Alibaba Health to expand its pharma e-commerce business
Interim revenue climbs 220pc to 55.03m yuan after seeing 185pc growth in income from its drug-tracking system
Alibaba Health Information Technology, the Hong Kong-listed health care flagship of Alibaba Group, is gearing up to expand its pharmaceutical e-commerce business after reporting an interim loss in the six months ended September 30.
The company has been looking to swiftly diversify its operations, following the China Food and Drug Administration’s decision in February to end mandatory use by drug trading enterprises of its product identification, authentication and tracking system on the mainland.
It started an online retail pharmacy for over-the-counter drugs in August, when it completed the buyout of licensed online drug retailer Guangzhou Wu Qian Nian Pharmaceutical Chain Company.
This business will quickly grow to become the most important source of operating revenue for the group
“This business will quickly grow to become the most important source of operating revenue for the group,” Alibaba Health chief executive Wang Lei said in the company’s filing to the Hong Kong stock exchange on Thursday.
Wang pointed out the company plans to deliver “a more transparent supply chain of health care products through internet-based solutions”.
“There is still much room for improving efficiencies in the pharmaceutical products supply chain,” he said.
Alibaba Health posted a slightly higher interim net loss of 102.39 million yuan , compared with a 100.48 million yuan deficit in the same period last year, on increased administrative and product development expenses.
