Alibaba Health Reports FY2019 Revenue of RMB 5.096 Billion and Gross Profit of RMB 1.331 Billion

VCBeat (WeChat: vcbeat) has learned that AliHealth released its financial results announcement for fiscal year 2019 on the evening of May 16. For the year ended March 31, the company recorded revenue of RMB 5.096 billion and gross profit of RMB 1.331 billion, representing significant year-on-year increases of 108.6% and 103.9%, respectively. Adjusted profit reached RMB 122 million.

“The strong growth in revenue and gross profit was mainly driven by the rapid expansion of our proprietary pharmaceutical business, pharmaceutical e-commerce platform business, and consumer healthcare business during the year,” the announcement stated.

The data highlights AliHealth’s business progress over the past year: For the 12 months ended March 31 this year, the Gross Merchandise Volume (GMV) generated by Tmall Pharmacy, operated by AliHealth, amounted to approximately RMB 59.5 billion. The annual active consumers of Tmall Pharmacy exceeded 130 million, meaning that on average, one in every ten people in China has used its services.

During the same period, the annual active consumers of its self-operated pharmacy, which has been online for over two years, exceeded 27 million. By the end of the fiscal year, more than 85% of pharmaceutical manufacturers in production in China had joined and renewed their contracts with AliHealth’s “Ma Shang Fang Xin” traceability platform, with coverage exceeding 95% for key national priority categories such as vaccines. The gross merchandise value (GMV) of consumer healthcare services, covering medical aesthetics, health check-ups, vaccines, dentistry, and other fields, increased by over 140% year-on-year.

Since AliHealth exclusively established the Alipay Medical and Health Services Channel and began operating healthcare industry partnerships last November, the monthly active users of AliHealth’s medical and health services in hospital settings had exceeded 12 million by March 2019. More than 20 medical institutions, including Grade A tertiary hospitals, have joined the Zhejiang Internet Hospital Platform, which is built by Zhejiang Bianque—a company jointly invested in by AliHealth and Ant Financial. As of April 2019, the platform had received applications from over 300 medical institutions seeking to join.

In September last year, AliHealth and Alibaba Cloud announced the joint development of the Ali Medical Brain 2.0, strengthening capabilities in image recognition, physiological signal recognition, and knowledge graph construction. In March 2019, AliHealth developed an EEG-based epilepsy diagnosis product based on deep learning models, which can significantly improve doctors' efficiency in reading electroencephalograms. This product has been recognized by authoritative experts in this field in China and will be applied in cooperating EEG centers and medical institutions.