ALI HEALTH(00241)2023-12-19 09:59Revenue 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]