111 Company Announces Appointment of Independent Financial Advisor and Legal Counsel by Special Committee

Shanghai, October 26, 2026 / PRNewswire / -- 111, a leading technology-enabled healthcare platform in China (111, Inc., referred to as "111" or "the Company"; NASDAQ ticker: YI), announced today that a special committee established by the company's board of directors ("Board of Directors") has hired Hua Li An China Co., Ltd. (Houlihan Lokey China Limited) as its independent financial advisor, and Kirkland & Ellis as its legal advisors for the United States, to assist in reviewing and evaluating the preliminary, non-binding proposal letter dated September 16, 2026 (the "Proposal"), as well as other potential strategic options that the Company may pursue.

The Special Committee is composed of three independent directors, namely Mr. Sun Jian, the Chairman of the Special Committee, Mr. Zhang Li'an ( Nee Chuan Teo ), and Mr. Luo Jun.

The Board of Directors reminds the company's shareholders and other individuals considering trading in the company's securities that no decisions have been made regarding this proposal or any other strategic options that the company may pursue at this time. There is no guarantee that a final offer will be received, nor is there any guarantee that a final agreement will be signed regarding the transaction contemplated in this proposal, or that any similar transaction will be approved or completed. Except as required by applicable laws, the company assumes no obligation to provide updated information regarding any transactions.

Forward-looking Statements

This press release contains forward-looking statements. Such statements constitute “forward-looking statements” as defined by Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Such forward-looking statements can be identified by words such as “will”, “expect”, “anticipate”, “future”, “intend”, “plan”, “believe”, “estimate”, “target”, “confident”, and similar expressions. Among other things, the business outlooks, management quotations, and 111’s strategic and operational plans contained in this announcement all include forward-looking statements. 111 may also make written or oral forward-looking statements in its periodic reports submitted to the U.S. Securities and Exchange Commission, annual shareholder reports, press releases, and other written materials, or through oral statements made by its executives, directors, or employees to third parties.

Such statements are based on management's current expectations as well as the current market and operating conditions, and involve known or unknown risks, uncertainties, and other factors. Many of these factors are difficult to predict and are beyond the company's control. Forward-looking statements inherently carry risks, uncertainties, and other factors that could lead to significant differences between actual results and those contained in such statements. Potential risks and uncertainties include, but are not limited to: the company's ability to comply with extensive and evolving regulatory requirements, the ability to compete effectively in the dynamic Chinese healthcare market, the ability to manage business growth and expansion plans, the ability to achieve or maintain profitability in the future, the ability to control risks related to its pharmaceutical retail and wholesale operations, and the company's ability to meet the standards required for maintaining its American depositary shares listed on the NASDAQ Global Market, including the ability to correct any non-compliance with NASDAQ's continuous listing standards. For more information regarding these and other risks, uncertainties, or factors, please refer to the documents submitted by the company to the U.S. Securities and Exchange Commission.

All information provided in this press release is as of the date of issuance. Except as required by applicable laws, 111 shall not be obligated to update any forward-looking statements due to new information, future events, or other reasons.

About 111

111 Company ( NASDAQ : YI ) is a leading technology-enabled healthcare platform in China, transforming the Chinese healthcare value chain through digitalization and artificial intelligence ( AI ). By connecting consumers, pharmacies, pharmaceutical companies, and other healthcare stakeholders, 111 is committed to making medical products and healthcare services more accessible, more efficient, and more affordable, while also helping industry participants achieve more intelligent operations.

Through its integrated ecosystem, the company's online retail pharmacy "1 Pharmacy" provides consumers with a convenient channel to access a wide range of pharmaceutical products and healthcare services. On the B2B side, "1 Pharmacy City" offers a one-stop digital procurement platform for pharmacies, helping to improve procurement efficiency, product availability, and inventory management capabilities. Leveraging its pharmacy network, proprietary industry data, and digital infrastructure, 111 is increasingly deploying solutions and agents (Agents) driven by AI, to assist pharmacies in managing their daily operations, including sales analysis, inventory optimization, replenishment, pricing, and promotions. For pharmaceutical and healthcare companies, 111 provides a full-channel commercialization platform that integrates digital marketing, patient education, data analysis, pricing, and market monitoring.

111 is transforming from a digital company into a healthcare company driven by AI. Leveraging its industry data and digital capabilities, the company deploys AI intelligents to go beyond simply providing information and analysis, enabling it to automate work processes for pharmacies and other industry participants. With the help of AI models, its own healthcare data, and interconnected business systems, 111 aims to build an intelligent operational layer in the healthcare industry and strengthen its role as a technology platform that connects the upstream and downstream of China's healthcare value chain.

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

Contact Information:

111, Inc.

111, Inc.