Jingdong Health announced that it will offer shares from November 26 to December 1. The company plans to issue about 382 million shares, including 19.095 million shares for public sale and 363 million shares for international sale. The issue price per share is not more than HK $70.58, and each hand is 50 shares. It is expected to be listed on December 8. The co sponsors of the Hong Kong IPO of JD health are Bank of America Securities, Haitong international and UBS. Huaxing capital, who once served as the global co coordinator of Jingdong secondary listing, played the role of financial adviser in the IPO of JD health. < p > < p > Jingdong health has become the third Unicorn created by Jingdong group after Jingdong Shuke and Jingdong Logistics, and is also the youngest unicorn in the world. On November 25th, JD health plans to raise up to $3.5 billion in Hong Kong’s IPO, according to a report by Bloomberg. JD health will issue 381.9 million shares at a price range of HK $62.8 to HK $70.58. Bank of America, Haitong international and UBS are co underwriters of Jingdong health’s IPO. < p > < p > according to the report, JD health has six cornerstone investors, including GIC PTE, a Singapore sovereign wealth fund, and BlackRock, which have agreed to subscribe for up to $1.35 billion in shares. < / P > < p > from the perspective of the development history of Jingdong health, Jingdong health has been operating independently since February 2014, launched online consultation service in December 2017, and officially registered and established the company in 2018. In November 2019, JD health obtained more than US $1 billion in round a financing, and then in August 2020, JD health obtained another round B investment from Hillhead capital, with an investment amount of about US $830 million and a post investment valuation of US $30 billion, which is a quarter of the total market value of JD group. < / P > < p > in fact, the market has given a higher valuation for JD health long before it entered the market. *** *** At the same time, it has become the youngest unicorn on the Hurun hundred rich list. < / P > < p > unexpectedly, Hillhead capital has also become the second largest shareholder of JD health, and sumbi holdings limited controlled by it holds 4.49% shares of JD health before IPO. < / P > < p > from the situation of shareholders disclosed before, Jingdong group is the largest shareholder of Jingdong health, with a shareholding ratio of 81.04%. It is expected that Jingdong group will still hold no less than 50% equity of JD health after IPO. According to his prospectus, as of the announcement date, Liu qiangdong held about 77.2% of the voting rights exercised on the resolution at the general meeting of shareholders. Liu qiangdong, Max smart limited and fortune rising Holdings Limited will be regarded as controlling shareholders after listing, together with JD Jiankang, will constitute a group of controlling shareholders of the company. Liu qiangdong, Jingdong, etc. are the controlling shareholders after the healthy listing of Jingdong. As a subsidiary of Jingdong group, Jingdong health will continue to cooperate with Jingdong group and receive its support in logistics services, technology, user flow, payment processing, marketing and administrative services. < / P > < p > at present, Jingdong health has retail pharmacies and online medical and health services. In terms of revenue in 2019, Jingdong health’s retail pharmacy is the largest online retail pharmacy in China. < / P > < p > according to the prospectus, Jingdong health’s retail pharmacy business operates through three modes: self support, online platform and omni channel layout. At present, it has established a supply chain network covering leading pharmaceutical companies and health product suppliers. < / P > < p > in addition, as of June 30, 2020, Jingdong health cooperated with Jingdong group to utilize its nationwide distribution infrastructure network, including 11 drug warehouses and more than 230 other warehouses. Jingdong health’s online platform takes advantage of Jingdong health’s brand awareness, huge and growing user base and proprietary technology platform to provide a richer product category, and form a benign complementary and each advantage with Jingdong pharmacy. < p > < p > from 2017 to 2019, the total income of Jingdong health was 5.6 billion yuan, 8.2 billion yuan and 10.8 billion yuan respectively, and 8.8 billion yuan in the first half of 2020. Excluding changes in fair value and non recurring profit and loss items, the net profit of JD health from 2017 to 2019 is 210 million yuan, 250 million yuan and 340 million yuan respectively, and that in the first half of 2020 is 370 million yuan. < / P > < p > in terms of revenue, the revenue mainly comes from selling medicine and health products through self-supporting business, and then comes from collecting Commission and platform usage fee from third-party businesses and digital marketing service fees from suppliers and third-party businesses. However, the revenue generated by retail pharmacy business accounted for the majority of the total revenue. In 2017-2019 and the first half of this year, the sales revenue of medicine and health products accounted for 88.4%, 88.8%, 87.0%, 87.5% and 87.6% of Jingdong health’s total revenue respectively, while the platform service revenue accounted for 7.9%, 7.4%, 7.3%, 7.3% and 6.8% of the total revenue respectively. < p > < p > on October 29, at the 2020 Jingdong health Partner Conference, CEO Xu Lei of Jingdong retail group said that facing the critical period of digital transformation of medical and health industry, Jingdong will adhere to the open strategy and open its supply chain based technology and service capabilities to cooperation in the way of component, product, platform and ecology through technological innovation Partners and Jingdong health participate in the transformation of the industry to build a new ecosystem of Internet plus medical health service. At the same time, Xin Lijun, vice president of Jingdong group and CEO of Jingdong health, pointed out that “everything is moving towards new and gathering momentum”. In other words, under the new normal of coexistence of challenges and opportunities, JD health has shared insights into new channels, new scenarios and new models of the big health industry with all sectors and types of partners in the industry, and promoted the convergence of all forces to promote the transformation and upgrading of the big health industry. According to Xin Lijun, the digital and intelligent transformation of the big health industry is not limited to a certain link or a certain technology, but should stand on the overall perspective of the industrial chain and start from the whole process of health management to promote technological innovation in each link and scene. Jingdong health hopes to work with more partners to build a symbiotic and win-win health ecology, reshape the whole industry value chain, and provide better and more convenient services for doctors and patients. JD health provides comprehensive online medical and health services, such as online consultation and prescription renewal, chronic disease management, family doctor and consumer health services. These services are available 24 hours a day. Jingdong health has established its own doctors and external doctors team. As of September 20, 2020, the platform has more than 65000 doctors. As of June 2020, there are more than 9000 third-party online businesses. To meet the users’ needs, the next day, 24 minutes, and 7 minutes. From 2017 to 2019 and up to June 30, 2020, JD health has 43.9 million, 50.5 million, 56.1 million and 72.5 million annual active users respectively. < / P > < p > in the first half of 2020, the daily average online consultation volume of Jingdong health was about 90000 times, nearly six times that of the same period in 2019; as of June 30, 2020, more than 150 million users had used the platform of JD health to purchase medicine and health products or medical and health services. < / P > < p > JD Health said that the group’s business utilizes and relies to a certain extent on the platform of JD group, including a wide range of services provided by JD group, to promote online sales and marketing, technology and flow support, loyalty plan sharing, logistics service arrangement and payment processing services of JD health products and services.
in November 2nd, the national health insurance agency issued the guidance on actively promoting the “Internet plus” medical insurance payment. This is the first detailed policy guidance on medical insurance reimbursement of online medical services issued by the government with a clear timetable. The opinions clearly stated that the performance appraisal of designated medical institutions should be strengthened, and the payment scope should be determined according to the local medical insurance policy and the service contents of designated medical institutions providing Internet plus medical services; and the Internet plus medical transfer prescription should be supported. According to Jingdong health, with the increasing demand for medical and health care, China’s medical and health industry is undergoing unprecedented supply side reform, which is expected to have a far-reaching impact on drug circulation and medical service provision by promoting the development of external channels and accelerating digitization. According to frost Sullivan report, the market size of China’s large health industry will reach 8.13 trillion yuan in 2019, and it is expected to increase to 21.77 trillion yuan in 2030, with a compound annual growth rate of 9.4%. < / P > < p > the progress and accessibility of digital technologies such as big data, cloud storage and artificial intelligence have fundamentally changed the way health products and services are provided. The digital health market mainly includes online retail pharmacy, online consultation, online consumer medical health and digital medical health infrastructure. < / P > < p > at present, China’s medical and health industry is still in the early stage of digitalization. In 2019, only 2.4% of drugs in China were distributed through off hospital online retail pharmacies. Similarly, in terms of outpatient volume in China in 2019, online consultation accounted for 6% of the total consultation volume. In addition, the digital proportion of China’s big health market will account for 3.3% of China’s total medical and health expenditure in 2019.
however, under the impetus of the progress of Internet plus health care policies and technology and the acceleration of the COVID-19 epidemic, Jingdong health believes that the offline participants of the big health market are increasingly concerned about their digital strategy. < p > < p > original title: JD health’s IPO: Hillard, GIC and BlackRock lead the six cornerstone investors, and plan to officially land on the Hong Kong Stock Exchange on December 8= https://ibmwl.com/category/global-tech/ target=_ blank>Global Tech