The target business comprises (i) merchant relationships for the sale of Tmall products and services (which include pharmaceutical products and medical purpose food products sold on Tmall (including through Tmall Supermarket) and medical devices, adult products, healthcare products, medical and healthcare services and target blue cap health food sold through Tmall Supermarket) and Tmall Global products and services (which include pharmaceutical products, medical devices, healthcare products, medical purpose food products and medical and healthcare services sold on Tmall Global); and (ii) employment relationships with relevant marketing and operations personnel managing the relationships with the target merchants.

The target business generated a gross merchandise value of approximately RMB9,575 million and had approximately 35.8 million annual active buyers for the financial year ended March 31, 2019. As of January 31, 2020, the target business had more than 530 target merchants authorized by Tmall entities and Taobao China to sell the target products and services on the Tmall platforms. Alibaba Health expressed that it believes its acquisition of the target business will enable it to further develop into Alibaba Group’s only healthcare flagship platform and the acquisition represents an important step in Alibaba Health’s ongoing development of its healthcare related e-commerce platform business.

The project was led by Hong Kong partner Denise Jong with assistance of associate Sunny Chan.