Ping An Good Doctor Reports H1 2020 Revenue of RMB 2.747 Billion, Online Healthcare Revenue Surges 106.8% YoY, Membership Income More Than Triples

On August 20, Ping An Healthcare and Technology Company Limited (stock abbreviation: “PINGAN GOOD DOCTOR,” 1833.HK), a globally leading healthcare ecosystem platform, announced its interim results for the first half of 2020. During the reporting period, PINGAN GOOD DOCTOR maintained a strong growth trajectory, achieving total revenue of RMB 2.747 billion. Notably, its core online healthcare business delivered robust counter-cyclical growth of 106.8%, contributing RMB 695 million in revenue.

The COVID-19 pandemic has had a profound impact on the socio-economic landscape and people’s daily lives; however, it has also significantly driven the demand for internet-based healthcare services, enhanced government and public acceptance and recognition of online diagnosis and treatment, and accelerated the development of digital healthcare.

In the first half of 2020, PINGAN GOOD DOCTOR’s core business—online healthcare services—saw accelerated capacity release and a significant improvement in profitability. During the reporting period, the online healthcare segment achieved operating revenue of RMB 695 million, maintaining robust year-on-year growth of 106.8% despite market headwinds. Its contribution to the Group’s total revenue reached 25.3%, representing a significant increase of 10.5 percentage points from 14.8% in the same period of 2019. Driven by the strong growth of its core business, the Company’s total operating revenue amounted to RMB 2.747 billion, a year-on-year increase of 20.9%. The net loss narrowed by 22.1% year-on-year to RMB 213 million.

As operational management efficiency and business capabilities continued to strengthen, PINGAN GOOD DOCTOR’s traffic indicators reached new highs, with a strategic focus on healthcare monetization. As of the end of June 2020, the company’s registered users totaled 346 million, an increase of 30.98 million from the end of 2019 and a cumulative increase of 56.90 million over the past 12 months. In the first half of 2020, PINGAN GOOD DOCTOR’s average daily consultation volume reached 831,000, a year-on-year increase of 26.7%. In terms of active and paying users on the platform, monthly active users (MAU) and monthly paying users reached 67.27 million and 2.95 million, respectively, in June 2020, representing year-on-year growth of 7.3% and 32.3%, respectively.

In recent years, internet healthcare has become a key driving force behind the “three-medical linkage” initiative, playing a significant role in improving healthcare quality and reducing medical costs. The outbreak of the COVID-19 pandemic earlier this year further accelerated the implementation of health insurance payment systems, with many local governments responding proactively. PINGAN GOOD DOCTOR swiftly responded to the national call, comprehensively expanded its health insurance services, and fully advanced the development of its internet hospital.

As of mid-August, PINGAN GOOD DOCTOR has worked closely with offline hospitals. Among the internet hospital projects signed with local offline hospitals across various regions, 14 have already been put into operation and are actively integrated with local medical insurance payment systems. Specifically, PINGAN GOOD DOCTOR has connected with the local medical insurance payment systems in Hubei, Dongguan, and Yinchuan, providing local residents with convenient, efficient, and safe internet medical services. In addition, PINGAN GOOD DOCTOR has leveraged its advantages in online diagnosis and treatment to empower public hospitals, offering online follow-up consultations and prescription renewal services to offline users of local hospitals. Notably, the Fuzhou Regional Internet Hospital Platform, signed by the company at the end of 2019, began operations in mid-July 2020. Going forward, PINGAN GOOD DOCTOR will continue to rapidly and proactively invest more resources and capital, fully leverage the synergistic advantages of the Ping An Group, vigorously develop online medical insurance payment services, and accelerate the construction of internet hospitals.

While expanding its business, PINGAN GOOD DOCTOR fulfills its social responsibility by actively responding to the government’s “Healthy China 2030” planning outline and collaborating closely with local governments to advance the “Village Doctor” project. As of June 30, 2020, PINGAN GOOD DOCTOR had upgraded more than 900 rural health clinics, trained nearly 1 million village doctors, and provided free medical consultations to over 66,000 people. These efforts have significantly alleviated the shortage of medical resources in rural areas, effectively improved the level of medical services in impoverished regions, and thereby enhanced the health status of residents in these areas.

During the reporting period, PINGAN GOOD DOCTOR continuously strengthened its medical service capabilities. Revenue from membership products increased rapidly, with total revenue from existing membership products exceeding RMB 420 million, a year-on-year increase of over 200%. The company has established a strong service reputation and achieved economies of scale.

In early 2020, PINGAN GOOD DOCTOR upgraded its first membership product, “Medical Care 360,” which had been on the market for two years, to “Health Guardian 360.” The upgraded membership product received widespread acclaim from insurance agents and policyholders. In the first half of 2020, sales of “Health Guardian 360” saw strong year-on-year growth.

Meanwhile, PINGAN GOOD DOCTOR has provided one-stop services to over 500 corporate clients, including online consultations with dedicated private physicians, assistance with offline hospital outpatient registration, and medical accompaniment. Its client base spans multiple sectors, such as real estate, pharmaceuticals, and retail.

Driven by market demand and supportive policies, the business models of internet healthcare have further diversified, with the industry’s scale continuously expanding and competition intensifying. To strengthen health and medical services, improve the integration of online and offline ecosystems, and consolidate its industry leadership, PINGAN GOOD DOCTOR launched a comprehensive strategic upgrade in mid-2020. Upholding its mission to build a professional bridge between doctors and patients, and guided by the goals of trust, professionalism, and convenience, the company is committed to creating China’s largest, most advanced, and most defensible internet healthcare service platform.