ALI HEALTH(00241)2024-11-13 10:17Revenue and Profit Growth - Total revenue increased to RMB 14,273.7 million, up 10.2% year-over-year[2] - Net profit rose to RMB 769.0 million, a 72.8% increase year-over-year[2] - Adjusted net profit reached RMB 977.6 million, up 52.2% year-over-year[2] - Revenue for the period reached RMB 14,273,724,000, a 10.2% increase compared to the same period last year, driven by steady growth in pharmaceutical self-operated and e-commerce platform businesses[23] - Adjusted net profit increased by 52.2% to RMB 977,582,000, reflecting strong operational performance[22] - Revenue increased to RMB 14,273,724 thousand in 2024 from RMB 12,956,000 thousand in 2023, representing a growth of approximately 10.2%[51] - Gross profit rose to RMB 3,533,765 thousand in 2024, up from RMB 2,868,668 thousand in 2023, reflecting a 23.2% increase[51] - Net profit attributable to the parent company's owners increased to RMB 768,953 thousand in 2024 from RMB 445,891 thousand in 2023, a significant growth of 72.5%[51] - Adjusted net profit increased to RMB 977,582,000, driven by growth in self-operated pharmaceutical business and operational efficiency improvements[37] Pharmaceutical Business Performance - Pharmaceutical e-commerce platform revenue surged 67.5% to RMB 1,710.5 million[2] - Self-operated pharmaceutical business revenue reached RMB 12,120.9 million, up 5.9% year-over-year[2] - SKUs under self-operated business grew 6.1% to 810,000[2] - The company's self-operated pharmaceutical business revenue reached RMB 12,120.9 million, a year-on-year increase of 5.9%, with SKUs growing by 6.1% to 810,000[11] - Pharmaceutical self-operated business revenue grew by 5.9% to RMB 12,120,866,000, attributed to expanded product categories and improved user experience[24][25] - Pharmaceutical e-commerce platform business revenue surged by 67.5% to RMB 1,710,492,000, driven by platform expansion and enhanced service offerings[26] - Revenue from pharmaceutical self-operated business reached RMB 12,120,866 thousand, an increase from RMB 11,446,663 thousand in the same period last year[64] - Revenue from pharmaceutical e-commerce platform business grew to RMB 1,710,492 thousand, up from RMB 1,021,241 thousand in the previous year[64] Platform and User Growth - Annual active consumers on the Taotian medical health platform exceeded 300 million[2] - GMV on Tmall Health platform grew steadily, with online SKUs increasing over 20% to 78 million[2] - Number of merchants served increased by over 25% to more than 40,000[2] - The number of SKUs on the Tmall Health platform increased by over 20% to 78 million, and the number of merchants served grew to over 40,000[9] - Tmall Health platform's annual active consumers exceeded 300 million, with GMV achieving high-quality and stable growth over the past six months[9] Healthcare Services and Innovation - Number of contracted healthcare professionals providing online consultation services exceeded 230,000, an increase of over 20,000 from the previous year[3] - The number of registered physicians, pharmacists, and nutritionists providing online health consultation services exceeded 230,000, an increase of over 20,000 compared to the previous fiscal year[13] - The revenue from healthcare and digital services decreased by 9.4% to RMB 442.4 million, while certain innovative businesses like Xiaolu TCM maintained stable growth[13] - The Xiaolu TCM business saw a nearly 3x year-on-year increase in orders for products like herbal paste and Sanfu patches[14] - The company launched the "New Product Explosion Plan," investing 10x resources to support 100 health-related new products, with tailored strategies for 10 key products[10] - The company collaborated with leading brands to launch innovative products, such as low-concentration atropine eye drops for children and oral contraceptives for women[11] - Revenue from healthcare and digital services decreased by 9.4% to RMB 442,366,000[27] - Revenue from healthcare and digital services business decreased to RMB 442,366 thousand from RMB 488,096 thousand in the same period last year[64] Strategic Initiatives and Partnerships - The "Ma Shang Fang Xin" traceability platform has established deep partnerships with over 600 leading pharmaceutical companies[16] - The company plans to expand its "Cloud Pharmacy," "Cloud Hospital," and "Cloud Infrastructure" strategies, aiming to serve 500 million users within five years[21] - The "Hearing Aid Action 2024" initiative aims to establish 25 community hearing test points by November 2024, targeting over 200,000 community users[19] - The rare disease care platform expanded from 2 to 17 rare diseases, serving over 1,000 patients and allocating RMB 7.43 million in donations[18] - The company continues to invest in AI and big data models to enhance user experience and search efficiency in the medical e-commerce sector[17] Financial Metrics and Expenses - Gross profit increased by 23.2% to RMB 3,533,765,000, with gross margin rising to 24.8% from 22.1%[22] - Fulfillment expenses increased by RMB 16,796,000 to RMB 1,265,604,000, but the ratio to self-operated pharmaceutical revenue decreased to 10.4% from 10.9%[29] - Sales and marketing expenses increased by 12.8% to RMB 980,698,000, accounting for 6.9% of total revenue[30] - Administrative expenses increased by 7.9% to RMB 182,867,000, maintaining a stable ratio of 1.3% of total revenue[31] - Product development expenses decreased slightly by RMB 93,000 to RMB 319,221,000, with the ratio to total revenue dropping to 2.2% from 2.5%[32] - Other income and gains decreased to RMB 326,586,000, mainly due to reduced investment disposal gains[33] - Other expenses and losses increased significantly to RMB 267,956,000, primarily due to impairment losses on investments in associates[34] - Loss from a joint venture amounted to RMB 9,982,000, compared to a profit of RMB 1,588,000 in the same period last year[35] - Gross profit increased by 23.2% to RMB 3,533,765,000, with gross margin rising to 24.8% from 22.1%[28] - Other income and gains totaled RMB 326,586 thousand, a slight decrease from RMB 336,078 thousand in the same period last year[66] - Pre-tax profit was impacted by a financial asset impairment loss of RMB 11,221 thousand, compared to a reversal of RMB 2,415 thousand in the previous year[69] - Employee benefit expenses, including salaries and bonuses, amounted to RMB 533,110 thousand, down from RMB 572,590 thousand in the same period last year[69] - Total tax expense for the six months ended September 30, 2024, was RMB 52,021 thousand, compared to RMB 36,128 thousand for the same period in 2023[70] Cash Flow and Financial Position - Cash and cash equivalents decreased to RMB 7,442,897,000 as of September 30, 2024, from RMB 9,553,110,000 as of March 31, 2024[40] - Net cash generated from operating activities was RMB 562,160,000 for the six months ended September 30, 2024, compared to RMB 910,177,000 for the same period in 2023[40] - Net cash used in investing activities was RMB 733,871,000, primarily due to long-term fixed deposits of RMB 2,601,554,000 and purchases of financial assets at fair value through profit or loss of RMB 2,090,000,000[42] - Net cash used in financing activities was RMB 38,693,000, mainly due to lease principal payments of RMB 16,105,000 and share repurchases of RMB 22,928,000[43] - The company had no borrowings as of September 30, 2024, resulting in no gearing ratio[44] - Total employee costs were RMB 533.1 million for the six months ended September 30, 2024, compared to RMB 571.2 million for the same period in 2023[47] - The company had 1,422 full-time employees as of September 30, 2024, down from 1,435 as of March 31, 2024[47] - The company did not declare an interim dividend for the six months ended September 30, 2024[50] - Short-term investments at fair value through profit or loss were approximately RMB 290.8 million as of September 30, 2024, compared to none as of March 31, 2024[49] - The company did not make any significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures during the reporting period[49] - Total comprehensive income for the period was RMB 658,083 thousand in 2024, compared to RMB 830,812 thousand in 2023, showing a decrease of 20.8%[52] - Non-current assets increased to RMB 8,354,690 thousand in 2024 from RMB 6,193,100 thousand in 2023, a growth of 34.9%[53] - Current assets decreased to RMB 11,913,886 thousand in 2024 from RMB 13,512,237 thousand in 2023, a decline of 11.8%[53] - Total equity attributable to the parent company's owners increased to RMB 15,172,358 thousand in 2024 from RMB 14,503,378 thousand in 2023, reflecting a 4.6% growth[54] - The company's cash and cash equivalents decreased to RMB 7,442,897 thousand in 2024 from RMB 9,553,110 thousand in 2023, a reduction of 22.1%[53] - Long-term fixed deposits increased significantly to RMB 3,085,190 thousand in 2024 from RMB 694,000 thousand in 2023, a growth of 344.5%[53] - The company's total liabilities decreased to RMB 5,019,078 thousand in 2024 from RMB 5,187,733 thousand in 2023, a reduction of 3.2%[54] Corporate Governance and Reporting - The company's board of directors approved the interim financial statements on November 13, 2024[78] - The company has adopted corporate governance practices in line with the Corporate Governance Code, with the exception of providing monthly updates to the board, which are provided as needed[79] - During the reporting period, the company did not purchase, redeem, or sell any of its listed securities, except for the acquisition of 7,934,000 shares under the 2014 Share Award Plan[81] - No significant changes in the company's financial position since the annual report as of March 31, 2024[83] - The interim results for the reporting period have been reviewed by the Audit Committee and the independent auditor, Ernst & Young, with no objections to the accounting methods[84] - The interim report will be published on the Hong Kong Stock Exchange website (www.hkex.com.hk) and the company's website (www.irasia.com/listco/hk/alihealth), and will be sent to shareholders in due course[85] Tax and Regulatory Compliance - The company's mainland China entities are subject to a corporate income tax rate of 25%, with two subsidiaries enjoying a preferential tax rate of 15% due to their status as high-tech enterprises, and one subsidiary in Hainan Free Trade Port also benefiting from a 15% tax rate[71] - The company did not declare an interim dividend for the six months ended September 30, 2024, consistent with the same period in 2023[72] - Basic earnings per share for the six months ended September 30, 2024, were calculated based on a profit attributable to ordinary shareholders of RMB 768,953 thousand and a weighted average number of ordinary shares of 16,064,987,934[73] - The company acquired property and equipment with a total cost of RMB 3,114 thousand and sold property and equipment with a net book value of RMB 407 thousand, resulting in a loss of RMB 173 thousand for the six months ended September 30, 2024[74] - Accounts receivable and notes receivable totaled RMB 843,306 thousand as of September 30, 2024, with accounts receivable from Alibaba Group affiliates amounting to RMB 414,950 thousand[75][76] - Accounts payable and notes payable totaled RMB 3,036,811 thousand as of September 30, 2024, including RMB 419,701 thousand payable to Alibaba Group affiliates[77] - The company's liabilities classification as current or non-current remained unchanged after the application of the revised accounting standards[59] Market and Customer Focus - Over 95% of the company's revenue and non-current assets are derived from external customers and are located in Mainland China[61] - No single external customer accounted for 10% or more of the company's total revenue during the six months ended September 30, 2024[62]