(Hong Kong, Shanghai, 19 March 2024) Ping An Healthcare and Technology Company Limited ("Ping An Good Doctor" or "Ping An Health", Stock Code: 1833.HK) announced its 2023 annual results. Ping An Health leveraged its core competencies, including rich payer resources for healthcare services such as insurance and financial clients, as well as corporate clients, an extensive supplier network, a comprehensive service standard system, and strong Ping An ecological resources to deepen its managed care strategy. The Company is committed to constructing two core hubs, namely "family doctor" and "elderlycare concierges". During the reporting period, the Company achieved revenue of RMB4.67 billion, with a significant net loss narrowing by 47.6% year-on-year to RMB330 million. The Company's strategic businesses experienced strong growth, with revenue from healthcare and elderlycare services for insurance and financial clients reaching RMB2.20 billion, a year-on-year increase of 14.8%, and revenue from employee health management services for enterprises reaching RMB1.08 billion, a year-on-year increase of 81.2%. The continuous optimization of the business structure drove the Company's gross profit margin up by 5.4 percentage points year-on-year to 32.3%, which is expected to accelerate profitability realization.
Refining the managed care model: pioneering the corporate healthcare management market
Ping An's unique managed care model is based on three major payers: the finance-end, corporate-end, and individual-end. As the flagship of Ping An's healthcare and elderly care ecosystem, Ping An Health provides one-stop, 7x24-hour proactive healthcare management services for users of the Group's life insurance, property insurance, healthcare insurance, banking, and other integrated financial businesses, both online and offline. Based on user profiles and healthcare needs of different financial businesses, the Company helps financial customers acquire, retain, and convert customers through business models such as "product integration," " “procurement of benefits," and "value-added services." Over the past year, the number of paying users increased to approximately 26.3 million, representing a year-on-year growth of 6.7%, and the average value per user (ARPU) grew at a year-on-year rate of 7.5%. In particular, the " Zhen Xiang RUN" service system, developed in conjunction with Ping An Life, was further upgraded during the period, with Ping An Family Doctor serving as the hub for user services and operations on top of specialized medical check-ups, online medical consultations, booking of appointments and accompanying medical consultations, glycaemic control management, and management of chronic illnesses. This creates a one-stop medical and healthcare experience that is "worry-free, time-saving, and money-saving," with user utilization rates and satisfaction levels rising continuously. According to data disclosed in Ping An's third quarterly report, the average number of contracts and average AUM of Group's individual customers using Ping An's healthcare and aging ecosystem services are 1.6 times and 3.4 times higher than those of other individual customers, respectively.
The corporate health management sector is an important initiative in the Company’s Strategy 2.0 Continuum.. The Company helps enterprises improve their employees' health and increase work efficiency, thus contributing to creating a happy workplace. Over the past 12 months, the number of paid users for enterprise services exceeded 5.1 million, increased by 75% year-over-year. The cumulative total number of enterprise customers served reached 1,508, an increase of 530 customers from the same period last year. Ping An Health has continued to strengthen the construction of the " Enterprise EZhealth " corporate health management product system. Through in-depth research and exploration of employees' health management needs, it has established a differentiated product and service matrix with a stronger competitive edge. For example, in cooperation with China Resources Snow Breweries, Ping An Health provides strong medical service resources covering the whole country to meet the individual needs of different regions. This is particularly important as the Company has a large workforce, wide geographical distribution, and employee medical check-ups involve remote areas such as Sichuan and Tibet. In the future, Ping An Health will further focus its resources on strategic business development under the managed care model and continue to enhance the efficiency of resource allocation and utilization.
Establishing the "Ping An Family Doctor" healthcare service brand: digital technology fuels service enhancement
Family doctor is one of the core hubs of Ping An Health's medium- and long-term development strategy. By 2023, the number of family doctor members will reach nearly 13 million, with a per capita frequency of use of the family doctor service of 3.7 times, an increase of 0.8 times compared to 2022, and a five-star rating rate of more than 98% for users' consultations. During the period, Ping An Health launched the "Ping An Family Doctor" ace healthcare service brand, which integrates the service resources of family doctors, specialists, renowned doctors, and medical practitioners through a family doctor portal. This efficiently links the rich service network from "online to home to shop," realizing "speedy diagnosis of minor illnesses, standardized management of slow illnesses, and accurate transfer of major illnesses." The Company provides users with a high-quality and convenient end-to-end medical experience.
As of the end of the reporting period, Ping An Health has established a team of approximately 50,000 in-house and contracted external doctors in 29 specialties, including nearly 2,500 contracted renowned medical doctors and experts to satisfy users' needs for comprehensive and multi-level healthcare services. At the same time, Ping An Health has established 23 specialist centers around eight major specialties to provide standardized solutions for pre-diagnosis, diagnosis, and post-diagnosis of specialist diseases. For example, in chronic disease management services, the Company has launched three major chronic disease services: sugar control, blood pressure control, and weight loss. These services help users effectively improve their health by building personal health profiles, providing customized solutions, as well as whole-process monitoring and management guidance.
Ping An Health also places great importance on the continuous upgrading and deepening application of artificial intelligence technology in the medical and healthcare field. The Company's "Artificial Intelligence + Healthcare" now covers about 36,000 diseases. In the future, against the backdrop of China's vigorous development of new quality productivity, Ping An's characteristic "artificial intelligence + healthcare" will continue to contribute comprehensively to the improvement of service energy efficiency and user experience, escorting the Company's high-quality and sustainable development.
Developing a 3-in-1"elderlycareconcierge system": crafting a comprehensive, high-quality eldercare experience
As China grapples with an accelerating aging population, ensuring the elderly's security and healthcare has become a pivotal issue for societal stability and progress. The development of pension finance and services has now ascended to the level of national strategy. The 2023 State Council Government Work Report emphasizes proactive responses to population aging, fostering growth in the senior care industry, and supporting the evolution of community and home-based eldercare services. In recent years, Ping An Health, in collaboration with Ping An Life Insurance, has honed its understanding of market needs. The Company focuses on ten key areas: "medicine, food, housing, transport, finance, health, nutrition, leisure, and care", along with a comprehensive "supervision system". They aim to provide a one-stop, high-quality solution for aging in place, realizing a 24/7 service through their "three-in-one" butler system, which includes a "smart butler", "life butler", and "doctor butler".
Meanwhile, Ping An Health introduced the Home-based Rehabilitation Nursing Alliance System underpinned by Ping An Group’s healthcare and elderlycare ecosystem resources, PKU Healthcare’s rehabilitation service standards, and collaboration with over 40 rehabilitation service providers and industry experts. In addition, Ping An Health established strict home-based elderlycare standards and a robust service supervision system to constantly optimizeuser experience.
Since delving into Ping An's home-based elderlycare service model, the outcomes have been increasingly impressive. By 2023, Ping An's home-based elderlycare service has covered 54 cities throughout the PRC.
In the realm of sustainable development, the Company has been diligently fulfilling its social responsibilities. While concentrating on its own growth, it remains committed to promoting sustainable initiatives that contribute to a greener, healthier, and more harmonious social environment. The Company has established a Sustainable Development Committee, formulating strategies, objectives, and action plans for sustainable development, along with setting three-year targets. To date, Ping An Health has consistently achieved an "A" rating from MSCI ESG for three consecutive years.
During the 2024 National People's Congress, the Government Work Report repeatedly highlighted the healthcare sector and the development of an integrated healthcare ecosystem. Looking forward, Ping An Health plans to continue its collaboration with Ping An to construct a model for China's version of managed care. Li Dou, Chairman and CEO of Ping An Health, stated that the Company aims to further embody the roles of "family doctor" and "elderlycare concierges ". The focus will be on refining their products with meticulous craftsmanship, establishing a reputation for quality, and striving to provide sustainable long-term value for users, shareholders, and society. This is part of their unwavering commitment to aiding the strategic implementation of Digital China and Healthy China.
