Thank you for subscribing.

Please check your email to confirm.

Unsubscribe success..

You already subscribed and confirmed.

Please check your email.

You already subscribed.

Please check your email to confirm.

Alibaba Buys 4% of Meinian Onehealth, China's Largest Medical Checkup Provider
Alibaba Buys 4% of Meinian Onehealth, China's Largest Medical Checkup Provider
Alibaba Headquarters in Hangzhou. Image: Credit to, the sister publication of EqualOcean.

Alibaba's Jack Ma pointed out its company's long term strategy as 'investing in Chinese people's health and happiness' in 2014. The "Two-H strategy" drawn by Asia's one of the wealthiest people seems to be accomplished mainly in the last two years. 

Alibaba (BABA: NYSE) has subscribed to around 159 million shares of Meinian Onehealth Healthcare Holdings (美年健康) (002044: SZ) in private placement worth CNY 1.84 billion and bought 4.06% of its shares of the medical checkup provider. Following the transaction, Alibaba and its affiliated private equity arms held over 9.39% of the equity of Meinian Onehealth, becoming the hospital chain's largest stakeholder after the company's founder Yu Rong (余蓉).

Alibaba's foray into traditional healthcare services provider and an offline hospital chain stem from Alibaba's strategic deployment in the Mainland's health scene.

Earlier in 2017, Alibaba Cloud (阿里云) teamed-up with Meinian Onehalth to improve its cloud computing platform with mass medical data produced by the hospital chain, to carry out core big data analysis, and worked together to build an online healthcare services platform for Alibaba.

The company's semi-annual filings revealed that the number of medical checkups in Meinian Onehealth was around 10.38 million for the first half of 2019. The average prices of group inspection and individual inspection were CNY 499  and CNY 609, respectively, for per person. The chain clinic is currently serving with over 400 hundreds of outlets.

Besides Alibaba's strategic ties up with offline healthcare providers, medical checkups are seen as a rising business themselves to generate profit, and their competitive power comes from their ability to close institutional clients.

Alibaba' s medical arm Ali Health (阿里健康) (0241: HK), is mainly generating its revenues from B2C drug delivery, yet striving to provide more online clinic and consultation related services, just like another Chinese internet giant Tencent's healthcare consultation company Tencent Trusted Doctors.

Reach the Author!

Ask the author questions about the copied text



The Star Market Overview 4Q 2019
Trends, stocks and insights.

The Star Market Overview 4Q 2019

Any Question

EqualOcean is an international information service provider and investment research firm that aims to become a global platform for industrial innovation.

We strive to make technology inclusive, accessible and transparent.

Join over 70,000 of your peers