On March 20, 2024, JD Health Co., Ltd. announced its full-year results for 2023. JD Health's total revenue for the year was RMB 53.5 billion, representing a 14.5% year-over-year increase, exceeding market expectations. Non-IFRS net profit reached RMB 4.14 billion, an increase of 58.1% year-over-year. As of December 31, 2023, JD Health's annual active user base surpassed 172 million, while the number of third-party merchants exceeded 50,000, a year-over-year increase of more than 100%. JD Health's Internet hospitals facilitated over 450,000 online consultation inquiries daily throughout the year.
Over the past year, JD Health's value as the "leading online health consumer platform" has continued to expand, providing users with an increasingly diverse product selection, faster delivery times, enhanced service guarantees, and more competitive prices. These factors form the cornerstone of JD Health's user experience. For example, JD Health has continuously optimized its warehousing layout and distribution network, resulting in faster delivery speeds. The number of products with "211" delivery (same-day or next-day delivery) increased by 10.2% year-over-year. JD Health has also introduced a range of user-friendly service guarantees, including the "Evening Red" hotline, "Late Delivery Compensation," and instant refunds, which have contributed to a steady increase in net promoter scores. In the past year, over 40,000 JD Health products have been included in the "10 Billion Subsidies" and "Economy Package" promotions, while self-operated products offer a 30-day price guarantee and third-party merchants provide free shipping, providing additional savings for users.
Jin Enlin, CEO of JD Health, stated, "In the past year, JD Health has actively responded to national policies and regulations, continuously improving our online and offline integrated service system and fulfilling our corporate social responsibility. From 'better, faster, and cheaper' to 'more, faster, better, and cheaper,' JD Health's initiatives in 2023 have increased user loyalty and purchase frequency. Increasing numbers of new users are becoming long-term customers. While further expanding the value of JD Health as the 'leading online health consumer platform,' these initiatives have also created sustainable value for shareholders, the industry, and society."
Third-Party Merchant Base Grows by Over 100% Year-Over-Year
In 2023, JD Health further strengthened its healthcare supply chain infrastructure, continuing to reinforce its position as the "leading online health consumer platform" and bringing high-quality healthcare products and services to a broader population.
In terms of supply chain infrastructure development, JD Health has continued to expand its nationwide warehouse network and full-temperature range delivery services. Relying on 24 pharmaceutical warehouses and over 100 medical devices, nutrition, and healthcare product warehouses within China, JD Health has achieved same-day delivery in 225 cities and next-day delivery in 386 cities. In 2023, JD Health established comprehensive, deepened cooperative relationships with several global pharmaceutical companies, including AstraZeneca, East China Pharmaceutical Group, and LEO Pharma. This collaboration has empowered partners in new drug online premieres and the expansion of pharmaceuticals across all channels. Throughout 2023, JD Health debuted multiple new drugs online, including over 30 innovative, first-in-class, original research drugs, continuously consolidating JD Health's position as the "premier platform for nationwide debuts of new drugs." In 2023, JD Health added 1.3 million new products in the nutrition and healthcare category and, in collaboration with authoritative organizations, refined the standards system for probiotics, ginseng, and other nutrition and healthcare and tonic products. By establishing partnerships with local governments, JD Health has supported the rapid development of industrial belts while providing users with high-quality goods and promoting industrial innovation and efficiency improvements. JD Health's senior-friendly product offerings cover 30,000 brands and thousands of subcategories, meeting the diverse health and aging care needs of users in areas such as mobility aids, bathing assistance, and daily care. JD Health has become the preferred collaboration platform for global brands seeking comprehensive growth.
In 2023, JD Health increased its support for third-party merchants, empowering their rapid growth through its active user base and digital operating system. As of the end of 2023, JD Health's third-party merchant base surpassed 50,000.
In 2023, JD Health focused on local instant retail, comprehensively upgrading its "JD Buy Medicine in 1 Hour" service. By expanding offline self-operated pharmacies and cooperative pharmacy networks, the service reaches more instant retail service scenarios and users. In the second half of 2023, JD Health launched "24-Hour Medicine Pick-Up Stations" in several self-operated neighborhood stores in Beijing, offering delivery services with an average delivery time of 28 minutes. Additionally, JD Health enabled online medical insurance payment functions for nearly 700 offline pharmacies in Shanghai, providing users with convenient and efficient medicine purchase experiences.
Building an Integrated Online-Offline Healthcare Service System
With over 450K daily online consultations, JD Health's internet hospital is committed to providing professional, convenient, and safe healthcare services. In addition to offering accessible services, JD Health's internet hospital has established a comprehensive quality management system with 223 standardized treatment protocols and 12 medical quality and safety management policies to ensure the quality and safety of online medical services.
In 2023, JD Health launched China's first dermatology-focused internet hospital. As of December 2023, it has served over 12 million patients, with an AI-assisted diagnosis accuracy rate exceeding 95%. JD Health also upgraded its mental health center, focusing on high-frequency daily consultation needs such as workplace learning, parenting, relationships, and psychological rehabilitation. In 2023, psychiatrists and psychologists practicing on JD Health's internet hospital platform have collectively served hundreds of thousands of users.
As an industry-leading new-type healthcare service enterprise, JD Health has become the first internet healthcare enterprise to establish a large-scale network of self-operated online and offline retail pharmacies and medical institutions.
Leveraging Technological Innovation to Implement Universal Healthcare
Large-scale Models Empower Cost Reduction, Increased Efficiency and Enhanced Experience
Relying on its own deep technological foundation, JD Health has always actively empowered the digital transformation of the industry, continuing to drive the implementation of universal healthcare through technology. In 2023, JD Health released its medical large-scale model "JingMed OmniQuery", the first industry-leading medical large-scale model that connects physical objects with services and integrates knowledge with data, compiling numerous clinical practice guidelines, medical literature and expert knowledge.
Digital Therapeutics
JD Health currently boasts over 30 invention patents filed in the digital therapeutics arena, spanning various areas such as dermatology, sleep, mental health, and diabetes. In 2023, JD Health's proprietary "Dermatological Image Processing" and "Sleep Monitoring Data Processing" products were approved as Class II medical devices by the National Medical Products Administration.
Technology-Enabled Solutions
Leveraging "JD Doctor One-Thousand Inquiries" as its technological foundation, JD Health is actively deploying AI across its products and solutions to enhance efficiency and user experience. Powered by technical innovations like large language models, JD Health rolled out an array of solutions for online practitioners in 2023. These include cloud consultation rooms, post-consultation follow-ups, expert consultations, clinical research, physician IP brand incubation, and "Intelligent Physician Assistant" tools, all geared towards optimizing the efficiency, quality, and safety of online medical consultations.
Integrated Healthcare Solutions
JD Health continues to invest in innovative solutions for smart hospitals and regional healthcare system upgrades. Collaborating with the First Affiliated Hospital of Wenzhou Medical University, JD Health is establishing a leading national smart hospital service system. The partnership with Changchun Economic and Technological Development Zone aims to build a smart healthcare platform. Additionally, JD Health developed an AI prescription pre-review system for Beijing's Haidian District, which processes over 20,000 prescriptions daily across nearly 100 primary healthcare institutions.
Philanthropic Initiatives
Donating over RMB 60 million in 2023
JD Health is committed to its corporate social responsibility, continuously innovating its healthcare philanthropy model. This ecosystem encompasses patient assistance, health initiatives for specific groups, medical philanthropy, and employee volunteerism. In 2023, JD Health partnered with over 100 charitable organizations and more than 100,000 JD "Love Dongdong" stores, contributing over RMB 60 million in charitable donations, resources, and services.
To address diverse health needs across different demographics, JD Health organized 56 public welfare campaigns throughout the year, reaching out to underprivileged women in mountainous ethnic minority areas, elderly and children in rural communities, and frontline workers. JD Health also unveiled its Physician Philanthropy Development Plan, collaborating with charities, brands, and partners to provide sustained financial, material, and technological support to medical professionals. Additionally, JD Health provided medical assistance in the Hebei Zhuozhou flood relief efforts, with nearly 100 volunteer medical consultations conducted.
Looking ahead, JD Health will continue to bolster its healthcare supply chain and medical health service capabilities, striving to offer users accessible, convenient, and affordable health products and services. Simultaneously, leveraging new-generation information technologies like large models, JD Health will continuously iterate and upgrade its digital and intelligent product tools and solutions. By opening up these applications externally, we can collaborate closely with numerous business customers, medical institutions, government departments, physician groups, and other parties to empower a broader population and contribute to the high-quality development of the healthcare system.
JD Health will remain committed to our strategic positioning as "a leading healthcare enterprise that integrates a wide range of pharmaceutical and health products, medical services, and digital-driven health management for users throughout their lifecycles and across all scenarios." By further unlocking our supply chain and medical healthcare service capabilities and collaborating closely with partners throughout the ecosystem, we will jointly perfect a new online-to-offline healthcare ecosystem. In doing so, we will promote the co-development of industry, society, and the environment.
