Aug 26, 2021|

JD Health H1 FY21 Earnings: Users Growth, Cold Chain Medicine Delivery and Digital Transformation

by Vivian Yang and Hui Zhang

JD Health reported its H1 FY21 earnings results on August 25. Highlights include:

  • Revenue growth of 55.4% year-on-year to RMB 13.64 billion
  • Annual active users on the platform reached 109 million, an increase of more than 18.8 million new users for the 12 months ended June 30, 2021
  • Retail pharmacy businesses have covered 400,000 SKUs
  • Over 130,000 doctors are practicing either full-time or part-time on the platform, with average daily online consultations exceeding 160,000

JD Health is positioned to create a technology-driven platform that centers on the supply chain of pharmaceutical and healthcare products and is strengthened by healthcare services, encompassing a user’s full life span for all healthcare needs. In the first half of the year, JD Health has expanded its technological capabilities to support the digital transformation of real-economy enterprises in China, in particular SMEs and organizations from the grassroots and rural areas.

“We are constantly strengthening our capabilities on ‘retail pharmacy + healthcare services,’ and will continue to make progress on opening them up to society,” said Lijun Xin, CEO of JD Health. “On the one hand, we aim at supporting the digital transformation process of enterprises across the industrial value chain. On the other hand, we have increased investment on social value creation by providing digital technologies to support health services development in grassroots level and rural areas, promoting inclusive healthcare services to every user and making more contributions to the high-quality growth of China’s real economy.”

Social Responsibilities

With the resurgence of COVID cases in China since early 2021, JD Health has been upgrading its online platform and offline service network, with experiences accrued last year, to provide bookings and home services for the public to conduct nucleic acid tests and vaccinations.

When Henan province was inundated by severe floods in mid-July this year, the company responded swiftly in the relief work including launching 24/7 free online medical consultation services, donating disinfection and anti-pandemic materials, dispatching medical rescue teams on site, and providing supportive measures for local partners and SMEs.

In this March, JD Health established its Rare Diseases Care Center to build a one-stop solution platform for patients with rare diseases, helping them to tackle difficulties in accessing medical treatment, medicine, insurance and charity support.

Health Products Distribution

JD Health’s self-operated business grew by 52.9% reaching RMB 11.8 billion during the reporting period. It is currently operating 17 medicine warehouses and over 350 non-medicine warehouses. Leveraging JD Logistics nationwide infrastructure, it has established cold-chain delivery capabilities in about 100 cities across China. To further expand people’s access to new special medicines, JD Health also opened a number of next-to-hospital and DTP drug stores offline.

During the reporting period, JD Health continued to deepen cooperation with leading pharmaceutical companies including UBC China, Sanofi China, Novartis, Guilong Pharmaceutical and more, with the goal to improve medicine circulation in China through a highly-efficient, digitalized and intelligent medicine supply chain.

Meanwhile, the company is leveraging the Customer-to-Manufacturer (C2M) model to help more producers create customized products for targeted users, further promoting the upgrade of consumption and the industrial value chain. A number of customized products under JD Health’s C2M model have been introduced to the market and have gained popularity in H1 this year, including Chinese-New-Year themed masks, masks with essence oil, scented disinfectant gel, antibacterial hand cream and more.

JD Health has also stepped up efforts on its omni-channel deployment and pharmacy alliance model. In the first half of the year, JD’s fast drug delivery services have covered over 300cities across the country, providing 24/7 service for customers. Meanwhile, it extended smart supply chain capabilities to SMEs to improve cost and operating efficiency, supporting over 500 drug stores under the JD Pharmacy Alliance across the country.

Healthcare Services

JD Health continued to improve its online consultation services by introducing more specialized medical centers online. As of June 30, the number of specialized medical centers rose to 24, with the number of both internal and external physicians and specialists exceeding 130,000. The average daily online consultation volume in the first half of the year continued to skyrocket during the report time, surpassing 160,000.

In 2020, JD Health launched the “family doctor” telemedicine service program to provide timely, consistent and comprehensive primary healthcare support for Chinese families. During the report period, the number of active users of JD’s “family doctor” services accounted for 87% of the total number of service users. The average monthly user growth rate so far reached 220%.

JD Health also continued to integrate online and offline services by providing users with services such as physical examination, medical cosmetology, stomatology, nucleic acid testing, vaccines and so on.

Digital Transformation

JD Health has been constantly offering intelligent solutions for offline institutions such as local governments and offline hospitals among others to contribute in optimizing the reasonable allocation of medical services and resources. For example, JD Health launched its first Internet hospital for Traditional Chinese Medicine (TCM) in cooperation with the First Affiliated Hospital of Henan University of Chinese Medicine.

Leveraging JD’s big data, AI, 5G among other technologies, JD Health is also helping to promote the construction of “Health City” projects in several cities including Beihai in Guangxi, Taicang in Jiangsu and Hebi in Henan. Meanwhile, JD Health also provides a one-stop omni-channel digital intelligence solution for offline retail pharmacies, helping to connect industry to commerce, commerce to terminal pharmacies, and pharmacies to users, and further promoting the transformation and upgrading of traditional offline retail pharmacies.


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