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Alibaba Health Shares Rise After Swinging to Profit in First Half

By Clarence Leong


Shares of Alibaba Health Information Technology Ltd. rose strongly after it swung to a profit in its fiscal first half.

Alibaba Health's Hong Kong-listed stock gained 9.2% to 6.07 Hong Kong dollars (US$0.78) on Tuesday, paring year-to-date losses to 7.9%. The stock outperformed the Hang Seng Tech index's 4.7% rise and the benchmark Hang Seng Index's 3.5% increase.

The company said late Monday that it achieved a turnaround in its first half ended Sept. 30, posting a net profit of 160.7 million yuan (US$22.3 million), compared with a net loss of CNY231.8 million a year earlier.

Revenue for the period increased 23% from the year-earlier period to CNY11.50 billion, driven by its pharmaceutical direct sales business, which grew 24%, it said. Gross profit margin for that segment improved, thanks to stronger bargaining and digital-marketing capabilities, although overall gross profit margin was flat at 20%, Alibaba Health said.

The company said its pharmaceutical e-commerce platform served 27,000 merchants at the end of the period, up by 2,000 from a year earlier, while annual active consumers of its direct online stores rose more than 30 million to above 120 million over the same period.


Write to Clarence Leong at


(END) Dow Jones Newswires

November 28, 2022 22:25 ET (03:25 GMT)

Copyright (c) 2022 Dow Jones & Company, Inc.

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