(Yicai Global) Nov. 25 -- Shares of Alibaba Health Information Technology fell to a 25-month low after the Chinese online healthcare information and services provider lost CNY231.6 million (USD36.3 million) in the fiscal first half.
Alibaba Health’s stock [HKG: 0241] ended 1.6 percent down at HKD7.78 (USD1) today, the lowest closing price since October 2019. The stock gave up 7.1 percent yesterday as US investment bank J.P. Morgan cut its price target to HKD9 and changed its recommendation to neutral from overweight.
Alibaba Health’s net loss for the six months ended Sept. 30 compared with a net profit of CNY278.6 million a year ago, the Hong Kong-based company said its semi-annual financial report released late yesterday. Revenue rose almost 31 percent to CNY9.4 billion (USD1.5 billion). It gave no forward guidance.
The loss was mainly due to greater investment in innovative businesses such as internet healthcare app Dr. Deer, healthcare service provider Neighborhood Healthcare, and health insurance, as well as rising supply chain costs and outlays on technology and brand development, the firm said.
Revenue from direct drug sales jumped 34.5 percent to CNY8.1 billion, while that from online sales rose 9.2 percent to CNY1 billion. Income from healthcare and digital services gained 13.9 percent to CNY228.5 million.
Editor: Futura Costaglione