JD Health’s 2024 Earnings Call Highlights Growth and Innovation

JD Health International, Inc. ((HK:6618)) has held its Q4 earnings call. Read on for the main highlights of the call.

JD Health International, Inc. has demonstrated a strong performance throughout 2024, marked by significant revenue growth and strategic expansions in AI and B2C sectors. Despite facing some challenges with increased expenses and slower direct sales growth, the company’s strategic initiatives and robust service revenue underscore a positive outlook for the future.

Robust Revenue Growth

JD Health reported a full-year revenue of RMB58.16 billion in 2024, reflecting an 8.6% increase year-over-year. This growth was driven by significant advancements in both pharmaceutical and non-pharmaceutical segments, showcasing the company’s ability to capitalize on market opportunities.

Expansion of B2C Leadership

The company has fortified its leadership in the B2C sector by enhancing its omnichannel initiatives and strengthening its position in pharmaceuticals. A particular focus on imported drugs and innovative treatments has been central to this expansion, further solidifying JD Health’s market presence.

AI Innovations

JD Health has made significant strides in AI, launching Jingyi Qianxun, a large language model, along with other AI-powered tools. These innovations are aimed at boosting doctor productivity and enhancing user experience, signaling a transformative shift towards AI-powered healthcare solutions.

Increased Service Revenue

Service revenue for the year surpassed RMB9.36 billion, marking an 18.9% increase year-over-year. This growth was significantly bolstered by platform commissions and advertising revenue, highlighting the company’s successful diversification of income streams.

High-Quality Active User Base

The company reported an annual active user base exceeding 183 million, with an average daily online consultation volume of over 498,000. This demonstrates strong user engagement and the effectiveness of JD Health’s digital health services.

Increased Fulfillment and Marketing Expenses

JD Health experienced a rise in fulfillment expenses, with the ratio increasing by 15 basis points to 10.2%. Additionally, the selling and marketing expense ratio rose by 30 basis points to 5.2% in 2024, reflecting the company’s investment in expanding its market reach.

Slow Growth in Direct Sales

While direct sales revenue grew by 6.9% year-over-year, this rate was slower compared to other segments like service revenue. This indicates a need for strategic adjustments to boost growth in direct sales moving forward.

Forward-Looking Guidance

JD Health’s forward-looking guidance remains optimistic, with a reported full-year revenue of RMB58.16 billion, marking an 8.6% increase year-over-year. Excluding the pandemic-related high comparison base from the first quarter, revenue growth in subsequent quarters was 13.4% year-over-year. The company continues to enhance its omnichannel and AI initiatives, maintaining a robust cash position with RMB59.42 billion in reserves by year-end.

In conclusion, JD Health International, Inc. has showcased a strong performance in 2024, with significant revenue growth and strategic advancements in AI and B2C sectors. Despite challenges with increased expenses and slower direct sales growth, the company’s strategic initiatives and robust service revenue provide a positive outlook for the future.