Ping An Healthcare Technology Reports 2020 Revenue of RMB 6.866 Billion, with Core Online Medical Services Revenue Surging 82.4% Year-over-Year

On February 2, 2021, Ping An Healthcare and Technology Company Limited (stock abbreviation: “PINGAN GOOD DOCTOR”, 1833.HK), China’s leading internet healthcare service platform, announced its annual results for 2020. During the reporting period, PINGAN GOOD DOCTOR maintained a strong growth momentum, achieving total revenue of RMB 6.866 billion, a year-on-year increase of 35.5%. Among this, the core online healthcare business continued to grow rapidly, contributing revenue of RMB 1.566 billion, a year-on-year increase of 82.4%.

Ping An Healthcare and Technology Company Limited Releases 2020 Full-Year Results

The COVID-19 pandemic has created a significant opportunity for the accelerated development of internet healthcare in China, with the industry entering a phase of rapid growth. During the reporting period, PINGAN GOOD DOCTOR’s core online healthcare business continued to achieve high-speed growth, contributing RMB 1.566 billion in revenue, a year-on-year increase of 82.4%. Its proportion of the company’s total revenue rose from 16.9% in the same period of 2019 to 22.8%, representing a year-on-year increase of 5.9 percentage points.

Driven by the rapid growth of its core business, PINGAN GOOD DOCTOR’s total revenue reached RMB 6.866 billion, a year-on-year increase of 35.5%. Excluding the impact of investments in strategic upgrades, the net loss from PINGAN GOOD DOCTOR’s traditional businesses decreased by 65.6% year-on-year to RMB 239 million.

Benefiting from increased user awareness of online diagnosis and treatment services, PINGAN GOOD DOCTOR’s core operational metrics also demonstrated strong performance: as of December 31, 2020, the company’s registered users reached 373 million, an increase of 57.6 million from the end of 2019, representing a growth rate of 18.3%; the average daily number of consultations in 2020 reached 903,000, up 23.9% year-on-year. In December 2020, monthly active users (MAUs) and monthly paying users reached 72.62 million and 3.98 million, respectively, representing year-on-year increases of 8.5% and 34.1%, respectively.

Meanwhile, PINGAN GOOD DOCTOR continued to refine its user traffic operations, focusing on monetizing healthcare users. During the reporting period, the average paid user conversion rate reached 4.9%, a year-on-year increase of 0.9 percentage points, with healthcare-paying users accounting for 35.1% of total paid users.

Seizing market opportunities and benefiting from favorable policies, PINGAN GOOD DOCTOR launched a comprehensive strategic upgrade in mid-2020, focusing on three key areas: channels, services, and capabilities. The company accelerated the implementation of key strategic initiatives, including expanding its corporate client base, building internet hospitals, establishing physician teams, developing insurance-channel products, and enhancing health management services.

In 2020, PINGAN GOOD DOCTOR upgraded and iterated its membership products for corporate clients. By developing corporate health service products represented by private doctors, PINGAN GOOD DOCTOR created an “Internet + Medical Care + Health” model, expanding its reach to over 1,100 corporate clients and providing comprehensive health and medical services to enterprises and their employees.

In the future, PINGAN GOOD DOCTOR will continue to upgrade and refine its corporate health management services and customer experience. Leveraging the extensive pool of corporate clients within Ping An’s integrated financial ecosystem, it will reach enterprise customers more broadly and conveniently, achieve precise matchmaking, and comprehensively manage and improve the health status of corporate employees.

In terms of internet hospital development, as of December 31, 2020, PINGAN GOOD DOCTOR had entered into cooperation agreements for internet hospitals with more than 120 offline hospitals, among which 50 internet hospital platforms had been built and launched by PINGAN GOOD DOCTOR.

As a key component of the Ping An healthcare ecosystem, PINGAN GOOD DOCTOR has established an Insurance Business Division to comprehensively advance in-depth online collaboration with Ping An Health Insurance. By jointly developing customized integrated products combining healthcare and insurance services, the company enables mutual empowerment between healthcare and insurance offerings, providing users with one-stop, comprehensive, end-to-end online healthcare and insurance services. Through coordinated services leveraging high-quality customer resources, PINGAN GOOD DOCTOR further deepens the integration of healthcare and insurance services, fully capitalizing on synergies to unlock the vast potential of internet-based healthcare and insurance, thereby delivering more empathetic and user-centric services.

On the server side, PINGAN GOOD DOCTOR has expanded from its focus on online medical consultations and services to higher-frequency, more diversified health services. The company’s membership product, “Medical Care 360,” launched in 2017, was comprehensively upgraded to “Health Guardian 360,” offering users enhanced membership benefits and receiving widespread acclaim from both customers and channels upon its release. During the reporting period, revenue from PINGAN GOOD DOCTOR’s membership products reached RMB 925 million, representing a significant year-on-year increase of 124.5%.

High-quality physician resources are the guarantee of medical service capabilities. Since mid-2020, PINGAN GOOD DOCTOR has focused on building a four-tier physician network: with AI physician assistants as the foundation; in-house physicians as the underlying service capability to address common needs; external physicians as the clinical backbone to resolve patients’ core concerns; and renowned expert studios composed of leading specialists focusing on specific diseases and specialties, thereby establishing a professional medical image. By upgrading the medical service system, we help create a “Home for Physicians.”

Currently, PINGAN GOOD DOCTOR’s in-house medical team comprises over 2,200 members, while its network of external physicians exceeds 20,000. Looking ahead, PINGAN GOOD DOCTOR will continue to onboard more doctors from across China, enhancing its online service capabilities while steadily expanding and refining its offline healthcare service network. Leveraging its industry-leading medical service expertise and substantial reserves of medical resources, the company is committed to delivering high-quality, guaranteed professional healthcare services to a broader user base.