Liu qiangdong has recently become a well deserved IPO harvester. Within half a month, two “unicorns” of Jingdong, Jingdong Shuke and Jingdong health, successively submitted their prospectuses. On the evening of September 27, Jingdong health, which is also known as the “four carriages” of retail, logistics and several branches, went to Hong Kong to deliver the form. For a time, JD’s Unlisted core assets are only the logistics business, and the IPO news of the business also came out at the beginning of the year. < p > < p > according to the prospectus, Jingdong health is the first internet medical and health company with annual revenue of 10 billion. Compared with the “old rival” Ali, which has 3.5 times the losses of Gmv and Ali health, it seems that JD has achieved “turnover” in the field of big health, which not only has a larger business volume, but also has continued to make profits during the reporting period. < / P > < p > the successive listing of Jingdong digital technology and Jingdong health will also bring Liu qiangdong two consecutive price surges, and the listing of Jingdong digital technology alone will increase his fortune by 100 billion yuan. In the field of health, he may not be the one with the most growth in value, but he is likely to be the fastest. Since its separation in May 2019 and the submission of its prospectus, the valuation of JD health has soared four times, with a growth rate far higher than that of other subsidiaries of JD. However, the soaring price can not cover up the problem. The label of “medical e-commerce” that is hard to get rid of makes Liu qiangdong’s wish to “rebuild Jingdong” by health is still in its infancy. < p > < p > according to the prospectus, from 2017 to the first half of 2020, the total income of Jingdong health was 5.6 billion yuan, 8.2 billion yuan, 10.8 billion yuan and 8.8 billion yuan respectively. During the same period, the net adjusted net profit was 210 million yuan, 250 million yuan, 340 million yuan and 370 million yuan respectively. Although the profit is not much, it is obviously a good result when the main competitors are losing money. Under the boom of < / P > < p >, an abnormal data is worth noting. In the financial data of 2019, Jingdong health has a change in the fair value of convertible preferred shares, which directly leads to a net profit decrease of 1.26 billion yuan. Similarly, in the financial data of the first half of 2020, there is also a change in the fair value of convertible preferred shares of 5.7 billion yuan. From the financial point of view, the change of the fair value of the convertible preferred stock is actually a non cash item, that is, this kind of income has only accounting significance, and can not bring about the actual cash entry. < / P > < p > before the listing of the company, VC (venture capital) usually invests in the form of preferred shares or warrants, that is, to invest a sum of money to the company, and agree that the preferred shares or warrants can be converted into the company’s shares at a certain price in the future. Because of the right to subscribe for shares, these preferred shares or warrants have certain value, and The value changes with the company’s valuation. Therefore, from the perspective of VC, the higher the company valuation, the higher the value of preferred shares and warrants, and vice versa. < / P > < p > from the company’s point of view, such changes in value are included in liabilities under accounting standards. In other words, when the fair value increases, it will cause the current accounting loss, but when the fair value decreases, it will be counted as income. < / P > < p > a similar situation has appeared in the financial statements of many Internet companies, such as Tudou before the merger with Youku. Online video websites are still burning money and losing money. However, Tudou has already announced “profit” as early as the third quarter of 2011. It is precisely because the fair value change of about 75 million yuan is included in the current period. < / P > < p > back to Jingdong health itself, the changes in the fair value of convertible preferred shares in 2019 and the first half of 2020 will bring about 1.26 billion and 5.7 billion “losses”, which is the result of valuation increase. < / P > < p > from the perspective of capital operation, JD health once obtained more than $1 billion of round a financing in May 2019, and then was separated and independent. In a short period of one year and three months later, in August 2020, JD Health announced that it had obtained a round B financing of Hillhead capital of $830 million, with a post investment valuation of US $30 billion, even slightly higher than that of JD digital. < / P > < p > “relying on medicine” has been a common problem in the medical system for a long time, which can also be applied to the internet medical model. Most of the existing internet medical platforms choose drug retail as the starting point, and Jingdong health is also difficult to get rid of the label of “pharmaceutical e-commerce”. < / P > < p > according to the prospectus, most of Jingdong’s health revenue comes from selling medicine and health products to users. From 2017 to the first half of 2020, product sales accounted for nearly 90% of the total revenue, reaching 88.4%, 88.8%, 87.0% and 87.6% respectively. Among them, the overall business gross margin has been maintained at around 25%. The business model of JD health is mainly divided into two parts, one is retail pharmacy (including self-employed and third-party), the other is online medical service. In addition, providing intelligent medical and health solutions such as order management and customer management for offline stores is also one of the sources of revenue, but it only accounts for a small proportion. < / P > < p > in the retail pharmacy business, Jingdong mainly adopts the operation mode of combination of self support, online platform and omni channel layout. Among them, Jingdong pharmacy carries its own business, which can mobilize 11 drug warehouses and 230 other warehouses in China. Self supporting business is the most core business of Jingdong Digital Technology Co., Ltd., which can be seen from the proportion of employees: among 1411 employees of Jingdong health company, only purchasing has reached 951, accounting for about 2 / 3. It is worth noting that JD health also operates offline pharmacies, but the prospectus did not disclose specific details. < / P > < p > at the same time, compared with Jingdong retail business performance rate has entered the “6” era, Jingdong health’s performance expenditure is still high. From 2017 to the first half of 2020, Jingdong health compliance expenditure accounted for 11.5%, 11.4%, 10.8% and 10.4% of the total revenue, respectively. At the same time, under the self operated mode, inventory turnover also needs to be considered. According to the prospectus, JD health’s inventory has increased significantly in the near future, from 884 million yuan at the end of 2017 to about 2 billion yuan at the end of June 2020. However, inventory turnover days also decreased from 61.8 days in 2017 to 45.0 days in the first half of 2020. However, compared with the turnover days of 34.8 days of Jingdong retail self operation business, there is still a big gap. < / P > < p > for the other two modes, under the online platform mode, there are more than 9000 third-party businesses in China, which are mainly used to supplement the long tail goods that cannot be provided under the self-supporting mode, and the distribution is also responsible by the businesses themselves. The omni channel layout is mainly to meet the urgent drug demand of users. The off-line pharmacy provides inventory, and Jingdong completes the performance delivery. This model has now covered more than 200 cities. Including the day of arrival, the next day, 30 minutes to 7 * 24 express delivery, etc. < p > < p > under the three modes, the scale of users of the platform is also expanding. From 2017 to the first half of 2020, the annual active users increased from 43.9 million to 72.5 million. < / P > < p > in addition to drug retail, Jingdong health is also making efforts to online consultation. In fact, as early as 2017, Jingdong health has launched online consultation service. In 2018, Yinchuan Jingdong Internet hospital obtained the license of medical institutions to issue prescriptions to users of online consultation and prescription renewal services. In the first half of 2020, the daily average online consultation volume of Jingdong health has reached about 90000 times, nearly six times that of the same period in 2019. As of September 20, 2020, there are more than 65000 self owned and external doctors in the whole platform, and 16 specialist centers have been built in cooperation with well-known experts. A month ago, Jingdong health also launched a family doctor service called “Jingdong family doctor”. < p > < p > just two months after the a-round financing of 1 billion US dollars by Jingdong health Hillhead capital, Xin Lijun, then general manager of Jingdong open platform and head of life service business group, was appointed CEO of Jingdong health. < / P > < p > a story with a wide range of processes is that before he officially became CEO of Jingdong health, Xin Lijun was pulled to the suburbs of Beijing by his boss Liu qiangdong for a chat. Liu qiangdong put forward two requirements: one is to give Jingdong 180000 brothers a blessing to manage their health; the other is to ignore the investment in the initial stage. However, judging from the financial data of Jingdong health, Xin Lijun did not take the road of high-rise and no consideration of investment whether in the early stage of the project or on the verge of listing. < / P > < p > “although Jingdong started late, it doesn’t mean that it is doing slowly. If it does it late, it can better see the pattern and pain points of this market.” In Xin Lijun’s opinion, the future development direction of Jingdong health will focus on health management. However, there has not been a health management company with a market value of more than 100 billion in the United States and Europe.

this year, novel coronavirus pneumonia outbreak and unprecedented attention of big health industry have been revisited. The shares of Ali health, which has been in a slump for a long time, rose to HK $23.3 from HK $9 at the beginning of the year, with a market value of more than US $40 billion. As of the end of last trading day, the shares of Ali health reached HK $18.4 per share, with a total market value of about HK $250 billion. < p > < p > in August this year, Ali health raised HK $10 billion for the first time. After “preparing enough food and grass”, alihealth app was officially renamed Yilu, focusing on online diagnosis and treatment in the next step. Since the acquisition of CITIC 21 century and its name changed to Ali health six years ago, it began to undertake the landing of health in the “double H (happiness & Health) strategy” proposed by Ma Yun. However, for a long time, the performance of happiness & health, a pair of “twins”, has not been satisfactory. It has even become the edge of the whole Ali economy, and has only slightly improved in the near future. However, similar to JD health, Ali health can not get rid of the brand of e-commerce. According to the financial report, in fiscal year 2020, the revenue of alihealth in the pharmaceutical e-commerce platform and pharmaceutical self-supporting business were 1.17 billion yuan and 8.134 billion yuan, respectively, with a year-on-year increase of 69.6% and 92.4%, accounting for 97% of the total revenue. < p > < p > specifically, the Gmv generated by tmall medical e-commerce platform operated by Alibaba health exceeded 83.5 billion yuan, and the annual active consumers exceeded 190 million, with a year-on-year increase of 46.2%; the annual active consumers of online self operated stores (ALI health pharmacy and Alibaba health overseas flagship store) exceeded 48 million, with a year-on-year increase of 77.8%. If we merge the e-commerce business, it is not difficult to find that e-commerce is almost the whole source of Ali’s health revenue, accounting for 99%, and there has been little change over the years. < / P > < p > at the same time, Alibaba and Jingdong, as well as meituan and dingdangkuai, are also occupying the pharmaceutical retail field, with rapid growth. In the field of online diagnosis and treatment that the giants are focusing on, there have already been a number of start-up companies that either step up financing or rely on “big trees”. For example, Sogou led investment Chunyu doctor and micro medical announced the completion of $500 million pre IPO Financing. In the same way, there is Ping An technology in the whole field of medical track. In addition to its Pingan good doctor as a fist product, it also cuts in from insurance, payment and other angles. According to frost Sullivan’s report, China’s expenditure on medicine and health will reach 6.5 trillion yuan in 2019 and 7.2 trillion yuan in 2020. Xin Lijun has also said that the market of the whole big health industry will exceed 10 trillion yuan. < p > < p > Liu qiangdong once said: “if we have done a good job in the field of health, we can create a new Jingdong.” Ma Yun also said that “in the next 10 years, only the big health industry can surpass Ali.” From the words of two business tycoons