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.
Mar 15, 2024|
JD Health Enhances Eldercare Services with Key Partnerships at Beijing Conference
On March 12th, JD Health held its fourth annual Partner Conference, coinciding with the Eldercare Consumption Summit in Beijing. The event attracted over 400 attendees, including eldercare specialists and industry representatives, and focused on developing a healthcare system that is both inclusive and adaptable, catering specifically to the dynamic needs of China’s aging population.
During the summit, JD Health established partnership agreements with ten industry-leading brands, including 3M, Cofoe, Yuwell, Haier, Innuovo, ITD GmbH, LePu Medical, Mateside, Omron, and Sonova. The partnerships also marked the establishment of the “Eldercare Brand Alliance,” dedicated to propelling innovation in eldercare services and products, ultimately improving the quality of life for senior citizens through collective efforts.
Jin Enlin, CEO of JD Health, highlighted the company’s commitment to leveraging collaborative resources to scale, standardize, and strengthen recognizable brands within the burgeoning silver economy. This strategic approach is poised to deliver unparalleled care and support to the elderly.
As China’s premier online health platform, JD Health offers a diverse range of over 30,000 brands and numerous subcategories in eldercare. Its expansive offerings cover various needs, from mobility aids to in-home care solutions, emphasizing a professional and user-centric ecosystem for eldercare products and services.
In January, JD Health launched a dedicated eldercare channel to provide a wide selection of products and services specifically designed for the elderly. The channel facilitates everything from the installation of nursing beds and at-home hearing aid services to 24/7 specialized online customer support, aiming to close the gap between professional healthcare services and the elderly community.
JD Health has also effectively integrated its online and offline services to establish a comprehensive eldercare service system. This includes setting up hearing centers and offering services such as medical escorting and quick home check-ups, enhancing the overall accessibility of eldercare.
With nearly 300 million people aged 60 and above, China’s silver economy is expanding rapidly. JD Health remains dedicated to serving this demographic, continuously working to improve the quality of life for senior citizens nationwide.
Jan 31, 2024|
JD Health Launches Comprehensive Elderly Care Channel, Delivering Online Health Solutions for China’s Aging Population
JD Health has recently unveiled an elderly care channel on its app, aiming to establish a comprehensive platform catering to various healthcare needs for China’s aging population. This initiative is integral to JD Health’s goal of becoming the first portal for online health consumption.
The specialized channel is designed to offer a broad range of services, addressing eight critical aspects of elderly care. These include health monitoring equipment, daily living and nursing, assistance products for mobility and personal care, physiotherapy and traditional Chinese medicine treatments, smart technology products tailored for the elderly, nutritional supplements and foods, medications for chronic illnesses, and home-visiting nursing care. This comprehensive approach reflects JD Health’s commitment to meeting the multifaceted needs of the elderly community.
A cornerstone of this initiative is the integration of JD Health’s “Family Doctor” program within the elderly care channel. This innovative program offers 24/7 health consultations, year-round health monitoring, and personalized advice for managing health and wellness.
JD Health has gone a step further to ensure usability and accessibility for senior citizens by offering services such as doorstep installation of nursing beds and hearing aid fittings, ensuring that the challenges often faced by the elderly in using these products are comprehensively addressed.
The launch of the elderly care channel coincides with the approaching Chinese New Year, a time when tradition encourages showing respect and love to parents and the elderly.
In response to JD’s recent initiative promoting the distribution of essential goods to underprivileged areas, Xiao Le, a Gen Z user of JD’s app expressed a wish in JD’s app to provide respiratory relief products to a nursing home on the outskirts of Beijing, a place where she had volunteered previously. JD Health promptly teamed up with brands and charity organizations, donating over 1,000 pieces of nebulizers, oxygen concentrators, ventilators, blood pressure monitors, blood oximeters, heating patches, “JD Family Doctor” smart speakers, and other health supplies, as well as mobile phones for the elderly at the nursing home.
According to 2022 statistics from China’s Ministry of Civil Affairs, the country’s population aged 60 and above has reached 280 million, with 90% of the elderly preferring home care. This represents a significant opportunity within the silver economy, one that JD Health is strategically positioned to lead and serve.
JD News Roundup Vol. 18: Q2 2021 Earnings, Gen Z Insights and More
