China's largest online pharmaceutical retail channel recently released its 2021 full-year report, showcasing stellar business improvement
JD Health (6618:HK) reported a revenue of CNY 30.682 billion, up 58.3% YoY for 2021, and a gross profit of CNY 7.197 billion, surging 46.4% from the same period last year, according to its financial statement filed on March 28.
The increases in key growth indicators are driven primarily due to the ballooning number of active users. JD Health has accumulated 123.3 million annual active users, a net increase of 33.56 million compared to 2020.
While the company remained in deficit with an annual loss of CNY 1.07 billion in 2021, its performance improved significantly compared to 2020, when it posted an annual loss of 17.2 billion.
In particular, revenue from self-operated business on JD Pharmacy was CNY 26.2 billion, an increase of 56.1% YoY, accounting for 85.3% of total revenue.
Revenue from online platforms, digital marketing and other services amounted to CNY 4.5 billion, up 72.7% YoY. The financial report indicated that JD Health added 19 drug and over 400 non-drug warehouses, respectively, across the nation, and 80% of self-operated drug orders achieved next-day arrival.
Along with the soaring sales, JD Health's operating costs have also expanded by 62.4% YoY to CNY 23.5 billion in 2021 from CNY 14.5 billion in 2020. Selling and marketing expenses grew 48.7% to CNY 2.1 billion from CNY 1.4 billion in 2020 and R&D expenses rocketed 46.6% to CNY892 million from CNY609.1 million in 2020.
As the largest online pharmaceutical retail channel, JD Health provides pharmaceutical services such as online consulting and healthcare products to consumers.
Competitors for JD Health include Alibaba Health (0241:HK), WeDoctor (Chinese: 微医) and Chunyu Yisheng (Chinese: 春雨医生).