JD Health has begun to sell shares. Like JD.com and BABA, JD Health and Alibaba Health Information Technology will inevitably be compared by us. Ping An Healthcare And Technology, as a new force in Internet health care, will also become the object of our comparison.

Judging from the situation of the three companies, they all have advantages in coordination with the parent company group.JD Health relies on JD.com and Alibaba Health Information Technology relies on BABA Group, both of which have absolute advantages in the pharmaceutical supply chain. in addition, they can enhance digital empowerment with the help of the talents and core technology of the parent company group. Ping An Healthcare And Technology relies on Ping An Insurance, which features offline medical and health services (such as expert registration, offline referrals, etc.), and works more closely with offline medical institutions.

一、Business comparison: JD Health and Alibaba Health Information Technology focus more on pharmaceutical e-commerce

Compared with the three companies, JD Health and Alibaba Health Information Technology have similar industry status, platform advantages and ecological network, both of which are mainly pharmaceutical e-commerce. Unlike the former two, Ping An Healthcare And Technology does not have the natural genetic advantage of e-commerce, mainly to provide online medical services, and then extended to other links.

According to the division and comparison of the operating income of the three companies according to the sales of products and services, JD Health and Alibaba Health Information Technology have very similar income structure and business model, both are mainly self-run e-commerce, and the core income comes from the sales of medicine and health products, while the rest comes from online open platforms, advertising and other services such as online medical care. Ping An Healthcare And Technology's income from selling products is similar to that from providing services.

From the perspective of business and business model, the three are similar, all of them are B2B+B2C+O2O model, but JD Health's business is the most complete.Backed by JD.com supply chain system, JD Health "Internet + Medical and Health" industry layout is more perfect than Alibaba Health Information Technology and Ping An Healthcare And Technology, and the scope of business is wider. JD Health has unique businesses such as traditional Chinese medicine slices supply chain, pharmaceutical cold chain and pharmaceutical / non-pharmaceutical wholesale.

1) JD Health inLeading retail pharmacy business

JD Health mainly earns commodity income from selling medicine and health products through his own business, which accounts for the main part of the company's total income. The company earns commissions and platform royalties from third-party merchants sold through online platforms.

Alibaba Health Information Technology's situation is similar to that of JD Health. As of March 31, 2020, the total revenue of pharmaceutical e-commerce business reached 96.96%, which is higher than JD Health, of which the pharmaceutical self-supporting part is also as high as 84.76%.

Ping An Healthcare And Technology's health mall business is still its main revenue business, but its operating income accounted for 54.95% in the first half of 2020, which did not reach the 90% share of Alibaba Health Information Technology and JD Health. Ping An Healthcare And Technology thinks more of his e-commerce business as a supplement to online medical services.

The number of active users of JD Health, Alibaba Health Information Technology and Ping An Healthcare And Technology are 72.5 million, 190 million and 67.3 million respectively.Alibaba Health Information Technology is able to maintain the highest number of annual active users mainly due to the related traffic of its BABA Group advantages such as Taobao and Alipay.

Although JD Health is far less active than Alibaba Health Information Technology, JD Health's retail pharmacy has the highest revenue in comparable companies.JD Health's retail pharmacy business income is 9.435 billion yuan, higher than Alibaba Health Information Technology's 7.657 billion yuan, more than Ping An Healthcare And Technology's 2.902 billion yuan.

2） Online medical and health service business: the safety and quality of professional doctors is the best, and the platform efficiency is better than that of Jingdong.

The purpose of JD Health's online health service is to increase the income of retail pharmacies and sell high-end health care services. Alibaba Health Information Technology's online medical service is committed to building a consumer health care industry ecosystem, including vaccines, physical examinations, and so on. Ping An Healthcare And Technology's online medical and health service is more high-end, mainly through the self-developed AI auxiliary diagnosis and treatment system to assist its own medical team, and with its own medical team as the core to provide a variety of one-stop service member products, such as physical examination, medical beauty, oral and genetic testing and other standardized health services.

In terms of physician strength, Ping An Healthcare And Technology has more professional physician strength and the highest professional service.Although the number of doctors JD Health and Alibaba Health Information Technology far exceeds that of Ping An Healthcare And Technology, Ping An Healthcare And Technology signed a contract with external doctors all from Grade 3A Hospital, with the title of deputy chief physician or above. On the whole, Ping An Healthcare And Technology has more professional doctors and the highest business income. Although JD Health has more doctors than Alibaba Health Information Technology, the average daily consultation volume is low, the overall platform efficiency is low, and there is great potential for future development.

II. Comparison of financial situation:JD Health ranks first among comparable companies in revenue for many years in a row.

JD Health ranks first in revenue among comparable companies in a row.In terms of the scale of operating income, the three companies all showed a continuous upward trend. JD Health ranked first among comparable companies in a row, with revenues of 5.553 billion yuan, 8.169 billion yuan and 10.842 billion yuan respectively. Alibaba Health Information Technology's revenue scale followed closely, gradually narrowing the distance. On the other hand, Ping An Healthcare And Technology has the smallest revenue and has a large distance from JD Health and Alibaba Health Information Technology.

JD Health is the only profitable company in terms of net profit.JD Health's net profit from 2017 to 2019 was 209 million yuan, 248 million yuan and 344 million yuan respectively. Ping An Healthcare And Technology lost the most, Alibaba Health Information Technology made a relatively small loss and was close to break-even in 2019.

In terms of gross profit margin, the gross profit margin of the three companies as a whole is similar, but JD Health has risen steadily.JD Health's gross profit margin showed an upward trend from 2017 to 2019, mainly due to the continuous improvement of the portfolio of products and services. The gross profit margin of Ping An Healthcare And Technology and Alibaba Health Information Technology both showed a downward trend.

The period structure of JD Health and Alibaba Health Information Technology is similar, the difference mainly lies in the proportion of administrative expenditure and product development expenditure.

Compliance expenses mainly refer to supply chain expenses such as logistics and warehousing services expenses and employee welfare expenses of employees participating in compliance activities. According to the table below, JD Health's proportion of performance expenses is lower than that of Alibaba Health Information Technology, but JD.com 's revenue is higher than Alibaba Health Information Technology, indicating that JD Health's supply chain management is obviously better than Alibaba Health Information Technology.

The R & D expenditure mainly includes the expenditure on technical and flow support services allocated / provided, the staff welfare expenditure of R & D personnel and other technical infrastructure expenditure. In 2019, JD Health's R & D expenditure is 338 million yuan and Alibaba Health Information Technology's R & D expenditure is 219 million yuan. As JD Health healthily expands his technical team, improves his data analysis ability and develops new functions and applications, JD Health's R & D expenses will continue to increase.

JD Health's sales expense rate is the lowest among comparable companies.The sales expense rates of JD Health from 2017 to 2019 were 4.65%, 4.80% and 6.88% respectively, mainly because JD Health had the largest revenue in comparable companies, resulting in a huge scale effect, and its corresponding sales expense rate was also on the low side.

JD Health's management expense rate is also the lowest among comparable companies.The management expense rates of JD Health from 2017 to 2019 were 1.93%, 1.64% and 1.15%, respectively, mainly reflected in that JD Health's supply chain management is better than other comparable companies.

Summary

1. JD Health relies on JD.com, the pharmaceutical supply chain has an absolute advantage in comparable companies. Although in terms of active users, Alibaba Health Information Technology is 2.6 times that of JD Health, JD Health's revenue from 2017 to 2019 is the highest among comparable companies, mainly because JD Health can effectively cash in the number of users, and JD.com has a great advantage in supply chain management.

2. In terms of net profit, JD Health is the only one to make a profit in a comparable way. The main reason is that the company's sales expense rate and management expense rate are on the low side, on the one hand, the company's cost is well controlled, on the other hand, the company has produced a certain scale effect, diluting its related expenses.