Revenue and Growth - Total revenue for the six months ended September 30, 2023, was RMB 12,956.0 million, representing a year-on-year growth of 12.7%[8] - Revenue from the self-operated pharmaceutical business reached RMB 11,446.7 million, an increase of 13.5% year-on-year[8] - Revenue from medical health and digital services reached RMB 488.1 million, a year-on-year increase of 16.4%[14] - The company reported a total comprehensive income of RMB 830 million for the six months ended September 30, 2023, compared to RMB 698 million in the same period last year[83] - The company reported a net profit of RMB 162,194,000 for the period, compared to a loss of RMB 1,311,393,000 in the previous year, indicating a substantial turnaround[87] User Engagement and Market Presence - The number of online self-operated store user members reached 77 million, reflecting a year-on-year growth of 21.0%[8] - The Tmall Health platform offered over 64 million stock-keeping units (SKUs) and served more than 32,000 merchants[8] - The total number of contracted healthcare professionals providing online consultation services exceeded 210,000, an increase of nearly 30,000 compared to the same period last year[8] - The Tmall Health platform served over 32,000 merchants, an increase of more than 4,000 compared to September 30, 2022[11] Financial Performance - Gross profit reached RMB 2,869 million, up 24.7% from RMB 2,301 million year-over-year, with a gross margin of 22.1%, an increase of 2.1 percentage points[26] - Adjusted net profit for the reporting period was RMB 642,473,000, an increase from RMB 351,587,000 in the same period last year, driven by user growth and operational efficiency improvements[34][36] - Operating expenses increased to RMB 2,513 million, compared to RMB 2,131 million in the prior year, primarily due to higher sales and marketing expenses[82] Cash Flow and Liquidity - Net cash flow from operating activities was RMB 910,177,000, significantly up from RMB 504,049,000 in the same period last year[39] - Cash and cash equivalents as of September 30, 2023, were RMB 11,697,450,000, an increase from RMB 10,917,171,000 as of March 31, 2023[37] - The company’s cash flow from operating activities showed a strong performance, indicating robust operational efficiency and growth potential[89] Expenses and Cost Management - Fulfillment expenses for the self-operated pharmaceutical business were RMB 1,249 million, an increase of 28.1% from RMB 974 million, with fulfillment costs accounting for 10.9% of self-operated revenue, up from 9.7%[28] - Sales and marketing expenses for the reporting period were RMB 869,376,000, an increase of RMB 10,486,000 or 1.2% compared to RMB 858,890,000 in the same period last year, with the proportion of total revenue decreasing from 7.5% to 6.7%[29] - Administrative expenses decreased to RMB 169,531,000, down RMB 3,807,000 or 2.2% from RMB 173,338,000 in the same period last year, with the proportion of total revenue decreasing from 1.5% to 1.3%[30] Share Capital and Equity - The issued share capital as of September 30, 2023, was RMB 119,240,000, with 13,533,328,542 shares issued, compared to RMB 119,133,000 with 13,521,362,542 shares as of March 31, 2023[126] - The total number of shares available for share awards under the service provider limit is 1,347,159,007 shares, representing approximately 9.95% of the total issued shares[52] - The company has adopted a share incentive plan, which was revised on August 11, 2023, allowing the board to grant share awards to eligible participants[51] Corporate Governance and Compliance - The company has adopted the corporate governance code and has complied with all applicable code provisions during the reporting period, except for the dual role of the chairman and CEO[74] - The company will separate the roles of chairman and CEO effective November 28, 2023, with the appointment of a new CEO[75] - The company’s interim report for the reporting period was reviewed by the audit committee and independent auditor Ernst & Young, with no objections to the accounting treatment adopted[77] Investments and Future Plans - The company plans to allocate approximately HKD 996.4 million to further develop digital infrastructure and innovative businesses, with an expected remaining amount of HKD 980.5 million to be utilized by March 31, 2027[72] - The company is focused on exploring innovative business models and developing industry sectors based on customer needs[9] - The company aims to become a digital health management company serving 500 million people within five years, focusing on user-driven health management[19] Fair Value and Financial Instruments - The fair value of financial assets measured at fair value through profit or loss as of September 30, 2023, was RMB 1,883,292,000, with a total loss recognized in profit or loss of RMB 88,956,000 during the six months[152] - The fair value of equity investments measured at fair value through other comprehensive income decreased to RMB 116,891,000, with total losses recognized in other comprehensive income amounting to RMB 12,837,000[152] - The company believes that the estimated fair values derived from valuation techniques are reasonable and reflect the current market conditions[143]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容 而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 ALIBABA HEALTH INFORMATION TECHNOLOGY LIMITED 阿里健康信息技術有限公司 （於百慕達註冊成立之有限公司） （股份代號：00241） 截至2023年9月30日止六個月 中期業績公告 阿里健康信息技術有限公司（「本公司」或「阿里健康」）董事（「董事」）會（「董事會」）欣然公 佈本公司及其附屬公司（統稱「本集團」）截至2023年9月30日止六個月（「報告期」）之未經 審核中期業績，連同去年同期（「同期」）的未經審核比較數字。本公司審核委員會已審閱 中期簡明綜合財務報表。 | --- | |----------------------------------------------------------------------------------| | | | 摘要 | | 報告期內，本集團收入保持穩定增長，總收入達到約人民幣 12,956.0 百萬元，同比增長 ...

User Growth and Platform Performance - Annual active consumers on Tmall Health platform reached nearly 300 million, serving over 28,000 merchants as of March 31, 2023[4] - Online self-operated stores' annual active consumers exceeded 130 million, an increase of over 20 million compared to 110 million as of March 31, 2022[4] - Self-operated user membership reached 75 million, a year-on-year increase of 47.4%[4] - Annual active consumers on the company's online self-operated stores exceeded 130 million, an increase of over 20 million compared to the previous year[12] - The number of pharmaceutical self-operated user members reached 75 million, a year-on-year increase of 47.4%[12] - Annual active users on the Tmall Health platform reached nearly 300 million[13] - Tmall Health platform served over 28,000 merchants, an increase of more than 2,000 compared to the previous year[10] Healthcare Services and Consultation - Nearly 200,000 licensed physicians, pharmacists, and nutritionists provided online health consultation services, an increase of over 40,000 compared to the previous fiscal year[5] - Daily online consultations exceeded 400,000 during the reporting period[5] - The company served nearly 9 million chronic disease patients, a year-on-year increase of 35.2%[5] - The number of licensed physicians, pharmacists, and nutritionists providing online health consultation services reached nearly 200,000, an increase of over 40,000 compared to the previous year[10] - Daily online consultation service volume exceeded 400,000 times[10] - The number of licensed physicians, pharmacists, and nutritionists providing online health consultation services increased by nearly 40,000 to nearly 200,000 as of March 31, 2023[15] - Daily online consultation service volume exceeded 400,000 as of March 31, 2023[15] - The number of chronic disease users served reached nearly 9 million, a year-on-year increase of 35%[16] Logistics and Operational Efficiency - The company's logistics network expanded to 39 warehouses across 22 locations, significantly improving operational efficiency[4] - The company has established a distribution network with 39 warehouses in 22 locations, significantly improving operational efficiency through intelligent tools[12] Medical Terminology and Drug Coverage - The Chinese clinical terminology set released by the company includes nearly 600,000 medical terms and 2.2 million semantic relationships[5] - The Chinese drug terminology set covers nearly 30,000 clinical drugs[5] Revenue and Financial Performance - Total revenue reached RMB 26,763.0 million, a year-on-year increase of 30.1%[10] - Revenue from the company's pharmaceutical self-operated business reached RMB 23,591.6 million, up 31.7% year-on-year[10] - The company's healthcare and digital services business revenue reached RMB 933.5 million, a year-on-year increase of 45.7%[15] - Revenue increased by 30.1% to RMB 26,763,016,000 in 2023, driven by rapid growth in the pharmaceutical self-operated business and healthcare and digital services[24] - Gross profit rose by 38.8% to RMB 5,701,334,000, with gross margin improving to 21.3% from 20.0% due to operational efficiency and pricing power[28] - Pharmaceutical self-operated business revenue grew by 31.7% to RMB 23,591,577,000, supported by expanded product categories and enhanced user experience[25] - Healthcare and digital services revenue surged by 45.7% to RMB 933,486,000, driven by diversified healthcare services and the development of the "Code Assurance" traceability platform[27] Expenses and Profitability - Fulfillment expenses increased by 38.6% to RMB 2,907,137,000, accounting for 12.3% of pharmaceutical self-operated business revenue, up from 11.7% due to pandemic-related costs[30] - Sales and marketing expenses decreased by 10.7% to RMB 1,768,675,000, reflecting optimized advertising strategies[31] - Product development expenses dropped by 7.0% to RMB 677,822,000 due to cost control and R&D strategy optimization[33] - Adjusted net profit turned positive at RMB 751,369,000, compared to a loss of RMB 394,259,000 in the previous year, driven by user growth and operational efficiency[36] - Adjusted net profit for the year ended March 31, 2023, was RMB 751.369 million, compared to a net loss of RMB 394.259 million in 2022[38] Cash Flow and Financial Position - Cash and cash equivalents as of March 31, 2023, were RMB 10.917 billion, up from RMB 10.548 billion in 2022[39] - Net cash generated from operating activities for 2023 was RMB 255.690 million, a decrease from RMB 424.363 million in 2022[40] - Net cash used in investing activities for 2023 was RMB 532.436 million, primarily due to increased term deposits and acquisition activities[42] - Net cash used in financing activities for 2023 was RMB 111.278 million, mainly for lease principal payments and share repurchases[43] - The company had no borrowings as of March 31, 2023, resulting in a capital gearing ratio of zero[44] Employee and Workforce Metrics - Total employee costs for 2023 were RMB 1.223 billion, down from RMB 1.303 billion in 2022[47] - The company had 1,560 full-time employees as of March 31, 2023, compared to 1,870 in 2022[47] - The company had 1,560 full-time employees as of March 31, 2023, compared to 1,870 in the previous year[55] Shareholder and Corporate Governance - The company did not recommend paying a final dividend for the reporting period[58] - A trustee of the share incentive plan purchased 25,258,000 shares of the company for a total consideration of HKD 90,000,000 (RMB 81,582,000) in October 2022[59] - The company completed a share placement in August 2020, issuing 498,753,118 new shares at HKD 20.05 per share, raising a net amount of HKD 9,964.2 million[60] - The total gross proceeds from the placement were approximately HKD 10,000.0 million, with net proceeds (after deducting commissions and expenses) amounting to approximately HKD 9,964.2 million, equivalent to a net issue price of approximately HKD 19.98 per share[61] - As of March 31, 2023, the company has utilized HKD 2,413.2 million of the net proceeds for the development of its pharmaceutical and healthcare products omnichannel business, with an additional HKD 1,536.9 million used during the reporting period, leaving HKD 4,021.3 million to HKD 5,017.7 million unused, expected to be fully utilized by March 31, 2027[62] - The company has utilized HKD 655.1 million of the net proceeds for the further development of its digital infrastructure and innovation business, with an additional HKD 237.4 million used during the reporting period, leaving HKD 103.9 million to HKD 1,100.3 million unused, expected to be fully utilized by March 31, 2027[62] - The company has no distributable reserves as of the end of the reporting period, but it has a share premium account of approximately RMB 43,734,076,000 that can be distributed as fully paid bonus shares[65] - The sales to the top five customers accounted for less than 30% of the total sales for the year, and the purchases from the top five suppliers accounted for less than 30% of the total purchases for the year[65] - The company has engaged external consultants to identify significant environmental, social, and governance (ESG) issues and assist in reporting the company's performance in line with its ESG management policies, strategies, priorities, and targets[66] - Li Faguang resigned as a non-executive director effective May 15, 2023, and Huang Jiaojiao was appointed as a non-executive director on the same date[67] - Luo Tong and Huang Jing'an, independent non-executive directors, have decided not to seek re-election at the 2023 Annual General Meeting and will retire after the meeting[67] - The company has three independent non-executive directors, constituting at least one-third of the board, and the composition of the board, audit committee, and remuneration committee fully complies with the relevant listing rules[68] - Directors are eligible to receive share awards under the Share Award Scheme, with details provided in the consolidated financial statements[70] - The company's share incentive plan, adopted on November 24, 2014, is valid for ten years until November 23, 2024, aiming to reward and retain key personnel contributing to the group's development[71] - The total number of shares involved in unexercised share awards as of March 31, 2023, is 116,561,925, distributed across various special authorizations from 2015 to 2022[73] - As of March 31, 2023, and the report date, a total of 399,112,399 shares (approximately 2.95% of the total issued shares) remain available for issuance under the 2022 special authorization[73] - The share incentive plan allows for the issuance of shares up to 3% of the total issued shares at the adoption date or the new approval date for updating the plan authorization limit[72] - The vesting period for share awards and restricted share units under the share incentive plan ranges from one to six years[72] - The company granted 2,900,000 share options on June 15, 2020, with a vesting period of six years[75] - A total of 1,290,125 share options were granted on June 15, 2022, with an exercise price of 4.920[75] - The company issued 500,000 restricted share units on June 15, 2020, with a vesting period of six years[75] - 516,050 restricted share units were granted on June 15, 2022, with a vesting period of six years[75] - The total number of share options granted to the top three highest-paid directors is 1,469,875, with an exercise price of 4.920[75] - The company issued 537,000 restricted share units on December 15, 2020, with a vesting period of four years[75] - 947,311 restricted share units were granted on September 15, 2022, with a vesting period of one year[75] - The total number of restricted share units granted to the top three highest-paid directors is 1,535,261[75] - 508,000 shares were granted on September 7, 2015, with an exercise price of 5.184 HKD per share[77] - 1,838,000 shares were granted on July 29, 2016, with an exercise price of 2.228 HKD per share[77] - 2,020,250 shares were granted on October 10, 2017, with an exercise price of 4.400 HKD per share[77] - 689,500 shares were granted on February 1, 2018, with an exercise price of 4.144 HKD per share[77] - 966,750 shares were granted on June 15, 2020, with an exercise price of 19.54 HKD per share[77] - 119,000 shares were granted on September 15, 2020, with an exercise price of 18.660 HKD per share[77] - 838,000 shares were granted on June 15, 2021, with an exercise price of 18.212 HKD per share[77] - 100,000 shares were granted on December 15, 2021, with an exercise price of 7.438 HKD per share[77] - 750,000 shares were granted on March 15, 2022, with an exercise price of 4.240 HKD per share[77] - 3,237,750 shares were granted on June 15, 2022, with an exercise price of 4.920 HKD per share[77] - The company's share price on the Hong Kong Stock Exchange was HKD 20.65 on June 12, 2020, HKD 17.90 on June 11, 2021, and HKD 4.74 on June 14, 2022[78] - The weighted average closing price of shares before the exercise of employee stock options was HKD 6.20 per share, with the number of shares issuable under the stock incentive plan representing 0.05% of the weighted average number of issued shares during the reporting period[78] - The company's top five highest-paid employees include Zhu Shunyan, who holds 6,695,925 shares (0.05% of the company's equity), Shen Difan with 3,020,300 shares (0.02%), and Tu Yanwu with 1,361,203 shares (0.01%)[81] - Zhu Shunyan holds 3,109,392 shares in Alibaba Group (0.02% of the issued shares), while Shen Difan holds 177,480 shares and Tu Yanwu holds 12,400 shares[83] - The company uses a binomial model to estimate the fair value of stock options, which involves subjective and uncertain estimates of inputs such as expected volatility, dividend yield, exercise multiple, risk-free rate, and expected forfeiture rate[79] - Alibaba Group Holding Limited holds a 57.05% stake in the company, representing 7,713,318,533 shares[88] - Perfect Advance Holding Limited holds a 22.95% stake, representing 3,103,816,661 shares[88] - Ali JK Nutritional Products Holding Limited holds a 33.73% stake, representing 4,560,785,407 shares[88] Service Agreements and Fees - The total service fees under the 2023 Cloud Computing Services Framework Agreement amounted to approximately RMB 107.0 million, compared to RMB 139.6 million in the same period last year[91] - The annual cap for service fees under the 2024 Cloud Computing Services Framework Agreement is set at RMB 160 million[92] - The total service fees received under the 2023 Entrusted Services Framework Agreement amounted to approximately RMB 105.9 million, compared to RMB 103.7 million in the same period last year[93] - The annual cap for service fees under the 2024 Entrusted Services Framework Agreement is set at RMB 200 million[93] - The annual service fee cap under the 2023 Platform Service Framework Agreement was RMB 560 million, with actual service fees incurred amounting to approximately RMB 267.0 million (compared to RMB 282.5 million in the same period last year)[95] - The annual service fee cap under the 2024 Platform Service Framework Agreement is set at RMB 600 million[95] - The annual incentive fee cap under the 2023 Agency Agreement was RMB 25 million, with actual incentive fees received being zero (compared to RMB 3.5 million in the same period last year)[96] - The annual incentive fee cap under the 2024 Agency Agreement remains at RMB 25 million[96] - The annual service fee cap under the 2023 Logistics Service Framework Agreement was RMB 450 million, with actual service fees incurred amounting to approximately RMB 225.2 million (compared to RMB 301.2 million in the same period last year)[97] - The annual service fee cap under the 2024 Logistics Service Framework Agreement is set at RMB 420 million[97] - The 2023 Shared Services Agreement with Alibaba Group has an annual cap of RMB 500 million for services provided to the company and RMB 50 million for services provided to Alibaba Group[98] - The total service fees incurred under the 2023 Shared Services Agreement were RMB 246.7 million for services provided to the company and zero for services provided to Alibaba Group[98] - The 2024 Shared Services Agreement has an annual cap of RMB 549.5 million for services provided to the company and RMB 162 million for services provided to Alibaba Group[98] - The 2021-2023 Framework Technical Services Agreement had annual caps of RMB 100 million, RMB 130 million, and RMB 170 million for the fiscal years ending March 31, 2021, 2022, and 2023, respectively[100] - The total service fees incurred under the 2021-2023 Framework Technical Services Agreement were approximately RMB 74.2 million[100] - The 2023 Framework Technical Services Agreement has an annual cap of RMB 1,100 million, with total service fees incurred of approximately RMB 820.4 million[101] - The 2024 Framework Technical Services Agreement has an annual cap of RMB 1,400 million[101] - The annual service fee under the 2020-2023 Taobao Framework Technical Service Agreement was RMB 262 million, RMB 464 million, and RMB 799 million for the fiscal years ending March 31, 2021, 2022, and 2023, respectively[103] - The service fee incurred under the 2020-2023 Taobao Framework Technical Service Agreement during the reporting period was approximately RMB 320.8 million (same period: approximately RMB 259.8 million)[103] - The renewed 2024 Taobao Framework Technical Service Agreement has an annual cap of RMB 620 million for the period from April 1, 2023, to March 31, 2024[103] - The service fee under the 2023 Payment Service Framework Agreement had an annual cap of RMB 137 million, with the actual service fee incurred during the reporting period being approximately RMB 78.8 million (same period: approximately RMB 65.2 million)[105] - The renewed 2024 Payment Service Framework Agreement also has an annual cap of RMB 137 million for the period from April 1

Financial Performance - For the fiscal year ending March 31, 2023, Alibaba Health reported total revenue of approximately RMB 26,763.0 million, representing a year-on-year growth of 30.1%[5] - The company achieved a gross profit of RMB 5,701.3 million, which is a 38.8% increase from the previous year[5] - The adjusted net profit for the year was RMB 751.4 million, compared to a loss of RMB 394.3 million in the previous year[5] - The company's revenue for the fiscal year ending March 31, 2023, was RMB 26,763,016,000, an increase of RMB 6,185,400,000 or 30.1% compared to RMB 20,577,616,000 in the previous year[20] - Gross profit reached RMB 5,701,334,000, up RMB 1,593,341,000 or 38.8%, with a gross margin of 21.3%, an increase from 20.0% in the prior year[24] - The company reported a profit before tax of RMB 550,994 thousand, a significant recovery from a loss of RMB 252,514 thousand in the previous year[46] - Net profit attributable to equity holders of the parent company was RMB 533,407 thousand, compared to a loss of RMB 265,555 thousand in 2022, marking a turnaround in profitability[46] - Basic earnings per share for the year was RMB 3.95, compared to a loss per share of RMB 1.97 in the previous year[46] Revenue Breakdown - The revenue from the self-operated pharmaceutical business was approximately RMB 23,591.6 million, reflecting a year-on-year increase of 31.7%[3] - The healthcare and digital services business reported revenue of RMB 933,486,000, a significant increase of 45.7% compared to the previous year[23] - Revenue from the pharmaceutical e-commerce platform business totaled RMB 2,237,953,000, representing a 10.5% increase year-on-year[22] - Revenue from product sales was RMB 22,578,076 thousand, up 32% from RMB 17,128,890 thousand in 2022[58] - Revenue from services provided reached RMB 4,184,940 thousand, an increase of 21.3% from RMB 3,448,726 thousand in the previous year[58] User Engagement and Growth - The active users on the Tmall Health platform reached nearly 300 million, with an average annual spending on health products continuing to rise[3] - The number of active consumers in the online self-operated stores exceeded 130 million, an increase of over 20 million compared to the previous year[3] - The number of chronic disease users served by the company approached 9 million, with a year-on-year growth of 35.2%[4] - The number of pharmaceutical self-operated user members reached 75 million, reflecting a year-on-year growth of 47.4%[9] - The average daily online consultation service volume exceeded 400,000, with nearly 200,000 licensed healthcare professionals providing online health consultation services[7] Operational Efficiency - The company has established a distribution network with 39 warehouses across 22 locations, enhancing operational efficiency through smart supply chain systems[3] - The group has formed strategic partnerships with hundreds of pharmaceutical companies, establishing 19 "Health Care Centers" for comprehensive health management services[9] - The group is focused on leveraging digital technology and operational capabilities to provide accessible and efficient healthcare services to millions of families[7] Cash Flow and Financial Position - Cash and cash equivalents as of March 31, 2023, were RMB 10,917,171,000, up from RMB 10,547,851,000 a year earlier[35] - Net cash flow from operating activities was RMB 255,690,000, a decrease from RMB 424,363,000 in the previous year[36] - The company reported a net cash outflow from investing activities of RMB 532,436,000, primarily due to increases in time deposits and cash used for acquisitions[38] - The company had no outstanding borrowings as of March 31, 2023, indicating a capital debt ratio of zero[40] Corporate Governance - The company has maintained compliance with corporate governance codes, ensuring shareholder and stakeholder interests are protected[74] - The audit committee reviewed the annual performance, confirming alignment with the consolidated financial statements for the reporting period[77] - The board of directors includes executive and independent members, ensuring a balanced governance structure[79]

2022 中 期 報 告 ❤ 阿里健康 阿里健康信息技術有限公司 於百慕達註冊成立之有限公司 | 股份代號: 00241 目錄 02 03 18 29 31 32 33 35 37 40 公司資料 | --- | |--------------------------| | | | | | 管理層討論與分析 | | 企業管治及其他資料 | | 未經審核中期財務資料 | | 獨立審閱報告 | | 中期簡明綜合損益表 | | 中期簡明綜合全面收益表 | | 中期簡明綜合財務狀況表 | | 中期簡明綜合權益變動表 | | 中期簡明綜合現金流量表 | | 中期簡明綜合財務資料附註 | 阿里健康信息技術有限公司 公司資料 | --- | --- | |-------------------------------------------|-----------------------------------------------------| | | | | 董事會 | 註冊辦事處 | | | Victoria Place | | 執行董事 | 5th Floor | | 朱順炎先生 （主席兼首席執行官） | 31 ...

Digital Health and Internet Healthcare - Alibaba Health reported significant growth in the internet healthcare and digital health sectors during the fiscal year ending March 31, 2022, driven by the ongoing COVID-19 pandemic[4]. - The company emphasized the importance of digital economy development plans, highlighting internet healthcare as a key component of China's "14th Five-Year Plan" for digital economy[4]. - Alibaba Health is focusing on enhancing its strategic business layout, leveraging leading digital technologies and operations capabilities, with a core focus on "cloud pharmacy" and "cloud hospital" services[4]. - The company aims to provide accessible, efficient, and safe healthcare services to millions of families, supported by continuous technological innovation[4]. - Regulatory frameworks such as the "Internet Diagnosis and Treatment Supervision Rules" and the "Online Drug Sales Supervision Regulations" are expected to guide the standardized development of internet healthcare and pharmaceutical e-commerce[4]. - The company has received recognition for its practices in internet healthcare and digital health at international forums, indicating its leadership in the industry[4]. - Alibaba Health is committed to maintaining high compliance and quality control standards while exploring new opportunities in the internet healthcare sector[4]. - The company is positioned to benefit from increased government support and guidance in the digital health industry, which is expected to expand further during the "14th Five-Year" period[4]. - The strategic focus on digital health aligns with national health planning initiatives aimed at improving chronic disease management and healthcare services through internet applications[4]. - Alibaba Health's initiatives are expected to contribute to the overall growth and standardization of the internet healthcare industry in China[4]. Financial Performance - The total revenue for the reporting period reached RMB 20,577.6 million, representing a year-on-year growth of 32.6%[10]. - The self-operated pharmaceutical business generated revenue of RMB 17,911.1 million, with prescription drug revenue increasing by 105.2%[13]. - The revenue from medical health and digital services grew by 98.9% year-on-year, amounting to approximately RMB 670.2 million[5]. - The company reported a net loss of RMB 265,941,000 for the fiscal year, compared to a profit of RMB 342,680,000 in the previous year[27]. - Other income and gains for the year ended March 31, 2022, amounted to RMB 899,494,000, an increase of RMB 493,666,000 or 121.6% compared to the previous fiscal year[35]. - The gross profit for the same period was RMB 4,107,993,000, representing a 13.6% increase from RMB 3,617,249,000, with a gross margin of 20.0%, down from 23.3%[34]. User Engagement and Growth - The annual active consumers on the online self-operated store exceeded 110 million, with a daily online consultation service volume reaching 300,000[5]. - The annual active users on the Alipay health channel reached 690 million, an increase of 170 million compared to the previous fiscal year[11]. - Daily online consultation service volume reached 300,000, an increase of 50,000 compared to six months prior[11]. - The number of chronic disease users served reached 6.5 million, a year-on-year increase of 119%[20]. Strategic Initiatives and Acquisitions - The acquisition of Xiaolu Traditional Chinese Medicine was completed, with registered TCM doctors increasing by 36% to 76,000, serving nearly 10 million patients[6]. - The company plans to enhance its cancer screening services through collaboration with medical institutions and the integration of AI technology[26]. - Future initiatives include expanding vaccine service offerings and improving the overall user experience in vaccination processes[27]. - The company aims to leverage its cloud infrastructure to provide comprehensive healthcare services, integrating online and offline medical services[26]. Operational Efficiency and Compliance - Alibaba Health's "Future Hospital" information system significantly improved operational efficiency for four clinical areas of Zhejiang University First Affiliated Hospital[8]. - The company trained nearly 10,000 grassroots doctors through the "Yidie Valley Together Learning" project, enhancing healthcare accessibility[8]. - The company established a comprehensive online and offline healthcare service system, with nearly 160,000 contracted healthcare professionals[5]. - The company continues to focus on digital infrastructure and AI in healthcare, enhancing service quality and operational standards[8]. Governance and Corporate Structure - The board of directors believes that the company has complied with all significant legal and regulatory requirements in Hong Kong and mainland China as of the report date[57]. - The board consists of seven members, including three executive directors and three independent non-executive directors, ensuring a diverse range of experience and expertise[151]. - The company emphasizes the importance of effective communication with customers to enhance service quality and customer experience[57]. - The independent non-executive directors confirmed their independence according to the listing rules, ensuring no significant relationships with the company[151]. Risk Management and Compliance - The company has established a comprehensive risk management system that integrates qualitative and quantitative methods for risk identification, assessment, and response[181]. - The risk management strategy focuses on optimizing the risk management framework to ensure stable growth and sustainable development of the business[184]. - The company has implemented data security management practices, including data collection, transmission, storage, encryption, and access control measures[194]. - The company has a disaster recovery plan and emergency response procedures to maintain operational continuity in case of system disruptions[194]. Future Outlook and Projections - The company provided guidance for the next fiscal year, projecting revenue growth of 25% to $1.875 billion[147]. - New product launches are expected to contribute an additional $200 million in revenue, with a focus on expanding the healthcare technology segment[145]. - The management team emphasized the importance of digital transformation, aiming for a 30% increase in online sales channels[146]. - The company is considering strategic acquisitions to enhance its product offerings, with a budget of $100 million allocated for potential mergers and acquisitions[145].

Financial Performance - Total revenue for the fiscal year ending March 31, 2021, reached RMB 15,518.5 million, representing a significant year-on-year growth of 61.7%[11]. - The gross profit for the same period was RMB 3,617,249,000, reflecting a growth of 62.1% from RMB 2,231,380,000 in the prior year[28]. - The adjusted net profit for the fiscal year ending March 31, 2021, was RMB 630,663,000, a significant increase of RMB 419,359,000 or 198.5% compared to RMB 211,304,000 in the previous fiscal year[43]. - The company reported an operating profit of RMB 439,632,000, a significant increase of 919.4% from RMB 43,126,000 in the previous year[28]. - The medical health services revenue reached RMB 284.1 million, representing a year-on-year growth of 12.4%[18]. - The pharmaceutical e-commerce business revenue reached RMB 15,181.5 million, a year-on-year increase of 63.2%, with over 33 million SKUs available[13]. - The self-operated pharmaceutical business revenue amounted to RMB 13,216.3 million, reflecting a year-on-year growth of 62.5%, with drug revenue from the "Ali Health" brand increasing by 86.1%[14]. User Engagement and Growth - The GMV of Alibaba Health's Tmall pharmaceutical platform reached RMB 123.2 billion, with annual active users totaling 280 million[6]. - The GMV of healthcare-related products on the Tmall pharmacy platform was RMB 123.2 billion, an increase of 47.5% year-on-year[11]. - The annual active users on the Tmall pharmacy platform exceeded 280 million, while the annual active users on the Alipay healthcare channel surpassed 520 million[11]. - The number of annual active consumers on the self-operated platform reached 81 million, indicating a strong user engagement[14]. - The "Yilv" app achieved 1 million monthly active users within six months of its launch, establishing a solid foundation for future growth[7]. Digital Transformation and Innovation - The company aims to address the issues of medical service accessibility and information asymmetry through digital transformation in the healthcare sector[7]. - The company is committed to building a comprehensive service ecosystem that integrates "medicine, pharmacy, and insurance" through digital technology[5]. - The company recognizes the importance of digitalization in the healthcare industry and aims to provide solutions for interoperability and foundational work in medical knowledge[7]. - The company is focusing on digital healthcare infrastructure and strategic investments in AI and big data solutions, partnering with leading firms like Zero-K and Alibaba Cloud[25]. - The company plans to innovate commercial health insurance products to meet the growing demand for self-funded healthcare services driven by rising disposable income[7]. Logistics and Supply Chain - The proportion of next-day delivery service for self-operated drugs increased from 34.9% to 50.1% year-on-year, enhancing logistics efficiency[11]. - The new retail model has expanded to cover nearly 30 cities with a "30-minute delivery" service and over 300 cities with a one-hour urgent delivery service[17]. - The partnership with top pharmaceutical companies has strengthened supply chain capabilities, enhancing digital marketing efforts to reach target markets[14]. - The company aims to leverage Cainiao Group's logistics data platform and global delivery network to provide efficient and reliable logistics services to meet customer needs[100]. Strategic Partnerships and Collaborations - The company has established partnerships with over 3,000 public and private health examination institutions, providing diverse testing services across more than 180 cities[21]. - The collaboration with Cainiao Network aims to establish a global logistics service for pharmaceutical traceability, enhancing safety for overseas market expansion[24]. - The company continues to innovate in healthcare services, including the launch of a tuberculosis treatment platform in collaboration with the Zhang Wenhong "Blue Farm Charity Fund"[12]. Risk Management and Compliance - The company has established internal control procedures to ensure compliance with pricing policies for related party transactions, with independent reviews conducted by internal audit functions[122]. - The company has implemented a comprehensive data security management system, including training for all employees on data protection and confidentiality[193]. - The company has established a three-tier risk management organizational structure, including governance, management, and execution levels, to effectively manage risks across various business areas[188]. - The company emphasizes the importance of risk management training and accountability mechanisms to enhance employees' awareness of risk management strategies[195]. Corporate Governance - The board consists of seven members, including two executive directors, two non-executive directors, and three independent non-executive directors[157]. - The company believes that effective corporate governance is essential for protecting shareholder interests and enhancing shareholder value[154]. - The board has mechanisms in place to ensure good corporate governance practices are maintained[155]. - The company has adopted a diversity policy for board members, considering factors such as gender, age, and professional experience since June 19, 2014[172]. Environmental, Social, and Governance (ESG) Initiatives - The company plans to strengthen its ESG commitments by integrating social responsibility into its development strategy, aligning with the national "Healthy China 2030" initiative[197]. - The company is focused on energy conservation and environmental management, participating in public welfare activities to enhance its environmental impact[200]. - The company has engaged consultants to identify significant environmental, social, and governance (ESG) issues and report on its performance in accordance with its ESG policies[75].

COVID-19 Response and Initiatives - AliHealth launched free online medical consultation services for overseas Chinese on March 8, 2020[13] - The company provided 3 million affordable masks daily to Hubei province starting March 2, 2020[12] - AliHealth delivered life-saving medications to 13 million chronic disease patients in Hubei by February 25, 2020[11] - The company introduced AI-assisted COVID-19 screening technology in dozens of grassroots hospitals on March 13, 2020[13] - AliHealth launched the "Global COVID-19 Combat Sharing (GMCC)" platform on March 23, 2020, offering free online health consultation services for overseas Chinese[13] - The company collaborated with nearly 50 pharmaceutical companies to ensure the supply of chronic disease medications during the pandemic on February 13, 2020[9] - AliHealth initiated the "Buy Medicine Without Leaving Home" service on February 6, 2020[9] - The company launched a free intelligent community epidemic prevention mini-program on February 10, 2020[9] - AliHealth introduced the "Close Contact Query" function for confirmed or suspected cases on February 14, 2020[10] - The company established a national "Nucleic Acid Testing" platform on April 21, 2020, to promote the resumption of work and production[13] - AliHealth partnered with over 2,000 public and private medical institutions to provide COVID-19 nucleic acid testing services across more than 100 cities[30] - AliHealth organized 13 webinars for African countries, Indonesia, and Sri Lanka, with nearly 10,000 volunteer doctors from 120 countries and regions participating in the global COVID-19 medical sharing initiative[27] - The company's COVID-19 AI screening technology, developed in collaboration with Alibaba Cloud and DAMO Academy, has been adopted by over 550 hospitals in China and extended to overseas hospitals, including those in Japan[34] E-commerce and Platform Growth - Alibaba Health's Tmall Healthcare platform achieved a GMV of RMB 83.5 billion with over 190 million annual active consumers[14] - The company's "30-minute delivery, 7*24-hour medicine delivery" service covers 14 cities including Hangzhou, Beijing, Guangzhou, and Shanghai[14] - Alibaba Health operates over 80 brand flagship stores on Tmall Healthcare platform, achieving strong sales performance[18] - Tmall Healthcare platform's GMV exceeded RMB 83.5 billion, with annual active consumers surpassing 190 million, an increase of over 30 million compared to six months ago[20] - The company's O2O prescription drug business was fully launched, establishing a compliant system for online follow-up consultations and prescription issuance, and achieved online medical insurance payment pilot in Quzhou, Zhejiang Province[22] - The company's online self-operated stores (Ali Health Pharmacy and Ali Health Overseas Flagship Store) had over 48 million annual active consumers as of March 31, 2020[23] - The company deepened cooperation with O2O alliance merchants and upstream brands, establishing full-chain cooperation with over 20 brands including Dong-E-E-Jiao and Yunnan Baiyao[23] - The company's "30-minute delivery, 7*24-hour drug delivery" service covered 14 cities, and the "urgent drug delivery" service was launched in over 140 cities nationwide[22] - The company actively participated in the "Spring Thunder Plan" to help SMEs and local governments, and significantly increased the GMV growth rate of five major tonic industry belts including goji berries, donkey-hide gelatin, bird's nest, ginseng, and notoginseng[20] - The company successfully incubated dozens of new product categories in various sub-markets, meeting the increasing health and wellness needs of consumers[20] - The company's acquisition of key pharmaceutical categories during the reporting period is expected to directly benefit from performance enhancement effects and create crucial development opportunities for the prescription drug business[21] - The company will continue to explore and invest in the pharmaceutical new retail sector, optimizing service experiences and strengthening consumer online drug purchasing habits[23] AI and Digital Healthcare Innovations - Alibaba Health launched the "Chronic Disease Welfare Plan," offering services like cloud doctors, direct drug supply, and personalized medication guidance for chronic disease patients[14] - The company developed AI engines for digital orthodontics, epilepsy, dynamic ECG, and COPD, which are being applied in offline medical institutions and external medical service platforms[14] - The company successfully launched the "Healthy Yuhang Smart Cloud" project in Yuhang District, Hangzhou, which aids in regional healthcare resource monitoring and provides predictive and operational analysis through data[34] - The company developed and deployed four AI engines: Digital Orthodontic AI Engine, Epilepsy AI Engine, Dynamic ECG AI Engine, and COPD AI Engine, with applications in health management and medical services[34] - The company's subsidiary, Xi Niu Medical Technology, developed an AI-based cloud hospital information platform, which has been implemented at Zhejiang University School of Medicine's First Affiliated Hospital[35] - The company's intelligent health cloud platform has secured projects in multiple provinces across China, aiming to reduce healthcare IT upgrade costs and improve data utilization efficiency[35] - The company plans to leverage its experience from the "Healthy Yuhang Smart Cloud" project to expand its regional ecosystem and explore new business models in collaboration with partners like Alibaba Cloud[35] - The company aims to promote the widespread adoption of its intelligent health cloud platform in China's regional digital healthcare infrastructure market, supporting hierarchical medical systems and county-level medical alliances[35] - The company's brain health screening AI engine, utilizing EEG quantitative analysis, has been deployed in medical examination institutions to screen for risks such as depression, Alzheimer's, and epilepsy[34] - The company's regional intelligent health cloud platform focuses on digitizing all healthcare institutions within a region, enhancing interoperability between healthcare systems and public health systems[35] - The company's AI-driven healthcare solutions aim to improve resource allocation, reduce service costs, and deliver accessible healthcare services to the public[35] Financial Performance and Revenue Growth - Revenue for the fiscal year ending March 31, 2020, reached RMB 9,596,476 thousand, an 88.3% increase compared to the previous year, driven by rapid growth in pharmaceutical self-operated, e-commerce platform, and consumer healthcare businesses[39] - Pharmaceutical self-operated business revenue grew by 92.4% to RMB 8,133,945 thousand, attributed to expanded product categories, improved customer experience, and increased brand partnerships[41] - E-commerce platform business revenue increased by 69.6% to RMB 1,170,333 thousand, supported by acquisitions from Alibaba Group and expansion of O2O services[40] - Consumer healthcare business revenue rose by 67.1% to RMB 214,287 thousand, driven by partnerships with medical and health service providers and enhanced brand penetration[43] - Internet healthcare business revenue surged by 221.2% to RMB 38,420 thousand, reflecting the company's exploration of monetization models in online health consultations[42] - Traceability and digital healthcare business revenue grew by 2.0% to RMB 39,491 thousand, with over 90% of Chinese pharmaceutical manufacturers and 100% of vaccine manufacturers using the "Code Assured" platform[44] - Gross profit increased by 67.6% to RMB 2,231,380 thousand, although the gross margin decreased from 26.1% to 23.3% due to higher costs[38] - Adjusted net profit surged by 114.8% to RMB 261,443 thousand, reflecting improved operational efficiency and cost management[38] - The company achieved national certification for vaccine and drug traceability standards, becoming the first third-party platform to meet these requirements[36] - The "Code Assured" platform expanded its application to medical devices, food, and other health-related industries, serving over 1,500 brands and achieving breakthroughs in hospital traceability scenarios[36] - Gross profit increased by RMB 900,117,000 or 67.6% to RMB 2,231,380,000, with a gross margin of 23.3%, down from 26.1% last year[45] - Fulfillment expenses increased by RMB 526,131,000 or 92.0% to RMB 1,098,254,000, driven by rapid growth in B2C retail revenue, with fulfillment expenses as a percentage of B2C retail revenue decreasing by 1% year-over-year[46] - Sales and marketing expenses increased by RMB 267,882,000 or 58.9% to RMB 722,720,000, primarily due to increased traffic acquisition costs and investments in sales operations and innovative business personnel[47] - Administrative expenses increased by RMB 38,957,000 or 21.5% to RMB 219,973,000, mainly due to increased backend support costs, travel expenses, and professional fees[48] - Product development expenses increased by RMB 33,825,000 or 15.4% to RMB 252,843,000, driven by an increase in R&D personnel to support internet and digital healthcare initiatives[49] - Other income and gains increased by RMB 94,255,000 or 140.6% to RMB 161,269,000, primarily due to higher interest income, government subsidies, and gains from the disposal of an associate[50] - Other expenses increased by RMB 31,266,000 or 1,249.6% to RMB 33,768,000, mainly due to losses on financial assets measured at fair value and higher inventory write-offs and exchange losses[51] - Finance costs decreased by RMB 6,001,000 or 21.5% to RMB 21,965,000, as the company fully repaid loans from Alibaba Group during the year[52] - Share of losses from joint ventures increased to RMB 12,737,000, up from RMB 737,000 last year, primarily due to initial investment stages of joint ventures[53] - Adjusted net profit increased by RMB 139,714,000 to RMB 261,443,000, reflecting strong growth in the pharmaceutical e-commerce platform and self-operated businesses, as well as contributions from the consumer healthcare business[55] - Cash and cash equivalents increased by RMB 2,314,610,000 or 825.6% from RMB 280,371,000 as of March 31, 2019, to RMB 2,594,981,000 as of March 31, 2020, primarily due to new share issuance to Alibaba Group and Ant Financial, as well as net cash inflows from operating activities[59] - Net cash generated from operating activities for the year ended March 31, 2020, was RMB 583,615,000, driven by profit before tax from continuing operations of RMB 9,094,000 and adjustments for non-cash items and working capital changes[62] - Net cash generated from investing activities for the year ended March 31, 2020, was RMB 1,345,385,000, mainly due to the redemption of financial assets at fair value through profit or loss amounting to RMB 1,357,034,000[63] - Net cash generated from financing activities for the year ended March 31, 2020, was RMB 328,814,000, primarily from new share issuance of RMB 2,000,580,000 and repayment of borrowings from Alibaba Group of RMB 1,700,000,000[64] - The company had no borrowings as of March 31, 2020, resulting in a capital-to-debt ratio of zero, consistent with the previous year[65] - Total employee costs for the year ended March 31, 2020, were RMB 685.7 million, compared to RMB 550.7 million in the previous year, with the number of full-time employees increasing to 990 from 808[67] - Short-term investments at fair value through profit or loss as of March 31, 2020, were approximately RMB 402.5 million, representing 5.1% of the company's total assets, with no single financial institution exceeding RMB 251.7 million or 3.2% of total assets[68] - Acquired Ali JK ZNS Limited for a total consideration of HKD 8,075,000,000, paid through the issuance of 860,874,200 shares to Ali JK in April 2020[69] - The company's full-time employee count increased to 990 as of March 31, 2020, up from 808 in the previous year[72] - Raised HKD 2,272,320,000 through the issuance of 302,976,000 shares to Ali JK and Antfin at HKD 7.5 per share in July 2019[75] - Allocated 50% of the net proceeds from the share issuance to repay loans and recruit technical and operational staff for internet medical services and smart pharmaceutical services[77] - Allocated 25% of the net proceeds to past and ongoing investment projects, including investments in pharmaceutical chains and companies engaged in drug distribution and medical informatization[77] - Reserved 25% of the net proceeds for future strategic investment opportunities[77] - Net proceeds of HK$1,136,160 thousand were fully utilized for loan repayment and recruitment[78] - HK$49,680 thousand out of the planned HK$568,080 thousand was used for committed and under-review investments, leaving HK$518,400 thousand unused[78] - No equity securities were issued for cash during the fiscal year ending March 31, 2020[79] - No debentures or equity-linked agreements were issued during the fiscal year ending March 31, 2020[80] - The company's share premium account, amounting to approximately RMB 22,344,732, can be distributed as fully paid bonus shares[81] - Sales to the top five customers accounted for less than 30% of total sales, and purchases from the top five suppliers accounted for less than 30% of total purchases for the fiscal year ending March 31, 2020[82] - The company has engaged external consultants to identify significant ESG issues and assist in reporting on ESG performance[83] Corporate Governance and Leadership - Zhu Shunyan was appointed as Executive Director, Chairman, and CEO effective March 16, 2020[85] - The company has three independent non-executive directors, constituting at least one-third of the board, and complies with relevant listing rules[86] - No directors have service contracts that cannot be terminated without compensation (other than statutory compensation) within one year[88] - The company's share incentive plan was adopted on November 24, 2014, and is valid for ten years until November 23, 2024[90] - The total number of shares that can be awarded under the share incentive plan should not exceed 3% of the issued shares as of the adoption date[90] - As of March 31, 2020, a total of 114,439,841 shares were awarded but not yet exercised under various special authorizations[90] - The total number of shares that can still be awarded under the 2019 special authorization is 332,852,242 shares, representing 2.76% of the total issued shares as of March 31, 2020[90] - The share incentive plan allows the board to select employees or other individuals to participate and determine the number of shares to be awarded[90] - Mr. Wang Qiang holds 4,000,000 unexercised stock options with an exercise price of HKD 4.400, granted on October 10, 2017[92] - Mr. Wang Lei exercised 7,491,000 stock options with an exercise price of HKD 5.184, granted on September 7, 2015[92] - Mr. Shen Difan (resigned in 2020) holds 4,095,000 unexercised stock options with an exercise price of HKD 7.240, granted on June 8, 2018[92] - Employees exercised 7,404,500 stock options with an exercise price of HKD 5.184, granted on September 7, 2015[92] - Employees hold 5,056,250 unexercised stock options with an exercise price of HKD 5.558, granted on July 29, 2016[92] - Employees hold 1,251,250 unvested restricted stock units, granted on July 29, 2016[92] - Employees hold 2,460,500 unexercised stock options with an exercise price of HKD 3.626, granted on February 2, 2017[92] - Employees hold 5,433,000 unexercised stock options with an exercise price of HKD 3.686, granted on August 3, 2017[92] - Employees hold 2,856,500 unexercised stock options with an exercise price of HKD 4.400, granted on October 10, 2017[92] - Employees hold 19,496,200 unvested restricted stock units, granted on June 14, 2019[92] - The closing price per share on the Hong Kong Stock Exchange before the grant date on September 4, 2015, was HKD 5.02[93] - The closing price per share on the Hong Kong Stock Exchange before the grant date on July 28, 2016, was HKD 5.55[93] - The closing price per share on the Hong Kong Stock Exchange before the grant date on June 7, 2018, was HKD 7.34[93] - The closing price per share on the Hong Kong Stock Exchange before the grant date on October 19, 2015, was HKD 5.69[93] - The closing price per share on the Hong Kong Stock Exchange before the grant date on April 27, 2016, was HKD 5.23[93] - The closing price per share on the Hong Kong Stock Exchange before the grant date on October 7, 2016, was HKD 4.30[93] - The closing price per share on the Hong Kong Stock Exchange before the grant date on February 1, 2017, was HKD 3.59[93] - The closing price per share on the Hong Kong Stock Exchange before the grant date on February 21, 2017, was HKD 3.62[93] - The closing price per share on the Hong Kong Stock Exchange before the grant date on June 13, 2017, was HKD 3.92[93] - The closing price per share on the Hong Kong Stock Exchange before the grant date on August