Ping An Health achieves enhancement in managed care healthcare
Cumulative paying users continue to increase
Gross margin increased significantly to 27.3%
HONG KONG and SHANGHAI, March 13, 2023 /PRNewswire/ -- Ping An Healthcare and Technology Company Limited ("Ping An Good Doctor" or "Ping An Health"; Stock Code: 1833.HK) announced its 2022 annual results. The Company is committed to bridging doctors and patients with professionalism and safeguard everyone's health. With its extensive payer resources, comprehensive supplier network, leading services and strong eco-system, Ping An Health has established a unique business model based on managed care + family doctor membership + O2O healthcare services. During the period, Ping An Health's total revenue reached approximately RMB6.16 billion and gross margin increased by 4.0 percentage points to 27.3%. In particular, gross margin of medical services increased to 36.2%. The cumulative number of paying users for the previous 12 months grew steadily to approximately 43 million.
Achieves continued enhancement in business structure, resulting in a significant improvement in gross margin and narrowing of net loss
In the past year, Ping An Health remained committed to implementing Strategy 2.0 Continuum and optimizing its business structure. As a result, the Company saw a steady increase in gross margin, with revenue growing approximately 18% in the second half of the year as compared to the first half of the year and a gross margin of 27.3% for the year. These efforts have led to significant optimization of the overall business structure. In the second half of the year, the Company experienced a growth of approximately 25% growth in revenue from its competitive, high-margin, and sustainable medical services segment, accompanied by a consecutive increase in both the market share of medical services revenue and gross profit for three reporting periods. In addition, cost reduction and efficiency enhancement also resulted in a substantial reduction of losses.
As of 31 December 2022, Ping An Health has accumulated over 49,000 in-house and contracted external doctors from 23 medical specialties, fully addressing users' demands for healthcare services for all scenarios and at multiple levels. The platform has consistently received positive feedback from users, with a stable five-star rating for the service and A-grade ratings for medical records at over 98%. Ping An Health has established 19 specialty centers and continues to expand its famous doctor network and strengthen collaboration with over 2,000 contracted famous doctors. Regarding its medical service network, the Company has expanded its partner hospitals to more than 5,000 and partner pharmacies to 224,000 during the period. The platform also offers one-hour delivery in 216 cities and 24/7 delivery in 88 cities to provide the best healthcare services to its users.
Focusing on developing financial and corporate customers, while maintaining steady and efficient growth in its paying user base
As an integral part of Ping An's managed care services system and the flagship platform of the Group's healthcare ecosystem, Ping An Health continues to tap into the experience, technology, client base and resources of Ping An's managed care model to better realize two-way synergy with the Group's business. By integrating finance + healthcare services, the Company sought to develop and deliver heartwarming financial services for its customers. During the period, the number of paying users from Ping An's financial end reached over 34 million, representing a penetration rate of 15% in Ping An's 228 million retail customers. This represents steady improvement and has led to a significant increase in user stickiness and recognition. For example, Ping An Health assisted a bank in increasing its asset management scale by over RMB30 billion, serving more than 10,000 customers, and handling over 700 notable cases in the second half of 2022. This was achieved through the provision of comprehensive healthcare services to the bank's private banking clients, including value-added services such as access to famous doctors, medical checkups, convenient online consultations and more.
Quality healthcare3 services can contribute to improving the health and happiness of employees. During the period, Ping An Health has explored corporate employee health management services to provide "Enterprise EZhealth", an integrated solution for medium and large enterprises. This enables them to fulfill their corporate responsibility to maintain employee health, protect their physical and mental well-being in a comprehensive and life-cycle manner, and empower the enterprises' sustainability. As of December 31, 2022, Ping An Health served 978 enterprises, an increase of 458 from the end of 2021, with nearly 3 million paid users on the enterprise side and a renewal rate of almost 90% for large-scale enterprises with whom the company has established cooperation. The Company provided an exclusive corporate employee health management solution to a stated-owned enterprise, which included customized medical checkups, medical report interpretation, active follow-up by family doctors, offline medical assistance, and an exclusive welfare mall platform. By adopting a multi-site, multi-touch approach to reach key populations, Ping An Health enhanced proactive service care and provided whole-cycle health management for the employees of the enterprise. The Company's individual employee fee conversion ratio reached approximately 30%, and the revenue of the Company's employee health management program exceeded RMB18 million. Notably, the Company has received considerable acclaim from corporate customers for the quality and comprehensiveness of its service offering. For example, Ping An Health integrated healthcare services with hardware products for a leading glucose monitoring device company, which boosted product competitiveness and user stickiness. As of the end of 2022, the project has reached 30 rounds of interaction per capita in 21 days, with over 1,000 user-initiated positive comments.
Strengthen the advantage of family doctor membership, with technology empowering medical services
Since the deepening of Strategy 2.0 Continuum, Ping An Health has been steadily building a healthcare ecosystem, with family doctors at its core, specialists as support, and famous doctors as highlights. The family doctor membership system serves as the hub of the company's business model, with "1 family doctor + 5 professional services + 1 health profile" as the core, providing an efficient and convenient medical and healthcare experience with diverse scenarios and consistent services on demand through professional guidance. The Company's team of family doctors primarily comes from tertiary hospitals and boasts extensive clinical experience. During the period, the family doctor membership service comprehensively upgraded its product system, catering to the service needs of both individual and corporate users and providing them with richer and more diversified product choices. Additionally, the Company ahs expanded its service scope and improved the quality of its service experience, providing unlimited 1-to-1 online/voice/video health consultations, professional medication guidance, comprehensive medical examination report interpretation, medical advice interpretation, chronic disease management consultation, medical referrals, accompanying clinic and post-visit services, and more. To date, the Company's family doctor membership service has accumulated millions of members, with a proactive follow-up rate of over 80% for users. The Company boasts over 49,000 internal and external doctors in its network, as well as over 2,000 contracted doctors.
In addition, Ping An Health places great importance on building and accumulating medical technology capabilities. With cutting-edge smart medical technology and AskBob artificial intelligence algorithms, the Company has developed its own AI-assisted diagnosis and treatment system. This includes smart critical illness monitoring, AI-assisted consultation, rational medication monitoring and smart medical safety monitoring. Currently, the AI-assisted diagnosis system covers the diagnostic knowledge of over 2,000 diseases with a diagnostic accuracy rate exceeding 99% and an accuracy rate of over 95%. This system provides doctors with improved knowledge and efficiency, empowering them to collect patient information more effectively before consultations.
It is the Company's unwavering vision to pursue sustainable development, with the goal of providing every enterprise with a happy workplace, every family with a family doctor, and every user with a safe and healthy life. Leveraging the advantages of timely and efficient online healthcare services, Ping An Health is committed to improving health protection for all, contributing to the building of a healthy China 2030, and promoting the revitalization of villages and the creation of a medical health ecosystem. The Company has received an A grade ESG rating by MSCI for two consecutive years and ranking among the top in the healthcare services industry.
Being people-oriented is a fundamental requirement of Ping An's new cultural values, and it remains a steadfast belief of Ping An Health. The Company is committed to upholding the value proposition of "worry-free, time-saving and money saving" continually refining its products and services, enhancing the customer experience, and providing high-quality healthcare solutions to the public and employees alike, serving as a steadfast companion in safeguarding the health of all people.
About Ping An Healthcare And Technology Company Limited
Ping An Healthcare and Technology Company Limited ("Ping An Good Doctor" or "Ping An Health"; Stock Code: 1833.HK), is an integral part of Ping An's managed care services system and also the flagship platform of the Group's healthcare ecosystem. The Company was listed on the Main Board of HKEX on 4 May 2018 and was included in Hang Seng TECH Index in July 2020.
With its extensive payer resources, comprehensive supplier network, leading services and strong eco-system, Ping An Health has established a unique business model based on managed care + family doctor membership + O2O healthcare services. At present, the Company has become a professional, comprehensive, high-quality and one-stop corporate health management service provider.
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