Ping An Good Doctor and JiuZhouTong Forge Strategic Partnership to Empower Tens of Thousands of Primary Healthcare Institutions and Build an 'Internet + Healthcare + Pharma' Service Ecosystem

VCBeat (WeChat: vcbeat)It is reported that on August 28, China’s leading one-stop healthcare and medical ecosystem platformPing An Good Doctor (01833.HK)Announced, with China's leading private pharmaceutical commercial enterpriseJointown Pharmaceutical Group Co., Ltd. (hereinafter referred to as “Jointown”)By establishing a strategic partnership, both parties will integrate their respective business resources, leveraging Ping An Good Doctor’s innovative technologies—such as internet-based big data and AI intelligence—and Jointown’s supply chain advantages in pharmaceuticals and other health products. Together, they will empower primary healthcare institutions and pharmacies, building an “Internet + Healthcare + Pharmaceuticals” service chain ecosystem.

Jointown Pharmaceutical Group is a corporate group primarily engaged in the distribution and logistics of health products—including pharmaceuticals, traditional Chinese medicinal materials, medical devices, and fast-moving consumer goods—as well as information services and e-commerce. It was listed on the Shanghai Stock Exchange on November 2, 2010 (stock code: 600998.SH). As of December 31, 2017, Jointown reported operating revenue of RMB 73.94 billion, ranking first among China’s private pharmaceutical commercial enterprises. The company employed more than 25,000 people and operated 953 retail chain pharmacies, both directly owned and franchised.

Ping An Good Doctor leverages its globally leading AI healthcare technology to integrate its in-house medical team of over 1,000 professionals, externally contracted physicians, and offline medical network resources, thereby creating a closed-loop service ecosystem that combines online consultations with online medication purchases, as well as online consultations with offline medical visits. Currently, it has established partnerships with more than 3,100 hospitals (including over 1,200 Grade A tertiary hospitals), more than 2,000 health institutions such as physical examination centers, dental clinics, and medical aesthetics facilities, and over 10,000 pharmacies.

Under this strategic partnership, the collaboration will encompass multiple business segments of Ping An Good Doctor, including family doctor services, AI intelligence, and the health e-commerce platform. Going forward, Ping An Good Doctor will provide mobile healthcare and AI consultation capabilities to Jointown’s downstream primary care institutions, its affiliated pharmacies, and its online pharmaceutical e-commerce platforms. Together with ecosystem partners, the two companies aim to integrate the health industry chain and establish a closed-loop service model that combines online and offline offerings.

In the course of this collaboration, Ping An Good Doctor leverages its core service capabilities in “mobile healthcare + AI” to empower tens of thousands of grassroots medical institutions downstream of Jointown Pharmaceutical Group, including clinics, community health service centers, and township health centers. It provides physician-assisted diagnosis systems tailored to institutional needs, along with a standardized risk control framework for disease diagnosis and treatment.

As of the end of 2017, Jointown Pharmaceutical Group had obtained qualifications for the distribution of essential medicines in 23 provinces and municipalities, covering more than 70,900 primary healthcare institutions.

Ping An Good Doctor integrates its AI-assisted in-house medical team, external physician resources, and medical network resources to provide comprehensive healthcare services—including 24/7 online consultations, referral and appointment scheduling, hospitalization arrangements, second medical opinions, and health management—to patients at primary care institutions, thereby effectively addressing the shortcomings in their medical service capabilities.

Under the agreement, Jointown and Ping An Good Doctor will collaborate to build a smart pharmacy ecosystem by integrating Ping An Good Doctor’s AI-powered smart medicine cabinets with Jointown’s Haoyaoshi chain pharmacies, thereby establishing “Haoyaoshi Smart Pharmacy Pilot Stores.” During this period, both parties will establish and gradually enhance a new retail pharmaceutical service system encompassing intelligent consultations, electronic prescriptions, automated medication dispensing, electronic medical insurance payments, and online-to-offline (O2O) pharmacy-clinic services.

It is reported that the “Smart Pharmacy Model Store” will be equipped with a variety of basic smart monitoring hardware, and will leverage Ping An Good Doctor’s internet hospital, its robust medical team, and its online healthcare traffic entry points to provide one-stop, high-quality medical and health services. Upon achieving successful operational results, the “Haoyaoshi Smart Pharmacy Model Store” model will be rolled out across all Haoyaoshi pharmacies as well as the tens of thousands of alliance pharmacies partnered with Jointown Pharmaceutical Group.

In addition to the aforementioned collaboration, Ping An Good Doctor and Jointown Pharmaceutical Group have also reached a cooperation agreement in multiple areas, including the provision of mobile healthcare services, optimization of the health e-commerce supply chain, and mutual strategic synergy support.

Specifically, Jointown Pharmaceutical Group’s Haoyaoshi e-commerce platform and its chain pharmacies will integrate with Ping An Good Doctor’s family doctor service system, providing Haoyaoshi users with services such as online health consultations, medical diagnosis and treatment, electronic prescriptions, and medication delivery.

The two parties will further deepen their collaboration on the Ping An Good Doctor Health Mall. By leveraging Jointown’s robust pharmaceutical supply chain capabilities and Ping An Good Doctor’s extensive user base, they will strengthen cooperation in promoting domestic health products and facilitating cross-border purchases of high-quality overseas health products. This initiative is expected to expand sales channels for Jointown’s products and effectively reduce procurement costs for the Ping An Good Doctor Health Mall.

Furthermore, as a strategic partner of Ping An Good Doctor, Jointown Pharmaceutical Group will provide customized health product services to insurance users of the Ping An Group. In the future, the two parties will achieve strategic synergy in multiple fields, including new pharmaceutical retail, medical AI, health insurance, health management, and capital investment, thereby promoting business development for both sides through innovation.

Ping An Good Doctor is China’s leading one-stop healthcare ecosystem platform, committed to providing every family with a family doctor, every individual with an electronic health record, and every person with a personalized health management plan through its “Mobile Healthcare + AI” model. Currently, Ping An Good Doctor has established key business segments including family doctor services, consumer healthcare, the health mall, health management, and health engagement.

As of the end of June 2018, Ping An Good Doctor had amassed 228 million registered users, with 48.6 million monthly active users at the period’s end, making it the mobile healthcare application with the highest market penetration in China. Ping An Good Doctor employs an in-house medical team of over 1,000 professionals and has contracted 4,650 external renowned physicians (all holding the title of associate chief physician or higher at Tier-3 Grade-A hospitals). Empowered by AI technology, the platform provides 24/7 online consultations, offering users auxiliary diagnosis, rehabilitation guidance, and medication advice. In collaboration with more than 3,100 offline hospitals (including over 1,200 Tier-3 Grade-A hospitals), it facilitates subsequent triage and referrals, as well as initial offline consultations and follow-up visits. Furthermore, Ping An Good Doctor covers more than 2,000 health institutions, including physical examination centers, dental clinics, and medical aesthetics facilities, along with over 10,000 pharmacies, thereby creating a closed-loop service ecosystem that integrates online consultation with online medication purchases, and online consultation with offline medical care.

In April 2015, the “Ping An Good Doctor” app was officially launched. In May 2016, Ping An Good Doctor completed a $500 million Series A financing round. In December 2017, it received a $400 million Pre-IPO investment from SoftBank Vision Fund, under Masayoshi Son. On May 4, 2018, Ping An Good Doctor was listed on the Hong Kong Stock Exchange with the stock code 01833.HK, earning the title of the world’s first publicly traded internet healthcare company.