King Wen | happy
Source| Bowang Finance
The great reshuffle of the pharmaceutical O2O industry has caused most enterprises to be forced to transform and close down due to capital rupture. Jingle Bell Fast Medicine as one of the survivors survived in the capital markets,
It is mentioned that after Dingdang Express submitted its application to the Hong Kong Stock Exchange for listing on June 22 this year, it did not "knock" on the door of the Hong Kong Stock Exchange in the following months, leaving the capital market with an unknown.
Recently, on December 22, according to the information disclosed by the Hong Kong Stock Exchange, the IPO application information of Dingdang Fast Medicine has become invalid, which means that the listing process of Dingdang Fast Medicine has been suspended and hindered, and it has not been listed within the initial validity period. And a week after the data lapsed, Dingdang Fast's prospectus has not been updated to seek a hearing opportunity.
In 2021, Dingdang Fast Medicine, as a representative enterprise of the pharmaceutical O2O industry, is one step away from the door of the Hong Kong Stock Exchange, and can it reverse the situation on behalf of the industry in 2022?
01
How has the company of "28 minutes to deliver medicine to the door" performed over the years?
Founded in September 2014, Dingdang Fast Medicine is an O2O-based drug door-to-door delivery platform that assists pharmacies to provide third-party information display platforms for convenient service needs, and launches Dingdang TCM services to connect with TCM pavilions to provide online appointments, consultations and other services.
In 2014, the O2O wave swept through various industries, at that time, the pharmaceutical retail O2O boom blew up, many Internet giants threw themselves into it, Dingdang Fast Medicine is one of them.
The current main business of Dingdang Fast Medicine is divided into two parts: one is O2O drug delivery door-to-door service, and the other is the offline physical pharmacy Dingdang Smart Pharmacy. Dingdang Fast Medicine also provides delivery methods such as regular delivery, pre-order delivery, and offline pick-up.
It is worth mentioning that the financial data of Dingdang Fast Medicine is not good, from 2018 to Q1 of 2021, the revenue of Dingdang Fast Medicine was 585 million yuan, 1.276 billion yuan, 2.229 billion yuan and 780 million yuan, and the net loss was 103 million yuan, 274 million yuan, 920 million yuan and 767 million yuan, of which the loss in 2020 expanded by 247% year-on-year, and the three-year loss exceeded 2 billion yuan.
Behind the two billion burned in three years also reflects the fierce competition in the entire industry. To this end, the Internet play of "burning money for the market" has once again been copied to the pharmaceutical O2O industry.
According to the prospectus for dismantling Dingdang Fast Medicine, from 2018 to 2020, sales and marketing expenses put Dingdang Fast Medicine under pressure, which were 140 million yuan, 279 million yuan and 440 million yuan respectively, accounting for 24.1%, 21.8% and 19.8% of the total revenue, respectively.
At the same time, the prospectus states, "The Company has been committed to a number of actions, including expanding the Smart Pharmacy Network to achieve user base growth; increasing prescription drug sales to seize opportunities related to the trend of prescription outflow industry; acquiring Pharmacy.com to increase its own market recognition, retain existing users and acquire new users, and maintain the company's competitiveness." "These measures have made the cost growth rate of Dingdang Fast Medicine faster than the revenue growth rate, and it has also had a certain impact on its gross profit margin."
In addition, the slogan promising "28 minutes to deliver medicine to the door" has also become the company's logo.
At present, Dingdang Fast Medicine has established an all-channel access network in the fast medicine business, including a network of 302 smart pharmacies in 14 cities, where drugs can be delivered to patients within 28 minutes, and the platform also provides 24-hour pharmacist purchase guidance.
For medical scenarios such as chronic diseases, Dingdang Fast Medicine provides users with online doctor diagnosis and treatment services, and the medical team mainly includes 16 full-time and 58 part-time doctors, more than 800 external doctors through cooperation with third-party medical institutions, and other medical professionals including 397 pharmacists.
In October last year, Dingdang Fast Medicine announced the completion of a B+ round of financing of 1 billion yuan, and announced that it would accelerate the strategic layout of "thousands of cities and thousands of stores", and on June 8 this year, it announced that it had obtained a new round of financing of 220 million yuan, and the investors included Aobo Capital, Hongwei Capital, TPG Asia Capital and other institutions.
Indeed, thanks to the help of multi-party capital, Dingdang Fast Medicine has broken through the world in the industry, but in the eyes of investors, the profit indicators on the financial statements are particularly precious than the rushed listing financing.
02
There is still glory in the market
It is worth mentioning that this is still a trillion-dollar health insurance market.
According to the Frost & Sullivan report, the overall market size of China's digital health market (digital health market, including digital retail pharmacy market, online consultation, online consumer medical and health information base infrastructure, etc.) reached 218.1 billion yuan in 2019 and is expected to reach 4.2 trillion yuan in 2030, with a compound annual growth rate of 30.9%. In this market, digital retail pharmacies account for the largest proportion and transaction volume, with turnover exceeding 111.7 billion yuan in 2019 and expected to reach 1.3 trillion yuan in 2030. This is also the center of gravity of Jingdong Fast Medicine.
Build a complete "medicine + medicine + insurance" closed-loop ecology, perhaps this is the next goal of Dingdang Fast Medicine. In the prospectus, you can also see some of its ongoing attempts: as of March 31, 2021, Dingdang Fast Has cooperated with 9 insurance companies and reinsurers, and more than 4,000 pharmaceutical companies and drug distribution companies. Through business operations and data mining, Dingdang Fast Medicine is building a knowledge graph between user health, medicine and medical big data, and further serving Internet medical and pharmaceutical insurance. At present, the online diagnosis and treatment business still plays a better role in guiding users to purchase drugs, and it will take time to tap greater value. In this context, Dingdang Fast Medicine has joined the rapid detection and insurance business under the situation that the "medical + drug" model is gradually becoming clear. In fact, there have been practical actions in the field of "inspection".
What makes Dingdang Fast Medicine see the dawn is that this is a major trend of digital health development, and it is currently laid out in the field of digital health, including digital pharmacies, online diagnosis and treatment, chronic diseases and health management, etc., and the future will have a huge imagination space.
In the past, backed by strong financing capabilities and the integration of resources of pharmaceutical companies, Dingdang Fast Medicine has come to today, and how dingdang Fast Medicine will build a closed-loop ecology of "medicine + medicine + insurance" in the future, so that the capital market can see value growth, which is an important step on the road to IPO.