Alibaba Health
{{Short description|Alibaba healthcare unit}}
{{Use dmy dates|date=June 2024}}
{{Infobox company
| name = Alibaba Health Information Technology Limited
| native_name = 阿里健康信息技术有限公司
| logo = Alibaba Health.png
| former_name =
| type = Public subsidiary
| traded_as = {{SEHK|241}}
Hang Seng Index component
| foundation = {{start date and age|2014}}
| location = Beijing, China
| founders =
| key_people = Zhu Shunyan (Chairman)
Shen Difan (CEO)
| revenue = {{Increase}} {{CNY|link=yes|26.76 billion}} (2023)
| net_income = {{Increase}} {{CNY|link=yes|5.34 million}} (2023)
| assets = {{Increase}} {{CNY|link=yes|20.75 billion}} (2023)
| equity = {{Increase}} {{CNY|link=yes|15.13 billion}} (2023)
| num_employees = 1,560 (2023)
| industry = Digital health
| parent = Alibaba Group
| subsid =
| homepage = {{URL|www.alihealth.cn}}
}}
Alibaba Health (AliHealth; {{Zh|c=|p=Ālǐ Jiànkāng|s=阿里健康}}) is a Chinese company listed in Hong Kong that focuses on providing digital health services and resources. It is currently the healthcare unit of the Alibaba Group (Alibaba).
History
The origins of the company can be traced back to Shui Hing, a Hong Kong retail company that was listed on the Hong Kong Stock Exchange in 1971.{{Cite web |last=Zhou |first=Eurus |date=28 November 2019 |title=阿里健康 (241) |url=https://www.dwzq.com.hk/admin/Uploads/%E4%B8%AD%E6%8A%95%E8%AF%81%E5%88%B8(%E9%A6%99%E6%B8%AF)_%E9%98%BF%E9%87%8C%E5%81%A5%E5%BA%B7(241)_%E5%8D%8A%E5%B9%B4%E6%8A%A5%E4%B8%9A%E7%BB%A9%E4%BA%AE%E7%9C%BC%EF%BC%8C%E6%B5%99%E6%B1%9F%E4%BA%92%E5%8C%BB%E5%B9%B3%E5%8F%B0%E6%89%93%E9%80%9A%E5%A4%84%E6%96%B9%E6%B5%81%E8%BD%AC%E5%85%A8%E9%93%BE%E8%B7%AF.pdf |website=China Investment Securities (HK)}}
In 1998, Shui Hing was sold to fashion retailer Easyknit International Holdings and was rebranded to Easy Concepts.{{Cite web |last=Chan |first=Felix |date=27 November 1997 |title=Shui Hing stake sold as losses double |url=https://www.scmp.com/article/220719/shui-hing-stake-sold-losses-double |access-date=1 June 2024 |website=South China Morning Post |language=en |archive-date=1 June 2024 |archive-url=https://web.archive.org/web/20240601074925/https://www.scmp.com/article/220719/shui-hing-stake-sold-losses-double |url-status=live }}
In 2000, CITIC Group acquired Easy Concepts and later renamed it to CITIC 21CN.
In January 2014, Alibaba and Yunfeng Capital acquired a controlling stake in CITIC 21CN for US$170 million. It was speculated that the then-private Alibaba was using the acquisition for a reverse takeover so it could be listed in Hong Kong but according to people familiar with Alibaba, there was no intention to do so. Alibaba stated the reason for the acquisition was because CITIC 21CN's drug data platform could help it expand into the healthcare industry.{{Cite web |last=Chan |first=Ray |date=25 January 2014 |title=Alibaba buys controlling stake in Citic 21CN |url=https://www.scmp.com/business/companies/article/1412886/alibaba-buys-controlling-stake-citic-21cn |access-date=1 June 2024 |website=South China Morning Post |language=en |archive-date=30 January 2019 |archive-url=https://web.archive.org/web/20190130100410/https://www.scmp.com/business/companies/article/1412886/alibaba-buys-controlling-stake-citic-21cn |url-status=live }}{{Cite web |last=Gough |first=Neil |date=24 January 2014 |title=Investment by Alibaba Creates Frenzy Over Chinese Pharmaceutical Data Firm |url=https://dealbook.nytimes.com/2014/01/24/investment-by-alibaba-creates-frenzy-over-chinese-pharmaceutical-data-firm/ |access-date=1 June 2024 |website=DealBook |language=en}} CITIC 21CN was subsequently renamed to Alibaba Health.{{Cite web |last=Perez |first=Bien |date=2 July 2015 |title=Alibaba's healthcare subsidiary aims to expand e-commerce operations despite losses |url=https://www.scmp.com/tech/e-commerce/article/1831701/alibabas-healthcare-subsidiary-aims-expand-e-commerce-operations |access-date=1 June 2024 |website=South China Morning Post |language=en |archive-date=26 July 2020 |archive-url=https://web.archive.org/web/20200726085150/https://www.scmp.com/tech/e-commerce/article/1831701/alibabas-healthcare-subsidiary-aims-expand-e-commerce-operations |url-status=live }}
In 2015, Alibaba agreed to transfer the operations of its online pharmacy business from Tmall to AliHealth for US$2.5 billion of newly issued shares and convertible bonds. However AliHealth let the deal lapse due to regulatory uncertainties for online drug sales. In May 2018, Alibaba announced it will sell several of the healthcare categories on Tmall to AliHealth for US$1.35 billion.{{Cite web |last=Shu |first=Catherine |date=29 May 2018 |title=Alibaba Group agrees to sell several Tmall healthcare categories to subsidiary Alibaba Health |url=https://techcrunch.com/2018/05/29/alibaba-group-agrees-to-sell-several-tmall-healthcare-categories-to-subsidiary-alibaba-health/ |access-date=1 June 2024 |website=TechCrunch |language=en-US}}
In 2018, AliHealth made multiple investments in offline healthcare companies which included Guizhou Ensure, ShuYu Civilian Pharmacy Corporation and Huaren Health. AliHealth which had been making losses for multiple years, wanted to find ways to generate stable cash flows to improve profitability.{{Cite web |last=Fu |first=Fay |date=20 August 2018 |title=Why Alibaba Health is going offline for pharmacy deal |url=https://www.financeasia.com/article/why-alibaba-health-is-going-offline-for-pharmacy-deal/446658 |access-date=1 June 2024 |website=FinanceAsia |archive-date=1 June 2024 |archive-url=https://web.archive.org/web/20240601084202/https://www.financeasia.com/article/why-alibaba-health-is-going-offline-for-pharmacy-deal/446658 |url-status=live }}
During the COVID-19 pandemic, AliHealth shares reached its highest point as it reported increased revenue due to direct sales. AliHealth which had been reporting net losses each year since inception had reported its first profitable year.{{Cite web |last=Lee |first=Georgina |date=2020-11-26 |title=Alibaba Health stock jumps as Covid-19 fuels first profits since listing |url=https://www.scmp.com/business/companies/article/3111448/alibaba-health-stock-jumps-earnings-report-covid-19-fuels-health |access-date=2024-06-01 |website=South China Morning Post |language=en |archive-date=29 June 2024 |archive-url=https://web.archive.org/web/20240629060717/https://www.scmp.com/business/companies/article/3111448/alibaba-health-stock-jumps-earnings-report-covid-19-fuels-health |url-status=live }}
In November 2023, AliHealth stated it would acquire AJK Technology Holding Ltd from Taobao for US$1.73 billion. The deal would give it certain services of Alibaba's marketing tool to improve profitability.{{Cite web |last=Biju |first=John |date=28 November 2023 |title=Alibaba Health in $1.73 bln deal for some Alibaba marketing services |url=https://www.reuters.com/markets/deals/alibaba-health-information-technology-buy-ajk-technology-173-bln-2023-11-28/ |website=Reuters |access-date=1 June 2024 |archive-date=1 December 2023 |archive-url=https://web.archive.org/web/20231201000119/https://www.reuters.com/markets/deals/alibaba-health-information-technology-buy-ajk-technology-173-bln-2023-11-28/ |url-status=live }}
See also
References
{{Reflist}}
External links
- {{Official website|http://www.alihealth.cn}}
{{Alibaba Group}}
{{Hang Seng Index}}
{{Hang Seng China Enterprises Index}}
{{Authority control}}
Category:Companies in the Hang Seng Index
Category:Companies listed on the Hong Kong Stock Exchange
Category:Healthcare software companies