Investment Rating - The report maintains a "Buy" rating for JD Health (06618 HK) [6] Core Views - JD Health achieved revenue of RMB 53 5 billion in 2023 a YoY increase of 14 5% with self-operated product revenue reaching RMB 456 5 billion (up 13 1%) and service revenue at RMB 78 8 billion (up 23 7%) [1] - The company's gross margin increased by 1 0 percentage points to 22 2% driven by product mix changes and annual profit surged 459 2% to RMB 2 14 billion [1] - Adjusted Non-IFRS net profit reached RMB 4 14 billion a YoY increase of 58 1% [1] - Annual active users grew to 172 million as of December 31 2023 a net increase of 18 million from the previous year [1] - Third-party merchants exceeded 50 000 a YoY growth of over 100% and daily online consultations surpassed 450 000 [1] Business Performance Self-operated Product Revenue - Self-operated product revenue reached RMB 456 5 billion in 2023 with prescription drugs non-prescription drugs and other categories accounting for 41% 29% and 30% respectively [2] - The company's diversified product matrix and digital marketing strategies are expected to drive cross-category purchases [2] Service Revenue - Service revenue grew 23 7% YoY to RMB 78 8 billion driven by increased advertising clients and higher commissions from third-party merchants [2] - The company is expanding its online and offline healthcare integration with daily online consultations exceeding 450 000 [2] Instant Retail and Offline Services - JD Health provides 24-hour instant retail services in over 480 cities and collaborates with more than 120 000 offline pharmacies [2] - The company has launched self-operated community pharmacies in Beijing and operates JD Health physical examination centers and hospitals [2] Financial Metrics - Gross profit increased 20 0% YoY to RMB 118 7 billion with a gross margin of 22 2% up 1 0 percentage point from 2022 [3] - Fulfillment expense ratio was 9 9% (up 0 2 percentage points) sales expense ratio was 5 0% (up 0 3 percentage points) and general and administrative expense ratio improved by 0 9 percentage points to 3 7% [3] - The R&D expense ratio remained stable at 2 3% [3] Future Outlook - Revenue forecasts for 2024 2025 and 2026 are adjusted to RMB 620 billion RMB 727 billion and RMB 854 billion respectively [4] - Adjusted net profit for 2024 2025 and 2026 is projected at RMB 41 billion RMB 48 billion and RMB 53 billion respectively [4] - The company is expected to strengthen its position as a leading self-operated pharmaceutical e-commerce platform with continued user penetration and industry-leading supply chain capabilities [4] Company Data - Total shares outstanding: 3 189 12 million [5] - Market capitalization: HKD 88 338 49 million [5] - Net asset value per share: HKD 17 09 [5] - Asset-liability ratio: 23 20% [5] - 52-week high/low: HKD 60 40/HKD 25 25 [5]

Group 1 - The 2024 JD Suqian Marathon will take place on March 31 in Suqian City, featuring various events including a full marathon, half marathon, fun run, and parent-child run, showcasing local landmarks [2][4] - The event is organized by the Jiangsu Provincial Sports Bureau, the Publicity Department of the Jiangsu Provincial Committee of the Communist Party of China, and the Suqian Municipal People's Government [2] - JD Health is sponsoring the marathon and has partnered with various brands to provide nutritional support and energy supplies for participants [5][6] Group 2 - Over 30 medical staff from Suqiu Hospital will provide free health services such as blood pressure and heart rate monitoring during the marathon [4] - Participants are advised to maintain a healthy diet, ensure adequate vitamin and mineral intake, and prepare for recovery post-race to alleviate fatigue and muscle tension [5] - JD Health is promoting the event through its app, offering discounts on health products to encourage participants to maintain their fitness [6]

2024 年3 月28 日 医药: 超配 证券研究报告 / 业绩点评报告 京东健康 (6618 HK, 买入, 目标价: HK$43.57) 毛利率有望持续恢复，服务收入有望保持快速增长 目标价: HK$43.57 当前股价: HK$28.35 • 经营效率提升和存款利息增长导致23 年利润增长超市场预期。 股价上行/下行空间 +54% 52周最高/最低价 (HK$) 64.55/25.25 • 2024 年开始疫情影响逐渐减弱，公司产品收入恢复正常增长。 市值 (US$mn) 11,395 • 维持“买入”评级，下调DCF 目标价至HK$43.57。 当前发行数量(百万股) 3,144 三个月平均日交易額 21 2023 年公司利润超市场预期，毛利率止跌回升：根据公司2023 年报告，京东健康2023 (US$mn) 流通盘占比 (%) 15 年实现营业收入535.3 亿元（同比+14.5%）； 2023 年，公司实现盈利21.4 亿元（同比 主要股东 (%) +459%）；调整后Non-IFRS 净利润达到41.4 亿元（同比+58%）。2023 年，由于产品组 京东健康 68 合变动，公司毛利率上升 1 ...

证券研究报告 | 2024年03月25日 京东健康（06618.HK） 增持 2023H2 财报点评：高基数下收入增长平淡，利润亮眼受益于 利息收入提升 核心观点 公司研究·海外公司财报点评 收入端：2023H2，公司实现营业收入264亿元，同比0增长。分拆看，1） 互联网·互联网Ⅱ 2023年下半年商品收入225亿元，同比-2%，主要系疫情防护物资销量 证券分析师：张伦可 联系人：王颖婕 高基数影响；2）服务收入由2022H2的36亿元增加8%至39亿元，在主 0755-81982651 0755-81983057 zhanglunke@guosen.com.cnwangyingjie1@guosen.com.cn 站生态繁荣的战略下，流量向三方商家倾斜，佣金与广告收入快速增长。 S0980521120004 基础数据 利润端：公司non IFRS净利率从去年同期4.9%升至6.4%，主要受益于 利息收入从2亿快速增长至10亿。经调经营利润率从3.8%降至3.0%， 投资评级 增持(维持) 合理估值 31.00 - 33.00港元 主要由于销售费率提升。1）履约开支从去年同期的26亿上升至27亿， 收盘价 ...

研究报告Research Report 23 Mar 2024 京东健康 JD Health International (6618 HK) 业绩增速超预期，全渠道业务布局加速 The Performance Beats Consensus, The Omnichannel Business Strategy Accelerated [观Ta点bl聚e_焦yem Inevie1s] tment Focus [Tab 维le_ 持Inf 优o] 于大市Maintain OUTPERFORM (Please see APPENDIX 1 for English summary) 事件：公司发布2023年度报告 评级 优于大市OUTPERFORM 现价 HK$28.05 点评 目标价 HK$79.80 收入稳步增长，第三方商家数量快速扩容。2023 年公司实现收 HTI ESG 4.0-4.0-4.0 入535亿元（+14.5%），其中， E-S-G: 0-5, (Please refer to the Appendix for ESG comments) 1. 医药和健康产品销售业务实现收入 457 亿元（+13 ...

Financial Performance - For the fiscal year ending December 31, 2023, JD Health reported revenue of RMB 53,529,941 thousand, a 14.5% increase from RMB 46,736,150 thousand in 2022[3] - The gross profit for the same period was RMB 11,865,336 thousand, reflecting a 20.0% increase from RMB 9,891,508 thousand in the previous year[3] - Operating profit turned positive at RMB 630,848 thousand, compared to an operating loss of RMB 145,120 thousand in 2022[3] - The annual profit reached RMB 2,142,880 thousand, a significant increase of 459.2% from RMB 383,229 thousand in the prior year[3] - Non-IFRS operating profit was RMB 2,478,637 thousand, up 26.5% from RMB 1,959,158 thousand in 2022[3] - JD Health's total revenue for 2023 reached RMB 53.5 billion, representing a year-on-year growth of 14.5%[10] - Revenue from self-operated products was RMB 45.7 billion, showing a year-on-year increase of 13.1%[12] - Service revenue rose by 23.7% from RMB 6.4 billion in 2022 to RMB 7.9 billion in 2023, attributed to increased digital marketing service fees and commission from third-party merchants[21] - Operating costs increased by 13.1% from RMB 36.8 billion in 2022 to RMB 41.7 billion in 2023, primarily due to higher sales of pharmaceutical and health products[22] - Gross profit grew from RMB 9.9 billion in 2022 to RMB 11.9 billion in 2023, with gross margin improving from 21.2% to 22.2%[23] - The annual profit attributable to the company's owners was RMB 2.14 billion in 2023, significantly up from RMB 383.23 million in 2022[42] - The company reported a basic earnings per share of RMB 0.69 for 2023, compared to RMB 0.12 for 2022[42] - The total comprehensive income for the year was RMB 2.82 billion, down from RMB 3.68 billion in 2022, primarily due to foreign currency translation differences[43] User Engagement and Services - The number of annual active users reached 172.3 million, with an average of over 450,000 online consultations per day in 2023[10] - JD Health is focusing on enhancing its supply chain infrastructure and expanding its online health consumption platform to reach a broader base of users[6] - The company is accelerating its omnichannel strategy, including the launch of a 24-hour prescription pickup service and an average delivery time of 28 minutes for online orders in Beijing[7] - JD Health is constructing an integrated online and offline service system, including the establishment of online dermatology hospitals and mental health centers[8] - The company has introduced various proactive health management services tailored for different user groups, enhancing its service offerings[8] - JD Health's instant retail business has expanded to over 480 cities, with more than 120,000 partnered offline pharmacies, providing 24/7 service to meet user demands[14] - JD Health's online mental health center has provided personalized consultations to over hundreds of thousands of users, addressing various psychological needs[16] Strategic Initiatives and Innovations - JD Health aims to become a leading platform for global brand growth in the health sector, leveraging its digital marketing capabilities[6] - The company is expanding its strategic partnerships with leading pharmaceutical companies to enhance product offerings and market reach[12] - JD Health is focusing on AI-driven healthcare solutions, launching the medical model "JD Medical Qianxun" based on health knowledge graphs and big data[9] - The company has developed a medical large model, "Jingyi Qianxun," integrating clinical guidelines and expert knowledge to improve healthcare efficiency[17] - JD Health launched several innovative drugs, including the first global treatment for severe alopecia areata and a domestically approved targeted oral drug for psoriasis[12] - The company plans to continue expanding its "Internet + Healthcare" ecosystem, focusing on innovative healthcare solutions and market promotion services in China[46] Financial Position and Cash Flow - Cash and cash equivalents decreased from RMB 18.7 billion at the end of 2022 to RMB 15.0 billion at the end of 2023[33] - Net cash generated from operating activities was RMB 4.6 billion in 2023, down from RMB 5.9 billion in 2022, primarily due to changes in working capital[34] - In 2023, the net cash used in investing activities was RMB 8 billion, an increase from RMB 4.2 billion in 2022, primarily due to deposits in time deposits of RMB 33.4 billion and purchases of financial assets at fair value of RMB 10.3 billion[36] - The net cash used in financing activities decreased significantly from RMB 925.4 million in 2022 to RMB 117.2 million in 2023, mainly due to a reduction in share repurchase payments[37] - As of December 31, 2023, the company had no outstanding borrowings, indicating a capital debt ratio of 0%[37] Corporate Governance and Social Responsibility - JD Health is committed to social responsibility, organizing various public welfare activities, including support for rare disease patients and health initiatives for rural women[9] - The company has established an audit committee to oversee financial reporting and internal control systems, ensuring compliance with governance standards[56] - JD Health's charitable initiatives have conducted 56 activities, donating over RMB 60 million in cash, materials, and services[18] - The company did not declare any dividends for the year 2023, consistent with the previous year[52] Workforce and Employee Compensation - The total number of employees focused on business operations increased to 3,118 as of December 31, 2023, compared to 2,739 in the previous year[39] - Total employee compensation and benefits expenses amounted to RMB 2.9 billion in 2023, down from RMB 3.1 billion in 2022[39] Assets and Liabilities - Total assets increased to RMB 64,288,300 thousand as of December 31, 2023, compared to RMB 61,277,296 thousand as of December 31, 2022, representing a growth of 4.9%[44] - Current assets decreased to RMB 47,849,891 thousand as of December 31, 2023, from RMB 56,447,159 thousand in 2022, a decline of 15.3%[44] - The total trade payables as of December 31, 2023, were RMB 9,660,450 thousand, a decrease of 8.2% from RMB 10,526,029 thousand as of December 31, 2022[52] - The company reported a decrease in trade receivables to RMB 347,962 thousand in 2023 from RMB 954,958 thousand in 2022, a reduction of 63.6%[44] - The aging analysis of trade receivables shows that receivables within 3 months were RMB 303,507 thousand, down from RMB 519,165 thousand year-over-year, indicating a significant decline in short-term receivables[51] Future Outlook - JD Health aims to continue expanding its business base and strategic new categories in 2024, driven by the "Healthy China" strategy[9] - The company plans to reallocate approximately RMB 7.7 billion from R&D to business expansion, reflecting a strategic shift in resource allocation[58] - As of December 31, 2023, the unutilized net proceeds for business expansion were RMB 7,635 million after the reallocation[59] - The annual results announcement will be published on the Hong Kong Stock Exchange and the company's website on March 20, 2024[60]

Core Viewpoint - The 2024 National "Two Sessions" emphasized the need to cultivate new consumption patterns and enhance services for the elderly, promoting the development of the silver economy [1] Group 1: Company Initiatives - JD Health has upgraded its "age-friendly" service system to meet the diverse health needs of the elderly, aligning with national policies [1][3] - The company launched a health and elderly care channel on its app, providing a one-stop shopping experience for health products tailored for seniors [1] - JD Health's elderly care channel includes professional shopping guides to assist elderly users in making informed decisions across eight health care categories [1] Group 2: Service Offerings - The "Year-Round Elderly Care" service was introduced to address the daily care needs of seniors, matching each elderly individual with a dedicated health manager [2] - As of February 2024, the service achieved a health risk identification rate of 98% and a chronic disease intervention rate of 85.3%, with a user satisfaction rate of 95.5% [3] - JD Health aims to continue leveraging its digital health capabilities to enhance elderly care services and contribute to the high-quality development of the elderly care sector in China [3]

Financial Performance - JD Health reported total revenue of RMB 27.1 billion for the first half of 2023, representing a year-on-year growth of 34.0%[9]. - Revenue for the six months ended June 30, 2023, reached RMB 27,110,336 thousand, a 34.1% increase from RMB 20,225,212 thousand in the same period of 2022[95]. - Sales of pharmaceutical and health products amounted to RMB 23,167,780 thousand, up from RMB 17,482,012 thousand, reflecting a growth of 32.5%[95]. - Service revenue, including platform, advertising, and other services, increased to RMB 3,942,556 thousand from RMB 2,743,200 thousand, representing a growth of 43.7%[95]. - Net profit increased significantly from RMB 223.0 million to RMB 1,562.0 million for the respective periods[31]. - The company reported a net profit attributable to owners of RMB 1,561,358 thousand for the six months ended June 30, 2023, compared to RMB 223,552 thousand in the same period of 2022, a growth of 600.5%[100]. - Basic earnings per share increased to RMB 0.50 from RMB 0.07, reflecting strong profitability growth[83]. - Total comprehensive income for the period was RMB 3,115,121 thousand, compared to RMB 2,124,345 thousand in the same period last year, indicating a 46.7% increase[84]. User Engagement and Growth - The number of annual active users reached 168.6 million as of June 30, 2023, an increase of 37.3 million from 131.3 million a year earlier[9]. - Daily online consultation volume exceeded 440,000 during the first half of 2023, showcasing enhanced user engagement[9]. - The average daily online consultation volume of the internet hospital exceeded 440,000 as of June 30, 2023[15]. - The company launched a year-round elderly care service, achieving a user satisfaction rate of 99%[16]. Supply Chain and Product Development - The company expanded its supply chain capabilities and strengthened partnerships with leading pharmaceutical companies to improve product accessibility[11]. - New innovative drugs were launched on JD Pharmacy, including AbbVie's targeted therapy for atopic dermatitis and a new drug developed by Aidi Pharmaceuticals[11]. - The company plans to enhance its medical health service capabilities and supply chain, focusing on the growth potential of retail pharmacy business and immediate retail experience upgrades[20]. Marketing and Digital Strategy - JD Health is focusing on digital marketing strategies to enhance marketing effectiveness and optimize costs across the product lifecycle[11]. - The company is collaborating with brands like Abbott and Omron to establish a digital chronic disease management system for diabetes patients[11]. - JD Health's total revenue growth is supported by the increasing demand for healthcare services driven by favorable government policies promoting "Internet + Healthcare"[9]. Financial Position and Cash Flow - Cash and cash equivalents were RMB 11.9 billion as of June 30, 2023, down from RMB 18.7 billion as of December 31, 2022[35]. - The net cash generated from operating activities was RMB 368.1 million, a significant decrease from RMB 2,256.1 million for the same period in 2022[36][37]. - The net cash used in investing activities for the six months ended June 30, 2023, was RMB 7,240.2 million, compared to RMB 2,810.5 million for the same period in 2022[36][38]. - The company reported a significant increase in financial income to RMB 936,455 thousand from RMB 220,643 thousand year-over-year, highlighting improved financial performance[83]. Employee and Management Compensation - The total employee compensation and benefits expense, including share-based payment, amounted to RMB 1.3 billion for the six months ended June 30, 2023, down from RMB 1.5 billion for the same period in 2022[43]. - The total compensation for directors and key management personnel was RMB 222,514 thousand for the six months ended June 30, 2023, down from RMB 377,716 thousand for the same period in 2022, indicating a decrease of 41.2%[141]. Shareholder Information and Equity Incentives - As of June 30, 2023, Liu Qiangdong holds approximately 402,781,973 shares of JD.com, representing 12.7% of the total ordinary shares and 73.9% of the voting rights[52]. - The company has granted a total of 2,542,276 stock options and rewards during the reporting period, accounting for approximately 0.08% of the company's issued share capital[59]. - The maximum number of shares available for grant under the post-IPO share option plan is 312,708,211 shares, which does not exceed 10% of the shares issued on the listing date[61]. Compliance and Governance - The company has adhered to all applicable provisions of the Corporate Governance Code during the reporting period[71]. - The audit committee has reviewed the interim report and unaudited consolidated financial statements for the six months ending June 30, 2023[73]. - No interim dividend has been proposed by the board for the six months ending June 30, 2023[74]. Related Party Transactions - The company provided marketing services to JD Group, generating revenue of RMB 807,155 thousand for the six months ended June 30, 2023, compared to RMB 524,351 thousand for the same period in 2022, marking an increase of about 54%[135]. - Revenue from logistics and warehousing services provided by JD Group amounted to RMB 1,664,690 thousand for the six months ended June 30, 2023, up from RMB 1,174,458 thousand in the previous year, representing an increase of approximately 42%[135].

Financial Performance - Total revenue for the six months ended June 30, 2023, reached RMB 27,110,336 thousand, representing a year-on-year increase of 34.0% compared to RMB 20,225,212 thousand in the same period of 2022[2] - Gross profit for the same period was RMB 6,203,000 thousand, up 40.5% from RMB 4,414,559 thousand in the previous year[2] - The company reported a pre-tax profit of RMB 1,831,226 thousand, a significant increase of 385.3% from RMB 377,346 thousand in the prior year[2] - Net profit for the period was RMB 1,561,992 thousand, reflecting a remarkable growth of 600.6% compared to RMB 222,958 thousand in the same period last year[2] - Revenue increased by 34.0% from RMB 20.2 billion for the six months ended June 30, 2022, to RMB 27.1 billion for the six months ended June 30, 2023[14] - Gross profit rose from RMB 4.4 billion with a gross margin of 21.8% to RMB 6.2 billion with a gross margin of 22.9%[16] - Net profit increased significantly from RMB 223.0 million to RMB 1,562.0 million for the respective periods[23] - The company reported a net profit of RMB 1.56 billion for the six months ended June 30, 2023, significantly up from RMB 223 million in the prior year, indicating a year-over-year increase of approximately 600%[36] User Engagement and Market Expansion - The number of annual active users reached 168.6 million, an increase of 37.3 million from 131.3 million as of June 30, 2022[4] - Self-operated sales through JD Pharmacy generated revenue of RMB 23,200 million, marking a 32.5% year-on-year growth[6] - Daily average online consultations exceeded 440,000 during the first half of 2023[4] - As of June 30, 2023, the online platform has over 36,000 third-party merchants, with participating merchants and products during the 618 promotion doubling year-on-year[8] - The omnichannel layout covers over 400 cities in China, with more than 1,200 partnered chain brands and over 100,000 cooperative stores, of which over 60% are located in tier-three cities and below[8] Product and Service Development - The company launched several innovative drugs online, including AbbVie's targeted therapy for atopic dermatitis and a new drug developed by Adimab[6] - JD Health is enhancing its digital marketing strategies in collaboration with partners like Abbott and Omron to improve health management services for chronic disease patients[7] - The company aims to enhance the accessibility of pharmaceutical and healthcare products, focusing on the growth potential of retail pharmacy business[13] - Plans to leverage new information technologies, including large language models, for product and service upgrades driven by AI technology[13] - The company is committed to building a closed-loop service model in specialized disease areas to meet diverse healthcare needs[13] - The integration of online and offline medical services is being enhanced through partnerships with healthcare institutions and government departments[13] Financial Position and Cash Flow - Cash and cash equivalents decreased from RMB 18.7 billion at the beginning of the period to RMB 11.9 billion at the end of the period[26] - For the six months ended June 30, 2023, net cash generated from operating activities was RMB 400 million, primarily due to a profit of RMB 1.6 billion, adjusted for non-cash and non-operating items totaling RMB 1.5 billion[28] - For the same period, net cash used in investing activities was RMB 7.2 billion, mainly due to deposits in time deposits of RMB 11.8 billion and purchases of financial assets at fair value of RMB 3.8 billion[29] - Net cash used in financing activities for the six months ended June 30, 2023, was RMB 185 million, primarily due to lease payment principal of RMB 94 million[30] - As of June 30, 2023, the company had no outstanding borrowings, thus no capital debt ratio was presented[31] Operational Efficiency - Operating costs increased by 32.2% from RMB 15.8 billion to RMB 20.9 billion, mainly due to higher sales of pharmaceutical and health products[15] - Fulfillment expenses increased by 31.9% from RMB 1.9 billion to RMB 2.6 billion, while the percentage of fulfillment expenses to revenue slightly decreased from 9.6% to 9.5%[17] - Research and development expenses rose by 26.7% from RMB 486.8 million to RMB 616.9 million, accounting for 2.3% of revenue, down from 2.4%[19] - The company continues to expand its operational network and improve merchant efficiency through targeted marketing and traffic support measures[8] Corporate Governance and Compliance - The company has complied with all applicable code provisions of the Corporate Governance Code during the reporting period[49] - The audit committee reviewed the unaudited consolidated financial statements for the six months ended June 30, 2023, ensuring adherence to accounting policies and internal controls[51] - The company did not declare or pay any dividends for the six months ended June 30, 2023, consistent with the previous year[48]

Financial Performance - Total revenue for 2022 reached RMB 46,736,150 thousand, a 52.3% increase from RMB 30,682,267 thousand in 2021[10] - Gross profit for 2022 was RMB 9,891,508 thousand, up 37.4% from RMB 7,197,282 thousand in 2021[10] - The company reported a net profit of RMB 383,229 thousand for 2022, compared to a net loss of RMB 1,072,818 thousand in 2021[10] - Non-IFRS profit for 2022 was RMB 2,616,292 thousand, an increase of 86.5% from RMB 1,402,095 thousand in 2021[10] - Revenue increased by 52.3% from RMB 30.7 billion in 2021 to RMB 46.7 billion in 2022, driven by a 54.2% increase in sales of pharmaceutical and health products[36] - Service revenue rose by 41.4% from RMB 4.5 billion in 2021 to RMB 6.4 billion in 2022, primarily due to an increase in digital marketing service fees and commissions from third-party merchants[36] - JD Health's self-operated business generated revenue of RMB 40.4 billion, representing a year-on-year growth of 54.2%[22] - The total revenue of the consolidated affiliated entity for the year ended December 31, 2022, was RMB 10,410 million, reflecting a 51.5% increase from RMB 6,898 million in 2021[178] Assets and Equity - Total assets increased to RMB 61,277,296 thousand in 2022, up from RMB 48,002,217 thousand in 2021, representing a growth of 27.5%[11] - Equity attributable to owners of the company rose to RMB 44,780,248 thousand in 2022, compared to RMB 39,853,393 thousand in 2021, marking an increase of 12.4%[11] User Engagement and Services - The annual active user count exceeded 154.3 million, with a net increase of 3.1 million compared to 2021[20] - Daily consultation volume accelerated growth, surpassing 300,000 consultations[20] - Over 100 million patients were served by JD Pharmacy during the reporting period, with significant improvements in chronic disease patient medication adherence[23] - The company established over 150 secondary clinical departments in its internet hospital, with an average of over 300,000 online consultation inquiries per day[28] - During peak periods, the online consultation volume exceeded 1.14 million inquiries in a single day, particularly during the COVID-19 pandemic[28] Strategic Initiatives - The company emphasized the importance of digital health services and the integration of online and offline medical services in response to increasing public health awareness[12] - New regulations in internet healthcare have been implemented, enhancing the quality and accessibility of online medical services[12] - The company aims to create sustainable value for shareholders by focusing on user health needs and long-term quality growth[12] - The company continues to optimize user experience and expand its ecosystem of retail pharmacies and healthcare services[12] - The company aims to enhance its digital-driven health management services, focusing on user health and creating value for stakeholders[18] Partnerships and Acquisitions - The company established strategic partnerships with dozens of pharmaceutical health brands, enhancing supply chain capabilities and digital marketing[13] - The company acquired pet health assets from JD Group, launching the "JD Pet Health" brand for comprehensive pet care services[16] - Strategic partnerships were formed with various brands in the pet health sector, enhancing the supply of pet health products and services[29] Operational Efficiency - Operating costs increased by 56.9% from RMB 23.5 billion in 2021 to RMB 36.8 billion in 2022, driven by increased sales of pharmaceutical and health products through JD Pharmacy[37] - Fulfillment expenses increased by 50.8% from RMB 3 billion in 2021 to RMB 4.5 billion in 2022, while the percentage of fulfillment expenses to revenue slightly decreased from 9.8% to 9.7%[39] - Research and development expenses grew by 19.5% from RMB 892.9 million in 2021 to RMB 1,067.2 million in 2022, with R&D expenses as a percentage of revenue decreasing from 2.9% to 2.3%[42] Leadership and Governance - The CEO, Jin Enlin, has extensive experience in the medical and TMT sectors, having joined JD.com in 2014 and held various key positions[64] - Liu Qiangdong has been the chairman of JD.com since its inception and served as CEO until April 2022, leading the company's growth since its founding in 2004[65] - The company has a strong leadership team with diverse backgrounds in finance, technology, and healthcare, enhancing its strategic decision-making capabilities[66] - The board includes independent directors with significant expertise in investment and healthcare, contributing to robust governance and oversight[66] Risks and Compliance - The company faces several risks, including reliance on JD Group, potential conflicts of interest, and the ability to manage growth and regulatory compliance in a dynamic industry[83] - The company is committed to maintaining good relationships with stakeholders and complying with relevant laws and regulations[82] - The company has faced challenges in maintaining user trust and providing a top-notch user experience in a competitive market[83] Related Party Transactions - The company received RMB 1,659,383 thousand from JD.com under the sales framework agreement, with a proposed annual cap of RMB 3,050,000 thousand[149] - The total amount paid by the company to JD.com for logistics services was RMB 2,795,468 thousand, compared to a proposed cap of RMB 4,300,000 thousand[149] - The company has established a new agreement with JD.com to renew existing continuous related transactions, setting annual caps for the next three years[151] - Independent non-executive directors confirmed that the ongoing related party transactions are conducted on normal commercial terms or better, ensuring compliance with shareholder interests[173] Future Outlook - The company aims to enhance its "retail pharmacy + medical health services" ecosystem and improve supply chain capabilities in 2023[34] - The company is committed to integrating social value with industry value, contributing to the "Healthy China 2030" initiative[35]