Ping An Health Reports 2021 Annual Results: Medical Services Revenue Reaches RMB 2.288 Billion, Accounting for 31.2% of Total Revenue

On March 15, 2022, Ping An Healthcare and Technology Company Limited (stock abbreviation: “Ping An Good Doctor,” 1833.HK), China’s leading internet healthcare service platform, announced its annual results for 2021. During the reporting period, Ping An Healthcare achieved steady revenue growth, with total revenue reaching RMB 7.334 billion and a gross profit margin of 23.3%. Revenue from medical services amounted to RMB 2.288 billion, accounting for 31.2% of total revenue. With the implementation of its business model integrating HMO-style health management, family doctor membership services, and O2O medical care, the cumulative number of paying users grew rapidly to over 38 million throughout the year, while the paying user conversion rate increased to 24.8%.

Fang Weihao, Chairman of the Board and CEO of Ping An Healthcare, at the press conference

With the deepening of Strategy 2.0, Ping An Healthcare has focused on B2C users, better serving payers to empower providers, and adopted a membership-based fee model aligned with value-added service revenue to segment users and products, thereby expanding user coverage and enhancing stickiness. The company’s cumulative registered users reached 420 million, while its cumulative consultation volume maintained an industry-leading position at 1.27 billion visits. In 2021, the cumulative number of paying users grew rapidly to over 38 million, with a paying user conversion rate of 24.8%.

As a key component of Ping An Group’s HMO managed care model and the flagship of its healthcare ecosystem, Ping An Healthcare focuses on integrated financial channels. By collaborating with Ping An Group to create service combinations of “finance + healthcare,” it aims to deliver compassionate financial services, driving growth in customer base, customer stickiness, and customer recognition. Taking Ping An Insurance’s life insurance “Zhenxiang RUN” series services empowered by Ping An Healthcare as an example, healthcare benefits are integrated into insurance policies, allowing critical illness policyholders to access high-quality medical and healthcare services without additional fees. The company is accelerating its coverage of both new and existing users within Ping An Group to deeply align with customer value, while also striving to expand into other untapped channels.

The vast market of 310 million corporate employees is another key focus for Ping An Healthcare. The company has developed three major product categories: employee health check-ups, employee health management, and corporate benefits redemption platforms. It has established multiple collaborative projects with large central and state-owned enterprises to enhance the secondary traffic conversion of corporate employees within its product ecosystem, thereby promoting cross-selling of medical and health products. Going forward, Ping An Healthcare will continue to focus on upgrading its corporate customer acquisition channels, deeply exploring client needs, precisely matching relevant services, and implementing innovative projects.

With the optimization of user experience and innovation in service models for online consultation services, Ping An Healthcare’s medical services generated RMB 2.288 billion in revenue, representing an 8% year-on-year increase and accounting for 31.2% of total revenue. The company is committed to building an efficient, comprehensive, and professional family doctor membership model, gaining a holistic understanding of user needs and transforming passive users into active ones.

The platform has amassed a team of over 48,000 internal and external physicians, health coaches, nutritionists, and psychological counselors, including more than 1,100 contracted renowned external specialists. This strengthens the company’s professional and authoritative image in serious medical care while empowering enterprise-facing products to serve users across various channels who demand high-quality medical services. Furthermore, the family doctor membership model better assists corporate clients in providing more efficient, comprehensive, and professional healthcare services to their employees, enabling them to tangibly feel the company’s care and warmth.

Ping An Healthcare has further delved into vertical specialties, introducing specialized disease service packages to address the essential needs of patients with specific conditions. By organically integrating online and offline resources, it has developed full-course disease management products encompassing consultation, testing, and treatment. The company has also upgraded its diagnosis and treatment system, offering flexible benefit combinations for membership products and enhancing post-consultation patient management. Following the comprehensive implementation of paid consultations, both the payment conversion rate and the transaction rate for specialized programs have increased significantly. The number of members and the coverage of specialized disease service packages have grown substantially, while the overall five-star rating rate has risen to 97.2%.

Ping An Healthcare continues to deepen its offline medical and health service network, leveraging a family doctor membership model as the entry point and navigator. Through its “online, in-store, and at-home” service delivery methods and a robust supplier management system, the company achieves comprehensive scenario-based traffic matching and integration.

As of December 31, 2021, Ping An Healthcare partnered with over 3,600 hospitals, more than 50% of which were Grade A tertiary hospitals; the number of partnered pharmacies reached 202,000, achieving a nationwide coverage rate of approximately 34%; it established over 225 central warehouses and implemented one-hour medicine delivery services in 140 cities; the number of partnered health institutions reached 96,000, meeting users’ demands for various offline fulfillment scenarios and enhancing the service chain. Leveraging its proprietary medical capabilities and traffic advantages, the company is committed to building flagship health checkup programs, forming a closed-loop service model of “pre-checkup guidance + post-checkup interpretation + solutions.” The number of partnered checkup institutions has exceeded 1,700, covering 321 cities across China, with a checkup report interpretation rate exceeding 39%.

By building a comprehensive O2O healthcare service network, Ping An Healthcare can provide more diversified customized services for corporate clients, fully leveraging the synergies of its offline healthcare service network in areas such as employee health checkups, employee health management, and corporate benefits redemption.

In the future, Ping An Healthcare will uphold its value proposition of being worry-free, time-saving, and cost-effective, continue to implement the HMO model with family doctors as a key lever, gradually improve its O2O service network, and continuously build an online-to-offline integrated medical and health service platform covering health management, sub-health management, disease management, chronic disease management, and elderly care management, so as to provide users with professional, convenient, and trustworthy services.