Alibaba Health Information Technology (241) H2 2024 earnings summary

Executive summary

• FY24 revenue was RMB 27,027m, up 1.0% YoY; gross profit reached RMB 5,895m, up 3.4%, and net profit rose 64.9% to RMB 883m.

• Adjusted net profit increased 90.8% to RMB 1,438m, supported by refined operations, digital upgrades, improved pricing, integration of a newly acquired marketing service, and stronger drug-purchase engagement.

Financial highlights

• Operating profit increased 75.2% to RMB 945m; fulfillment costs fell 17.0% to RMB 2,413m despite revenue growth of 1.0%.

• Gross profit growth outpaced revenue growth; higher platform commission and advertising mix, plus more non-pharmaceutical health products in direct sales, supported gross margin improvement.

Segment performance

• Pharmaceutical e-commerce platform revenue rose 4.1% to RMB 2,329m; platform AAU reached 300m and merchants exceeded 35,000, up 28% YoY.

• Pharmaceutical direct sales revenue increased 0.6% to RMB 23,739m; direct-sales members reached ~77m, member ARPU grew >17%, and non-pandemic-related product sales rose by double digits.

• Healthcare and digital services revenue grew 2.6% to RMB 959m; chronic-disease patient-management coverage expanded to 23 core areas and patient DOT rose 7.6% YoY.