JD.com Shuffles High-Level Executives to Lead New Health Care Unit
Online retail giant JD.com Inc. has announced two new appointments to lead its health care unit after spinning off the business in May.
The company has appointed Xin Lijun, president of JD.com’s local lifestyle service group, as JD Health’s CEO and has promoted JD Retail CEO Xu Lei to be chairman of JD Health’s business unit, the parent company announced (link in Chinese) Thursday.
The announcement came two months after JD.com said its health care businesses would be spun off from the parent company. For the deal, it secured more than $1 billion in funding from a group of investors that included CPEChna Fund, CICC Capital and Baring Private Equity Asia. JD.com remains JD Health’s largest stakeholder.
Xin, who joined JD.com in 2012, will retain his position as president of JD.com’s local lifestyle service group.
JD Health primarily engages in the sale of pharmaceutical products through its e-commerce platform and connects patients with doctors for consultations. The company also provides other medical services such as patient examinations and digitalization solutions for hospitals, such as its mobile payments.
JD.com’s foray into the health care industry mirrors moves by other Chinese tech companies, include Tencent Holdings Ltd. and Alibaba Group Holding Ltd., as Chinese are increasingly going online to meet their health care demands.
China’s online health care industry is forecast to reach 20.4 billion yuan ($3 billion) this year, according to data provider iResearch.
Tencent holds stakes in several health care startups, including Medlinker, a mobile platform connecting physicians and patients. It received a valuation of over $1 billion following a fundraising round early 2018.
Alibaba, which has aggressively pushed its mobile payment services at hospitals, runs its own health care unit — Hong Kong-listed Alibaba Health Information Technology Ltd. The unit in May said it would seek to raise a total of $HK2.27 billion ($291 million) from the parent company Alibaba and its fintech arm through new shares sale.
Another major player in the area is Hong Kong-listed Ping An Healthcare and Technology Co. Ltd., a unit of Ping An Insurance Group, China’s second-largest life insurer by premiums.
Contact reporter Mo Yelin (firstname.lastname@example.org)
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