Alibaba Health revenue soars on robust online pharmacy sales
Higher sales, marketing and product development expenses in the year to March 31 led to a net loss of 207.6 million yuan
Alibaba Health Information Technology reported a massive 739 per cent year-on-year revenue increase in the 12 months ended March 31 on the back of its pharmaceutical e-commerce business.
Despite the huge rise in turnover, the Hong Kong-listed health care flagship of Alibaba Group – known as Ali Health – made a net loss because of costs in areas such as product development.
The company had swiftly diversified its operations last year after the China Food and Drug Administration ended the mandatory use by drug trading enterprises of its product identification, authentication and tracking system on the mainland.
Revenue in Ali Health’s financial year to March rose to 475.1 million yuan (US$68.9 million) from 56.6 million yuan the previous year, driven by sales through its online retail pharmacy for over-the-counter drugs, according to a regulatory filing on Wednesday.
The company started that business in August after completing its buyout of licensed online drug retailer Guangzhou Wu Qian Nian Pharmaceutical Chain.
The ageing Chinese population, and the progress of government-backed medical reforms have combined to create huge opportunities in China’s health care market
Wang Lei, the chief executive at Ali Health, said the company “quickly established the supporting systems for warehousing, logistics and customer services” that the business required.