JD Health Reports Full-Year 2021 Results: Total Revenue RMB 30.68 Billion, Non-IFRS Net Profit Up 91.5% Year-over-Year

On March 28, 2022, JD Health International Inc. (stock short name: “JD Health”, 6618.HK) released its annual results announcement for 2021. As of December 31, 2021, JD Health’s annual active users reached 123 million, a net increase of 33.56 million compared to the number of active users in 2020. During the reporting period, JD Health’s total revenue was RMB 30.68 billion, representing a year-on-year increase of 58.3%, with service revenue growing by 72.7%. Net profit under Non-International Financial Reporting Standards (Non-IFRS) amounted to RMB 1.4 billion, a year-on-year increase of 91.5%. The number of pharmaceutical and non-pharmaceutical warehouses nationwide increased to 19 and over 400, respectively, with 80% of self-operated pharmaceutical orders achieving next-day delivery. The daily average number of consultations on JD Health Internet Hospital exceeded 190,000.

Overall, in 2021, JD Health achieved high-quality, rapid development, with multiple core indicators exceeding market expectations. Adhering to its strategic positioning as “a health management enterprise centered on the pharmaceutical and health product supply chain, leveraging medical services, and driven by digital technology to provide full-lifecycle, all-scenario care,” JD Health has continued to focus on retail pharmacy operations, healthcare services, and digital-intelligent healthcare businesses. The company has accelerated collaboration with upstream and downstream partners across the industry chain to co-build a more comprehensive health ecosystem, promoting the deep integration of digital technologies with the real economy in the health sector.

Jin Enlin, CEO of JD Health, stated, “Over the past year, JD Health has closely followed relevant policy guidelines, upheld long-term value, and continuously enhanced and opened up its ‘retail pharmacy + healthcare services’ ecosystem capabilities. This has helped physical enterprises and business formats within the industrial chain achieve transformation and upgrading, enabling high-quality healthcare products and services to benefit a broader population. Furthermore, by providing specialized supply chain and technology solutions, we have served an increasing number of regional government departments and medical institutions, contributing to the practical implementation of the Healthy China initiative.”

In its retail pharmacy business, JD Health adheres to an operational model that integrates direct sales, online platforms, and omni-channel distribution. It continues to expand its product portfolio, further improves fulfillment efficiency, and strengthens its omni-channel supply chain capabilities. Meanwhile, it collaborates with partners to co-create a new “Internet + Healthcare” ecosystem.

During the reporting period, JD Health further enhanced its supply chain management capabilities and efficiency. As of December 31, 2021, JD Health utilized 19 pharmaceutical warehouses and over 400 non-pharmaceutical warehouses within JD Logistics’ nationwide network, with 80% of self-operated pharmaceutical orders achieving next-day delivery. Meanwhile, JD Pharmacy’s “self-operated pharmaceutical cold chain” has covered more than 200 cities across China, effectively expanding the range of cold-chain pharmaceutical products and improving fulfillment capabilities.

In 2021, JD Health further deepened its collaborations with renowned domestic and international pharmaceutical companies, including UCB China, Sanofi China, Guilin Pharmaceutical, Novartis, Gilead Sciences, and BeiGene. New specialty drugs from multiple pharmaceutical companies were launched online for the first time at JD Pharmacy, and the parties jointly explored various digital marketing initiatives.

During the reporting period, JD Health provided more competitive service strategies and development opportunities for numerous brands in sectors such as medical devices, nutritional supplements, and traditional wellness products. For instance, JD Health enabled over 100 health monitoring devices to integrate with internet-based medical services through its innovative digital-intelligent health management solutions. In collaboration with brand partners, JD Health launched the “JD Health Special Medical Food Initiative,” offering users customized family doctor services tailored to their scientific nutritional supplementation needs. Furthermore, in partnership with the Chinese Academy of Inspection and Quarantine and leading industry brands, JD Health established product standards and certification systems, driving quality improvements across multiple categories of wellness products.

During the reporting period, JD Health’s online platform hosted over 18,000 third-party merchants, further enhancing the diversity and supply capacity of pharmaceutical and health products. Its omnichannel service, “JD Medicine Express,” leverages multiple fulfillment methods—including merchant self-delivery, platform delivery, and same-city delivery—to maximize the efficiency of aggregated logistics capacity. In partnership with approximately 50,000 pharmacy stores, the service provides round-the-clock home delivery of medications to users in more than 300 cities across China.

Currently, JD Health has established a healthcare service ecosystem that covers all scenarios and integrates online and offline services. By connecting more high-quality medical resources and continuously enhancing its professional service capabilities, JD Health provides multi-level and diversified healthcare services to an growing number of users.

During the reporting period, JD Health successively established nine specialty centers, including the Infectious Diseases and Hepatology Center, the Brain Nutrition Center, and the Skin Repair Center, bringing the total number of specialty centers to 27. More than 45,000 physicians with the title of associate chief physician or above have joined JD Health’s Internet Hospital. The average daily volume of online consultations has continued to rise, exceeding 190,000.

During the reporting period, JD Health’s strategic service product, “JD Family Doctor,” comprehensively integrated medical service resources and supply chain capabilities, becoming a key driver of JD Health’s medical services and a new entry point for family health management. Notably, JD Family Doctor launched its new “Phone-based Family Doctor” service and introduced audio-video consultation features supporting multi-party simultaneous online participation, while extending its medical resources and service capabilities to additional scenarios such as smart hardware and grassroots community settings.

Leveraging its in-store and at-home services, JD Health has achieved full-process coverage of online-to-offline medical and healthcare services, enabling consumers to more conveniently access a wide range of health services, including physical examinations, medical aesthetics, dental care, nucleic acid testing, and vaccine appointments. During the reporting period, JD Health also partnered with brands such as New Horizon Health, Genetron Health, and BGI Genomics to build a one-stop ecosystem for early screening of critical diseases, encompassing self-test products, report interpretation, outpatient appointment scheduling, and rehabilitation management.

JD Health collaborates with local governments, medical institutions, enterprises, and other stakeholders to provide customized digital-intelligence solutions. These efforts accelerate information interoperability within regional healthcare systems, expand the service capabilities of “Internet + Healthcare,” and drive the industry’s digital transformation.

During the reporting period, JD Health partnered with multiple public hospitals to carry out smart hospital projects. Notably, JD Health co-established the “JD Internet Hospital of the First Affiliated Hospital of Henan University of Chinese Medicine” with the First Affiliated Hospital of Henan University of Chinese Medicine. By the end of 2021, the platform had accumulated nearly 150,000 registered patients, with its service coverage extending across all 31 provincial-level administrative regions in China. JD Health also co-established internet hospitals with other Grade A tertiary hospitals, including Peking University Shougang Hospital, the First Affiliated Hospital of Tianjin University of Traditional Chinese Medicine, Cangzhou Central Hospital, and Taicang First People’s Hospital.

Meanwhile, JD Health has also made significant progress and achieved notable results in supporting regional smart healthcare and the interconnectivity of health information. Notably, JD Health facilitated the successful launch and operation of the National Healthcare Security Administration’s information platform in Suqian City, achieving comprehensive coverage of all 3,347 designated medical institutions and pharmacies across the city. This initiative serves 5.29 million insured residents, substantially enhancing their experience in seeking medical care and purchasing medications.

Furthermore, JD Health will leverage its accumulated capabilities and resources, applying them as solutions across a broader range of sectors. For instance, JD Health has launched the “E-Qi Health” app, an enterprise digital health management platform that provides comprehensive medical and healthcare services along with a diverse portfolio of pharmaceutical and health products to address the health management needs of corporate employees.

JD Health has consistently assumed its social responsibilities as a healthcare enterprise. By developing innovative service models and public welfare mechanisms, it is committed to leveraging its practical achievements and resource capabilities in the healthcare sector to address the urgent needs of the public. Furthermore, through its own practices, JD Health strives to promote greater standardization, normalization, and specialization within the industry.

JD Health launched the “JD Health Public Welfare Platform” in December 2021, offering a range of charitable health services including public welfare assistance, medical consultation guides, subsidized medications, and free online consultations. Meanwhile, JD Health has worked to alleviate challenges faced by patients with rare diseases—such as difficulties in diagnosis, accessing medical care, and obtaining medications—through the “JD Pharmacy Rare Disease Care Center” and the establishment of the “JD Health Rare Disease Care Fund.” In 2021, more than 24,000 patients with rare diseases purchased their required medications through JD Health, with nearly 70% continuously receiving disease management services related to rare diseases via the “JD Pharmacy Rare Disease Care Center.”

In response to the normalized prevention and control of the COVID-19 pandemic and sudden emergencies such as natural disasters, JD Health has continuously optimized its emergency response and support mechanisms. For instance, in the face of the catastrophic rainstorms in Henan Province, JD Health immediately launched flood relief efforts, providing 24-hour free online health consultations, deploying offline medical rescue teams to the disaster frontlines, and urgently mobilizing medicines and medical supplies for aid. Recently, addressing sporadic COVID-19 outbreaks across various regions in China, JD Health took immediate action to ensure the supply of medications and disinfection and epidemic prevention products, while also donating supplies to areas with more severe epidemic situations. Additionally, it offered free online health consultation services to provide convenient and professional support for public home-based protection.

JD Health remains committed to monitoring and promoting the healthy development of the industry. JD Health has established a comprehensive, full-scenario medication safety system covering the entire process—pre-purchase, during purchase, and post-purchase. In accordance with national laws and regulations, it has formulated medication safety management measures that exceed industry standards and impose stricter requirements than regulatory mandates. Furthermore, JD Health spearheaded the establishment of the “JD Health Internet Medical Expert Committee,” which drives the development of standardized protocols for specialized online diagnosis and treatment and establishes medical quality control standards, thereby providing users with professional healthcare services they can trust.

Looking ahead to 2022, as relevant authorities strengthen regulatory oversight of the industry, “Internet + Healthcare” will be guided toward high-quality development, ushering in a new round of growth opportunities for the healthcare sector. Drawing on its practical experience since going public, JD Health has further clarified its corporate philosophy: “to create trustworthy, user-health-centric value.” In its future development, JD Health will uphold this philosophy and remain committed to its mission of “becoming the nation’s premier health steward.” With user health needs as both its starting point and ultimate goal, JD Health will align its operations with the implementation of the “Healthy China” initiative, serve the health needs of the entire population, and accelerate the realization of inclusive healthcare, thereby creating long-term, sustainable value for society, the industry, and the public.

Note: The financial data in this article are all excerpted from the company's performance announcement. Please refer to the full version of the performance announcement for the final information.