ALI HEALTH(00241)2021-06-29 12:00Financial 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].