JD HEALTH achieved a record high net profit margin of 9.3% in the first half of 2024 since its listing

On August 15, JD Health (06618) released its 2024 interim performance announcement. In the first half of this year, JD Health's total revenue was RMB 28.3 billion, with a Non-IFRS net profit of RMB 2.64 billion, an 8.5% year-on-year increase. The net profit margin was 9.3%, reaching a new high in semi-annual performance since its listing.

From the overall performance in the first half of the year, JD Health achieved steady growth. Its profitability mainly came from the increase in market share of core advantageous categories, enhanced user stickiness, and the improvement in gross profit margin brought by supply chain efficiency enhancement.

In the first half of 2024, JD Health fully leveraged its capabilities in the medical and health supply chain. The pharmaceutical retail business saw strong growth, and the brand awareness of buying medicine on JD.com was further strengthened. During this period, JD Health online first launched a variety of new special drugs, such as 0.01% Atropine Sulfate Eye Drops by Xingqi Eyecare, Zilida by Sanofi, and Meishiya by Jinsai, with significant value effects as the "first online launch of new special drugs"; at the same time, JD Health's offline DTP pharmacies also sold the first outpatient-targeted drug for Alzheimer's disease, Le Yi Bao, in the domestic market, fully demonstrating the advantages of JD Health's omni-channel supply chain in making drugs accessible to all.

The vigorous development of third-party partner merchants has greatly enriched the variety of goods and services provided by JD Health. As of June 30, the number of third-party merchants on JD Health reached 80,000, a year-on-year increase of over 100%. In the process of cooperation, JD Health helped platform merchants improve operational efficiency and digital marketing capabilities, deeply explored and accurately matched user needs, and achieved mutual development with merchants.

In the first half of the year, JD Health's instant retail business achieved breakthrough development. JD Medicine's instant delivery brand and service have been upgraded, with delivery speeds now reaching "an average of 28 minutes, with the fastest at 9 minutes", covering over 490 cities nationwide and partnering with over 150,000 pharmacies. As of June 30, JD Medicine's instant delivery has launched the "online medicine purchase with medical insurance personal account payment" service in Beijing, Shanghai, and Dongguan, becoming the first platform to offer this service in Beijing, with access to over 350 designated medical insurance retail pharmacies, making it the platform with the most access points, widest user coverage, and fastest delivery time in Beijing.

At the same time, JD Health insists on driving innovation in medical and health services through the application of technology. As of June 30, the average daily online consultation volume of JD Health's Internet hospital has exceeded 480,000. It is worth noting that JD Health has also integrated professional medical testing into the online consultation process, expanding online consultations beyond simple symptom inquiries to cover professional examinations, health product purchases, and other health needs Forming a truly complete "medicine + examination + pharmaceutical" service closed-loop, the service scope of Internet healthcare is greatly expanded.

Looking ahead, as a leading new type of medical health service company, JD HEALTH will continue to strengthen the "pharmacy + medical health service" ecological closed-loop, driven by technological innovation, and is committed to providing users with easily accessible, convenient, and affordable health products and services. In the second half of the year, JD HEALTH is expected to maintain a stable development momentum, creating greater value for shareholders and investors