Alibaba Injects Tmall Platform Health Products Business into Ali Health

Recently, Ali Health announced that the company officially signed a share subscription agreement with Alibaba Group, and Alibaba Group injected the online business of Tmall platform health food into Ali Health.

According to the equity subscription agreement disclosed in the announcement, Alibaba Group injects 3.8 billion Hong Kong dollars (about 3.36 billion yuan) of Tmall medical platform health food online business into Ali Health. Upon completion of the transaction, Alibaba Group's shareholding in Ali Health will increase from approximately 37.9% to approximately 45.8%, and voting rights will increase from approximately 54.0% to approximately 59.8%.

According to the announcement, as of the fiscal year ended March 31, 2017, more than 950 merchants in the infusion business sold health food on Tmall's pharmaceutical platform, with more than 11.81 million active buyers per year and a turnover of about 27.72 in the health food business. 100 million yuan. After the transaction is completed, Ali Health will obtain the business contract relationship of the health food merchants on the Tmall Pharmaceutical platform, providing a series of value-added services including stationing, brand marketing and technical support, and receiving commissions.

阿里巴巴将天猫平台保健品业务注入阿里健康

The business injected this time is different from the previous operation business reached by the Tmall Medical Museum. Previously, Ali Health received the sales from Tmall Medical Center to the Tmall subject based on the sales of its related products or services through Tmall sales. The fee paid is 21.5%, and this time all the service fees are owned by Ali Health. According to the financial report, for the year ended March 31, 2017, the previous part of the income, Ali Health from Tmall income service fee of 40.34 million yuan, is expected to reach 80 million in the whole year. The newly injected business, according to the news obtained by Medical Valley, the commission income of the business for the Tmall platform in FY2017 was RMB 62.27 million, which means that Ali Health is expected to be available through the Tmall platform. 150 million yuan in service income.

阿里巴巴将天猫平台保健品业务注入阿里健康

阿里巴巴将天猫平台保健品业务注入阿里健康

According to the 2017 annual performance report released by Ali Health on May 17, for the year ended March 31, 2017, Ali Health recorded a revenue of 475.1 million yuan (RMB, the same below) and a gross profit of 187.2 million yuan. The gross profit margin was 39.1%, a year-on-year increase of 739.4% and 392.8%, while the company's adjusted net loss decreased significantly by 39.1% year-on-year to 98.33 million yuan. The injection of this business means that Ali Health will gradually become profitable and form its own hematopoietic function. Of course, this is closely related to the backing of “Ali Dad”.

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