Ping An Health posts revenue of RMB2,828 million in the first half of 2022 Gross margin improves to 27.3% Cumulative paying users reaches over 40 million
Ping An Healthcare and Technology Company Limited ("Ping An Good Doctor" or “Ping An Health”; Stock Code: 1833.HK), announced its 2022 interim results. Since the deepening of Strategy 2.0 Continuum, the Company has steadily implemented its differentiated “managed care + family doctor memberships + O2O healthcare services" model and created competitive advantages.
During the period, Ping An Health's total revenue reached RMB2,828 million and gross margin increased to 27.3%. Gross margin of medical services increased by 13.3 percentage points as compared with the second half of the previous year. The cumulative number of paying users grew rapidly to more than 40 million in the past 12 months. The Company has served a total of 749 enterprises and cumulative consultations over 1.3 billion, driving the Company to maintain a leading position within the industry.
Actively promoting corporate health management services with the number of paying users crossing 40 million
During the period, Ping An Health remained focused on its strategy and continued to pursue an innovative business model. The cumulative number of paying users increased by approximately 2 million in the previous 12 months. As a professional, comprehensive, high-quality and one-stop corporate health management service provider, Ping An Health has launched “Enterprise EZhealth” 2+4 corporate healthcare management product system, including "Health Checkup+" and "Health Management+" to provide on-demand one-stop health management services. For example, a stated-owned enterprise has been using Ping An Health's “Enterprise EZhealth” and effectively solving the problems of inconvenient access to medical care in the regions where some employees are located reaching a total of 2.8 consultations per capita since the cooperation.
In addition, the synergy of integrated finance + healthcare is becoming more obvious. 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 financial business and create heartwarming financial services. Ping An Health has strategically upgraded its one-stop healthcare service solutions and jointly launched "Ping An Zhen Xiang Run" service with Ping An Life Insurance with service satisfaction exceeding 98% following the upgrade. In addition, the Company has launched a series of services for users of Ping An Bank and other integrated financial channels such as consultation assistance from famous doctors which have assisted partner channels expand its clientele and increase customer loyalty. As of 30 June 2022, the Company has served a cumulative total of 749 corporate customers. In addition, The number of paying users of corporate employees and corporate customers reached more than 2 million and the number of paying users from financial side reached more than 33 million respectively in the previous 12 months.
Family doctor service capability steadily improves while proportion of revenue of medical services increases by 40%
Professional medical capability is the backbone of Ping An Health’s services propelling user willingness to pay. As the Company is committed to building a medical and healthcare service ecosystem with family doctors at its core and specialists as pillars, number of consultations initiated for family doctor services per capita reached 14.5 in the first half of the year. While continuously optimizing membership products, the Company has been improving the diagnosis and treatment capability of family doctors and the synergy among family doctor teams empowering corporate employee health management products. As of 30 June 2022, the platform has accumulated nearly 49,000 internal and external doctor teams from 20 practices as well as fitness trainers, nutritionists and counseling psychologists which can comprehensively address users’ medical and healthcare needs as proven by five-star review rates standing over 98%.
Addressing the strong demand for specialty service such as traditional Chinese medicine, dermatology, obstetrics and gynecology, Ping An Health has established 7 specialty service centers covering prevention, screening, treatment, recuperation and other scenarios during the period. The company has also partnered with tertiary hospitals and external specialist and professional resources to bring users with full-cycle and refined medical treatment management and one-stop healthcare services.
The platform has currently signed up more than 1,500 famous doctors in total complimenting specialized disease centers and jointly enhancing the professional medical service capability. During the reporting period, gross margin from medical services increased by 13.3 percentage points to 39.1% as compared to the second half of 2021 and accounted for 40% of total revenue.
Optimizing online and offline healthcare service system to establish a complete quality control system
While optimizing the online and offline healthcare service system, Ping An is launching 750 services covering five scenarios: health management, sub-health management, disease management, chronic disease management and eldercare management.
As of June 30, 2022, Ping An Health had over 3,000 partner hospitals (approximately 85% of which are tertiary hospitals), 208,000 partner pharmacies with a national coverage of over 35% and enabled 1-hour drug delivery service in more than 150 cities supporting 24/7 drug delivery service in 80 cities and with more than 100,000 partner healthcare service providers. During the period, revenue contribution from "online, instore and home-delivered" service increased to 63%.
While connecting multiple categories of medical and healthcare resources, Ping An Health has established a complete supplier management system covering the whole chain of suppliers from entry to exit to achieve efficient and accurate matching for user demand providing them with continuous and full-cycle medical and healthcare services spanning across online and offline in and out of hospital before, during and after consultation.
During the period, Ping An Health adhered to sustainable development and actively fulfilled its corporate social responsibility. The Company continued to build an effective communications bridge linking doctors and patients, empowered the development of primary care and digital society to support rural revitalization, actively promoted medial knowledge and developed diagnosis and treatment abilities. Amid the recurrence of epidemic, the Company immediately launched an online COVID-19 consultation channel and an anti-epidemic care zone to provide citizens with free online consultation and professional psychological counseling services.
Mr. FANG Weihao, Chairman and CEO of Ping An Health, said, “Looking ahead to the second half of the year, we will continue to deep dive into the needs of corporate and individual customers, optimize our products and improve our services. Meanwhile, we will assist to establish a ‘Managed Care Model’ which aligned with Ping An’s strategy and matched with the healthcare needs in China. Under the Company’s value proposition of ‘worry-free, time-saving and money-saving’ and vision of ‘providing every enterprise with a harmonious workplace, every family with a dedicated doctor and every user with a safe and healthy life’, we will continue to serve the needs for premium medical and healthcare services of society and relentlessly support the Digital China and Healthy China initiatives.”