Aug 29, 2022|
JD Health Interim Financial Report: Focus on Two-Wheels-Driven Growth
by Vivian Yang
JD Health announced its interim results for the six months that ended June 30th, 2022 on August 23rd, which beat both topline and bottom line expectations. Highlights in numbers include:
- Net revenue of RMB 20.2 billion yuan, an increase of 48.3 percent YoY;
- Non-IFRS net income of RMB 1.21 billion yuan, up by 82.0 percent YoY;
- Annual active user accounts reached 131.3 million, representing a YoY net increase of 22.7 million;
- The number of warehouses increased to 20 medicine warehouses and over 450 non-medicine ones;
- JD Pharmacy’s self-operated cold-chain fulfillment operation covered more than 240 cities across China, and offline Direct-to-Patient (DTP) drug stores extended to 26 provincial-level administrative regions;
- The average online healthcare consultation volume exceeded 250,000 per day;
- 27 online specialized medical centers have been established.
According to the report, during the reporting period, merchandise sales accounted for over 80 percent of net revenues, while that of services contributed nearly 15 percent. Despite this disparity, Enlin Jin, CEO of JD Health reaffirmed the company’s “two-wheels-driven” approach that focuses on both product supply chain and services.
While the “left-wheel” of online retail is generating stronger growth momentum now, JD Health is and must gradually pivot to the “right wheel” of service offerings, especially online healthcare services for greater and long-term development, Jin noted.
This June, JD Health upgraded its medical services and launched three new online consultation services: “Expert Consulting”, “Instant Consultation with JD Doctor” and “Nighttime Consultation” to further address users’ diverse needs. The “Expert Consulting” service cooperates with leading physicians from multiple “3A” (the top tier) hospitals in China; the “Nighttime Consultation” service arranges on-duty doctors to provide consultation services available overnight; and the “Instant Consultation with JD Doctor” service provides users with standardized medical consultation services through carefully selected in-house and external physicians.
In addition, JD Health released its “Enterprise Health Strategy” in June, offering corporate clients a full range of customized online and offline employee health management and medical services, covering multiple solutions including corporate emergency rescue management, employee weight and mental health management.
In the meantime, JD Health is leveraging its technological capabilities to empower medical institutions on digital transformation including operation models, supply chain management, healthcare service upgrading and more.