The Internet medical track meets again. Can surpass Ali this time?

Science and Technology Innovation Board Daily (Shanghai, reporter Zhu Jieyan), JD Health has entered the countdown to the listing of Hong Kong stocks. The current valuation is 30 billion U.S. dollars, and the market value of Ali Health is not much different. Has the health field surpassed Ali?

On the evening of November 15th, the Hong Kong Stock Exchange disclosed that Health had passed the prospectus after the hearing. Bank of America Securities, Haitong International and UBS acted as joint sponsors, and Huaxing Capital acted as financial advisor.

On May 10, 2019, JD Group officially split the three businesses of JD Pharmacy, Yaojingcai and JD Internet Hospital from, and merged to form a JD Health subsidiary. Just the day before independence, JD Health had just completed a series A financing of over US$1 billion. Investors included CPEC China Fund, CICC Capital and Baring Asia. On August 17 this year, JD Health received another US$830 million in Series B financing from Hillhouse Capital, with a post-investment valuation of US$30 billion.

When it comes to JD Health, you naturally think of Alibaba Health. Alibaba Health was successfully listed in Hong Kong in 2014 with the backdoor CITIC 21st Century. Since then, Alibaba has gradually injected Tmall Medical Center business into Alibaba Health. Alibaba Health’s share price rose from about HK$4 in 2014 to about HK$20 today. As of the close of trading on November 16, the market value of AliHealth was HK$269.1 billion (approximately US$34.7 billion).

Relying on Internet giants and focusing on medical e-commerce and Internet medical services, how does JD Health, which is on the market, compare to Ali Health? "Science Innovation Board Daily" reporters specially compared JD Health's prospectus with Ali Health's fiscal year 2020 performance announcement...

Financial comparison: Both have achieved profitability and is even better >

JD Health's prospectus shows that the company's total revenue from 2017 to 2019 was 553 million yuan, 8.169 billion yuan, and 10.842 billion yuan, respectively. In the first half of 2020, JD Health's total revenue reached 87.77 100 million yuan; the adjusted period profit from 2017 to the first half of 2020 is 209 million yuan, 248 million yuan, 344 million yuan and 371 million yuan respectively.

Compared with the operating conditions of Ali Health in the 2020 fiscal year (March 31, 2019-March 31, 2020), JD Health’s revenue and adjusted period profit are slightly ahead ( JD Health: 10.842 billion yuan, 344 million yuan vs Ali Health: 9.596 billion yuan, 261 million yuan).

Internet medical care has been developing for many years, but companies have been losing money. JD Health is the first company to call out "the overall profitability", while Ali Health released a positive profit forecast for the first time on the evening of October 26. It is expected that the period will be recorded for the six months ended September 30, 2020. The profit is not less than 200 million yuan.

As for the reasons for turning losses into profits, Ali Health stated in the announcement that thanks to the increase in users’ Internet health awareness, the company’s multiple platform users have grown rapidly; the group completed the report to Ali JK in April 2020. The income generated by Nutritional Products Holding Limited's acquisition of pharmaceutical categories; efficiency improvement and cost optimization driven by platform economies of scale.

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As for the possibility of continued profitability of Internet healthcare, Pan Helin, executive dean and professor of the Institute of Digital Economy, Zhongnan University of Economics and Law, believes that "the possibility is greater."

"Internet medical and pharmaceutical e-commerce are still in the early stages of development in China. The market is still in the lead-in period and has not yet entered the growth period. Major platforms are still focusing on cultivating user habits. However, medical e-commerce and Internet medical Don’t over-promote, because medicine is not an ordinary commodity. So pharmaceutical e-commerce will follow the normal expansion rhythm and will develop, but not too fast. For Internet medical and pharmaceutical e-commerce platforms, once the critical point of profit and loss is exceeded, future performance will increase It will be very stable. That is, the possibility of sustained profitability is greater." Pan Helin told the reporter of "Kechuangban Daily".

Supply chain comparison: temporarily dominates and Ali is catching up.

JD Health’s prospectus shows that as of June 30, 2020, JD Health’s The online retail platform has more than 10 million products, settled in more than 9,000 third-party merchants, and has 11 drug-dedicated warehouses and more than 230 non-drug warehouses nationwide. The O2O service "Jingdong Medicine Express" covers more than 200 cities across the country. , Provide home delivery service within 30 minutes.

Although Alibaba Health started late in the O2O business, it is catching up. According to the fiscal year 2020 performance announcement, as of March this year, Alibaba Health’s "30-minute delivery, 7*24-hour drug delivery" service has covered 14 major cities including Hangzhou, Beijing, Guangzhou, Shenzhen, Wuhan, Shanghai, and Chengdu. .

In addition, Alibaba Health also launched an "emergency drug delivery" service in conjunction with Hummingbird. It has been launched in more than 140 cities across the country and will expand to more cities in the future.

User comparison: Alibaba has more traffic

According to the JD Health prospectus, as of June 30, 2020, JD Health’s online e-commerce platform The number of active users is 72.5 million; in the first half of 2020, JD Health's daily average online consultation volume is about 90,000, and the platform has more than 150 million cumulative users.

As of March 31, 2020, the number of annual active consumers in Alibaba Health's online self-operated stores has 48 million; the total annual merchandise transactions generated by its Tmall pharmaceutical e-commerce platform ( GMV) exceeds 83.5 billion yuan, and the annual active consumers have exceeded 190 million, an increase of 30 million compared to six months ago.

Also, the traffic of the entire Alibaba system far exceeds that of the JD system. In terms of user base, Alibaba is currently absolutely dominant.

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The contest between JD Health and Ali Health will continue. Returning to the industry itself, it is no accident that giants entered the track. As early as a few years ago, Jack Ma proposed the "Double H Strategy". It is clearly stated that the field where the next BAT-sized company is most likely to be born is medical and health.

Liu Qiangdong also said frankly to Xin Lijun (CEO of JD Health) early in the morning, "We are not sure how much we can get into health. But I feel that this thing is done, scale It is equivalent to recreating a Jingdong".

Regarding the industry prospects, Pan Helin believes that Internet medical and pharmaceutical e-commerce have a bright future, "because it meets the consistent characteristics of e-commerce replacing traditional retail, e-commerce has unlimited shelves and can cover consumers There are various medical needs, and Internet medical treatment can also allow patients to avoid waiting for medical treatment and alleviate congestion in hospitals."

However, Pan Helin also pointed out to the "Science Innovation Board Daily" reporter, "Medicine e-commerce and Internet medical services are still not the only medical sales channels at this stage. Unlike the commodity field, medicine belongs to the In the field of supervision, if e-commerce channels are released, the difficulty of supervision will be greatly increased. Therefore, Internet medical and pharmaceutical e-commerce are currently complementary to pharmaceutical sales channels, rather than mainstream."

Tags: O2O Alibaba JD