JD Health International (6618) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached RMB 28.3 billion, up 4.6% year-over-year, with net profit rising 30.2% to RMB 2.03 billion and non-IFRS net profit at RMB 2.64 billion.

• Annual active user accounts reached 181 million, with a net addition of 12 million and average daily online consultations exceeding 480,000.

• Core pharmaceutical category outpaced offline competitors, with new and specialized drugs launched and omni-channel supply chain capabilities demonstrated.

• Expanded at-home healthcare, specialty care (notably dermatology), and integrated online-offline service models, including rapid testing and AI-driven psychological health support.

• Advanced digital health and AI-driven healthcare services, leveraging LLMs for user-facing and doctor-assisting applications.

Financial highlights

• Product revenue grew 3.2% to RMB 23.9 billion; service revenue rose 12.5% to RMB 4.4 billion.

• Gross profit margin increased to 23.6% from 22.9% year-over-year.

• Operating income was RMB 1.04 billion, up 17.7%; non-IFRS operating income was RMB 1.58 billion.

• Basic and diluted EPS were RMB 0.65, up from RMB 0.50 and RMB 0.49, respectively.

• Cash and cash equivalents stood at RMB 8.8 billion as of June 30, 2024; total cash, term deposits, and wealth management products reached RMB 56.4 billion.

Outlook and guidance

• Expects H2 2024 revenue growth to exceed H1, targeting double-digit growth and further net profit increase.

• Focus on high-quality growth, market share gains in core categories, and further expansion of closed-loop online-offline healthcare services.

• Continued investment in AI, data, and digital innovation to drive efficiency and user experience.

• Plans to strengthen the retail pharmacy and healthcare service ecosystem, leveraging technology and partnerships.