On 11 February, Ping An Healthcare and Technology Company Limited ("Ping An Good Doctor"; stock code:01833.HK), the world's leading healthcare ecosystem platform, released its 2019 annual report. It revealed that Ping An Good Doctor's earnings in its business segments have maintained good growth in 2019, achieving a total revenue of RMB5.065 billion, representing a year-on-year increase of 52%. The company's core business of Online Medical Services continued to grow at a high rate, contributing revenue of RMB858 million, which represents a year-on-year outstanding growth of 109%; from 2015 to 2019, Ping An Good Doctor has a CAGR of 106% in revenue.
On 29 January, Ping An Good Doctor was awarded its first ESG rating by MSCI, a world-renowned company in index preparation. The rating result was BBB, which was at the same level as Ping An Group, Alibaba and Tencent, placing Ping An Good Doctor at an industry-leading position.
Local governments joined forces with Ping An Good Doctor to overcome the difficulties; demand for online healthcare surges
The outbreak of novel coronavirus pneumonia was a shock to the nation and a huge concern to the globe. The World Health Organisation (WHO) promptly cautioned the public against close contact and issued a notice, calling on local health commissions to strengthen support for the prevention and control of the spread of the novel coronavirus. It was explicitly stated that proactive measures should be taken in order to set remote medical services in motion, encourage full utilization of the unique advantages of internet hospitals and online diagnosis and treatment, and encourage return-visits for some common or chronic diseases as well as medicine distribution services online. This will reduce the risk of cross-infection of other patients visiting hospitals. Subsequently, during the outbreak, online consultation has become the best choice of medical treatment for users.
In the face of the epidemic, Ping An Good Doctor has responded swiftly and provided assistance in all aspects. Within 24 hours, an anti-epidemic task force against novel coronavirus has been established, an anti-epidemic online consultation platform was opened, and an online consultation prevention mechanism has been set up. A total of 450,000 masks were donated to Wuhan and various local medical institutions, and a plan for the distribution of 10 million masks was launched. Ping An Good Doctor has secured an adequate supply of relevant products such as pharmaceuticals and health supplements for its online shopping mall. At the same time, the company has collaborated with well-known doctors and specialists to interpret key points of epidemic prevention, and has also carried out medical science education programmes in cooperation with Beijing Medical Doctor Association.
More notably, Ping An Good Doctor has forthwith joined hands with 56 provinces, municipalities and local governments including Wuhan, Fujian, Beijing and Chongqing, to provide real-time online consultation services for novel coronavirus-infected pneumonia. The company has set up special free anti-epidemic consultation hotlines and have been providing consultation for novel coronavirus-infected pneumonia, as well as guidance on prevention of epidemic diseases spread. In addition, Ping An Good Doctor has collaborated with over 30 leading enterprises including Baidu, WeChat Work, Pinduoduo, Meituan Dianping, Kuaishou, Weibo, Moji Weather, Zhihu, Ximalaya, Gaotie Guanjia, etc. to export 24-hour online consultation services, provide up-to-date epidemic updates and popular medical science content.
During the coronavirus outbreak, the visits to the platform of Ping An Good Doctor reached 1.11 billion, the new registered users on APP increased tenfold, the daily consultation by new users on APP was 9 times as high as usual, and the cumulative views of relevant videos exceeded 98 million.
Strong revenue growth and significant narrowing in net loss
As management efficiency continues to improve, and business operation capability continues to strengthen, the total number of registered users of Ping An Good Doctor reached 315 million as of the end of 2019, representing an increase of 50 million as compared to the end of 2018. The MAU and MPU at the end of the period reached 66.9 million and 2.969 million, respectively, representing a year-on-year increase of 22.3% and 26.0%, respectively. With the enhancement in liquidity of its business model, the average paying user turnover rate in the Reporting Period reached 4%, representing an increase of 0.4% from 3.6% in the same period of last year, and the average daily consultation volume was 729,000, representing a year-on-year increase of 36.3%.
During the Reporting Period, the total revenue of Ping An Good Doctor amounted to RMB5.065 billion, representing a year-on-year increase of 52%. The revenue of all business sectors maintained a good growth trend, among which, revenue of the core business, Online Medical Services, continued to grow rapidly, contributing a revenue of RMB858 million, representing a year-on-year growth of 109%. Net losses continuously narrowed, representing a year-on-year decrease of 18%.
With the accumulated experience of the existing membership products and the well-developed ecosystem, Ping An Good Doctor has officially launched a new strategic product "Private Doctor Membership" in the second half of 2019. A team of dedicated one-to-one private doctors and well-known doctors from the top 100 hospitals provide users with a full range of active medical and healthcare services, including 7x24 online consultation, return-visits and medical treatment advice from well-known doctors, offline hospital medical treatment arrangements, health management and chronic illness management, etc. During the Reporting Period, the growth of membership products was robust, with revenue exceeding RMB400 million. In particular, the feedback from users of "Private Doctor Membership" was much higher than the average, reaching a user satisfaction rate of 99.85%, 2.7 times the monthly consultation rate per person to that of ordinary users, 4 times the participation rate for health courses to that of ordinary users, and 2.3 times the conversion rate for prescription payment to that of ordinary users. The volume of orders placed via the mall is twice than that of ordinary users.
Empowering the medical healthcare ecosystem, fulfilling corporate social responsibilities
In 2019, Ping An Good Doctor continued to optimize its medical and healthcare ecological network, focused on medical service capabilities and continuously expanded its service area. In December 2019, Ping An Good Doctor had cooperated with the Health Commission of Fuzhou City, Fujian to establish a regional internet hospital service platform in the urban area of Fuzhou. During the Reporting Period, Ping An Good Doctor's medical and healthcare network covered over 3,000 hospitals, over 150 medical beauty clinics, 430 Traditional Chinese Medicine (TCM) clinics, over 2,000 health check-up centers, nearly 1,800 dental institutes, over 48,000 clinics and 94,000 partner pharmacies.
In 2019, Ping An Good Doctor started their "Scan QR code to conduct online consultation" cooperation with pharmacies, empowering and upgrading traditional retail pharmacies into new retail pharmacies to provide convenient and quality medical services to customers. By the end of 2019, Ping An Good Doctor had a total of 94,000 partner pharmacies covering 375 cities in 32 provinces in China, representing a significant increase from 15,000 pharmacies at the end of 2018. In the future, the Company will strengthen the layout of the cloud ecosystem and further expand the cooperation content, including but not limited to the promotion of their membership services and the provision of value-added online services to offline medical institutions, which were designed to achieve mutual benefits with their partners.
At the same time as developing its businesses, Ping An Good Doctor has helped the rural areas, fulfilled social responsibilities and responded to the government's call for "targeted poverty alleviation and healthcare in less developed areas". Ping An Good Doctor worked closely with local governments in the PRC to promote the "Village Doctor Program". During the Reporting Period, Ping An Good Doctor provided high-tech products and services such as dedicated application software, inspection medicines and equipment, AI-based medical system and multi-scenario remote training for rural doctors in Guangxi, Jiangxi, Inner Mongolia, Tibet and Yunnan, etc. As of 31 December, 2019, Ping An Good Doctor upgraded more than 900 rural clinics, trained over 11,000 village doctors, and treated 63,000 persons for free.
About Ping An Healthcare and Technology Company Limited
As the world's leading healthcare ecosystem platform, Ping An Healthcare and Technology Company Limited ("Ping An Good Doctor"; stock code: 1833.HK) strives to provide every family with a family doctor, every person with an e-profile and everyone with a healthcare management plan through our "mobile medical + AI technology". At present, Ping An Good Doctor has established key business segments including online medical services, consumer healthcare, healthcare mall, and health management and wellness interaction.
As of 31 December 2019, our number of registered users reached 315 million and the number of monthly active users reached 66.9 million, it has become the largest mobile medical application in China in terms of coverage. Being powered by self-developed AI-assisted diagnosis system, our in-house medical team strives to provide users with one-stop medical services covering 7/24 online consultation, referral, registration, online drug purchase and one-hour medicine delivery.
On 4 May 2018, Ping An Good Doctor became the No.1 listed internet healthcare company in the world when it joined the Hong Kong, S.A.R., China Stock Exchange, stock code 1833.HK.
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