The Zhitong Finance App learned that on March 21, China's Internet healthcare industry went public in the US, the first stock 1 Pharmaceutical Network (YI.US), released the fourth quarter and full year results report of 2023. In 2023, 1 Pharmaceutical Network achieved annual revenue of RMB 14.9 billion, an increase of 10.6% over the previous year, and the revenue scale increased 16 times within 6 years. Among them, fourth-quarter revenue reached RMB 4.1 billion, and operational efficiency continued to improve.

The supply chain network continues to be upgraded, and revenue is growing steadily

In 2023, the scale of the 1 Pharmaceutical Network industry continued to expand, and revenue achieved steady growth. According to the data, the company's annual revenue was 14.9 billion yuan, an increase of 10.6% over the previous year. Within 6 years of launch, 1 Pharmaceutical Network has achieved a 16-fold increase in revenue scale, from 959 million yuan in 2017 to 14.9 billion yuan in 2023.

1 Pharmaceutical Network continues to reshape marketing, trading, warehousing, and fulfillment links in the pharmaceutical industry chain through digital technology and the advantages of an integrated online and offline intelligent supply chain, expand the empowerment of partners in the industrial chain ecosystem, and enhance scale effects. As of 2023, 1 Pharmaceutical Network has reached strategic direct supply partnerships with more than 500 well-known pharmaceutical companies around the world, and has successively reached new drug launch cooperation with domestic and foreign pharmaceutical companies such as Hualing Pharmaceutical, Sanofi, and Yuanda Jiuhe.

At the same time, 1 Pharmaceutical Network has also built its own brands such as “Care,” “Royal Honor,” and “Blue Nityl”, covering prescription drugs, OTC, Chinese medicine tablets, health food, etc., and has delivered more than 170 varieties, covering more than 20,000 small and medium-sized chains, single pharmacies and clinics across the country.

Through direct supply cooperation with upstream pharmaceutical companies and the construction of own brands, it not only provides the company with richer product resources, more competitive costs and more stable supply, but also supports the company to help pharmacy partners build a more competitive product portfolio.

At the same time as the supply chain network continues to expand, 1 Pharmaceutical Network has also established an efficient and nationwide fulfillment service network, adding fulfillment centers in Henan, Yunnan, Gansu, Inner Mongolia, etc., which can cover more than 890 cities and counties across the country within 24 hours, directly or indirectly providing medical and health services to tens of millions of patients.

Consolidate digital technology capabilities to drive management efficiency optimization

1 Pharmaceutical Network relies on its advantages in digital technology and smart supply chains to continuously improve industrial efficiency, and uses technology to continuously optimize management efficiency to improve operational efficiency, and continue to reduce costs. During the reporting period, the ratio of total operating expenses to net revenue of 1 Pharmaceutical Network in 2023 fell to 6.5% from 7.8% in the same period last year; the ratio of non-GAAP operating losses to net revenue narrowed significantly, from 1.6% last year to 0.8%.

Through innovative technology, system optimization and service improvements, 1 Pharmaceutical Network significantly reduced costs and increased efficiency on the supply chain side. The ratio of fulfillment fees to net revenue continued to be optimized in the fourth quarter, falling to 2.5% from 2.9% in the same period last year. In order to improve the quality and efficiency of upstream and downstream services in the supply chain, 1 Pharmaceutical Network launched the “Gold Partner” special service to provide customers with an intelligent delivery reservation service, simplify the supplier delivery process, reduce the waiting time for supplier delivery by 50%, increase the delivery time by 30%, and greatly improve the customer experience. Furthermore, by building an intelligent supply chain service platform, 1 Pharmaceutical Network integrates the main line and implementation model to achieve upstream and downstream linkage with reduced costs, low damage, and high turnover efficiency, providing customers with professional pharmaceutical logistics services and helping to improve the efficiency of the industry's supply chain.

During the reporting period, 1 Pharmaceutical Network continued to consolidate its technical advantages, adding 4 invention patents, and the cumulative number of patents reached 23. In AI-based pharmaceutical master data applications, the company uses AI technology to restructure product coding services. In an average of 10 million daily calls, the code accuracy rate reached 94.68%. Among them, the number of standardized pharmaceutical master data has reached 1.2 million. In addition, the “One Drug Network Information Brain” series of products was also listed on the Shanghai Digital Exchange last year. The main data covered 99.6% of the pharmaceutical industry market and accelerated the digital transformation of the medical and health care industry. 1 Pharmaceutical Network further consolidates its core competitiveness through digital technological innovation in the field of medicine and health care and uses cutting-edge technology to help digitally upgrade the upstream and downstream pharmaceutical industry chain.

In 2023, 1 Pharmaceutical Network was continuously awarded honors and awards such as the National E-Commerce Demonstration Enterprise, the 2023-2024 Shanghai E-Commerce Demonstration Enterprise, and the China Digital Breakthrough Practice Award. It marks that the company has achieved sustainable, steady and rapid development in the fields of digital technology innovation, intelligent supply chain management, and digital operation, and that its professional value and strength continue to be recognized by the industry.

Dr. Yu Gang, co-founder and executive chairman of 1 Pharmaceutical Network, said, “Over the past year, we have faced challenges in a complex market environment, driven management efficiency optimization through digital technology, continuously improved organizational and operational efficiency, reduced costs, maintained steady revenue growth, and increased our revenue scale 16 times within 6 years. We will continue to rely on core technology and intelligent supply chain capabilities, focus on customer experience, accelerate the digital intelligence process of the medical and health industry, empower and create greater value upstream and downstream of the industry, and provide patients with more convenient and high-quality medical and health products and services.”