Ping An Health announces 2022 annual results
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Ping An Health (1833.HK) announced its 2022 annual results. The Company is committed to bridging doctors and patients with professionalism and safeguard everyone's health. With its extensive payer resources, comprehensive supplier network, leading services and strong eco-system, Ping An Health has established a unique business model based on managed care + family doctor membership + O2O healthcare services. During the period, Ping An Health’s total revenue reached approximately RMB 6.16 billion and gross margin increased by 4.0 percentage points to 27.3%. In particular, gross margin of medical services increased to 36.2%. The cumulative number of paying users for the previous 12 months grew steadily to approximately 43 million.
Achieves continued enhancement in business structure, resulting in a significant improvement in gross margin and narrowing of net loss
In the past year, Ping An Health remained committed to implementing Strategy 2.0 Continuum and optimizing its business structure. As a result, the Company saw a steady increase in gross margin, with revenue growing approximately 18% in the second half of the year as compared to the first half of the year and a gross margin of 27.3% for the year. These efforts have led to significant optimization of the overall business structure. In the second half of the year, the Company experienced a growth of approximately 25% in revenue from its competitive, high-margin, and sustainable medical services segment, accompanied by a consecutive increase in both the market share of medical services revenue and gross profit for three reporting periods. In addition, cost reduction and efficiency enhancement also resulted in a substantial reduction of losses.
As of 31 December 2022, Ping An Health has accumulated over 49,000 in-house and contracted external doctors from 23 medical specialties, fully addressing users' demands for healthcare services for all scenarios and at multiple levels. The platform has consistently received positive feedback from users, with a stable five-star rating for the service and A-grade ratings for medical records at over 98%. Ping An Health has established 19 specialty centers and continues to expand its famous doctor network and strengthen collaboration with over 2,000 contracted famous doctors. Regarding its medical service network, the Company has expanded its partner hospitals to more than 5,000 and partner pharmacies to 224,000 during the period. The platform also offers one-hour delivery in 216 cities and 24/7 delivery in 88 cities to provide the best healthcare services to its users.
Focusing on developing financial and corporate customers, while maintaining steady and efficient growth in its paying user base
As an integral part of Ping An’s managed care services system and the flagship platform of the Group’s healthcare ecosystem, Ping An Health continues to tap into the experience, technology, client base and resources of Ping An's managed care model to better realize two-way synergy with the Group’s business. By integrating finance + healthcare services, the Company sought to develop and deliver heartwarming financial services for its customers. During the period, the number of paying users from Ping An’s financial end reached over 34 million, representing a penetration rate of 15% in Ping An’s 228 million retail customers. This represents steady improvement and has led to a significant increase in user stickiness and recognition.
As of December 31, 2022, Ping An Health served 978 enterprises, an increase of 458 from the end of 2021, with nearly 3 million paid users on the enterprise side and a renewal rate of almost 90% for large-scale enterprises with whom the company has established cooperation.
Strengthen the advantage of family doctor membership, with technology empowering medical services
Since the deepening of Strategy 2.0 Continuum, Ping An Health has been steadily building a healthcare ecosystem, with family doctors at its core, specialists as support, and famous doctors as highlights. The family doctor membership system serves as the hub of the company's business model, with "1 family doctor + 5 professional services + 1 health profile" as the core, providing an efficient and convenient medical and healthcare experience with diverse scenarios and consistent services on demand through professional guidance.
It is the Company's unwavering vision to pursue sustainable development, with the goal of providing every enterprise with a happy workplace, every family with a family doctor, and every user with a safe and healthy life. Leveraging the advantages of timely and efficient online healthcare services, Ping An Health is committed to improving health protection for all, contributing to the building of a healthy China 2030, and promoting the revitalization of villages and the creation of a medical health ecosystem. The Company has received an A grade ESG rating by MSCI for two consecutive years and ranking among the top in the healthcare services industry.
Being people-oriented is a fundamental requirement of Ping An's new cultural values, and it remains a steadfast belief of Ping An Health. The Company is committed to upholding the value proposition of "worry-free, time-saving and money saving” continually refining its products and services, enhancing the customer experience, and providing high-quality healthcare solutions to the public and employees alike, serving as a steadfast companion in safeguarding the health of all people.
