111 Inc. announced the signing of a strategic framework agreement with the Kunshan Health Commission of Kunshan City, Jiangsu Province in China, to co-develop an online healthcare and pharmaceutical operations service platform (“Operations Service Platform”). With online hospitals as a stepping stone, the Operations Service Platform represents an opportunity for both parties to jointly build an internet “healthcare, pharmaceutical, healthcare insurance” closed loop ecosystem and to explore new online healthcare opportunities in China. Under the terms of the agreement, 111 will establish offline medical outlets in Kunshan and leverage them to launch its online hospital business, integrating its nationwide network of 2,000 medical professionals and rapidly expanding its team of online doctors. Concurrently, 111 will leverage its strong pharmaceutical supply chain management system which consists of 1 Drug Mall, 1 Clinic, and over 130,000 pharmacies, to build an innovative integrated healthcare and pharmaceutical services ecosystem, and to launch the Operations Service Platform pilot initiative in conjunction with the Kunshan Health Commission. In addition, 111 will leverage its core strengths of smart supply chain management, cloud-based solutions, big data analytics, healthcare expertise and pharmaceutical supply service infrastructure to deliver online services through the Operations Service Platform to healthcare institutions and pharmaceutical wholesalers and retailers within Kunshan. Supported by its online hospitals and the local internet and IT infrastructure, 111 will work with the Kunshan Health Commission to roll out the Operations Service Platform nationwide. Both parties will work to break down barriers in the healthcare, pharmaceutical and healthcare insurance sectors by focusing on personized healthcare through the Operations Service Platform. 111 will establish its online healthcare business’ headquarters and implement its “smart healthcare” vision in Kunshan. The Company believes that the Operations Service Platform will become a national online healthcare benchmark within five years and part of 111’s online pharmacy retail and wholesale business in East China.