Meinian Onehealth Reports Q3 Net Profit of RMB 410 Million, Up 68.18% Year-on-Year, Completes Nationwide Layout of 600 Medical Examination Centers

On the evening of October 29, Meinian Onehealth Healthcare Holdings Co., Ltd. (hereinafter referred to as “Meinian Health,” SZ: 002044) released its third-quarter report. The report showed that the company maintained sustained high growth in its performance during the first three quarters, with total operating revenue reaching RMB 5,818,693,700, a year-on-year increase of 43.04%, and net profit amounting to RMB 413,873,100, a year-on-year increase of 68.18%. In the same period, Meinian Health announced that its share repurchase plan worth RMB 300 million to RMB 500 million had been reviewed and approved by the Board of Directors on that day.

Meinian Onehealth’s third-quarter report shows that from January to September 2018, the company achieved total operating revenue of RMB 5,818,693,700, a year-on-year increase of 43.04%; net profit attributable to shareholders of the listed company amounted to RMB 413,873,100, representing a year-on-year growth of 68.18%. The company forecasts that its net profit attributable to parent company shareholders for the full year 2018 will range between RMB 820 million and RMB 880 million, marking a year-on-year increase of 41.30%–51.64%.

Industry insiders point out that the key growth drivers for Meinian Onehealth are reflected in four major areas: first, the company is accelerating the layout of its examination centers and deepening its multi-brand operational strategy; second, it is continuously launching high-end health screening products, resulting in a dual increase in the proportion of individual examinations and the average revenue per user (ARPU); third, it remains committed to quality control upgrades, increasing efforts and management emphasis on compliant operations of branch centers, standardization of medical quality, and talent training; and fourth, it has introduced innovative products such as “Meinian Good Doctor,” significantly expanding and enhancing revenue growth potential.

Meinian Onehealth stated that in 2018, guided by the national health strategy of “prevention first,” the company accelerated the deployment of its examination centers, basically achieving its target of establishing 600 professional check-up centers across China, covering all provinces, municipalities, and autonomous regions except Hong Kong, Macao, and Taiwan. Meanwhile, the company deepened its multi-brand operational strategy to comprehensively serve public health, continuously consolidating and expanding the corporate group check-up market while actively developing the individual check-up segment. In response to the upgrading trend in consumer health spending, it continually launched technologically advanced premium check-up products, such as capsule endoscopy for gastrointestinal examination, genetic testing, coronary MRI, early Alzheimer’s disease (AD) detection, and AI-based fundus screening. These initiatives significantly enriched the content of its check-up packages, driving rapid growth in both the proportion of individual check-ups and the average revenue per user (ARPU).

In terms of product and service innovation, on October 25, Meinian Onehealth recently joined forces with Ping An Good Doctor and PICC to launch “Meinian Good Doctor,” a groundbreaking flagship health management product. This initiative marks a transition from standalone physical examination services to comprehensive coverage encompassing “examination, storage, management, medical care, and insurance”—specifically including comprehensive health screenings, a health bank, health consultations, expedited medical access, and insurance protection. It achieves leapfrog progress in providing end-to-end health management across pre-examination, during-examination, and post-examination stages, earning industry acclaim as “pioneering a new era of Health Management 3.0.” The product integrates resources from top-tier (Grade A tertiary) hospitals in key cities, offering consumers green-channel services such as medical consultations, appointment scheduling, and hospitalization assistance. Furthermore, through the telemedicine platform “Elephant Doctor,” consumers can have “face-to-face” consultations with renowned specialists nationwide without leaving their cities. Additionally, “Meinian Good Doctor” collaborates with PICC Property and Casualty Company to provide post-examination critical illness insurance, re-examination cost insurance, and examination accident insurance, thereby realizing full-lifecycle health management.

“The core drivers of performance growth are increases in both volume and price. It is evident that Meinian’s products are effectively enhancing stickiness among individual (C-end) customers while raising the average revenue per user (ARPU), which will significantly expand the company’s future revenue potential. The incorporation of insurance claims coverage has reduced operational risks, allowing the company to devote greater resources to strategic planning, product innovation and upgrades, and medical quality management,” pointed out industry analysts.

According to reporters, as part of Meinian Onehealth’s overall strategic deployment, the company is increasing its emphasis and management weight on compliant branch operations, standardization of medical quality, and talent training, while strengthening investments in information technology infrastructure and building reserves of specialized medical professionals. Recently, Meinian Onehealth acquired a stake in Adicon Clinical Laboratories, integrating its research capabilities in medical laboratory testing to further elevate quality standards for laboratory services, enhance the authority and professionalism of health examination reports, improve and refine internal control systems, and continuously upgrade service quality and medical care standards.

Concurrently with the disclosure of its third-quarter report, Meinian Onehealth Healthcare Holdings Co., Ltd. announced a plan to repurchase shares through centralized bidding. The total amount for the share repurchase will range from RMB 300 million to RMB 500 million, with a maximum repurchase price of RMB 17 per share. The repurchase period will be within six months from the date the repurchase plan is approved by the company’s shareholders’ meeting. Based on the upper limit of the repurchase amount (RMB 500 million) and the maximum repurchase price (RMB 17 per share), the estimated number of shares to be repurchased is 29,411,764, accounting for approximately 0.94% of the company’s total share capital.

Meinian Onehealth stated that the repurchased shares will be used entirely for employee stock ownership plans or equity incentive plans. Recently, Meinian Onehealth’s stock price has declined significantly due to broader market influences. Industry experts generally believe the stock is severely undervalued. This move is viewed as a “dual boost” both internally and externally, conveying confidence in the long-term prospects of the company and the industry to the market, while also demonstrating the company’s commitment to sharing its development achievements with employees.

Southwest Securities’ pharmaceutical analysis report points out that the value of Meinian Onehealth’s traffic entry point is gradually being realized, and its closed-loop big health industry ecosystem is promising. The report notes that physical examination traffic holds channel value for upstream manufacturing and serves as a data entry point for downstream services. The company is advancing the establishment of a specialized health insurance firm and applying for a third-party payment license, with the expectation of achieving a closed loop spanning prevention, medical care, and payment.

In recent years, societal attention to preventive medicine, disease screening, and health management has reached unprecedented levels. With the continuous improvement of public health awareness, there has been a surge in healthcare demands, leading to intense competition for appointments at local medical examination institutions. While consolidating and developing its advantageous position in first- and second-tier cities, Meinian Onehealth is accelerating its expansion into third- and fourth-tier cities, promoting further upgrades of examination services, continuously enriching service connotations, and achieving the business goal of simultaneous growth in volume and price. Currently, Meinian Onehealth operates nearly 600 medical and examination centers in over 200 core cities across China, making it the world's largest preventive medicine platform and entry point for health needs. In 2018, Meinian Onehealth provided professional health services to nearly 30 million people, with the number expected to reach 100 million by 2021.

It is understood that, leveraging massive and precise health checkup big data, Meinian Onehealth possesses a first-mover advantage in precision prevention and post-examination services. Currently, the company has achieved technological leadership in areas such as health big data development and application, brain health assessment, precision early screening for lung cancer, intelligent diabetes management, AI-based fundus examination, 3D bone health, and intelligent Traditional Chinese Medicine (TCM) checkups. It will continue to strengthen its innovation capabilities in core sectors, including artificial intelligence, genetic testing, early tumor screening, and advanced diagnostics. The company stated that it will continue to focus on front-end prevention, shifting the prevention threshold forward by continuously improving the quality of professional health examinations and enhancing the control, prevention, education, and management of chronic diseases and life-threatening conditions identified during checkups.

As China’s leading enterprise in preventive medicine, Meinian Onehealth has taken the lead in building an ecosystem, proposing a strategic plan to “leverage Meinian Onehealth’s health examination platform to establish traffic entry points, precise data capabilities, offline outlets, and channel influence, gradually creating an industry platform for win-win cooperation and forming a super ecosystem in the healthcare sector.”

Industry insiders believe that a long-term mindset is essential for positioning in the healthcare sector. A platform ecosystem in the healthcare industry requires two key elements: first, substantial institutional scale and a large client base; second, the value of health-related entry-point traffic and the depth of industry extension. As China’s largest health demand platform, Meinian Onehealth has consistently adhered to its core development strategy of “expanding its main business, building an ecosystem, and completing a closed loop.” It has further upgraded its core strategy around three key pillars: revenue growth, quality control enhancement, and technological innovation. Its unique dual-cycle drive integrates “scale–traffic–data–technology–ecosystem” with “brand–talent–capital,” enabling mutual empowerment and continuously improving professional standards and service capabilities through technological innovation. Currently, Meinian Onehealth has strategically positioned itself and achieved a leading advantage in core sectors including professional examinations, advanced diagnostics, precise assessments, genetic testing, data mining, telemedicine, health management, specialized chronic disease care, traditional Chinese medicine services, and health insurance.

Yu Rong, Chairman of Meinian Onehealth, pointed out that consumption concepts in the health sector differ from general mass consumer logic; during economic downturns, the public tends to pay even greater attention to health-related spending. Currently, the consumption upgrade in the preventive health industry has become an irresistible trend and serves as the most dynamic “locomotive” driving the broader health industry. The paradigm is shifting from “treatment after illness” to “prevention first.” How to better meet consumers’ health needs, implement whole-lifecycle health management, and shift the focus toward earlier prevention are key priorities. Leveraging Meinian’s extensive operational network, vast health data, and resources to support national public health reforms and reduce national healthcare expenditures will be the central focus of Meinian Onehealth’s future research and development.