Exhibit 99.1

111, Inc. Announces Fourth Quarter and Fiscal Year 2021 Financial Results

SHANGHAI, March 17, 2022 /PRNewswire/ – 111, Inc. ("111" or the "Company") (NASDAQ: YI), a leading tech-enabled healthcare platform company committed to digitally connecting patients with medicine and healthcare services in China, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2021.

Fourth Quarter 2021 Highlights

Fiscal Year 2021 Highlights

Mr. Junling Liu, Co-Founder, Chairman, and Chief Executive Officer of 111, commented, “We delivered another solid quarter and the results brought us another step closer to profitability. Net revenue increased by 30.9% year-over-year to RMB 3.46 billion, marking the 14th consecutive quarter of year-over-year growth for 111 since the company’s NASDAQ IPO. The B2B segment saw year-over-year revenue and segment profit increases by 34.6% and 132.7%, respectively. Our partnerships with pharmaceutical companies are growing steadily and the direct purchase relationship totalled over 500 by the end of 2021. We are delighted to see that our market coverage from both upstream and downstream is increasing and customer loyalty continues to grow and this is proven by our solid financial results.

Mr. Liu added, “In addition to strong topline growth, our gross segment profit grew 3 times as fast as our revenue in the fourth quarter. Gross segment profit grew by 98% year-over-year, and as a percentage of revenue, our gross segment margins improved to 5.9%. We are especially pleased with the margin improvement for the B2B segment, which as a percentage of revenue, grew from 3.6% in the first quarter of 2021 to 3.8% in the second quarter of 2021, and further to 4.4% in the third quarter of2021 and 5.2% in the fourth quarter of 2021. We expect this momentum to continue as we scale,

putting us on a clear path to profitability. Indeed, we were pleased to see continued progress toward achieving that milestone, as demonstrated by the sequential quarter-over-quarter decrease in non-GAAP loss from operation as a percentage of net revenues from 4.1% in the third quarter of 2021 to 2.2% in the fourth quarter of 2021.”

“On full year basis, we have achieved net revenues of RMB12.4 billion with a 51.5% growth year over year, which put us into the 10 Billion Club for the first time. We continued to broaden our revenue mix with service revenue growth by 103% year over year, while the overall gross segment profit achieved 70% growth year over year. We believe that we have achieved our initial strategic target since IPO, which is to rapidly build up suppliers and customers network with competitive pricing in order to achieve reasonable scale to compete in this market. As a matter of fact, we are now directly working with 500+ pharmaceutical companies and serving more than 385,000 retail pharmacies. Our revenue scale has been rapidly expanded 13 times in 4 years from RMB959 million in 2017 to RMB12.4 billion in 2021.”

“We would like our shareholders to recognize that our company has conducted a series of initiatives to achieve margin expansion, as well as to optimize our cost and improve our organizational alignment and the results have been very encouraging. We have significantly improved our operating efficiency while maintaining our competitive edge. Our goal is to reach quarterly break-even at the non-GAAP operating income level in 2022. I am delighted to see that we are moving towards the right direction.”

Fourth Quarter 2021 Financial Results

Net revenues were RMB3.46 billion (US$543.1 million), representing an increase of 30.9% from RMB2.64 billion in the same quarter of last year.

^{(3) For segment reporting purposes, purchase rebates are allocated to the B2B segment and B2C segments primarily based on the amount of cost of products sold for each segment. Cost of products sold does not include other direct costs related to cost of product sales such as shipping and handling expense, payroll and benefits of logistic staff, logistic centers rental expenses and depreciation expenses, which are recorded in the fulfillment expenses. Cost of service revenue is recorded in the operating expense.}

Operating costs and expenses were RMB3.6 billion (US$559.5 million), representing an increase of 27.9% from RMB2.8 billion in the same quarter of last year.

Loss from operations was RMB104.7 million (US$16.4 million), compared to RMB144.7 million in the same quarter of last year. As a percentage of net revenues, loss from operations decreased to 3.0% in the quarter from 5.5% in the same quarter of last year.

Non-GAAP loss from operations was RMB76.9 million (US$12.1 million), compared to RMB112.3million in the same quarter of last year. As a percentage of net revenues, non-GAAP loss from operations decreased to 2.2% in the quarter from 4.2% in the same quarter of last year.

Net loss was RMB101.7 million (US$16.0 million), compared to RMB137.4 million in the same quarter of last year. As a percentage of net revenues, net loss decreased to 2.9% in the quarter from 5.2% in same quarter of last year.

Non-GAAP net loss ⁽⁴⁾ was RMB73.9 million (US$11.6 million), compared to RMB105.0 million in the same quarter of last year. As a percentage of net revenues, non-GAAP net loss decreased to 2.1% in the quarter from 4.0% in same quarter of last year.

Net loss attributable to ordinary shareholders was RMB111.3 million (US$17.5 million), compared to RMB130.6 million in the same quarter of last year. As a percentage of net revenues, net loss attributable to ordinary shareholders decreased to 3.2% in the quarter from 4.9% in same quarter of last year.

Non-GAAP net loss attributable to ordinary shareholders ⁽⁵⁾ was RMB83.5 million (US$13.1 million), compared to RMB98.2 million in the same quarter of last year. As a percentage of net revenues, non-GAAP net loss attributable to ordinary shareholders decreased to 2.4% in the quarter from 3.7% in same quarter of last year.

^{(4) Non-GAAP net loss represents net loss excluding share-based compensation expenses, net of tax. Considering the impact of accretion of redeemable non-controlling interest for the fourth quarter and fiscal year ended December 31, 2021, non-GAAP net loss is used as a more meaningful measurement of the operation performance of the Company.}

^{(5) Non-GAAP net loss attributable to ordinary shareholders represents net loss attributable to ordinary shareholders excluding share-based compensation expenses, net of tax.}

Fiscal Year 2021 Financial Results

Net revenues were RMB12.4 billion (US$1.95 billion), representing an increase of 51.5% from RMB8.2 billion last year.

As of December 31, 2021, the Group had two reporting segments, Business to Business (“B2B”) and Business to Consumer (“B2C”). Revenue contribution from the Company’s E-Channel was previously disclosed as a separate segment, but has been incorporated in the B2B segment since the third quarter of 2020.

Operating costs and expenses were RMB13.1 billion (US$2.1 billion), representing an increase of 50.6% from RMB8.7 billion last year.

Loss from operations was RMB642.1 million (US$100.8 million), compared to RMB473.3 million last year. As a percentage of net revenues, loss from operations decreased to 5.2% this year from 5.8% last year.

Non-GAAP loss from operations was RMB496.5 million (US$77.9 million), compared to RMB397.6 million last year. As a percentage of net revenues, non-GAAP loss from operations decreased to 4.0% this year from 4.8% last year.

Net loss was RMB621.0 million (US$97.5 million), compared to RMB467.1 million last year. As a percentage of net revenues, net loss decreased to 5.0% this year from 5.7% last year.

Non-GAAP net loss was RMB475.4 million (US$74.6 million), compared to RMB391.4 million last year. As a percentage of net revenues, non-GAAP net loss decreased to 3.8% this year from 4.8% last year.

Net loss attributable to ordinary shareholders was RMB669.8 million (US$105.1 million), compared to RMB456.5 million last year. As a percentage of net revenues, net loss attributable to ordinary shareholders decreased to 5.4% this year from 5.6% last year.

Non-GAAP net loss attributable to ordinary shareholders was RMB524.2 million (US$82.3 million), compared to RMB380.8 million last year. The increase was mainly caused by accretion for probable redemption of redeemable non-controlling interest in the future. As a percentage of net revenues, non-GAAP net loss attributable to ordinary shareholders decreased to 4.2% this year from 4.6% last year.

As of December 31, 2021, the Company has cash and cash equivalents, restricted cash and short-term investments of RMB943.2 million (US$148.0 million), compared to RMB1.6 billion as of December 31, 2020.

Conference Call

111's management team will host an earnings conference call at 7:30 AM U.S. Eastern Time on Thursday, March 17, 2022 (7:30 PM Beijing Time on the same day).

Details for the conference call are as follows:

Event Title: 111, Inc. Fourth Quarter and Fiscal Year 2021 Unaudited Financial Results

Registration Link: http://apac.directeventreg.com/registration/event/7366837

All participants must use the link provided above to complete the online registration process in advance of the conference call. Upon registering, each participant will receive a set of participant dial-in numbers, the Direct Event passcode, and a unique Registration ID, which can be used to join the conference call.

Please dial in 15 minutes before the call is scheduled to begin and provide the Direct Event passcode and unique Registration ID you have received upon registering to join the call.

A telephone replay of the call will be available after the conclusion of the conference call until March 24, 2022, 8:59 ET on:

China: 4006322162

United States: +1-855-452-5696

International: +61-2-8199-0299

Conference ID: 7366837

A live and archived webcast of the conference call will be available on the Investor Relations section of 111's website at http://ir.111.com.cn/.

Use of Non-GAAP Financial Measures

In evaluating the business, the Company considers and uses non-GAAP loss from operations, non-GAAP net loss, non-GAAP net loss attributable to ordinary shareholders, and non-GAAP loss per ADS, as supplemental measures to review and assess its operating performance. The Company defines non-GAAP loss from operations as loss from operations excluding share-based compensation expenses. The Company defines non-GAAP net loss as net loss excluding share-based compensation expenses, net of tax. The Company defines non-GAAP net loss attributable to ordinary shareholders as net loss attributable to ordinary shareholders excluding share-based compensation expenses, net of tax. The Company defines non-GAAP loss per ADS as net loss attributable to ordinary shareholders per ADS excluding share-based compensation expenses, net of tax per ADS. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP.

The Company believes that non-GAAP loss from operations, non-GAAP net loss, non-GAAP net loss attributable to ordinary shareholders, and non-GAAP loss per ADS help identify underlying trends in its business that could otherwise be distorted by the effect of certain expenses that it includes in loss from operations and net loss. Share-based compensation expenses is a non-cash expense that varies from period to period. As a result, management excludes the items from its internal operating forecasts and models. Management believes that the adjustments for share-based compensation expenses provide investors with a reasonable basis to measure the company's core operating performance, in a more meaningful comparison with the performance of other companies. The Company believes that non-GAAP loss from operations, non-GAAP net loss, non-GAAP net loss attributable to ordinary shareholders, and non-GAAP loss per ADS provide useful information about its operating results, enhances the overall understanding of its past performance and future prospects and allow for greater visibility with respect to key metrics used by the management in their financial and operational decision-making.

The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools. One of the key limitations of using non-GAAP loss from operations, non-GAAP net loss, non-GAAP net loss attributable to ordinary shareholders, or non-GAAP loss per ADS is that it does not reflect all items of income and expense that affect the Company's operations. Further, the non-GAAP financial measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited.

The Company compensates for these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP measures, all of which should be considered when evaluating the Company's performance. The Company encourages you to review its financial information in its entirety and not rely on a single financial measure.

Reconciliation of the non-GAAP financial measures to the most comparable U.S. GAAP measures is included at the end of this press release.

Exchange Rate Information Statement

This announcement contains translations of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB6.3726 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of December 30, 2021.

Forward-Looking Statements

This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "target," "confident" and similar statements. Among other things, the Business Outlook and quotations from management in this announcement, as well as 111's strategic and operational plans, contain forward-looking statements. 111 may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Such statements are based upon management's current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company's control. Forward-looking statements involve inherent risks, uncertainties and other factors that could cause actual results to differ materially from those contained in any such statements. Potential risks and uncertainties include, but are not limited to, uncertainties as to the Company's ability comply with extensive and evolving regulatory requirements, its ability to compete effectively in the evolving PRC general health and wellness market, its ability to manage the growth of its business and expansion plans, its ability to achieve or maintain profitability in the future, its ability to control the risks associated with its pharmaceutical retail and wholesale businesses, and the Company's ability to meet the standards necessary to maintain listing of its ADSs on the Nasdaq Global Market, including its ability to cure any non-compliance with Nasdaq's continued listing criteria. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and 111 does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

About 111, Inc.

111, Inc. (NASDAQ: YI) ("111" or the "Company") is a leading tech-enabled healthcare platform company committed to digitally connecting patients with medicine and healthcare services in China. The Company provides consumers with better access to pharmaceutical products and healthcare services directly through its online retail pharmacy, 1 Pharmacy, and indirectly through its offline virtual pharmacy network. The Company also offers online healthcare services through its internet hospital, 1 Clinic, which provides consumers with cost-effective and convenient online consultation, electronic prescription service, and patient management service. In addition, the Company's online platform, 1 Medicine, serves as a one-stop shop for pharmacies to source a vast selection of pharmaceutical products. With the largest virtual pharmacy network in China, 111 enables offline pharmacies to better serve their customers with cloud-based services. 111 also provides an omni-channel drug commercialization platform to its strategic partners, which includes services such as digital marketing, patient education, data analytics, and pricing monitoring.

For more information on 111, please visit: http://ir.111.com.cn/.

For more information, please contact:

111, Inc.

Investor Relations

Email: ir@111.com.cn

111, Inc.

Media Relations

Email: press@111.com.cn

Phone: +86-021-2053 6666 (China)

111, Inc.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except for share and per share data)

111, Inc.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(In thousands, except for share and per share data)

111, Inc.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

111, Inc.

Unaudited Reconciliation of GAAP and Non-GAAP Results

(In thousands, except for share and per share data)