Ping An Health Reports 2023 Full-Year Results: Strategic Businesses Surge, Net Loss Narrows by 47.6%

On March 19, 2024, Ping An Healthcare and Technology Company Limited (stock abbreviation: "PINGAN GOOD DOCTOR", 1833.HK; hereinafter referred to as "Ping An Healthcare" or the "Company") announced its annual results report for 2023. Leveraging core competitive advantages—including extensive payer resources in healthcare services from insurance and financial clients as well as corporate clients, a broad network of service providers, a comprehensive service standard system, and robust ecosystem resources within the Ping An group—Ping An Healthcare has deepened the implementation of its managed care strategy, focusing on strengthening two core hubs: "Family Doctor" and "Elderly Care Steward." During the reporting period, the Company’s full-year revenue reached RMB 4.67 billion, while its net loss narrowed significantly by 47.6% year-on-year to RMB 330 million. Notably, strategic businesses demonstrated strong growth: revenue from medical, health, and elderly care services for insurance and financial clients amounted to RMB 2.20 billion, representing a year-on-year increase of 14.8%; revenue from corporate employee health management services for corporate clients reached RMB 1.08 billion, surging by 81.2% year-on-year. 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%, accelerating the path toward profitability.

Under Ping An’s distinctive managed care model, the financial sector, corporate clients, and individual users constitute the three primary payers. As the flagship of Ping An Group’s healthcare and elderly care ecosystem, Ping An Health provides online-to-offline, one-stop, 24/7, proactive medical and health management services to users of the Group’s integrated financial businesses, including life insurance, property and casualty insurance, health insurance, and banking. By leveraging business models such as “product integration,” “benefit procurement,” and “value-added services” tailored to the user profiles and healthcare needs of different financial business lines, Ping An Health helps financial-sector clients acquire customers, enhance retention, and drive secondary conversion. Over the past year, the number of paying users increased to approximately 26.3 million, representing a year-on-year growth of 6.7%, while the average revenue per user (ARPU) grew by 7.5% year-on-year. Notably, the “Zhenxiang RUN” service system, jointly developed with Ping An Life Insurance, was further upgraded during the period. Building on specialized health check-ups, online consultations, appointment registration and accompaniment, blood sugar management, and critical illness case management, the system leverages Ping An Family Doctor as the hub for user service and operations to deliver a one-stop healthcare experience that is “worry-free, time-saving, and cost-effective,” resulting in continuous improvements in user adoption and satisfaction. According to data disclosed in Ping An Group’s third-quarter report, individual customers within the Group who utilized services from its healthcare and elderly care ecosystem had an average number of contracts per customer and average assets under management (AUM) per customer that were 1.6 times and 3.4 times higher, respectively, than those of other individual customers.

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The corporate health management sector represents a key strategic layout in the deepening of the company’s Strategy 2.0. By helping enterprises improve employee health and enhance work efficiency, Ping An Healthcare contributes to building happy workplaces. In the past 12 months, the number of paying corporate users exceeded 5.1 million, a year-on-year increase of 75%. The company has cumulatively served 1,508 corporate clients, an increase of 530 from the same period last year, while the average revenue per user (ARPU) rose by 3.6% year on year. The company continues to strengthen the product system of its “Yi Qi Jian Kang” corporate health management platform, establishing a more competitive and differentiated product and service matrix through in-depth research into and identification of employee health management needs. Taking the collaboration with China Resources Snow Breweries as an example, the client faces significant challenges in conducting annual employee health checkups due to its large workforce, wide geographic distribution, and operations in remote areas such as Sichuan and Tibet. Ping An Healthcare provides robust medical service resources covering the entire country to meet personalized needs across different regions. Going forward, the company will further focus its resource investment on strategic business development under the managed care model, continuously improving the efficiency of resource allocation and utilization.

Family doctors serve as one of the core hubs in the company’s medium- to long-term development strategy. In 2023, family doctor membership covered nearly 13 million people, with an average usage frequency of 3.7 visits per member, representing an increase of 0.8 visits compared to 2022. The five-star rating rate for user consultations exceeded 98%. During the period, Ping An Health launched “Ping An Family Doctor,” a flagship medical and health service brand. By providing a single entry point for family doctors, it integrates service resources including family physicians, specialists, renowned experts, and medical facilitation services. This approach efficiently connects a comprehensive service network spanning online, home, and offline clinic channels, enabling “rapid diagnosis for minor illnesses, standardized management of chronic diseases, and precise referral for serious conditions,” thereby delivering high-quality, convenient, end-to-end healthcare experiences to users.

As of the end of the reporting period, the Company had established a team of approximately 50,000 internal and external physicians covering 29 medical specialties, and had collaborated with nearly 2,500 renowned medical experts, thereby meeting users’ needs for comprehensive, multi-level healthcare services across all scenarios. Meanwhile, the Company has established 23 specialized disease centers focused on eight key specialties, developing standardized pre-diagnosis, intra-diagnosis, and post-diagnosis solutions for each specialty and disease. Taking chronic disease management services as an example, the Company has launched three flagship services targeting blood glucose control, blood pressure control, and weight reduction. By creating personal health records for users, providing personalized solutions, and offering end-to-end monitoring and management guidance, the Company helps users effectively improve their health outcomes.

Furthermore, the Company places significant emphasis on the continuous upgrading and deepened application of artificial intelligence (AI) technologies in the healthcare sector. Its “AI + Healthcare” initiative now covers approximately 36,000 diseases and 420,000 disease terms, incorporating 30 million top-tier global medical publications and 20,000 clinical guidelines. The system maintains a daily update of 10,000 medical knowledge entries and has been integrated to assist physicians across the entire service workflow. To date, the Company’s consultation and advisory services have reached nearly 480 million users, with cumulative consultations exceeding 1.42 billion. The response rate for rapid consultations within 30 seconds stands at 92.9%, while the patient satisfaction rate has reached as high as 99.2%. Looking ahead, against the backdrop of China’s vigorous promotion of new quality productive forces, Ping An’s distinctive “AI + Healthcare” model will continue to comprehensively enhance service efficiency and user experience, thereby safeguarding the Company’s high-quality and sustainable development.

As China’s aging process accelerates, ensuring that the elderly have access to adequate care and medical services has become a critical issue for social stability and development. Currently, the development of pension finance and elderly care services has been elevated to the level of national strategy. The 2023 Government Work Report proposed by the State Council emphasized actively responding to population aging, promoting the development of undertakings and industries for the elderly, and supporting community-based and home-based elderly care services. In recent years, Ping An Health has gained deep insights into market demands and collaborated with Ping An Life Insurance to focus on ten major scenarios—“medical care, dining, housing, transportation, finance, wellness, elderly care, leisure, nursing, and safety”—along with “one supervisory system.” This collaboration provides seniors with a one-stop, high-quality home-based elderly care solution, delivering 24/7 service through an integrated “three-in-one” butler model comprising smart butlers, lifestyle butlers, and medical butlers. Furthermore, the company has integrated Peking University Medical Group’s rehabilitation service standards and partnered with over 40 rehabilitation and nursing service providers as well as industry experts to establish a “Care Alliance” for home-based elderly care. By implementing rigorous service standards and a robust service supervision system, the company continues to optimize a user experience that is both professional and compassionate.

Since the exploration of Ping An’s home-based elderly care service model, its effectiveness has become increasingly significant. As of 2023, Ping An’s home-based elderly care services covered 54 cities across China, with nearly 100,000 individuals having qualified for Ping An Butler services. The satisfaction rate for butler services stood at 95%.

In the realm of sustainable development, the company actively fulfills its social responsibilities. While focusing on its own growth, it is dedicated to advancing sustainable practices and contributing to a greener, healthier, and more harmonious social environment. The company has established a Sustainability Committee, formulated sustainability strategies, goals, and action plans, and set three-year sustainability targets. To date, Ping An Healthcare has achieved an "A" rating in the MSCI ESG Ratings for three consecutive years.

During the 2024 "Two Sessions," the Government Work Report repeatedly highlighted the healthcare sector and the development of an integrated ecosystem for medical care and elderly care. Looking ahead, Ping An Health will deepen its synergy with Ping An Group to continuously build a model of managed care tailored to the Chinese context. Li Dou, Chairman and CEO of the company, stated that Ping An Health will further leverage the core hub roles of its "Family Doctor" and "Elderly Care Steward" services, refine its products with craftsmanship, and build its reputation through quality. The company strives to deliver sustainable long-term value to users, shareholders, and society, while making unremitting efforts to support the implementation of the national strategies for a Digital China and a Healthy China.