Recently, Ali Health released its 2015 annual results. As of March 31, the main income for the fiscal year was 56.6 million yuan, a year-on-year increase of 90.3%; the net loss was 191.6 million yuan, an increase of 135.9% over the previous year. Ali Health attributed the loss to the continued loss of technical support and maintenance services for China's pharmaceutical electronic regulatory network, with an annual loss of 191.6 million yuan.

According to industry insiders, drug regulatory code-related service revenues were the main source of growth in Alibaba's health gross margin. In 2014, Alibaba United Yunfeng Fund won a 54.3% stake in CITIC 21st Century for US$170 million. In the same year, CITIC 21st Century was renamed Ali Health.

At the beginning of the year, Ali Health was called to stop the supervision of the drug supervision code because of the alleged monopoly of drug monitoring code. In order to solve the bottleneck after the drug monitor code was stopped, Ali Health put the Tmall Medical Museum into the territory. The fees and other value-added services from the retail pharmacies to the Tmall Medical Museum have also become an important source of income for Ali Health.

BAT sighs medical money is not good

CITIC 21st Century is the symbol of the Ali Group's health field. There are rumors that Internet giants such as BAT have laid out. Especially in the traditional business growth can not meet expectations, emerging technology areas including medical care has become a testing ground for BAT to try diversification strategy.

Ali Health is a backward student of the Ali Group. Although the drug supervision code was restarted in May this year, the new program revenue subject to “enterprise self-built” will be greatly affected.

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