JD Health, which was established just over a year ago, has a “healthier” financial report than Alibaba Health, which was born in October 2014!

Due to the special nature of medicines, JD Pharmacy, which was born out of JD’s self-operated model, has become the revenue pillar of JD Health and the key to its latecomer overtaking Alibaba.

Starting from seizing the Hong Kong Stock Exchange, Liu Qiangdong finally successfully opened up a second battlefield in the field of health.

Another heavyweight player in the health industry is about to land on the Hong Kong Stock Exchange.

On November 27, according to 36Kr, JD Health (06618) launched its first IPO on November 26, and the subscription response was enthusiastic. As of 4:57 pm on the 27th, JD Health had recorded a "margin share" of HK$96.752 billion.

Oversubscribed 70.7 times.

It is reported that JD Health plans to issue 380 million new shares in this IPO, with prices ranging from HK$62.80 per share to HK$70.58 per share. The amount of funds raised will be approximately HK$24 billion to HK$27 billion, and the valuation will be approximately US$25.3 to US$28.5 billion.

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2020 can be called the "JD Year" exclusive to JD Group.

First, Dada Group was successfully listed on Nasdaq, and then JD Group went to Hong Kong for a secondary listing. Then JD Digits and JD Health successively entered the listing process.

As a new player that just entered the big health field two years ago, JD Health has caught up from behind, surpassing the already listed Ping An Good Doctor, and competing with Alibaba Health under the Alibaba Group. From a profit perspective, its net profit has exceeded

Ali Health.

However, through the prospectus, we also found some doubts. With its strong dependence on the related party JD Group, can JD Health really operate independently after its listing?

Whether the financial data before listing can truly reflect the company's situation.

How does net profit exceed Alibaba Health?

If we look at the actual operation time, in February 2014, medical health began to operate as an independent business project of JD.com, which was established in the same year as Ali Health; in March 2018, JD Health obtained an Internet hospital license and officially entered the Internet.

Medical track.

At that time, Ping An Good Doctor and Alibaba Health were already mature products that had been in operation for several years.

However, even though they are "Internet medical care" in name, in terms of revenue ratio, JD Health and Alibaba Health still have not stepped out of the "pharmaceutical e-commerce" mold.

In other words, this is a reappearance of two traditional e-commerce models in the pharmaceutical field.

Whether it is the traditional medical system in the past or today's Internet medical care, drug retail was the entry point in the early stages of development. The "medical care and drug support" model is difficult to completely eradicate.

Judging from the current situation, retail pharmacy revenue still accounts for the largest proportion of digital health, and it is predicted that this model will continue for a long time.

This is also reflected in JD Health. Although its nearly 500-page prospectus is full of words related to the "big health" industry, when breaking down its business structure, JD Health is currently mainly engaged in pharmaceutical e-commerce.

From the perspective of pharmaceutical e-commerce revenue, Alibaba Health’s revenue from sales of products was 7.66 billion yuan, accounting for 79.8% of total revenue. If the pharmaceutical e-commerce platform’s 12.2% is added, it even accounts for 97% of total revenue;

JD Health’s pharmaceutical revenue is 9.43 billion, accounting for 87%. This inevitably raises doubts. Can a single pharmaceutical retail store hold up the big shelf of “big health”?

Judging from the performance data in recent years, JD Health undoubtedly shows better growth.

According to the prospectus information, in accordance with non-International Financial Reporting Standards, the company's net profits from 2017 to the first half of 2020 were 209 million yuan, 248 million yuan, 344 million yuan and 371 million yuan respectively.

Among them, in the first three quarters of 2020, JD Health’s total revenue was 13.2 billion yuan.

If compared with peers, Alibaba Health's revenue in fiscal year 2020 (April 1, 2019 - March 31, 2020) was 9.6 billion yuan, with an after-tax profit loss of 15.696 million yuan; while Ping An Good Doctor's 2019 revenue was

5.065 billion yuan, with an after-tax profit loss of 734 million yuan.

JD Health not only outperforms its peers, but also remains profitable.

In addition, in terms of business models, the three are actually relatively similar. In summary, they are all B2B+B2C+O2O models - their main businesses include registration appointments, online consultations, drug retail, consumer medical and Internet ***

Build and so on.

Although the business models of the three companies are different, they can generally be divided into retail pharmacy business and online medical and health service business.

However, from the perspective of business distribution, JD.com is more comprehensive than Alibaba Health and Ping An Good Doctor, and has unique businesses such as traditional Chinese medicine piece supply chain, pharmaceutical cold chain, and pharmaceutical/non-pharmaceutical wholesale.