Alibaba’s healthcare subsidiary AliHealth turned a profit in its latest reporting period, as medicine and healthcare product sales at its self-run online store grew significantly.
During the six months from April to September, Hong Kong-listed AliHealth made a net profit of 279 million yuan ($42 million), in sharp contrast to a 7.6 million yuan loss in the same period last year, according to the company’s latest financial report.
The company attributed the U-turn to a rapid user base expansion, the benefits of its April acquisition of a medicine e-commerce business from Ali JK Nutritional Products Holding Ltd., and fast sales growth for its self-run online pharmacy.
During the period, AliHealth’s revenue totaled 7.2 billion yuan, up 74% year-on-year. Nearly 84% of the total came from medicine and healthcare product sales at its online pharmacy, which jumped 75.7% year-on-year, according to the report.
AliHealth said its drugstore had 65 million active consumers as of the end of September.
Contact reporter Ding Yi (firstname.lastname@example.org)