ALI HEALTH(00241)2023-11-28 09:00Financial Performance - Total revenue for the six months ended September 30, 2023, reached approximately RMB 12,956 million, representing a year-on-year growth of 12.7%[2] - Gross profit for the same period was approximately RMB 2,868.7 million, with a gross margin of 22.1%[2] - Net profit for the period was approximately RMB 445.1 million, a significant increase of 172.2% compared to RMB 163.5 million in the same period last year[2] - Adjusted net profit for the period was RMB 642.5 million, an increase of 82.7% from RMB 351.6 million in the previous year[4] - The group's revenue for the period ended September 30, 2023, was RMB 12,956 million, an increase of RMB 1,455 million or 12.7% compared to RMB 11,500 million for the same period in 2022[19] - Gross profit for the period was RMB 2,868 million, representing an increase of RMB 568 million or 24.7% from RMB 2,300 million in the previous year, with a gross margin of 22.1%, up 2.1 percentage points[23] - The self-operated pharmaceutical business generated revenue of RMB 11,446.7 million, with a year-on-year increase of 13.5%[10] - Revenue from the medical health and digital services business was RMB 488 million, reflecting a growth of 16.4% year-on-year, supported by the stable development of the "Code on Trust" traceability platform[22] - The company reported revenue of RMB 12,956,000, an increase from RMB 11,500,569 in the previous year, representing a growth of approximately 12.7%[45] - The net profit for the period was RMB 445,143, compared to RMB 163,509 in the previous year, reflecting a significant increase of approximately 172.5%[46] - The total comprehensive income for the period was RMB 830,812, compared to RMB 697,694 in the previous year, showing an increase of approximately 19%[46] User and Market Growth - The number of online self-operated store user members reached 77 million, reflecting a year-on-year growth of 21.0%[3] - The Tmall Health platform served over 32,000 merchants, an increase of over 4,000 compared to the same date last year, with over 6,400 SKUs available[3] - The number of online self-operated store users reached 77 million, reflecting a year-on-year growth of 21.0%[10] - The number of merchants served on the Tmall Health platform exceeded 32,000, an increase of over 4,000 compared to the same period last year[9] - The Tmall Health platform now offers over 64 million SKUs, which is an increase of more than 16 million from the previous year[9] - The number of practitioners providing online health consultation services exceeded 210,000, an increase of over 30,000 compared to the same period last year[12] - The company has expanded its digital patient management capabilities to cover 20 core disease areas, collaborating with 40 well-known pharmaceutical companies[13] Strategic Initiatives - The company is actively enhancing its compliance with new regulations in the internet healthcare sector, which supports its long-term value creation for users[5] - The company has expanded its digital health services, integrating various online and offline healthcare services across multiple platforms[3] - Strategic collaborations with global pharmaceutical companies are being deepened to explore long-term value in the digital health sector[3] - The company is actively exploring innovative business models and expanding its market presence in the health sector, leveraging digital technology and operational capabilities[6] - The company aims to become a digital health management company serving 500 million people within five years, leveraging internet technology for proactive health management[17] - The company is exploring innovative healthcare service models and enhancing its AI capabilities in the medical vertical under regulatory guidance[17] Financial Position and Cash Flow - The net cash flow from operating activities was RMB 910,177,000, attributed to a pre-tax profit of RMB 481,271,000 and various adjustments including non-cash expenses[36] - The net cash flow used in investing activities was RMB 979,406,000, mainly due to an increase in time deposits exceeding three months and cash used for purchasing financial assets[37] - Cash and cash equivalents as of September 30, 2023, were RMB 11,697,450,000, up from RMB 10,917,171,000 as of March 31, 2023[34] - The net cash flow used in financing activities for the reporting period was RMB 30,112,000, primarily due to lease principal payments of RMB 16,696,000 and stock repurchase payments of RMB 13,587,000[38] - As of September 30, 2023, the company had no outstanding borrowings, resulting in a capital-to-debt ratio of 0%[39] - The total employee cost for the reporting period was RMB 572.6 million, a decrease from RMB 630.3 million for the same period in 2022[42] - The company maintained a strong liquidity position, closely monitoring its cash flow to meet ongoing funding needs[40] Expenses and Liabilities - Fulfillment expenses for the pharmaceutical self-operated business amounted to RMB 1,248,808,000, an increase of RMB 274,317,000 or 28.1% compared to RMB 974,491,000 in the same period last year, with fulfillment costs accounting for 10.9% of the pharmaceutical self-operated business revenue, up from 9.7%[25] - Sales and marketing expenses were RMB 869,376,000, a slight increase of RMB 10,486,000 or 1.2% from RMB 858,890,000, while the proportion of total revenue decreased from 7.5% to 6.7% due to optimized promotional and advertising strategies[26] - Administrative expenses decreased to RMB 169,531,000, down RMB 3,807,000 or 2.2% from RMB 173,338,000, with the proportion of total revenue declining from 1.5% to 1.3%[27] - Product development expenses were RMB 319,314,000, a decrease of RMB 4,672,000 or 1.4% from RMB 323,986,000, with the proportion of total revenue declining from 2.8% to 2.5%[28] - The total tax expense for the six months ended September 30, 2023, was RMB 36,128,000, up from RMB 10,466,000 in the same period of 2022, reflecting an increase of approximately 245.5%[72] - The group’s employee benefits expenses totaled RMB 572,590,000 for the six months ended September 30, 2023, down from RMB 630,303,000 for the same period in 2022, reflecting a decrease of approximately 9.2%[71] Corporate Governance - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange's listing rules, ensuring high standards of corporate governance[82] - The roles of the Chairman and CEO are currently held by the same individual, Mr. Zhu Shunyan, since March 16, 2020, to ensure effective leadership and strategy implementation[82] - The interim results for the reporting period have not been audited but have been reviewed by the audit committee and independent auditor, Ernst & Young[86] - The interim report will be sent to shareholders and published on the company's website in due course[87]