ALI HEALTH(HK:00241)2021-12-17 12:00Revenue and Growth - Total revenue for the six months ended September 30, 2021, was RMB 9,357.7 million, representing a year-on-year growth of 30.7%[5] - Revenue from self-operated pharmaceutical business reached RMB 8,119.0 million, with prescription drug business revenue growing by 127.3%[5] - Alibaba Health's pharmaceutical e-commerce business revenue reached RMB 9,129.3 million, a year-on-year increase of 31.1%[7] - The self-operated pharmaceutical business generated revenue of RMB 8,119.0 million, with a year-on-year growth of 34.5%, and prescription drug revenue increased by 127.3%[8] - The revenue from the healthcare and digital services business reached approximately RMB 228.5 million, representing a year-on-year growth of 13.9%[13] - Revenue from mainland China was RMB 8,980.7 million, up 30.0% from RMB 6,911.7 million year-on-year[98] Consumer Engagement and Services - The number of active consumers on the self-operated online store reached 9 million within the past twelve months[5] - The average daily online consultation service volume exceeded 250,000[5] - The number of active consumers in the online self-operated store reached 90 million, reflecting strong user engagement[8] - The company signed contracts with nearly 140,000 healthcare professionals for online health consultation services, an increase of over 80,000 from the previous fiscal year[5] - The appointment success rate for consultations improved by 74.2% year-on-year[14] - The number of active users on the Yiluke APP surpassed 2 million as of September 30, 2021[15] Logistics and Delivery Efficiency - The next-day delivery efficiency for self-operated logistics improved from 50.1% to 60%[5] - The company improved next-day delivery efficiency from 50.1% to 60% in 110 core cities[9] Acquisitions and Business Expansion - The acquisition of Xiao Lu Traditional Chinese Medicine was completed, enhancing the company's core TCM resources[6] - The company acquired Xiaolu Traditional Chinese Medicine, enhancing its internet-based TCM services[19] - The acquisition of International AIQING Technology Investment Co., Ltd. was completed on September 10, 2021, for a total consideration of approximately USD 163,417,000 (RMB 1,053,222,000)[132] - The company also acquired Guangzhou Zhongbailide Clinic for a cash consideration of approximately RMB 2,200,000[138] Financial Performance - The company reported a loss of RMB 231,568,000 for the reporting period, compared to a profit of RMB 278,554,000 in the same period last year[23] - The gross profit for the same period was RMB 1,870,775,000, with a gross margin of 20.0%, down from 26.0% in the previous year[23] - The adjusted net loss amounted to RMB 282,850,000, a significant decrease from the adjusted profit of RMB 435,759,000 in the previous year[38] - The company reported a significant increase in other income and gains, which rose to RMB 386,364,000 from RMB 142,811,000, indicating improved operational efficiency[81] - The company reported a total comprehensive loss for the period of RMB 168,213,000, reflecting a decrease compared to the previous period[86] Expenses and Cost Management - Fulfillment expenses amounted to RMB 979,811,000, an increase of 30.7% from RMB 749,449,000 year-on-year[30] - Sales and marketing expenses rose to RMB 983,714,000, a significant increase of 93.4% from RMB 508,737,000 in the prior year[31] - Administrative expenses were RMB 170,531,000, up 19.2% from RMB 143,003,000[32] - Product development expenses increased to RMB 322,750,000, a 40.7% rise from RMB 229,449,000[33] Cash Flow and Liquidity - Cash and cash equivalents as of September 30, 2021, were RMB 11,256,451,000, down from RMB 11,636,769,000 as of March 31, 2021[39] - Net cash flow from operating activities was RMB 597,704,000, an increase from RMB 566,400,000 in the previous year[40] - The net cash flow from investing activities was RMB 1,341,079,000, primarily due to the sale of time deposits exceeding three months[42] - The company had no outstanding borrowings as of September 30, 2021, resulting in a capital-to-debt ratio of zero[44] Employee and Management - As of September 30, 2021, the total number of full-time employees increased to 1,334 from 1,033 as of March 31, 2021[46] - The total employee cost for the reporting period was RMB 614.5 million, compared to RMB 440.3 million for the six months ended September 30, 2020[46] - The total remuneration for key management personnel for the six months ended September 30, 2021, was RMB 26,948,000, a decrease of 9.8% compared to RMB 29,917,000 for the same period in 2020[155] Corporate Governance and Compliance - The company is committed to maintaining high standards of corporate governance, ensuring the protection of shareholder interests[73] - The independent review of the interim financial results was conducted by Ernst & Young, confirming compliance with Hong Kong Accounting Standards[80] - The board believes that the dual role of the chairman and CEO held by Mr. Zhu is appropriate for effective leadership and strategy execution[73] Related Party Transactions - Related party transactions included marketing services from Alibaba Group amounting to RMB 367.81 million, an increase of 171.5% compared to RMB 135.41 million in the previous year[143] - The company incurred share-based payment expenses of RMB 9.14 million from the ultimate holding company, a decrease of 47.3% from RMB 17.29 million in the previous year[143] Future Outlook and Strategy - The company plans to continue enhancing its medical service capabilities and expand its user base through innovative business models and improved customer experiences[21] - The company aims to deepen its investment in primary healthcare services to provide comprehensive health solutions for users[21] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[81]