Core Points - The aging population in Japan, particularly those aged 65 and above living alone, has reached 7 million, highlighting a pressing need for caregiving solutions [1] - The Tokyo valley area has emerged as a practical exploration site for ideal caregiving practices, with various stakeholders collaborating to create a unique care system [1][10] Group 1: Aging Population and Care Needs - Japan's elderly population living alone is projected to continue increasing, necessitating urgent attention to caregiving responsibilities [1] - The valley area in Tokyo has become a focal point for innovative caregiving practices, attracting attention from sociologists and journalists [1][10] Group 2: Caregiving Practices in the Valley - The valley is home to numerous medical and caregiving professionals and volunteer organizations that work together to support the elderly [10][22] - The establishment of home care services, such as the "Bokushiku" nursing station, has been pivotal in meeting the growing demand for in-home care [13][21] Group 3: Unique Care Systems - The valley's care system is characterized by a collaborative effort among various participants, including NPOs, volunteers, and local businesses, creating a supportive environment for the elderly [25][26] - The presence of simple lodgings, known as "shack hotels," provides affordable accommodation for those in need of care, with many residents requiring nursing support [18][21] Group 4: Community and Support - The valley has transformed from a "homeless street" to a "welfare street," showcasing the effectiveness of community collaboration in addressing the needs of vulnerable populations [25] - The integration of care services into daily life, such as medication reminders and financial management, reflects a shift in caregiving responsibilities traditionally held by family members [26]

Core Viewpoint - China has established the world's largest healthcare service and disease prevention system, continuously improving residents' health levels during the "14th Five-Year Plan" period [1] Group 1: Healthcare Accessibility - The goal is to address urgent healthcare needs by ensuring that major illnesses are treated within provinces, general illnesses are managed at city and county levels, and routine health issues are handled at the grassroots level [2] - By the end of 2024, the total number of healthcare institutions in China is expected to reach 1.09 million, with over 90% of residents able to access the nearest medical service point within 15 minutes [2] - The implementation of a "distributed examination, centralized diagnosis" service model has led to mutual recognition of over 200 medical examination projects across 338 cities [2] Group 2: Quality of Public Hospitals - 87% of secondary and higher-level public hospitals have implemented appointment-based services, reducing outpatient waiting times [3] - More than 5,500 hospitals have established "one-stop" service centers, and over 83% of tertiary public hospitals offer day surgery services [3] - The number of internet hospitals has grown to 3,756, with expected online consultation visits reaching 130 million by 2024 [3] Group 3: Focus on Key Demographics - The health services for the elderly have been upgraded, with 6 national centers for elderly medicine established and 84.6% of secondary and higher-level hospitals having geriatric departments [4] - For children, 3 national children's medical centers and 6 regional centers have been set up, with a 49.3% increase in pediatric practitioners since 2020 [4][6] - The number of childcare positions is projected to reach 5.737 million by 2024, a 126% increase from the end of the "13th Five-Year Plan" [6] Group 4: Disease Control and Prevention - A modern disease control system is being constructed, focusing on preventing major epidemic risks and optimizing public health policies [7][8] - The country has successfully achieved WHO certification for malaria elimination, with a continuous decline in tuberculosis incidence and hepatitis infection levels [7] - The vaccination program has been adjusted to improve service efficiency, including the introduction of HPV vaccination for eligible girls [7]

Core Insights - The Chinese government is focused on high-quality development of public hospitals during the "14th Five-Year Plan" period, emphasizing public welfare and improving patient experience [1] Group 1: Hospital Services - 87% of secondary and above public hospitals have implemented appointment-based medical services, reducing outpatient wait times [1] - Over 5,500 hospitals have established "one-stop" service centers, and multidisciplinary treatment models have been promoted in more than 2,000 secondary and above hospitals [1] - 83% of tertiary hospitals are offering day surgery services [1] Group 2: Home Care and Internet Services - A pilot program for unaccompanied care services has been launched, with over 4,000 medical institutions providing more than 60 home care services through "Internet + nursing services" [1] - The number of internet hospitals has reached 3,756 nationwide, providing 130 million medical services last year [1] Group 3: Specialized Medical Services - There has been an increased focus on pediatric and mental health services, with 99.5% of tertiary and 98.4% of secondary public general hospitals offering pediatric services [1] - 99% of cities have at least one hospital providing psychological outpatient services, and 97% have at least one hospital offering sleep disorder outpatient services [1] Group 4: Foreign Investment in Healthcare - The establishment of Sino-foreign joint venture hospitals and wholly foreign-owned hospitals has been realized, with over 60 joint venture medical institutions now operational [1]

Investment Rating - The investment rating for JD Health (06618.HK) is "Buy" with a target price not specified [4]. Core Views - JD Health reported a revenue of 58.16 billion yuan for 2024, representing an 8.6% year-on-year increase from 53.53 billion yuan in 2023. The self-operated product revenue was 48.80 billion yuan, up 6.9%, while service revenue reached 9.36 billion yuan, growing by 18.9% [1][2]. - The company's gross margin increased by 0.7 percentage points to 22.9%, driven by revenue mix optimization. Annual profit reached 4.16 billion yuan, a 94.0% increase year-on-year, with adjusted Non-IFRS net profit at 4.79 billion yuan, up 15.9% from 4.14 billion yuan in 2023 [1][3]. - Active user count reached 184 million by December 31, 2024, an increase of 11.3 million from the previous year, with over 100% growth in the number of third-party merchants exceeding 100,000 [1][2]. Revenue Breakdown - Self-operated product revenue for 2024 was 48.80 billion yuan, reflecting a 6.9% increase, supported by strengthened supply chain capabilities and collaboration with global pharmaceutical companies [2]. - Service revenue for 2024 was 9.36 billion yuan, up 18.9%, primarily due to an increase in the number of advertisers and growth in third-party merchant commissions [2]. Operational Data - The average daily online consultation volume exceeded 490,000 in 2024, indicating enhanced capabilities in medical service delivery through specialized services and AI applications [2][3]. - JD Health expanded online medical insurance payment services in 18 cities, connecting over 3,000 designated pharmacies, covering a population of over 100 million [2]. Profitability Optimization - The gross margin improved to 22.9%, attributed to a higher proportion of high-margin service revenue and product mix optimization. The fulfillment cost ratio increased by 0.5 percentage points to 10.4% due to logistics network expansion [3]. - The selling expense ratio slightly increased by 0.2 percentage points to 5.2%, mainly due to increased marketing investments, while general and administrative expenses improved significantly by 1.3 percentage points to 2.4% [3]. Future Projections - Revenue forecasts for 2025, 2026, and 2027 have been adjusted to 62.7 billion yuan, 71 billion yuan, and 80.9 billion yuan, respectively, with adjusted net profits projected at 4.4 billion yuan, 5.1 billion yuan, and 6 billion yuan [4].