Latest news for JD Health Intl (OTC:JDHIF) Stock

JD Health is the largest healthcare e-commerce platform in China in terms of revenue. The company offers pharmaceutical drugs and healthcare products on its platform, both as a marketplace that connects merchants to consumers and as a first-party, or 1P, direct retailer. It also offers online consultation from real life doctors and separately partners with offline pharmacies that can provide location-based 24/7 delivery as part of an omnichannel initiative to complement its core e-commerce business. Its closest competitors are Alibaba Health, Ping An Good Doctor, and Meituan for its e-commerce business. As of Dec. 31, 2023, the platform has over 180 million active annual users and over 70,000 merchants. JD Health is 67.49% owned by its parent company, JD.com

Asia

Markets

General

ALBBY

JDHIF

Key Takeaways:


	The gross margin on the company’s proprietary drug distribution business, its main revenue source, edged down to 6.1% last year
	With the pharma market already well developed, several distribution giants have muscled onto YSB’s turf as suppliers to pharmacies and smaller clinics


By Molly Wen

Slowing Revenue Growth Hurts Online Drug Platform YSB

Fintech news covering the emerging Financial Technology services sector

Fintech

Penny Stocks

ALBHF

PANHF

Key takeaways:


	111’s revenue grew 87% in second quarter, generally outpacing its peers, as it aims to more than double its fulfillment capacity this year
	Company’s shares now trade around $6.50, well off a $23 high reached in February, as investors worry about regulatory wave for broader tech sector


By Mia Shanley

Solid Earnings, Modest Buyback Fail to Boost Drug Seller 111 Inc.

JD HEALTH INTL INC by JD HEALTH INTL INC.

JD Health International Inc

On Thursday, former U.N. Ambassador and 2024 presidential candidate Nikki Haley took to X to express her support for American workers and culture in response to Department of Government Efficiency Co-head Vivek Ramaswamy.
What Happened: Ramaswamy, who is set to lead DOGE along with Elon Musk under President-elect Donald Trump, had said that the reason why top tech companies often hire foreign-born engineers over U.S.-born engineers isn&#8217;t because of IQ deficit but rather because of &#8220;culture.&#8221;
He said, &#8220;A culture that celebrates the prom queen over the math olympiad champ, or the jock over the valedictorian, will not produce the best engineers.&#8221;
Ramaswamy went on to say that under Trump, the U.S. could have a potential &#8220;Sputnik&#8221; movement and witness the &#8220;beginning of a new golden era.&#8221;
Haley responded by saying that there was &#8220;nothing wrong with American workers or American culture.&#8221; She said, &#8220;All you have to do is look at the border and see how many want what we have. We should be investing and prioritizing in Americans, not foreign workers.&#8221;
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">There is nothing wrong with American workers or American culture. All you have to do is look at the border and see how many want what we have. We should be investing and prioritizing in Americans, not foreign workers. <a href="https://t.co/fIGr45C3LD">https://t.co/fIGr45C3LD</a>
&mdash; Nikki Haley (@NikkiHaley) <a href="https://twitter.com/NikkiHaley/status/1872344248915554712?ref_src=twsrc%5Etfw">December 26, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
See Also: <a href="https://www.benzinga.com/markets/24/12/42638957/warren-buffetts-timeless-advice-if-youre-gonna-do-dumb-things-because-your-stock-goes-down-you-shouldnt-own-a-stock-at-all?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Warren Buffett&#8217;s Timeless Advice: &#8216;If You&#8217;re Gonna Do Dumb Things Because Your Stock Goes Down, You Shouldn&#8217;t Own A Stock At All&#8217;</a>
Why It Matters: Ramaswamy and Haley have a history of heated exchanges. Haley&#8217;s post can be seen as a continuation of her strong stance during the <a href="https://www.benzinga.com/news/23/09/34964396/nikki-haley-clashes-with-vivek-ramaswamy-over-tiktok-every-time-i-hear-you-i-feel-a-little-bit-dumbe">GOP debates</a>. She has been vocal about her disapproval of Ramaswamy&#8217;s decision to join TikTok, a platform she considers dangerous due to its connections with the Chinese government.
During the&nbsp;<a href="https://www.benzinga.com/news/23/11/35691834/things-turn-nasty-during-gop-debate-after-vivek-ramaswamy-attacks-nikki-haleys-daughter-for-using-ti">third GOP debate</a>, things turned sour when Ramaswamy accused Haley of hypocrisy for criticizing his use of TikTok while her own daughter was using the platform.
Despite these controversies, Haley emerged as the winner in the third GOP presidential debate, according to a <a href="https://www.benzinga.com/news/23/11/35717884/nikki-haley-winner-vivek-ramaswamy-loser-in-third-gop-presidential-debate-but-trump-remains-top-choi">poll</a> conducted by 538, Washington Post, and Ipsos. Ramaswamy, on the other hand, found himself at the bottom of the ratings.
Image via Shutterstock
Did You Know?
<ul>
<li>Congress Is Making Huge Investments. <a href="https://www.benzinga.com/gov-trades">Get Tips On What They Bought And Sold Ahead Of The 2024 Election With Our Easy-to-Use Tool</a></li>
</ul>
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/author/shivdeep-dhaliwal" target="_blank" rel="noreferrer noopener">Shivdeep Dhaliwal</a>

News

Politics

Nikki Haley Blasts DOGE Co-Head Vivek Ramaswamy For His Take On 'American Culture' — 'All You Have To Do Is Look At The Border And See How Many Want What We Have'

SYTA

Trading Halt: Halted at 7:50:00 p.m. ET - Trading Halt: Halt News Pending

SYTAW

HYBI

Walker & Dunlop Arranges $245M Loan From TYKO Capital To Facilitate Construction Of The Greyson Tower, New Jersey

The Master Services Agreement will become effective on January 1, 2025, at which time, the master services agreement, dated September 22, 2022, between LiveWire and H-D, will terminate.
The Master Services Agreement has an initial term of seven years and will be renewable upon mutual agreement.&nbsp;
&nbsp;

LVWR

On December 23, 2024, LiveWire Group Entered Master Services Agreement With Harley-Davidson - Filing

GDYN

GEAR

Grid Dynamics Holdings To Replace Revelyst In S&P SmallCap 600, Effective Prior To The Opening Of Trading On January 2, 2025

Also, on December 23, 2024, the Company and Chris Clark, the Chief Technology Officer of the Company agreed that Clark's employment would be terminated, effective February 16, 2025.

Management

GROV

Grove Collaborative Says Stuart Landesberg Will Step Down As Executive Chair, Effective February 17, 2025; Plans To Transition To Role Of Non-Employee Member Of Board, Initially As Chairperson

Streaming giant Netflix Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>) aired its first NFL games on Christmas Day with two games featuring four of the<a href="https://www.benzinga.com/general/sports/24/12/42354185/nfl-games-set-thanksgiving-day-records-why-this-is-good-and-bad-news-for-streaming-giant-netflix"> top teams in the league.</a>
Here's a look at what happened and a poll that shows the holiday may have hurt viewership.
What Happened: Netflix <a href="https://www.benzinga.com/general/sports/24/12/42512587/netflix-analyst-say-its-only-investable-media-stock-projects-150-million-nfl-christmas-day-boost">spent an estimated</a> $150 million on the rights to two 2024 NFL games on Christmas Day. Strong advertising demand may help the streaming giant recoup the fees and turn the events into free marketing plays.
The big question will be how many viewers tuned in to the NFL games as they were Netflix exclusives and also competed against NBA games, which have traditionally been a staple on Christmas. Family gatherings and events also likely took top billing on Christmas, leaving investors and analysts to eagerly await official viewership data.
Using Benzinga's own methods of polling, the data doesn't suggest that viewership will be as strong for the NFL games as some may be expecting.
"Did you watch Netflix football games?" Benzinga asked during its <a href="https://www.youtube.com/watch?v=mgZkTiF6WnU">morning YouTube show </a>"Benzinga's Market Edge Live."
The results from the show&#8217;s YouTube viewership were:
<ul>
<li>Yes: 27%</li>
<li>No: 72%</li>
</ul>
Benzinga also<a href="https://www.benzinga.com/24/12/42653325/exclusive-netflix-to-have-merry-christmas-with-nfl-games-will-viewers-tune-in-60-say"> recently polled readers</a> and asked if they would be watching ahead of the Christmas Day games.
&#8220;Will you watch Christmas NFL games on Netflix?&#8221; Benzinga asked.
Here were the results:
<ul>
<li>Yes, I already have Netflix: 39%</li>
<li>No, I don&#8217;t have Netflix and won&#8217;t watch: 30%</li>
<li>No, even though I have Netflix: 30%</li>
<li>Yes, I plan to subscribe to Netflix to watch: 1%</li>
</ul>
The largest percentage of readers said they are subscribers and will be watching, getting 39% of the vote. Thirty percent of Netflix subscribers said they won&#8217;t be watching despite being able to watch the games for free with their subscription. Thirty percent said they do not have Netflix and won&#8217;t subscribe just to gain access to the NFL games.
In total, the poll found that 60% of readers don&#8217;t plan on watching the NFL games on Christmas Day.
Why It's Important: NFL viewership has been strong during the 2024 season, with the Chiefs being one of the most popular teams. The official Netflix viewership figure could show what the appetite is like for more holiday NFL games and more streaming exclusives.
In the first Christmas Day game this year, the Kansas City Chiefs defeated the Pittsburgh Steelers 29-10 to take their record to 15-1 on the season. The Steelers dropped to 10-6 on the season, with both teams already having NFL Playoffs spots clinched.
Chiefs tight end Travis Kelce led the way with eight catches for 84 yards and a receiving touchdown, which set the record for the most receiving touchdowns by a Chiefs player all time with 76.
In the second Christmas Day game on Netflix, the Baltimore Ravens defeated the Houston Texans 31-2 to improve their record to 11-5. The Texans fell to 9-7 on the season. Both these teams have also clinched spots in the 2024 NFL Playoffs.
In the Ravens dominant win, quarterback Lamar Jackson rushed for 87 yards and a rushing touchdown. Jackson now has 6,110 career rushing yards, breaking a record previously held by Michael Vick.
With the win and dominant performance, Jackson remains a favorite to win a second-straight NFL MVP. Jackson, who won MVPs for the 2019 and 2023 seasons, ranks second in the betting odds at sportsbook DraftKings Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DKNG#NASDAQ">DKNG</a>) with odds of +170. Buffalo Bills quarterback Josh Allen is the current favorite at -225.
Here are the current Super Bowl LIX betting odds from DraftKings:
<ul>
<li>Kansas City Chiefs: +360</li>
<li>Detroit Lions: +390</li>
<li>Buffalo Bills: +600</li>
<li>Philadelphia Eagles: +650</li>
<li>Baltimore Ravens: +650</li>
<li>Minnesota Vikings: +1,100</li>
<li>Green Bay Packers: +1,300</li>
<li>Los Angeles Rams: +3,000</li>
<li>Washington Commanders: +5,000</li>
<li>Pittsburgh Steelers: +5,000</li>
<li>Los Angeles Chargers: +5,000</li>
<li>Houston Texans: +5,000</li>
<li>Denver Broncos: +5,000</li>
</ul>
The Chiefs are back to being the betting favorite as they try to win three straight Super Bowls, which would be a first for any NFL team.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/general/entertainment/24/12/42662975/exclusive-squid-game-broke-netflix-records-will-viewers-watch-season-2-70-of-benzinga-readers-say">EXCLUSIVE: &#8216;Squid Game&#8217; Broke Netflix Records, Will Viewers Watch Season 2? 70% Of Benzinga Readers Say…</a></li>
</ul>
Photo courtesy of Netflix.

Entertainment

Sports Betting

Sports

Exclusives

DKNG

NFLX

Netflix NFL Games Show Off Super Bowl Contenders, MVP Frontrunner: Benzinga Poll Says 27% Watched

SEALSQ Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LAES#NASDAQ">LAES</a>) shares closed Thursday up more than 60%, and the stock isn&#8217;t slowing down after hours. Shares are up more than 3% in extended trading after the company announced it regained compliance with <a href="https://www.benzinga.com/pressreleases/24/12/g42694574/sealsq-regains-compliance-with-nasdaqs-minimum-bid-price-requirement">Nasdaq listing rules</a>.
What Happened: After the market close on Thursday, SEALSQ said it received formal written notice from the Nasdaq confirming that the company regained compliance with the Nasdaq&#8217;s minimum bid price requirement.
SEALSQ received a letter from the Nasdaq on Aug. 1, stating that the company was not in compliance with the&nbsp;$1&nbsp;minimum bid price requirement for continued listing on the Nasdaq. The company was required to maintain a minimum bid price of at least $1 for 10 consecutive trading days prior to Jan. 28. 
SEALSQ said it was informed that it regained compliance after its shares traded above the $1 level from Dec. 11 to Dec. 24. Shares are responding favorably to the announcement that the matter is now closed. SEALSQ shares are now up more than 2,000% over the past month, per <a href="http://pro.benzinga.com">Benzinga Pro</a>.
SEALSQ stock rallied more than 60% during normal trading hours on Thursday after the company announced the launch of SEALQUANTUM.com Lab, designed to support organizations transitioning to&nbsp;quantum-safe encryption. 
&#8220;As quantum technologies become a reality, the need for quantum-safe encryption solutions grows increasingly urgent,&#8221; said Carlos Moreira, CEO of SEALSQ. 
&#8220;Our&nbsp;SEALQUANTUM.com&nbsp;Lab is more than just a platform, it&#8217;s a commitment to future-proofing our clients&#8217; security. By combining cutting-edge research with actionable tools, we&#8217;re empowering businesses to navigate the complexities of quantum cryptography with confidence.&#8221;
SEALSQ describes itself as &#8220;a company that focuses on developing and selling semiconductors, PKI and post-quantum technology hardware and software products.&#8221;
Check This Out: <a href="https://www.benzinga.com/24/12/42686387/sealsq-launches-sealquantumcom-lab-to-help-businesses-transition-to-quantum-safe-encryption">SEALSQ Launches SEALQUANTUM.com Lab To Help Businesses Transition To Quantum-Safe Encryption</a>
LAES Price Action: <a href="http://benzinga.com/quote/laes">SEALSQ shares</a> were up 0.23% in after hours, trading at $8.78 at the time of publication Thursday, per <a href="http://pro.benzinga.com">Benzinga Pro</a>.
Photo: Shutterstock.

Movers

Tech

LAES

SEALSQ Corp Shares Are Moving Higher After Hours: What's Going On?

Editor&#8217;s note: This story has been updated with comment from Zelle and Bank of America. 
The Consumer Financial Protection Bureau sued three of the nation's largest banks and the operator of Zelle last week, alleging a failure to protect consumers from widespread fraud on the peer-to-peer payment network, resulting in customer losses of more than <a href="https://www.benzinga.com/markets/equities/24/08/40155365/zelle-controversy-heats-up-jpmorgan-considers-legal-action">$870 million since 2017.&nbsp;</a>
The Details: The CFPB's <a href="https://www.consumerfinance.gov/enforcement/actions/early-warning-services-llc-bank-of-america-na-jpmorgan-chase-bank-na-wells-fargo-bank-na/">lawsuit</a> alleges that JP Morgan Chase &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>), Wells Fargo &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>), Bank of America Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAC#NYSE">BAC</a>) and Early Warning Services rushed to complete the Zelle payment network in order to compete with Venmo and CashApp and neglected to enact effective fraud safeguards. 
Read Next: <a href="https://www.benzinga.com/news/24/12/42669113/waymos-autonomous-vehicles-are-safer-than-human-drivers-report">Waymo&#8217;s Autonomous Vehicles Are Safer Than Human Drivers: Report</a>
"The nation's largest banks felt threatened by competing payment apps, so they rushed to put out Zelle," said CFPB Director Rohit Chopra. "By their failing to put in place proper safeguards, Zelle became a gold mine for fraudsters, while often leaving victims to fend for themselves."
The lawsuit further alleges that the banks "systemically failed" their customers by failing to properly investigate customer complaints or share information on known acts of fraud which allowed bad actors to hop between banks and commit repeated fraudulent transactions.&nbsp;
Zelle told Benzinga in an emailed statement that it sees the CFPB's lawsuit as politically motivated and&nbsp; "legally and factually flawed." Zelle said it "leads the fight against scams and fraud" and that its reimbursement policies exceed those required by law.
"The CFPB's misguided attacks will embolden criminals, cost consumers more in fees, stifle small businesses and make it harder for thousands of community banks and credit unions to compete,&#8221; said&nbsp;Jane Khodos, Zelle spokesperson.
A Bank of America spokesperson told Benzinga that more than 99.5% of Zelle transactions go through without incident and when an issue arises, the bank works directly with the customer to resolve it.
"We strongly disagree with the CFPB's effort to impose huge new costs on the 2,200 banks and credit unions that offer the free Zelle service to clients," Bank of America added.
Benzinga also contacted JPMorgan, Wells Fargo, Bank of America and Early Warning Services for comment on the lawsuit.
JPMorgan told CBS News that the CFPB has a &#8220;political agenda,&#8221;and the agency is &#8220;overreaching its authority by making banks accountable for criminals, even including romance scammers.&#8221;
The CFPB said its lawsuit aims to stop the banks' alleged unlawful practices, secure penalties for the violations and obtain other relief for consumers.&nbsp;
"The banks failed to fix glaring flaws in their systems even as hundreds of thousands of customers filed complaints about fraud," Chopra said in a <a href="https://www.consumerfinance.gov/about-us/newsroom/prepared-press-call-remarks-of-cfpb-director-rohit-chopra-on-the-zelle-lawsuit-announcement/">statement</a>.
"The banks knew their customers were having their money stolen, but since they weren't bearing the cost of these losses themselves, they dragged their feet on fixing the problems," he added.&nbsp;
Read Next:&nbsp;
<ul>
<li><a href="https://www.benzinga.com/24/12/42653466/honda-nissan-plan-to-merge-in-the-face-of-chinese-ev-competition">Honda, Nissan Confirm Merger Plans To Offset Chinese EV Competition: How Mitsubishi Factors In</a></li>
</ul>
Image: Shutterstock.

Large Cap

Legal

'Zelle Became A Gold Mine For Fraudsters': Consumer Financial Protection Bureau Lawsuit (UPDATED)

The company announced that following the results of the Company's 2024 Annual Meeting, three new directors were elected to the Board of Directors by its stockholders: John A. Moore, General Victor E. Renuart Jr. and Robert D. Straus.

TPCS

TechPrecision Board Appoints Victor Renuart To Serve As Chair And Robert Straus As Vice-chair

Guidance

CRKN

Crown Electrokinetics CEO Highlights 2024 Achievements And 2025 Goals; Reports $20M Revenue For 2024, Projects Profitability By H1 2025; Appeals NASDAQ Delisting With Reverse Stock Split Proposal Ahead Of Jan. 14 Vote

The company emphasized that its decision to voluntarily close the trial is not the result of any new safety finding.

VIRX

Viracta Therapeutics Plans To Close Its Ongoing Pivotal Phase 2 Clinical Trial Of Nana-val In Relapsed/Refractory EBV + Lymphomas

Viracta Therapeutics Board Initiates Process To Explore Broad Range Of Strategic Alternatives

PLBY

PLBY Group Enters Retention Agreement With Each Of Its Named Executive Officers: Ben Kohn, CEO And President; Marc Crossman, CFO And COO; And Chris Riley, General Counsel And Secretary - Filing

Federally funded&nbsp;survey data&nbsp;provided by the University of Michigan indicates&nbsp;that teen marijuana use has declined significantly over the past decade and is now at historic lows.
Consistent with data previously reported by the <a href="https://norml.org/blog/2024/08/07/cdc-data-highlights-sustained-decline-in-youth-marijuana-use/">Centers for Disease Control and Prevention</a> and the <a href="https://norml.org/blog/2024/07/31/government-survey-data-shows-nearly-20-percent-decline-in-teen-marijuana-use-over-past-decade/">National Survey on Drug Use and Health</a>, the University of Michigan's annual Monitoring the Future report finds that cannabis use by young people is at a 30-year low. The federally funded Monitoring the Future survey has been operating since 1975.
This year's&nbsp;<a href="https://monitoringthefuture.org/data/index.html" target="_blank" rel="noreferrer noopener">findings</a> are based on responses from about 24,000 students in grades 8, 10 and 12 in schools across the U.S. The survey is "one of the best, if not the best" source of national data for substance use by teens, said Noah Kreski, a Columbia University researcher who has studied teen drug use, <a href="https://apnews.com/article/teen-drug-use-b5e877b4c7eecb5354c3b8214e7d8692">noted</a> the AP.
In a Dec. 17 <a href="https://nida.nih.gov/news-events/news-releases/2024/12/reported-use-of-most-drugs-among-adolescents-remained-low-in-2024">press release</a> issued by the National Institutes of Health on the same day of the report, <a href="https://www.benzinga.com/topic/nora-volkow">Nora Volkow</a>, M.D., director of NIH's National Institute on Drug Abuse described the overall decline in substance use by young people as "unprecedented."
Read Also: <a href="https://www.benzinga.com/24/12/42690082/trump-is-first-republican-president-with-a-pathway-to-cannabis-reform-says-former-adviser">Trump Is First &#8216;Republican President&#8217; With A Pathway To Cannabis Reform, Says Former Adviser</a>
"This trend in the reduction of substance use among teenagers is unprecedented," Volkow said. "We must continue to investigate factors that have contributed to this lowered risk of substance use to tailor interventions to support the continuation of this trend."&nbsp;
Over the past 10 years, during which time 24 states legalized adult-use marijuana sales, the percentage of 8th graders, 10th graders and 12 graders who reported having ever consumed cannabis declined 32%, 37% and 23%, respectively, according to the study.
"Sensational claims that adult-use legalization laws are linked with greater marijuana use by teens are simply not backed by reliable data," said <a href="https://www.benzinga.com/topic/paul-armentano">Paul Armentano</a>, deputy director  of the National Organization for the Reform of Marijuana Laws. "These findings ought to reassure lawmakers that cannabis access can be legally regulated in a manner that is safe, effective, and that does not inadvertently impact young people's habits."
Now Read:
<ul>
<li><a href="https://www.benzinga.com/markets/cannabis/24/12/42597912/pesticides-in-pot-the-overlooked-dangers-of-californias-legal-weed">Pesticides In Pot: Overlooked Dangers Of California&#8217;s Legal Weed</a></li>
</ul>
Image created using artificial intelligence via Midjourney.

Cannabis

Government

Cannabis Use Among Teens Plummets To 30-Year Low, Study Finds

The company announced the sale of a portion of its available-for-sale investment securities portfolio as part of a strategic balance sheet repositioning.
Additionally, the Bank maintains liquidity metrics, including holding over $35 million in cash, cash equivalents, and Treasury securities. Additionally, the Bank has an unused secured line of credit of over $250 million with the Federal Home Loan Bank of New York.
&nbsp;

RBKB

Rhinebeck Bancorp Says Remained 'Well Capitalized' Following Restructuring; Says Restructuring Decreased Average Life Of The Securities Portfolio And Is Expected To Improve Earnings Stream Beginning In Q1'25

IMKTA

Ingles Markets Announced That It Received A Notice From Nasdaq Stating The Company Is No Longer In Compliance With Nasdaq Listing Rule 5250(c)

Bank Of America Reveals Full Redemption Of Its Series MM Preferred Stock And Related Depositary Shares

JD Health International Inc. (JDHIF) Q4 2023 Earnings Call Transcript

Artisan Developing World Fund Q1 2024 Commentary

JD Health: Focus On Both Short-Term And Long-Term Prospects

ADYEY

ADYYF

CRWD

JDHIY

LVMHF

MMYT

NVDA

SSNLF

WXIBF

WXXWY

JD Health Intl

<h4>Key Takeaways:</h4>

<ul>
	<li>The gross margin on the company&rsquo;s proprietary drug distribution business, its main revenue source, edged down to 6.1% last year</li>
	<li>With the pharma market already well developed, several distribution giants have muscled onto YSB&rsquo;s turf as suppliers to pharmacies and smaller clinics</li>
</ul>

By Molly Wen

Drugs-trading platform&nbsp;YSB Inc.&nbsp;(9885.HK) is feeling the pain from a stock sell-off after delivering its first annual results since listing on the Hong Kong stock market last year.

China&rsquo;s vast online pharmaceutical market counts digital heavyweights such as&nbsp;Alibaba Health&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/ALBBY#OTC">ALBBY</a>) and&nbsp;JD Health&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/JDHIF#OTC">JDHIF</a>) among its players, but YSB inhabits a niche with relatively tight profit margins as a B2B platform mainly serving smaller pharmacy chains and clinics.

Earnings&nbsp;<a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2024/0311/2024031101011.pdf">released</a>&nbsp;early last week highlighted the challenge for YSB.&nbsp; Rising revenues last year and even a profit on an adjusted basis could not prevent a sharp fall in the stock price.

YSB describes itself as the biggest digital provider of comprehensive out-of-hospital drug services in China. Its gross merchandise volume (GMV) rose 18.9% last year to 46.9 billion yuan ($6.5 billion), while operating income rose at the same rate to 16.97 billion yuan. &nbsp;The firm&rsquo;s annual net loss widened to 3.21 billion from 1.5 billion yuan in 2022, as earnings took a one-off hit from the conversion of preferred shares after the IPO.

Using a more representative gauge of business health, the company logged an adjusted profit of 131 million yuan in 2023 against a loss of 125 million yuan the previous year. Gross profit rose 21.3% to 1.74 billion yuan while gross margin edged up to 10.3% from 10.1%.

Investors, however, were unimpressed by those healthier numbers. YSB&rsquo;s shares plunged 9.1% the day after the results and, although they later recovered some ground, suffered a 4.6% fall over four trading days. The stock closed at HK$9.98 last Friday, only half the IPO price of HK$20 last June.

The past six months have been a roller coaster ride for YSB. The company enjoyed a two-month honeymoon with Hong Kong investors after the listing, when the share price reached a high of HK$64.5. However, the price turned south and plummeted 46% in a day after the end of the lock-up period, as the market turned bearish on the company&rsquo;s prospects. YSB&rsquo;s founder and chairman, Zhang Buzhen, announced a 180-day extension to the lock-up but the downward spiral persisted.

YSB&rsquo;s business model in the drugs space is similar to that of e-commerce giant JD.com, connecting drugs factories with pharmacies and clinics via an online trading platform. By the end of 2023, YSB could boast that around 8,100 sellers and more than 650,000 downstream buyers had used its platform.

Like most pharma platforms, as a service provider YSB charges a percentage of transactions as commission. GMV derived from the platform rose 25.8% last year to 28.47 billion yuan, accounting for 60.7% of the total. However, the limited commission rate meant only 870 million yuan in revenue was generated.

YSB gets a bigger revenue boost from its proprietary business, in which it buys drugs from suppliers and distributes them to customers from its own warehouses. Operating income from the self-operated business rose 18.6% last year to 16.04 billion yuan.

The company has built an intelligent supply chain system covering 22 self-owned warehouses in 21 cities. Using the logistics platform, orders can be delivered within a few hours or a day of the order being placed, easing inventory pressure on buyers, the company said. The proprietary business operates on a large scale, but its profit margins are tight: gross margin on this segment dropped 0.1 percentage points to 6.1% last year.

<h3>Competition Intensifies</h3>

YSB&rsquo;s revenues are still growing but the pace of acceleration is slowing. Revenue growth fell from 63.7% in 2021 to 41.4% in 2022, slowing further to 18.9% in 2023. The revenue growth rate for YSB&rsquo;s proprietary services dropped to 18.6% from 41% in 2022, while the rate for the online marketplace business fell to 25.8% from 41.9% in 2022.

Higher commissions charged via the platform and reduced business subsidies may have been factors in the slowdown. The average commission rate rose from 2.9% in 2021 to 3.1% the following year and 3.2% in 2023, calculated as the platform&rsquo;s cut divided by GMV. But the subsidy provided to platform buyers fell from 0.8%, to 0.7% and 0.6% over the same period.

Fiercer competition within the B2B pharma market is squeezing the earnings performance. In the past, big pharma enterprises barely paid any attention to the supply of drugs outside of leading hospitals, which was a relatively small and fragmented market. However, the giants have since joined YSB in its B2B niche, piling on the pressure.

Internet medicine supplier JD Health has launched a pharmaceutical B2B platform, &ldquo;yao.jd.com&rdquo;, while traditional distribution giants&nbsp;Jointown Pharmaceutical&nbsp;(600998.SH) and&nbsp;Shanghai Pharmaceuticals&nbsp;(601607.SH)haveset up their own B2B platforms, &ldquo;youngjoin&rdquo; and &ldquo;yiyaogo.com&rdquo;. &nbsp;In September last year, Jointown Pharmaceutical said it had established 17 &ldquo;companies across the country to provide B2B e-commerce services for small chains, single pharmacies, clinics and other customers.

In the past, market watchers believed Internet platforms could transform the business of drugs distribution and deliver handsome returns. However, over time it has become clear that even the market leader, JD Health, can only turn a profit under non-GAAP standards. The distribution of medicines appears to be stuck in an earnings rut.

Currently YSB commands a price-to-sales (P/S) ratio of about 0.34 times, lower than the 0.78 times for traditional pharmaceutical distributor&nbsp;Sinopharm&nbsp;Group&nbsp;(1099.HK) as net profits remain out of reach. Investors will have to wait and see if YSB can maintain an edge in an increasingly competitive part of the market.

This article is from an unpaid external contributor. It does not represent Benzinga&#39;s reporting and has not been edited for content or accuracy.

Key takeaways:

<ul>
	<li>111&rsquo;s revenue grew 87% in second quarter, generally outpacing its peers, as it aims to more than double its fulfillment capacity this year</li>
	<li>Company&rsquo;s shares now trade around $6.50, well off a $23 high reached in February, as investors worry about regulatory wave for broader tech sector</li>
</ul>

By Mia Shanley

With massive revenue growth and market share gains in the bag, online drug seller&nbsp;111 Inc.&nbsp;(YI.US) has a new focus: earning a profit. The company was talking up that potential in its latest quarterly results, and followed that with a modest share buyback last week in a bid to excite skeptical investors.

Founded in 2010, 111 now boasts one of the biggest networks selling to online and brick-and-mortar pharmacies in China, and also operates its own online retail pharmacy. It sells directly to more than 300,000 pharmacies &ndash; including independents, chains, clinics and private hospitals &ndash; and operates in almost 900 cities where it can deliver drugs in less than 24 hours.

The Shanghai-based company has chalked up several consecutive quarters of robust revenue growth, including in its&nbsp;<a href="https://www.prnewswire.com/news-releases/111-inc-announces-second-quarter-2021-unaudited-financial-results-301364183.html">latest results</a>&nbsp;announced late last month. Revenues in this year&rsquo;s second quarter rose 86.5% to 3 billion yuan ($468.4 million), driven predominantly by its core B2B sales to pharmacies and healthcare providers.

The vast majority &ndash; about 96% &ndash; of its revenue came from its B2B business, while the remainder came from its modest B2C business selling drugs directly to consumers. B2B typically carries far smaller margins than B2C, which may partly explain why the company has faced big hurdles becoming profitable.

But profitability is clearly now in focus, a factor which could finally help breathe life into the company&rsquo;s lackluster shares in the coming quarters. 111&rsquo;s shares are trading at about $6.50, well off an all-time high of over $23 in February as investors briefly cheered its status as a leading player in China&rsquo;s huge market for drug distribution. &nbsp;

But that was before Chinese regulators started a series of crackdowns on tech companies targeting everything from anti-monopolistic behavior to data security and after-school education. While drug companies have yet to fall into the regulator&rsquo;s crosshairs, 111&rsquo;s stock got sucked into the broader selloff that sent shares of many U.S.- and Hong Kong-traded tech companies tumbling.

Rather than dwell on that, 111 has turned its attention to its bottom line with a goal of breaking even within the next 12 to 18 months, management said on its earnings call. The company has never posted an annual profit in its three years as a publicly traded company.

&ldquo;Improving our bottom line will be a key focus for us going forward,&rdquo; CFO Chen Yang, who also uses the name Luke Chen, said on the company&rsquo;s quarterly earnings call. &ldquo;We will be focusing on improving margins and reaching profitability.&rdquo;

The company&rsquo;s non-GAAP net loss stood at 118 million yuan for the quarter, widening from 78.8 million yuan in the same period a year earlier. But as a percentage of revenues the loss shrank to 3.9% in the second quarter from 4.9%, indicating the company&rsquo;s margins were improving as it builds up scale.

Chen said gross margin for the company&rsquo;s main B2B business improved to 3.8% in the latest quarter from 3.4% a year earlier, reflecting the razor-thin margins for that part of the business. By comparison, the company&rsquo;s B2C business margin stood at a much higher 20%, though that figure was unchanged from a year earlier, he added.&nbsp;

Changing Fortunes

Drug suppliers like 111 and the many retailers it counts as B2B customers saw their fortunes change overnight in 2019 when the government ended the near-monopoly that hospitals previously had on prescription drug sales, paving the way for others to move in. The Covid-19 pandemic has also lifted sales as patients raced to buy drugs and seek medical advice online.

111 has been busy building up its logistics network to meet surging demand. It plans to expand fulfillment capacity to about 243,000 square meters by the end of its financial year, more than doubling the amount of space it had at the start of the year.

Its revenue growth has been outpacing peers, including more B2C-focused online healthcare giants like&nbsp;Alibaba Health Information Technology Ltd.&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/ALBHF#OTC">ALBHF</a>) and&nbsp;JD Health&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/JDHIF#OTC">JDHIF</a>).

In the first half of the year, 111 saw a 76% increase in revenues. That compared with a 55.4% rise at JD Health, which also remains in the red, and a 39% increase at rival&nbsp;Ping An Good Doctor&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/PANHF#OTC">PANHF</a>), which markets itself as a one-stop online medical portal. Alibaba Health, which is already profitable, saw revenues rise 62% in its fiscal year ended March 31.

The market potential is huge thanks to China&rsquo;s aging population and increasing wealth. Online retail drug sales in China are forecast to reach 177 billion yuan by 2028, accounting for about 30.8% of total sales, according to a report last year by Deloitte. Prescription drug sales could grow annually by almost 60% while over-the-counter medicines should grow 32%, the report said.

111 is clearly keen to be taken seriously by investors who may favor higher-margin B2C drug sellers. The company, which listed in 2018 and had a solid cash position of 1 billion yuan at the end of the second quarter, last week announced a modest $10 million&nbsp;<a href="https://www.prnewswire.com/news-releases/111-inc-announces-10-million-share-repurchase-program-301369963.html">share buyback program&nbsp;</a>&ndash; a move that looks largely symbolic and aimed at showing investors it thinks it is sorely undervalued.

Its share price rose to almost $8 on the day of that announcement, but struggled to keep up the momentum and has been on a steady decline since.

Worries over future regulation, especially for the bigger players in the digital healthcare sector, have weighed heavily on shares. With regulators already taking action targeting education and data security, some analysts say that China&rsquo;s healthcare sector could be next in the line of fire.

Indeed, shares of both JD Health and Alihealth have plunged 50% so far this year. 111 shares are down a more modest 10% in the same period, perhaps reflecting market expectation that regulatory action might be more targeted at bigger internet names, and at B2C rather than B2B drug sellers. .

Government officials may also find it harder to justify reining in companies like 111, which have made it their mission to improve healthcare access for millions of Chinese and address inequalities. Through its offerings, 111 has helped lower the cost of treatment and vastly improved healthcare access to rural areas in particular.

Company executives sought to downplay concerns over regulation of the sector on the earnings call, saying they welcomed policies aimed at containing unfair practices.

&ldquo;We view the recent regulatory actions as a tailwind rather than a headwind for 111,&rdquo; said Chairman and CEO Liu Junling.

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