Turn a profit for the first time! Ali Health shows what kind of Internet medical development path

On the evening of November 25, 2020, Ali Health (00241) released its interim results for fiscal 2021.
as expected by the industry, Ali's health performance was encouraging.
open the next day, Ali Health gained more than 8%.
directly, Ali Health earned 7.162 billion yuan in the first half of fiscal 2021, up 74% year-on-year.
also increased significantly, totaling 1.86 billion yuan in the first half of the fiscal year, up 80.3 percent year-on-year.
more important is to achieve a profit of 279 million yuan, the first turn a profit.
from the above figures, Ali Health played a good hand against the outbreak.
behind this, what has underpinned the internet healthcare giant? Epidemic, mergers and acquisitions, cost optimization three factors driving Ali health profits under the epidemic, this year's Internet health industry how hot? First, the demand for drugs online has skyrocketed.
a pharmaceutical e-commerce support business practitioners told Arterial Network during the outbreak: in February this year, the overall sales of online medicine more than twice as much as in November last year, you know, November has a "double eleven" as a strong support.
The internet-based transformation of pharmaceutical sales has not ended because of the control of the epidemic, as residents' understanding of drugs has gradually deepened, the convenience and safety of pharmaceutical e-commerce gradually become customary, online drug purchase has gradually become the habit of a new generation of young people.
is one of the main reasons for Ali's rapid improvement in health profitability.
2021 fiscal year interim results announcement data show that Ali Health Pharmaceutical's own business revenue of 6.04 billion yuan, up 75.7% YoY, pharmaceutical e-commerce platform service revenue of 930 million yuan, up 71.4% YoY.
's soaring income comes from the opportunities that Ali Health's precipitation and outbreaks have brought in recent years.
This year, Ali Health Pharmaceutical e-commerce platform merchants and active users have been growing at a high rate, Tmall Pharmaceutical platform GMV more than 55.4 billion yuan, more than 250 million annual active users, an increase of 60 million than six months ago, the number of merchants more than 18,000, an increase of nearly 4,000 than six months ago.
health medicine self-employed business data soaring also related to the high stock of platform users.
data show that Ali Health Pharmaceuticals' self-employed business has more than 65 million active consumers each year, up 17 million from six months ago, with online retail self-employed OTC and prescription drug revenue accounting for 61.7 percent of pharmaceutical self-employed business revenue.
's revenue growth was also due to profit growth from Ali JK Health's acquisition earlier this year of Ali JK Health Products Holding Limited, a wholly-owned offshore holding company registered under British Virgin Islands law to hold the target business.
After this round of acquisitions, Ali Health's pharmaceutical sales business has added medical devices, adult supplies, health care supplies and other modules, such business than the use of medicine more frequently, users more sticky, for Ali Health's pharmaceutical sales business contributed a considerable part of the revenue.
Cost optimization is another important reason for the interim results to turn a profit, after several years of accumulation, Ali Health has set up a sound supply chain channels and agile logistics network, in the scale of the platform to expand, its marginal cost is relatively small, economies of scale to promote efficiency and cost optimization.
C-end effort to build an Internet-graded review of Ali's health over the past six months, we can see that the giant has done at least two things in this year's fight - supply chain and market.
from this outbreak, we can significantly feel the benefits of the two-vote system for the entire pharmaceutical e-commerce supply chain.
the past a wide range of circulation links and complex suppliers, meaning that drugs from dealers to platforms, hospitals are highly dispersed.
from the whole chain, the drug from production to sales, the premium between each link, logistics accumulated, will bring a considerable cost to the entire industry.
two-vote system eliminated some of these links, the outbreak further will be part of the insufficient mass, capacity of dealers excluded, the entire distribution process has become very simple, drugs concentrated in Kyushua Tong, China Resources Pharmaceuticals and other large distribution enterprises, related costs have been greatly reduced, more smooth circulation.
this case, for e-commerce companies of different models, the common problem they face is also the biggest problem, which is to ensure the supply of drugs under soaring orders.
e-commerce, which has a rich supply chain strip, has a first-mover advantage because some channels are unable to maintain the flow of goods as usual.
reported during the outbreak, Ali Health also experienced brief some drug supply difficulties in the early stages of the outbreak.
But with the recovery of drug raw materials logistics, Ali Health cooperation Sanofi, East Sunshine, GlaxoSmithKline, AstraZene half a year, Stone Pharmaceutical Group, Pfizer, Novarma, Bayer, Mercado, Shiguibao and other nearly 50 domestic and foreign pharmaceutical manufacturers quickly made up for the gap in Ali Health e-commerce platform, and ensure the first time supply of new drugs.
The sweet taste of Ali Health continues to deepen cooperation with pharmaceutical companies, this year into the Expo, Ali Health has signed strategic cooperation agreements with Novarma Oncology, Pfizer China, Sveya China and other multi-national pharmaceutical companies, the scope of cooperation includes "Internet plus medicine", patient education and protection, as well as patient assistance and other directions.
The types of medicines currently available to Ali Health have covered the mainstream chronic diseases such as cardiovascular, respiratory, liver and bile, gallbladder, diabetes, etc., while commonly used drugs such as anodesy, gynecology, rheumatology, orthopaedics, orthopaedics, and dermatology have also been made available online.
Coupled with Tmall Pharmaceutical Platform's complementary role in specific drugs, Ali Health is able to meet the vast majority of common diseases, slow patients online re-diagnosis and drug purchase scenario services.
market, as the largest player in e-commerce, Ali, who is proficient in various ways of playing, has also brought his spread to Ali Health.
In February this year, Ali Health has been on Taobao and Alipay online "buy medicine not go out" service, through online consultation and prescription and drug distribution to the home of the Internet, so that patients with chronic illness at home can safely buy the drugs they need.
less than three days since the service came online, the page has reached nearly 3 million users.
big data has created a precise user portrait of Ali Health.
This year double 11, Ali Health and partners jointly developed a series of "tailor-made" ready-to-eat health products for young people, such as safflower, sour cream, black sesame pills, collagen gummies, etc. , Ali Health published data show that during the double 11 period, sales of four products reached 401%, 178%, 215%, 114%.
success in the market has helped Ali Health capture a large number of markets from the online business of the old chain of pharmacies, while the development of a new generation of user groups has allowed Ali Health to expand the basic market for pharmaceutical e-commerce.
noteworthy is the fact that Ali Health has re-divided its business modules this year, in addition to its own pharmaceutical and pharmaceutical e-commerce platforms, as well as its healthcare services, traceability and digital healthcare businesses.
although the absolute value of income is not high, we cannot ignore the strategic position of Internet medical services in Alida's health system.
September 2020, Ali Health APP was named "Medical Deer" to provide personalized health services to users.
, the new version of the Medical Deer App interface is more refreshing and focused than the previous version, bringing medical services to the home page.
"Medical Deer APP" mobile phone interface (part) a few days ago, Ali health related people told arterial network, Medical Deer APP will soon issue a new version, and there will be a very large version of iteration, a comprehensive "a search there are results, a look can understand, a diagnosis there is a solution" direction.
let users have a health problem on the thought of first go to the doctor deer, a search can have results, and search out the content, both medical content rigorous, but also easy to understand.
at the same time, but also "a diagnosis and solution", can effectively serve users.
In Ali's health plan, the final want to form is the online and offline dual closed-loop medical and health service system, with the help of medical deer and Alipay to provide Internet-graded diagnosis and treatment services, to achieve the "small illness, big illness doctor" goal.
in the new year, more associated services and patterns will come up on this base.
in the layout, Ali Health is looking for new growth points outside the layout, with a focus on digital infrastructure.
looking at Ali's health in the longitudinal way from the annual financial results, we can see that it is evolving from the original pharmaceutical e-commerce platform to a full-scale layout of medical technology and service enterprises.
November 1 this year, Alibaba and Zhejiang University Medical College affiliated first hospital (hereinafter referred to as "Zhejiang University Hospital") jointly created the "Future Hospital" information system, becoming the country's first cloud-based intelligent hospital information system.
and the development team for the system stems from Ali Health's important layout in the digital medical field, Xi Niu Medical.
Xi Niu medical related person in charge told arterial network, due to the new Yuhang, Jiangjiang hospital area data blowout, Zhejiang University's old system in the calculation of power can not be supported;
addition, in the face of the outbreak, the entry of new technologies such as 5G and the Internet of Things makes it difficult for the older generation to integrate HIS, while the growing demand for data and its utilization presents an important test for traditional systems and their storage.
these challenges are the microcosm of the vast majority of hospital information systems (HIS) construction in China.
For Ali Health, successful entry into the HES market of Triple-A Hospital means that through the new digital medical infrastructure, it has reached the hospital's production environment, realizing the integration from medicine to medicine, from line to line, from hospital to hospital, and through the closure of the entire value chain.
, Xi Niu Medical was launched in Tiantai County, Zhejiang Province, making the regional medical system a digital iteration.
these digital infrastructure developments are expected to be seamlessly replicated elsewhere in the future.
AI is another core point of Ali's health into smart medicine.
here, Ali Health's opponent changed from JD.com Health and Ping An Good Doctor to Tencent and Baidu.
this year double 11, Ali Health in the drug line to cover millions of levels of drug use rules of safe drug AI.
on Tmall Pharmaceuticals platform, patients submit medication needs, safe medication AI will respond within 0.001 seconds, according to the rules of medication to assist professional pharmacists to determine whether the use of drugs is reasonable, to achieve double insurance.
In the drug circulation link, based on traceability code technology, Ali Health in this year's double 11 launched the first online drug buying fidelity mechanism, consumers can trace the source of drugs through Taobao, Alipay scanning code, while obtaining insurance protection, false one loss ten.
the release of its interim results, Ali Health's traceability and digital healthcare business had brought in $24.7 million in revenue, a small but huge market share.
performance announcement disclosed that Ali health traceability code technology in the national key requirements of traceable varieties (concentrated procurement of winning varieties, blood products, narcotic drugs, psychotic drugs) enterprise coverage rate has exceeded 98%, of which the coverage rate of vaccine manufacturers has reached 100%.
addition, as the company's earliest industry infrastructure, traceability code technology applications in addition to the field of drug circulation, Ali Health has expanded to new drug research and development clinical trials and non-drug traceability.
, Professor Yao Chen, director of the Medical Statistics Department of Peking University's First Hospital and deputy director of the Institute of Clinical Research at Peking University, revealed that the first trial of water in clinical trials of Xinguan drug "rest assured" traceability technology.
the use of unified blinding methods and number sequences in drug catalog blinding, the use of scanning code-blind encryption equipment and related technologies, to achieve simple blinding operation while ensuring the safety of the drug blind bottom.
in the fierce competition in the industry, after the pursuit of the situation, Why is Ali Health so struggling in the industry infrastructure? The future battle of the Internet healthcare industry or Ali's healthy layout logic.
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