Ping An Good Doctor reports revenue of RMB7,334 Million in 2021 Proportion of revenue from medical services grows to 31.2%; Cumulative paying users reaches over 38 million
Ping An Healthcare and Technology Company Limited ("Ping An Good Doctor"; Stock Code: 01833.HK) announced its 2021 annual results. During the reporting period, the Company maintained steady growth with total revenue reaching RMB7,334 million. Total gross margin reached 23.3%. In particular, medical services contributed revenue of RMB2,288 million, representing 31.2% of total revenue. Building on the “health maintenance organizations (HMO) + family doctor memberships + O2O-based medical services” model, the cumulative number of paying users crossed 38 million in 2021 while the conversion rate of paying users increased to 24.8%.
HMO model begins to bear fruits with a surge in cumulative number of paying users
With the deepening of Strategy 2.0 Continuum, the Company shifted its focus onto B2C users to better serve paying users and empower providers. By virtue of different membership fees and value-added health services for tiered users and categorized products, the Company improved user coverage and stickiness. The Company’s registered users reached 420 million and cumulative consultations reached 1.27 billion strengthening its leading position in the industry. In 2021, the cumulative number of paying users climbed to 38 million with the conversion rate of paying users at 24.8%.
As an integral part of Ping An Group’s HMO model and the flagship platform of the healthcare ecosystem, the Company has been committed to integrated finance channels and has strived for synergies with Ping An Group to develop “heartwarming financial services” under the “integrated finance + healthcare services” strategy driving rapid growth of user base, stickiness, recognition etc. Taking "Zhen Xiang RUN" Health Services Plan, Ping An's life insurance product empowered by Ping An Good Doctor as an example, the medical and health rights are internalized into the policy, and chronic illness insurance policy users can enjoy high-quality medical and health services without additional payment. The Company is accelerating the conversion of new and existing financial customers within Ping An Group mapping the value of customers and exploring other untapped channels.
With the immense business opportunities presented by the 310 million corporate employee market, the Company has developed three product categories, including employee health checkup services, employee health management and corporate benefit redemption platform and has partnered with numerous large-scale central enterprises and state-owned enterprises on several projects driving corporate employee traffic within the Company’s product ecosystem to facilitate the cross-selling of medical and healthcare products. Going forward, the Company will continue to expand user acquisition channels, accurately target user healthcare needs, offer tailored services and implement innovative health plans. Meanwhile, family doctor memberships system can better assist corporate customers to provide more efficient, comprehensive and professional healthcare services to corporate employees, so that employees can feel the care and warmth of the company more effectively.
Establishes family doctor memberships with an increase in revenue from medical services
With the enhancement of user experience and model innovation of online consultation services, revenue from medical services amounted to RMB2,280 million, representing an increase of 8% year-on-year and accounting for 31.2% of the total revenue. The Company strives to build an efficient, integrated and exclusive family doctor membership model to fully understand user demand to transform passive users into active ones.
Ping An Good Doctor’s platform boasts 48,000 in-house and external doctors, health management specialists, nutritionists, and counseling psychologists, as well as 1,100 contracted external renowned doctors. Not only does it build a professional and authoritative image, it also empowers corporate employee products to serve consumers in need of quality medical and health services.
In addition, Ping An Good Doctor has devoted more energy to vertical fields. Specifically, service packages were added to meet the rigid demands of patients with specialized diseases while full-cycle management services including consultation, examination and treatment are offered by coordinating O2O resources. The diagnosis and treatment system has been upgraded to provide members with a flexible product combination and improve post-diagnosis patient management. After paid consultation is fully implemented, the paying rate and value-added services paying rate have significantly increased. Both members and users covered by service packages for specialities have skyrocketed and five-star reviews rates has risen to 97.2%.
Further improving O2O services, building an integrated healthcare service platform
Ping An Good Doctor continued to consolidate its offline healthcare service network to achieve full-scene traffic matching and integration with the help of the family doctor memberships, a service model of “online, in-store and home-delivered” and comprehensive provider management system.
As of 31 December 2021, Ping An Good Doctor has forged co-operation deals with over 3,600 hospitals (including over 50% Grade A tertiary hospitals), 202,000 pharmacies, covering 34% of all pharmacies across China. The Company also set up 225 central warehouses realizing drug delivery within 1 hour in 140 cities. In addition, it cooperated with 96,000 healthcare providers to meet the demands of offline users and improve service network. Capitalizing on the medical capabilities and traffic advantages of the platform, the Company strives to build first-class check-up scheme to form a closed-loop of “pre-examination guidance + post-examination interpretation + solutions”. The Company has forged co-operation with over 1,700 health checkup institutions covering 321 cities in China. The interpretation rate of health checkup results exceeded 39%.
To build a complete O2O healthcare service network, Ping An Good Doctor can also provide more diversified customized services for corporate customers, and give full play to the offline healthcare service network in aspects such as employee physical examination, employee health management, and corporate welfare exchange. synergistic effect.
Ping An Good Doctor will continue to pursue the HMO model providing users with an easier, faster and more affordable services. The Company will also focus on its family doctor memberships and continue to improve its O2O services. It is committed to build an O2O integrated healthcare service platform covering health management, sub-health management, disease management, chronic illness management and eldercare management to provide users with expertise as well as convenient and trustworthy services.