On the evening of September 12, the 111 Group officially went public in the United States. A total of 7.1 million shares were issued this time, with an issue price of $14 per share and a minimum of $99.4 million. According to public information, the 1 drug network of the 111 Group has received multiple rounds of financing. After completing the 450 million yuan C round of financing in January 2015, at the beginning of 2016, Yu Gang, co-founder and executive chairman of 1 drug network, said that 1 drug network received more than 1 billion yuan of D round financing. In April of this year, 1 Pharmacy announced that it had obtained a strategic financing of approximately US$50 million from Tonghe. 111 Group has not yet made a profit, but the loss has narrowed The 111 Group was established in 2010. Due to the joint creation of Gang and Liu Junling, it is a comprehensive online and offline health platform in China. According to the prospectus, the main business of the 111 Group consists of 1 drug network, 1 drug city, and 1 diagnosis, which correspond to B2C medical platform, B2B medical platform and Internet hospital. As of the end of June 2018, the 111 Group had more than 100,000 corporate users and more than 15 million individual members. In terms of sales, the 111 Group's pharmaceuticals, health products, and medical devices have more than 293,000 SKUs. The number of medical teams is more than 2,000, including more than 80 full-time medical personnel. The 111 Group is committed to providing services such as online medical treatment, drug purchase and health management using Internet and IT technologies. By reducing the intermediate links, optimizing the supply chain, providing consumers with convenient and affordable solutions for medical treatment. In 2016, the 111 Group began to transform from a pure B2C business to a new retail platform, integrating its online retail pharmacy and offline pharmacy network. In May 2017, the B2B platform 1 drug city went online, and by selling drugs to pharmacies, the size of the Group B2B business increased significantly. In the first quarter of 2018, the Group's B2B GMV was 162 million yuan. In the second quarter, this figure increased to 233 million yuan, an increase of 44.0%. This increase is mainly due to the increase in the number of pharmacy customers. As of June 30, 2018, the 111 Group has served more than 100,000 pharmacies. Compared with the previous quarter, the number of cooperative pharmacies has increased by more than 31,000; according to the data of September 30, 2017, the number of cooperative pharmacies has increased by more than 83,000. According to the prospectus, after the integration of B and C business and medical and pharmaceutical development in 2017, 111 Group formed the core strategic model of “B2B2Câ€, empowering doctors, pharmacies, hospitals and pharmaceutical companies. But it is also worth noting that the 111 Group has not yet achieved profitability. In 2016, 111 Group's total revenue was 874 million yuan, with a net loss of 363 million yuan; 2017 total revenue was 959 million yuan, 249 million yuan. A large part of the reason is that in order to rapidly expand the cooperative pharmacy of B2B business, the 111 Group may achieve incremental growth by means of “burning moneyâ€. Secondly, in terms of research and development, the cost in 2016 reached 62 million yuan, accounting for 7.10% of the total operating cost of the year; by 2017, this expenditure fell to 0.48 billion yuan, accounting for 7.00% of the cost. . But on the whole, the loss of the 111 Group has been decreasing year by year. For the funds raised, the 111 Group made the following plans in the prospectus: about $38.1 million for new technologies such as research and development, investment in artificial intelligence, big data and cloud computing; about $50.8 million for sales and market development Further expand the customer base; in addition, the rest will be used as the company's general working capital or strategic investment. First step in the market, but the 111 group may not move the IPO tide On the evening of September 4, according to Reuters, the company, known for its medical e-commerce business, received the latest round of financing, amounting to 130 million US dollars. Subsequently, in the external statement of Jianke, it was confirmed that it had completed the B round of financing, and revealed that it will also go public in the US in the first half of 2019. At this time, it took more than half a month for the 111 Group to submit an IPO application. 111 Group listed, does it mean that the listing of Internet medical companies such as domestic pharmaceutical e-commerce will come? In the current situation, this trend is far from being formed. The "Mechanical E-Commerce Industry Competitiveness Report" issued by the Arterial Network pointed out that China's pharmaceutical e-commerce has entered a stage of rapid development. The average annual compound growth rate of pharmaceutical e-commerce sales has reached 55.5% in the past six years. The compound annual growth rate of the pharmaceutical terminal market is also as high as 37.6%. However, compared with the United States, China's pharmaceutical e-commerce market has yet to be further developed. The more important issue is that most of the pharmaceutical e-commerce companies have not yet achieved a good business model, except that Jianke has said to the outside world that it has started to make profits from 2011. In this way, the 111 Group went public in the US. For its own sake, more significance is that the original investors took the opportunity to withdraw, and the company can also “burn money†in a different way. With reference to the impact of the listing of Ping An Good Doctor, the listing of the 111 Group did not bring a slogan to the industry. If there is a sample significance, the role may be an opportunity for the market and the enterprise itself to observe and explore. Internet medical development to today, from medical e-commerce to Internet hospitals, upstream and downstream enterprises are building their own ecological closed loop. However, with the 111 group's 1 drug network, 1 drug city, and 1 diagnosis, this closed loop has not really landed. Therefore, for the medical e-commerce industry, there is still a short distance to go. YT-H706 YT-H706 Shenzhen Sunshine Technology Co.,Ltd , https://www.shenzhenyatwin.com