JD HEALTH(06618)2023-03-22 09:30Financial Performance - Revenue for the year ended December 31, 2022, was RMB 46,736.15 million, representing a year-on-year increase of 52.3% from RMB 30,682.27 million in 2021[3]. - Gross profit for the same period was RMB 9,891.51 million, up 37.4% from RMB 7,197.28 million in 2021[3]. - The company reported a net profit of RMB 383.23 million for the year, a significant recovery from a net loss of RMB 1,072.82 million in 2021[3]. - Non-IFRS operating profit increased by 66.6% to RMB 1,959.16 million, compared to RMB 1,175.66 million in the previous year[3]. - Total revenue for 2022 reached RMB 46.7 billion, representing a year-on-year growth of 52.3%[10]. - Self-operated business revenue amounted to RMB 40.4 billion, showing a year-on-year increase of 54.2%[12]. - Gross profit for 2022 was RMB 9.9 billion, with a gross margin of 21.2%, down from 23.5% in 2021 due to changes in product mix and promotions[26]. - The company achieved a profit of RMB 400 million in 2022, a turnaround from a loss of RMB 1.1 billion in 2021[33]. - Service revenue grew by 41.4% to RMB 6.4 billion in 2022, driven by increased digital marketing service fees and platform usage[24]. - Financial income surged by 88.9% to RMB 864.3 million, mainly due to increased interest income from bank balances and financial products[31]. - The company's non-IFRS profit for the year ended December 31, 2022, was RMB 2,616.3 million, compared to RMB 1,402.1 million in 2021, representing a significant increase[35]. - The company reported a significant increase in cash and cash equivalents to RMB 18.72 billion as of December 31, 2022, compared to RMB 17.25 billion in 2021[48]. - The company experienced a net increase in cash and cash equivalents of RMB 744.2 million in 2022, compared to a net decrease of RMB 14.5 billion in 2021[37]. User Engagement and Services - The number of annual active users exceeded 154.3 million, with a net increase of 3.1 million compared to 2021[10]. - Daily consultation volume accelerated to over 300,000, reflecting enhanced service efficiency through innovative technology[10]. - The company has established 15 patient care centers covering over 41 diseases, significantly improving patient medication adherence[13]. - The company launched new online medical services including "Instant Consultation" and "Night Emergency" to enhance user experience[7]. - The company launched multiple innovative consultation service products, including "Instant Consultation" and "Online Expert," to improve user experience and service quality[18]. - The company has over 1,300 service merchants covering more than 500 cities and regions, providing diverse health services[19]. - The company aims to enhance user growth and engagement through the development of retail pharmacy and online healthcare services[64]. Strategic Initiatives and Partnerships - The company achieved strategic partnerships with dozens of health brands to enhance its supply chain and digital marketing capabilities[6]. - JD Health became the first internet healthcare company to pass the BSI ISO 27799 certification for personal health information security management[8]. - The company partnered with over 100 regional governments and media to launch official online medical service platforms, alleviating pressure on offline medical institutions[18]. - Strategic partnerships were formed with global pharmaceutical companies, enhancing supply chain efficiency and accessibility of innovative drugs[12]. - In 2022, the company collaborated with 19 brands, including Tongrentang Health and By-Health Group, to launch the "Precision Nutrition Navigation Plan" focusing on customized nutrition services[14]. Research and Development - Research and development expenses increased by 19.5% to RMB 1.067 billion in 2022, accounting for 2.3% of revenue, down from 2.9% in 2021[29]. - The company reported a significant increase in research and development expenses, which rose to RMB 105.6 million in 2022 from RMB 98.9 million in 2021[35]. - RMB 7.7 billion is earmarked for R&D, with no funds utilized to date[64]. Financial Management and Investments - The net cash generated from operating activities in 2022 was RMB 5,905.1 million, up from RMB 3,430.7 million in 2021, primarily due to a profit of RMB 383.2 million[38]. - The net cash used in investing activities for 2022 was RMB 42 billion, compared to RMB 178 billion in 2021, indicating a decrease in investment outflows[39]. - The net cash used in financing activities in 2022 was RMB 925.4 million, primarily due to share repurchases amounting to RMB 869 million[40]. - The company completed an acquisition of assets from JD.com, Inc. for a consideration not exceeding USD 355.4 million on June 29, 2022[41]. - The company plans to meet its liquidity requirements through cash generated from operations and net proceeds from global offerings[36]. Corporate Governance - The company has committed to maintaining high standards of corporate governance and compliance with the relevant regulations[57]. - The company has established a nomination committee and a remuneration committee in addition to the audit committee[61]. - The audit committee has reviewed the audited consolidated financial statements for the year ended December 31, 2022, ensuring compliance with accounting policies and internal controls[60].