# EDGAR Filing Document

**Accession Number:** 0001738906
**File Stem:** 0000000000-23-000482
**Filing Date:** 2023-1
**Character Count:** 12864
**Document Hash:** 59c8104e632ca16ca07988c242779f91
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000000000-23-000482.hdr.sgml**: 20230425

**ACCESSION NUMBER**: 0000000000-23-000482

**CONFORMED SUBMISSION TYPE**: UPLOAD

**PUBLIC DOCUMENT COUNT**: 2

**FILED AS OF DATE**: 20230118

**FILED FOR**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** 111, Inc.
- **CENTRAL INDEX KEY:** 0001738906
- **STANDARD INDUSTRIAL CLASSIFICATION:** RETAIL-DRUG STORES AND PROPRIETARY STORES [5912]
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** E9
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** UPLOAD

**BUSINESS ADDRESS:**
- **STREET 1:** 3-4/F, NO.295 ZUCHONGZHI ROAD
- **STREET 2:** PUDONG NEW AREA
- **CITY:** SHANGHAI
- **STATE:** F4
- **ZIP:** 201203
- **BUSINESS PHONE:** 862120536666

**MAIL ADDRESS:**
- **STREET 1:** 3-4/F, NO.295 ZUCHONGZHI ROAD
- **STREET 2:** PUDONG NEW AREA
- **CITY:** SHANGHAI
- **STATE:** F4
- **ZIP:** 201203

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** New Peak Group
- **DATE OF NAME CHANGE:** 20180427
**PUBLIC REFERENCE ACCESSION NUMBER**: 0001104659-22-052772

## Text-Extract

```

United States securities and exchange commission logo

                             January 18, 2023

       Junling Liu
       Chief Executive Officer
       111, Inc.
       3-5/F, No. 295 ZuChongZhiRoad
       Pudong New Area
       Shanghai, 201203
       The People   s Republic of China

                                                        Re: 111, Inc.
                                                            Annual Report on
Form 20-F
                                                            Response Dated
September 27, 2022
                                                            File No. 001-38639

       Dear Junling Liu:

              We have reviewed your September 27, 2022 response to our comment
letter and have the
       following comments. In some of our comments, we may ask you to provide
us with information
       so we may better understand your disclosure.

              Please respond to these comments within ten business days by
providing the requested
       information or advise us as soon as possible when you will respond. If
you do not believe our
       comments apply to your facts and circumstances, please tell us why in
your response.

             After reviewing your response to these comments, we may have
additional
       comments. Unless we note otherwise, our references to prior comments are
to comments in our
       September 8, 2022 letter.

       Annual Report on Form 20-F for Fiscal Year Ended December 31, 2021

       Introduction, page 1

   1.                                                   We note your response
to comment 1. Please further revise your disclosure to discuss any
                                                        Hong Kong laws and
regulations that apply to you as well as the related risks and
                                                        consequences. We also
note your disclosure on page 46 that a majority of your directors
                                                        and executive officers
reside within China. Identify the officers and directors located in
                                                        the PRC or Hong Kong
and revise to include a separate    Enforceability    section
                                                        disclosing the
difficulty of bringing actions and enforcing judgments against these
                                                        individuals.
 Junling Liu
111, Inc.
January 18, 2023
Page 2
2.       We note in response to comment 1 you propose to modify the definition
of "China" or
         "PRC" to state that it excludes Hong Kong, Macau and Taiwan, but "only
in the context of
         describing PRC laws, regulations and other legal or tax matters in
this annual report." As
         currently drafted, the scope of the carve-out is unclear. To the
extent that you wish to
         continue to exclude Hong Kong from this definition, please clarify
that it is excluded only
         when the annual report refers to specific laws and regulations adopted
by the PRC.
Item 3, Key Information, page 3

3.       We note your response to comment 2 and your statement that the risks
relating to the VIE
         structure, including the risk that the Chinese regulatory authorities
could disallow such
         structure, no longer apply to the Company. However, we believe that
such risk continues
         to exist as Chinese regulatory authorities could disallow your current
structure by
         changing the rules relating to foreign investment in China-based
issuers. Please revise
         to specifically say that Chinese regulatory authorities could disallow
your current
         structure. Additionally, provide a cross-reference to your detailed
discussion of the risks
         facing the company if China were to change the rules and regulations
regarding foreign
         ownership in the industry in which the company operates.
4.       We note your response to comment 6. Please further revise the
disclosure to discuss
         whether there are limitations on your ability to transfer cash between
you, your PRC or
         Hong Kong subsidiaries, the consolidated VIEs, or investors. In this
regard, we note that
         your discussion of the limitations on cash transfers appears to
discuss solely those in the
         PRC. Revise to also discuss limitations applicable to Hong Kong, given
your Hong Kong
         subsidiary. Please make consistent revisions throughout the document.
5.       We note your response to comment 8. Please revise to identify the
various investors of the
         14% interest in 1 Pharmacy Technology.
6.       We note your proposed revisions in response to comment 9. Please
further revise to
         include the title of each individual risk factor in the
cross-reference, as opposed to listing
         only the page number.
7.       We note your proposed disclosure in response to comment 11. Please
further revise to
         name the PRC legal counsel you relied upon to determine that you are
not required to
         obtain any prior approval or permission from the CSRC or CAC for your
historical
         offshore offerings to foreign investors.
D. Risk Factors,
FirstName        page 7
           LastNameJunling     Liu
Comapany
8.          Name111,
       In your         Inc. revise your risk factors to add disclosure
associated with the
               future filings,
Januarytermination of the
         18, 2023 Page  2 VIE structure in February 2022.
FirstName LastName
 Junling Liu
FirstName
111, Inc. LastNameJunling Liu
Comapany
January 18,Name111,
            2023     Inc.
January
Page  3 18, 2023 Page 3
FirstName LastName
The approval, filing or other requirements of the China Securities Regulatory
Commission...,
page 29

9.       We note your response to comment 14 and that you are uncertain and
cannot predict the
         impact of the oversight by the Cyberspace Administration of China over
data security on
         your business and any future offering. Please revise to explain to
what extent you believe
         that you are compliant with the regulations or policies that have been
issued by the CAC
         to date.
       You may contact Jennie Beysolow at 202-551-8108 or Erin Jaskot at
202-551-3442 with
any questions.

                                                              Sincerely,

                                                              Division of
Corporation Finance
                                                              Office of Trade &
Services
cc:      Kevin Zhang, Esq.

```

### Attached PDF Documents

**Attachment 1:** `filename1`

![img-0.jpeg](img-0.jpeg)

CORPORATION FINANCE

# UNITED STATES  
SECURITIES AND EXCHANGE COMMISSION  
WASHINGTON, D.C. 20549

January 18, 2023

Junling Liu  
Chief Executive Officer  
111, Inc.  
3-5/F, No. 295 ZuChongZhiRoad  
Pudong New Area  
Shanghai, 201203  
The People's Republic of China

**Re: 111, Inc.**

**Annual Report on Form 20-F  
Response Dated September 27, 2022  
File No. 001-38639**

Dear Junling Liu:

We have reviewed your September 27, 2022 response to our comment letter and have the following comments. In some of our comments, we may ask you to provide us with information so we may better understand your disclosure.

Please respond to these comments within ten business days by providing the requested information or advise us as soon as possible when you will respond. If you do not believe our comments apply to your facts and circumstances, please tell us why in your response.

After reviewing your response to these comments, we may have additional comments. Unless we note otherwise, our references to prior comments are to comments in our September 8, 2022 letter.

Annual Report on Form 20-F for Fiscal Year Ended December 31, 2021

# Introduction, page 1

1. We note your response to comment 1. Please further revise your disclosure to discuss any Hong Kong laws and regulations that apply to you as well as the related risks and consequences. We also note your disclosure on page 46 that a majority of your directors and executive officers reside within China. Identify the officers and directors located in the PRC or Hong Kong and revise to include a separate “Enforceability” section disclosing the difficulty of bringing actions and enforcing judgments against these individuals.

Junling Liu
111, Inc.
January 18, 2023
Page 2

2. We note in response to comment 1 you propose to modify the definition of "China" or "PRC" to state that it excludes Hong Kong, Macau and Taiwan, but "only in the context of describing PRC laws, regulations and other legal or tax matters in this annual report." As currently drafted, the scope of the carve-out is unclear. To the extent that you wish to continue to exclude Hong Kong from this definition, please clarify that it is excluded only when the annual report refers to specific laws and regulations adopted by the PRC.

Item 3, Key Information, page 3

3. We note your response to comment 2 and your statement that the risks relating to the VIE structure, including the risk that the Chinese regulatory authorities could disallow such structure, no longer apply to the Company. However, we believe that such risk continues to exist as Chinese regulatory authorities could disallow your current structure by changing the rules relating to foreign investment in China-based issuers. Please revise to specifically say that Chinese regulatory authorities could disallow your current structure. Additionally, provide a cross-reference to your detailed discussion of the risks facing the company if China were to change the rules and regulations regarding foreign ownership in the industry in which the company operates.

4. We note your response to comment 6. Please further revise the disclosure to discuss whether there are limitations on your ability to transfer cash between you, your PRC or Hong Kong subsidiaries, the consolidated VIEs, or investors. In this regard, we note that your discussion of the limitations on cash transfers appears to discuss solely those in the PRC. Revise to also discuss limitations applicable to Hong Kong, given your Hong Kong subsidiary. Please make consistent revisions throughout the document.

5. We note your response to comment 8. Please revise to identify the various investors of the 14% interest in 1 Pharmacy Technology.

6. We note your proposed revisions in response to comment 9. Please further revise to include the title of each individual risk factor in the cross-reference, as opposed to listing only the page number.

7. We note your proposed disclosure in response to comment 11. Please further revise to name the PRC legal counsel you relied upon to determine that you are not required to obtain any prior approval or permission from the CSRC or CAC for your historical offshore offerings to foreign investors.

D. Risk Factors, page 7

8. In your future filings, revise your risk factors to add disclosure associated with the termination of the VIE structure in February 2022.

Junling Liu
111, Inc.
January 18, 2023
Page 3

The approval, filing or other requirements of the China Securities Regulatory Commission...
page 29

9. We note your response to comment 14 and that you are uncertain and cannot predict the impact of the oversight by the Cyberspace Administration of China over data security on your business and any future offering. Please revise to explain to what extent you believe that you are compliant with the regulations or policies that have been issued by the CAC to date.

You may contact Jennie Beysolow at 202-551-8108 or Erin Jaskot at 202-551-3442 with any questions.

Sincerely,

Division of Corporation Finance
Office of Trade & Services

cc: Kevin Zhang, Esq.