans le secteur des technologies de la santé chinoise

Au quatrième trimestre 2023, 111, Inc. a déclaré un chiffre d'affaires total de 198,3 millions de dollars, reflétant une baisse de 12,5% d'une année sur l'autre. La capitalisation boursière de la société s'élevait à environ 127,6 millions de dollars, ce qui démontré une volatilité économique importante.

Métrique financière	Valeur 2023	Changement d'une année à l'autre
Revenus totaux	198,3 millions de dollars	-12.5%
Capitalisation boursière	127,6 millions de dollars	-35.4%
Marge brute	15.7%	-3,2 points de pourcentage

Pressions de confinement des coûts de santé et de prix

Défis de prix sont évidents dans les performances financières de l'entreprise. Les prix moyens des médicaments sur ordonnance sur la plate-forme 111, Inc. ont diminué de 4,6% en 2023, indiquant des pressions du marché importantes.

Métrique coût	Valeur 2023	S'orienter
Prix ​​moyen de médicaments sur ordonnance	Diminué de 4,6%	Vers le bas
Dépenses d'exploitation	76,4 millions de dollars	Augmenté de 8,2%

Dépendance à l'égard de la croissance économique chinoise

Les performances de 111, Inc. sont étroitement liées au marché chinois des soins de santé. En 2023, le secteur chinois des technologies de la santé a augmenté de 7,3%, les plates-formes de soins de santé numériques se développant de 9,2%.

Indicateur économique	2023 taux de croissance
Secteur chinois de la technologie des soins de santé	7.3%
Plateformes de soins de santé numériques	9.2%
Investissement informatique des soins de santé	12,6 milliards de dollars

Tendances d'investissement dans les soins de santé numériques

L'investissement dans les plateformes de soins de santé numériques a montré des tendances mitigées. Les investissements en capital-risque dans le secteur de 111, Inc. ont diminué de 22,7% en 2023, totalisant 456 millions de dollars.

Métrique d'investissement	Valeur 2023	Changement d'une année à l'autre
Investissements en capital-risque	456 millions de dollars	-22.7%
Évaluations de la plate-forme de santé numérique	2,3 milliards de dollars	-15.6%

111, Inc. (YI) - Analyse du pilon: facteurs sociaux

Répond à la demande croissante des consommateurs chinois pour des services de santé numériques pratiques

En 2023, le marché chinois des soins de santé numérique a atteint 302,5 milliards de yuans, avec des plateformes de consultation médicale en ligne connaissant une croissance de 42,7% sur toute l'année. 111, Inc. a capturé 3,2% de ce segment de marché.

Segment de marché	Valeur marchande totale	111, Inc. Part de marché	Taux de croissance
Soins de santé numériques	302,5 milliards de yuans	3.2%	42.7%

Répond aux besoins croissants de la technologie des soins de santé de la population vieillissants

La population chinoise âgée de 65 ans et plus a atteint 280 millions en 2023, ce qui représente 19,8% de la population totale. 111, Inc. a développé 17 services de santé numériques spécialisés ciblant la démographie senior.

Âge démographique	Taille de la population	Pourcentage	Services spécialisés
65 ans et plus	280 millions	19.8%	17

S'adapte à l'évolution des préférences des consommateurs pour les consultations médicales en ligne et les achats pharmaceutiques

Les ventes pharmaceutiques en ligne en Chine ont atteint 336,5 milliards de yuans en 2023, avec 111, Inc. traitant 4,7 millions de prescriptions mensuelles en ligne.

Canal de vente	Valeur marchande totale	Prescriptions mensuelles	Valeur de transaction moyenne
Pharmaceutiques en ligne	336,5 milliards de yuans	4,7 millions	178 yuans

Cible des populations urbaines averties en technologie à la recherche de solutions de soins de santé intégrés

La population urbaine avec la pénétration des smartphones a atteint 87,4% en 2023. 111, Inc. a déclaré 22,6 millions d'utilisateurs mobiles actifs avec 63% concentrés dans les villes de niveau 1 et de niveau 2.

Métrique urbaine	Pénétration des smartphones	Utilisateurs mobiles actifs	Utilisateurs des villes de niveau 1/2
Urban Healthcare Tech	87.4%	22,6 millions	63%

111, Inc. (YI) - Analyse du pilon: facteurs technologiques

Tire des partisans de l'intelligence artificielle avancée et de l'apprentissage automatique dans la prestation de services de santé

111, Inc. a investi 12,7 millions de dollars dans les technologies de l'IA et de l'apprentissage automatique à partir de 2023. La plate-forme de soins de santé dirigée par l'IA de l'entreprise traite environ 1,2 million de points de données des patients par mois avec une précision de 94,3%.

Investissement technologique	2023 métriques
Investissement de soins de santé AI	12,7 millions de dollars
Traitement des données mensuelles	1,2 million de points de données
Taux de précision de l'IA	94.3%

Implémente les plates-formes de commerce électronique et de télémédecine sophistiquées

La plate-forme numérique de l'entreprise génère 47,3 millions de dollars de revenus annuels des services de santé en ligne. Les consultations de télémédecine ont augmenté de 68% en 2023, atteignant 324 000 interactions médicales virtuelles.

Performance du commerce électronique	2023 données
Revenus de soins de santé en ligne	47,3 millions de dollars
Consultations de télémédecine	324,000
Croissance d'une année à l'autre	68%

Investit dans l'analyse des données pour les recommandations de soins de santé personnalisés

111, Inc. alloue 8,6 millions de dollars par an à l'infrastructure avancée d'analyse de données. Le système de recommandation de santé prédictive couvre 97,2% des profils de santé des utilisateurs avec des informations personnalisées.

Investissement d'analyse des données	2023 statistiques
Budget annuel d'analyse de données	8,6 millions de dollars
Personnalisé Profile Couverture	97.2%

Développe des technologies innovantes de suivi et de gestion de la santé numérique

La plate-forme de suivi de la santé numérique de l'entreprise surveille 612 000 utilisateurs actifs, l'intégration des données de santé en temps réel coûtant 5,4 millions de dollars en frais de développement pour 2023.

Suivi de la santé numérique	2023 métriques
Base d'utilisateurs actifs	612,000
Coût du développement technologique	5,4 millions de dollars

111, Inc. (YI) - Analyse du pilon: facteurs juridiques

Conformité aux réglementations chinoises sur la confidentialité des données et les soins de santé

Conformité du droit de la cybersécurité: 111, Inc. adhère à la loi sur la cybersécurité de la République populaire de Chine, mise en œuvre le 1er juin 2017.

Règlement	Métrique de conformité	Plage de pénalité
Loi sur la protection de l'information personnelle	100% de localisation de données	1 million de yens - 50 millions de ¥
Loi sur la sécurité des données du réseau	Évaluation annuelle de la sécurité	Jusqu'à 10 millions de yens

Exigences légales en ligne des ventes pharmaceutiques

Cadre réglementaire: Suit les directives de la National Medical Products Administration (NMPA) pour la distribution pharmaceutique en ligne.

Type de licence	Exigence	Statut de conformité
Permis de vente de médicament en ligne	Qualification de trading de médicaments sur Internet de classe A	Obtenu
Enregistrement des dispositifs médicaux	Certification ISO 13485	Vérifié

Protection de la propriété intellectuelle

Portefeuille de brevets: En 2023, 111, Inc. détient 37 brevets enregistrés dans la technologie des soins de santé.

Catégorie de brevet	Nombre de brevets	Durée de protection
Technologies de santé numérique	22	20 ans
Systèmes de livraison pharmaceutique	15	20 ans

Plateforme de santé numérique Conformité réglementaire

Surveillance réglementaire: Conforme aux réglementations de la Commission nationale de la santé pour les plateformes de soins de santé numériques.

Corps réglementaire	Exigence de conformité	Statut de vérification
Commission nationale de la santé	Règlement sur les services médicaux en ligne	Pleinement conforme
Administration du cyberespace de la Chine	Normes de protection des données	Agréé

111, Inc. (YI) - Analyse du pilon: facteurs environnementaux

Solutions d'emballage durables pour la livraison de produits pharmaceutiques

111, Inc. a mis en œuvre des stratégies d'emballage respectueuses de l'environnement avec les spécifications suivantes:

Métrique d'emballage	Performance actuelle
Pourcentage d'emballage recyclable	67.3%
Utilisation de matériaux biodégradables	42.1%
Réduction annuelle du plastique	3 450 kg

Réduction de l'empreinte carbone par le biais de services de santé numériques

La mise en œuvre du service numérique a entraîné un impact environnemental mesurable:

Métrique d'émission de carbone	Valeur de réduction
Réduction annuelle des émissions de CO2	12,6 tonnes métriques
Diminution de la consommation d'énergie	22.4%

Systèmes de consultation médicale sans papier

Métriques de transformation numérique pour les consultations médicales:

• Taux de prescription électronique: 89,7%
• Réduction du document papier: 76 500 feuilles par an
• Pourcentage de consultation numérique: 63,2%

Initiatives technologiques vertes dans les soins de santé

Investissement technologique dans la durabilité:

Investissement technologique vert	Montant
Budget annuel de R&D Tech Green	2,3 millions de dollars
Infrastructure d'énergie renouvelable	1,7 million de dollars

111, Inc. (YI) - PESTLE Analysis: Social factors

Sociological

The social landscape in China presents both a major challenge and a massive growth opportunity for 111, Inc., driven by fundamental demographic shifts and a post-pandemic change in consumer behavior. The core driver is the rapid aging of the population, which is creating an unprecedented demand for chronic disease management services-a key area for online pharmacy and digital health platforms.

This market dynamic is amplified by a high-tech consumer base that expects convenience and transparency in all e-commerce transactions, including healthcare. Your ability to integrate these social trends into your platform's design and service delivery is defintely the key to capturing market share in 2025.

Rapidly aging population significantly increases demand for chronic disease management.

China's demographic shift is the single most important social factor impacting healthcare demand. By the end of 2024, the population aged 60 and above reached approximately 300 million people, representing 22 percent of the total population. This massive cohort is the primary consumer of chronic disease care.

The financial opportunity tied to this group, often called the 'silver economy,' is significant, with forecasts valuing it at 7 trillion yuan (approximately US$983 billion) in 2025. The need for continuous, specialized care is urgent because around 75% of older people in China suffer from noncommunicable diseases (NCDs) like diabetes, hypertension, and cardiovascular ailments. 111, Inc.'s integrated online-to-offline (O2O) model is perfectly positioned to serve this segment by providing remote consultations, prescription refills, and home delivery for long-term medication adherence.

Demographic Factor	2025 China Data	Implication for 111, Inc.
Population Aged 60+ (Projected)	~280 million	Massive, growing user base for chronic disease management.
Elderly Care Economy Value	~7 trillion yuan (US$983 billion) in 2025	Significant revenue opportunity in specialized health products and services.
Prevalence of Chronic Diseases (60+)	~75%	High, sustained demand for prescription drugs and long-term health monitoring.

High smartphone penetration (over 1.1 billion users) drives online health adoption.

The digital infrastructure is robust enough to support this demographic shift. At the start of 2025, there were 1.11 billion individuals using the internet in China, providing a vast, addressable market for digital health services. This high penetration rate significantly lowers the barrier for online health adoption (mHealth).

The Chinese digital health market is already substantial, reaching USD 81.3 Billion in 2024, and is projected to grow at a Compound Annual Growth Rate (CAGR) of 16.8% through 2033. This growth is directly linked to consumer willingness to use digital platforms for healthcare, a trend accelerated by the pandemic. The user base for online medical services reached 363,000,000 by the end of 2022, showing that the critical mass for adoption is already established. Your digital platform is competing in a market where tech giants are aiming to provide services to 450 million users by 2025. That's a huge pool of potential customers who are already comfortable with mobile transactions.

Consumers increasingly seek convenience and transparency in drug pricing and delivery.

Modern Chinese consumers, used to the speed of e-commerce, demand a 'bring-it-to-me' mindset that extends to pharmaceuticals. This low tolerance for friction and inconvenience is a tailwind for 111, Inc.'s delivery and online pharmacy model. E-commerce already accounts for 51% of sales in the health and wellness market, and this figure is expected to climb.

Simultaneously, there is a strong social and governmental push for price transparency. In January 2025, the National Healthcare Security Administration (NHSA) launched new mini-programs allowing users to compare drug prices across pharmacies in 29 provincial-level regions. This move forces online platforms like yours to ensure competitive and clear pricing. The government's centralized medicine procurement program has already covered 435 medicines since 2018, with the goal of curbing overpricing and improving affordability during the 14th Five-Year Plan period (2021-2025).

• Demand for convenience drives e-commerce to account for 51% of health and wellness sales.
• Government launched price comparison tools in 29 provincial-level regions in 2025.
• Centralized procurement during the 2021-2025 plan has covered 435 medicines to ensure affordability.

Growing health awareness post-pandemic boosts preventative care product sales.

The COVID-19 pandemic fundamentally shifted consumer priorities, leading to a greater emphasis on proactive health management and preventative care. This is a crucial social trend, especially among younger consumers-Gen Z and millennials-who are driving the health and wellness market, which is projected to nearly double to $1.6 trillion by 2030.

Consumers are now actively seeking products and services to boost immunity and promote holistic wellbeing, moving beyond reactive treatment. The market for Food for Special Medical Purposes (FSMP), a subset of the elderly economy, is a clear example of this trend, projected to reach RMB 23.42 billion in 2024 and exceed RMB 80 billion by 2030. This shift means 111, Inc. can expand its product mix beyond prescription drugs into high-margin wellness supplements, Traditional Chinese Medicine (TCM) products, and preventative health devices.

111, Inc. (YI) - PESTLE Analysis: Technological factors

AI-driven diagnostics and remote patient monitoring are becoming standard features

The core technological opportunity for 111, Inc. lies in using Artificial Intelligence (AI) to scale its services and improve efficiency. You see this play out in two ways: back-end optimization and patient-facing tools. On the back-end, the company has deployed AI algorithms to streamline its operations, which is defintely a smart move. For example, in the first half of 2025, AI-powered systems re-engineered the pharmaceutical qualification review process, boosting efficiency by over 100% [cite: 3 from previous search]. That's not a minor tweak; it's a total process overhaul.

For the consumer, the 1 Clinic internet hospital offers essential telemedicine features like online consultation and electronic prescription services [cite: 2, 5 from previous search]. Still, to truly capture the market, 111, Inc. must move beyond basic telehealth. The next step is integrating AI-driven diagnostics and remote patient monitoring (RPM) into the platform, allowing for proactive health management, not just reactive care. The technology is already there; the investment needs to follow to turn the current platform into a full-fledged intelligent health hub.

Significant investment in cold-chain logistics improves pharmaceutical delivery quality

Supply chain technology is where 111, Inc. has shown some of its most tangible results, which directly impacts the quality of pharmaceutical delivery, especially for temperature-sensitive products. Their national logistics network, named 'Kunpeng,' is a critical asset. This digitalized system has already delivered significant operational leverage, cutting delivery costs by 15% and reducing delivery damage rates by a massive 55% [cite: 9 from previous search].

The company is aggressively expanding its physical footprint to support this digital backbone. In 2025, they plan to add at least 14 more fulfillment centers to the existing 13 centers across China [cite: 3 from previous search, 9 from previous search]. This expansion allows the company to promise delivery to over 300 major cities nationwide within 24 hours [cite: 10 from previous search]. Fulfillment expenses for Q2 2025 stood at RMB90.2 million (US$12.6 million), a figure that shows the high cost of maintaining a nationwide logistics network, but the efficiency gains prove the investment is working.

Telemedicine platforms are expanding their service offerings beyond basic consultations

The expansion of the telemedicine platform is a clear opportunity, leveraging the existing digital infrastructure. The 1 Clinic platform is the gateway, but the real scale is in the network it serves. The virtual pharmacy network now connects with approximately 470,000 pharmacies [cite: 9 from previous search, 10 from previous search]. This massive reach is the platform's competitive moat.

The expansion of service offerings is shifting from simple e-prescriptions to comprehensive patient management and chronic disease management programs. This is where the AI-driven data analytics come in, helping to identify market trends and consumer behavior shifts. The goal is to increase customer stickiness and average revenue per user (ARPU) by offering more value-added services, turning a transactional platform into a relational one. A simple consultation is just the start.

Technological Metric	2025 Q1/Q2 Data (RMB/USD)	Impact on Operations
Q2 2025 Technology Expenses	RMB14.9 million (US$2.1 million)	Represents 0.5% of net revenues; shows a focus on cost efficiency in R&D.
Q2 2025 Fulfillment Expenses	RMB90.2 million (US$12.6 million)	Supports the Kunpeng logistics network expansion and 24-hour delivery goal.
AI-Driven Qualification Review Efficiency	Improved by over 100% [cite: 3 from previous search]	Massive increase in back-office operational efficiency and compliance speed.
Logistics Damage Rate Reduction	Reduced by 55% [cite: 9 from previous search]	Directly improves cold-chain and pharmaceutical delivery quality and reduces loss.

Data security and cloud infrastructure investments are defintely required for scale

Honesty, the biggest near-term risk is the perception of underinvestment in core infrastructure, especially data security. While 111, Inc. uses cloud-based services for its virtual pharmacy network [cite: 6 from previous search], the absolute spending on technology is a point of concern. For Q2 2025, technology expenses were only RMB14.9 million (US$2.1 million), representing just 0.5% of net revenues. This is a decrease of 19.0% year-over-year.

Here's the quick math: Global spending on cloud infrastructure services hit US$95.3 billion in Q2 2025, up 22% year-on-year, driven heavily by AI and security needs. When you compare 111, Inc.'s relatively low and decreasing tech expense to this massive industry trend, it suggests either extreme efficiency or a critical gap in investment. Given the sensitive nature of healthcare data, an AI governance framework and robust cybersecurity are non-negotiable [cite: 8 from previous search]. You can't afford a data breach when you manage patient records and e-prescriptions. The next action is clear: Finance needs to draft a clear 2026 capital expenditure plan for security and cloud hardening by the end of Q4 2025.

111, Inc. (YI) - PESTLE Analysis: Legal factors

China's Personal Information Protection Law (PIPL) imposes strict data handling rules.

You need to understand that China's data privacy framework is now as stringent as Europe's GDPR, and the enforcement is ramping up in 2025. The core of this is the Personal Information Protection Law (PIPL), which treats patient health data-a critical asset for 111, Inc.-as highly sensitive. The compliance cost here is defintely a heavy lift.

The new Network Data Security Management Regulation, effective January 1, 2025, adds a layer of complexity, requiring organizations to classify data based on its importance to national security. For a platform like 111, Inc. that processes massive volumes of patient data, this means a significant increase in internal audit and security spending. Here's the quick math on the risk exposure: based on 111, Inc.'s 2024 revenue of RMB 14.40 billion, a maximum PIPL fine of 5% of annual turnover could reach RMB 720 million for severe violations. That's a massive, non-negotiable risk.

• Mandatory audits for over 10 million user records every two years.
• Designate a Data Protection Officer for over 1 million user records.
• Cross-border data transfers require complex security assessments or certifications.

Stricter licensing and quality control for online prescription drug sales are in force.

The regulatory environment for online pharmacies, which is 111, Inc.'s bread and butter, is getting tighter to ensure patient safety and prevent drug misuse. New draft regulations released in September 2025 signal a major shift, requiring online platforms to implement more robust oversight of their medical retail businesses. The government is focused on quality control, not just volume.

A key operational constraint introduced by these new rules is the ban on using Artificial Intelligence (AI) for prescription review. For a tech-enabled platform, this forces a reliance on human pharmacists, which increases operating expenses and limits the scalability of their automated services. Also, the existing regulations strictly control the user interface:

• Online retailers cannot publicly display prescription drug packaging or labels on the main page.
• Prescription verification must be completed before any product instructions are shown.
• The system requires a strict real-name registration for all patients and pharmacists.

Anti-monopoly regulations target large platform companies, increasing compliance risk.

The Chinese government's anti-monopoly drive, spearheaded by the State Administration for Market Regulation (SAMR), has formally extended into the healthcare sector with the 'Anti-Monopoly Guidelines for the Pharmaceutical Sector,' effective January 24, 2025. This means 111, Inc. is under heightened scrutiny, just like the major e-commerce players.

The risk isn't just about market share; it's about how the platform operates. Draft anti-monopoly guidelines released in November 2025 specifically target the misuse of algorithms by internet platforms. This is a direct threat to the proprietary algorithms 111, Inc. uses for pricing, product ranking, and merchant relations on its B2B and B2C segments. You have to assume your algorithms are now a compliance risk.

Anti-Monopoly Risk Area (2025)	Specific Practice Targeted	Potential Impact on 111, Inc.
Pricing & Algorithms	Unfair pricing, algorithmic collusion, discriminatory treatment.	Limits ability to dynamically price drugs or prioritize suppliers.
Supplier Relations	Imposing exclusive contracts ("choose one of two").	Restricts merchant onboarding and platform growth strategy.
Pharmaceutical Sector Focus	Excessive pricing, "reverse payment agreements."	Increased scrutiny on drug procurement and distribution costs.

Intellectual property (IP) protection for proprietary health tech is a growing legal concern.

While China has made strides in IP law, the environment remains challenging, especially for technology-driven companies. The 2025 USTR Special 301 Report still keeps China on the Priority Watch List, citing persistent concerns over trade secrets and the counterfeiting of pharmaceuticals. For 111, Inc., whose value proposition is built on its proprietary technology platform and supply chain integration services, this general weakness in IP enforcement is a structural risk.

Specifically, the IP risk centers on their core assets: the proprietary software that manages the supply chain, the patient data analytics models, and the 'Internet Hospital' platform itself. Protecting the trade secrets embedded in these technologies from local competitors is an ongoing, high-stakes legal battle. Plus, the global legal debate around AI-generated works and the use of third-party IP in training models is intensifying in 2025, which will create new, undefined legal liabilities for any company, like 111, Inc., that relies heavily on AI for its operations.

111, Inc. (YI) - PESTLE Analysis: Environmental factors

You need to understand that for a tech-enabled healthcare platform like 111, Inc., environmental factors are not just about compliance; they are a direct cost driver and a major factor in investor perception, especially with the high-volume logistics inherent in a RMB14.40 billion revenue business in 2024. The 2025 landscape in China is defined by new, stricter regulatory pressure on packaging and logistics emissions, forcing a shift from a purely cost-driven supply chain to a sustainability-optimized one.

Pressure from investors for transparent Environmental, Social, and Governance (ESG) reporting.

Investor scrutiny on ESG is intensifying globally, and China is no exception. For 111, Inc., as a NASDAQ-listed company, the expectation is to align with global disclosure standards, particularly as over 1,000 listed companies in China are now disclosing Greenhouse Gas (GHG) emissions, and more than 150 are reporting on their Scope 3 emissions (value chain emissions) in 2025. This means investors are looking beyond the company's immediate operations to its vast network of suppliers and last-mile delivery partners.

The core risk here is a low ESG Risk Rating score from firms like Sustainalytics, which can raise the cost of capital. You defintely need to quantify the environmental impact of the 'smart supply chain' that 111, Inc. frequently touts.

• Actionable Insight: Prioritize disclosure of Scope 3 logistics emissions in the next annual report.

Focus on sustainable packaging and reducing waste in high-volume drug delivery.

The Chinese government has made packaging waste a priority in 2025, directly impacting 111, Inc.'s B2C and B2B segments. New national policies, particularly in the e-commerce and express delivery sectors, require a transition to recyclable, reusable, or compostable materials by 2030. Furthermore, the China Center for Drug Evaluation (CDE) released draft Guidelines for Developing Appropriate Pharmaceutical Packaging Specifications in August 2025, specifically targeting excessive packaging.

This is a compliance inflection point. The new express delivery rules, effective June 1, 2025, mandate the adoption of eco-friendly packaging practices. For a company shipping millions of parcels, a minor change in material cost per unit scales quickly. The goal is to move towards mono-material packaging and right-sizing to reduce voids, which also cuts down on shipping volume and cost. That's a win-win.

2025 Packaging Mandate Drivers	Key Regulatory Action	Impact on 111, Inc.
Excessive Packaging Reduction	CDE Draft Guidelines (Aug 2025)	Requires redesign of secondary drug packaging to reduce material use and ensure clinical efficiency.
Material Transition	National Green Packaging Initiative (Nov 2025)	Mandates transition to recyclable/compostable materials for e-commerce by 2030, accelerating the phase-out of non-degradable single-use plastics.
Logistics Efficiency	Express Delivery Rules (June 2025)	Promotes right-size packaging and reusable totes to minimize shipping air and waste.

Need to optimize supply chain routes to lower carbon emissions from logistics.

Logistics is a primary source of environmental risk for any e-commerce platform. While China's overall $\text{CO}_2$ emissions are stabilizing in 2025, emissions from the transportation sector rose by 3.55% year-to-date through Q3 2025, showing the sector's decarbonization challenge. 111, Inc.'s extensive national supply chain, which enables delivery to over 300 major cities within 24 hours, is directly exposed to this trend.

The company's reliance on a 'smart supply chain management system' must now translate into measurable carbon efficiency. The national electricity carbon intensity for 2023 was 0.6205 kg $\text{CO}_2$e/kWh, which provides a clear benchmark for calculating the Scope 2 impact of its warehouses and fulfillment centers. Optimizing delivery routes using big data to reduce mileage is the clearest path to lowering Scope 3 emissions, which is what investors are starting to demand.

Requirements for responsible disposal of expired or unused pharmaceuticals.

The disposal of expired and unused household medications is a critical environmental and public health gap in China, and 111, Inc. is on the front lines. Expired drugs are classified as 'dangerous waste,' yet a recent survey indicated that 73.4% of consumers improperly dispose of them in the trash or down the drain, with only 17.6% choosing to recycle them. China currently lacks a standardized national system for this.

This regulatory void creates a clear opportunity for 111, Inc. to establish a voluntary, scalable take-back program leveraging its vast network of offline virtual pharmacies. For context on the scale of the issue, a major domestic pharmaceutical company has already collected over 1,600 metric tons of expired medicines over the past two decades. Establishing a formal, traceable disposal process for consumers, linked to their online orders, would be a huge competitive and ESG advantage.

• Clear Action: Design a pilot take-back program for expired medications in Shanghai and Shenzhen, using the virtual pharmacy network as collection points.