Ping An Health (01833) released full-year performance for 2023: strong growth in strategic business, loss shrank by 47.6% accelerating.

On March 19, Ping An Health (01833) announced its annual performance report for 2023. With core competitive advantages such as rich insurance and financial client resources, payment resources for medical health services on the client and enterprise side, a wide network of service providers, a complete service standard system, and strong Ping An ecological resources, Ping An Health deepened the implementation of a management-based medical strategy, focusing on the construction of the two core hubs of "family doctors" and "elderly caregivers". During the reporting period, the company's annual revenue reached 4.67 billion yuan, with a net loss narrowing significantly by 47.6% to 330 million yuan year-on-year. Amongst this, strategic business segments saw strong growth, with revenues from medical, health, and eldercare services on the insurance and financial client side reaching 2.20 billion yuan, a year-on-year increase of 14.8%, and revenues from enterprise-side employee health management services reaching 1.08 billion yuan, a year-on-year increase of 81.2%. The business structure continued to optimize, driving the company's gross profit margin to increase by 5.4 percentage points year-on-year to 32.3%, with accelerated profitability expected. Deepening the management-based medical model leads the enterprise health management market comprehensively Under Ping An's unique management-based medical model, the financial side, enterprise side, and individual side are the three main payment parties. As the flagship of Ping An's medical and elderly care ecosystem, Ping An Health provides integrated, 24/7, proactive medical and health management services to users of comprehensive financial services under the Ping An Group, including life insurance, property insurance, health insurance, and banking services. Based on the user profiles and medical health needs of different financial services, through business models such as "product integration", "entitlement procurement", and "value-added services", Ping An Health helps financial clients acquire and retain customers and achieve secondary user conversions. The number of paying users increased to approximately 26.3 million over the past year, a year-on-year increase of 6.7%, with an average revenue per user (ARPU) increasing by 7.5% year-on-year. Notably, the "Zhen Xiang RUN" service system jointly established by Ping An Life continued to be upgraded during the period, providing users with a one-stop medical and health service experience that is "worry-free, time-saving, and cost-effective", leading to increased user usage rates and satisfaction levels. According to data disclosed in Ping An Group's third quarter report, group individual customers who used Ping An Group's medical and elderly care ecosystem services had average contract numbers and AUM per customer that were 1.6 times and 3.4 times higher, respectively, than other individual customers. The enterprise health management track is an important strategic layout for the company's deepening Strategy 2.0. Ping An Health helps enterprises improve the health of their employees, enhance employee work efficiency, and contribute to creating a happy workplace. Over the past 12 months, the number of paying users for enterprise-side services has exceeded 5.1 million people, a year-on-year increase of 75%. The company has served 1,508 enterprise clients, an increase of 530 companies compared to the same period last year, with an ARPU increase of 3.6% year-on-year. The company continues to strengthen the construction of the "Easy Enterprise Health" enterprise health management product system, by conducting in-depth research and exploring the health management needs of employees to establish a more competitive and differentiated product service matrix.For example, in cooperation with CR Snow Beer, due to the large number of employees and widespread locations, including remote areas such as Sichuan and Tibet, the annual employee health check-up is a huge project. Ping An Health provides the company with strong nationwide medical service resources to meet personalized needs in different regions. In the future, the company's resource allocation will further focus on the strategic development of business in the management-based medical model, continuously improving resource allocation and usage efficiency. Establishing the "Ping An Family Doctor" medical and health service brand, injecting new momentum with smart technology for service enhancement Family doctors are one of the core hubs of the company's medium and long-term development strategy. In 2023, the membership of family doctor service covers nearly 13 million people, with an average usage frequency of 3.7 times per user, an increase of 0.8 times compared to 2022, and a user consultation five-star satisfaction rate exceeding 98%. During the reporting period, Ping An Health launched the "Ping An Family Doctor" flagship medical and health service brand, integrating family doctors, specialist doctors, renowned doctors, and medical services through a single entry point, efficiently connecting a rich network of services both online and offline, enabling users to experience a seamless end-to-end medical treatment process, from quick diagnosis of minor illnesses to standardized management of chronic diseases and precise referral for serious illnesses. As of the end of the reporting period, the company has established a team of approximately 50,000 internal and external doctors covering 29 departments, and has collaborated with nearly 2,500 renowned medical experts to meet users' full-scene, multi-level medical and health service demands. In addition, the company has established 23 specialty disease centers around 8 major specialties, creating standardized solutions for pre-diagnosis, during-diagnosis, and post-diagnosis in specialty diseases. For instance, in chronic disease management services, the company has introduced three major services for controlling blood sugar, blood pressure, and weight loss, establishing personalized solutions for users, providing full-process monitoring and management guidance to help users effectively improve their health levels. Furthermore, the company places great emphasis on the continuous upgrading and deepening application of artificial intelligence technology in the field of medical and health care. The company's "AI + Medical" service now covers approximately 36,000 diseases, 420,000 disease terminologies, and incorporates 30 million clinical guidelines from top world literature, with daily updates of 10,000 pieces of medical knowledge, which have assisted doctors throughout the entire service process. To date, the company has provided consultation and advisory services to nearly 480 million people, with over 1.42 billion cumulative consultations, achieving a reception rate of less than 30 seconds reaching 92.9%, and a patient satisfaction rate reaching 99.2%. In the future, against the backdrop of vigorously developing new productive forces in China, Ping An's unique "AI + Medical" will continue to comprehensively enhance service efficiency and improve user experience, safeguarding the company's high-quality and sustainable development. Building a tripartite "Elderly Care Manager &""Creating a comprehensive, high-quality elderly care experience"With the acceleration of the aging process in China, how to provide for the elderly and ensure they have access to medical care has become an important issue related to social stability and development. Currently, the development of pension finance and elderly care services has risen to the height of national strategy. The Government Work Report of 2023 proposed actively addressing the aging population and promoting the development of elderly care and pension industries, supporting the development of community and home-based elderly care services. In recent years, Ping An Health has deeply understood market demand and, in collaboration with Ping An Life Insurance, focused on "medical, food, housing, transportation, finance, health, care, and security" ten major scenarios as well as a "supervision system," providing seniors with a one-stop, high-quality solution for home-based elderly care. Through the integration of intelligent housekeepers, lifestyle housekeepers, and medical housekeepers, a "three-in-one" housekeeping system provides 24/7 services. In addition, the company integrates Peking University medical rehabilitation service standards, collaborates with over 40 rehabilitation care service providers and industry experts, creates a network for home-based elderly care, and establishes strict service standards and supervision systems, continuously optimizing a "professional and warm" user experience. Since the exploration of the Ping An home care service model, the results have become increasingly significant. As of 2023, Ping An home care services cover 54 cities nationwide, with nearly 100,000 people receiving Ping An housekeeper service qualifications. The satisfaction rate of housekeeping services is 95%. In the field of sustainable development, the company actively fulfills its social responsibility, not only focusing on its own development but also dedicated to promoting sustainable development actions to help build a greener, healthier, and more harmonious social environment. The company has established a Sustainable Development Committee, formulated a sustainable development strategy and goals, set a three-year sustainable development goal. Up to now, Ping An Health has received an "A" rating in the MSCI ESG evaluation for three consecutive years. During the National Two Sessions in 2024, the Government Work Report paid attention to the development of the medical health field and the integration of medical care and elderly care. Looking to the future, Ping An Health will deepen cooperation with Ping An Group, continuously building a model of managed medical care in China. Chairman and CEO Li Dou stated that the company will further leverage the core role of "family doctors" and "elderly care managers," meticulously develop products with craftsmanship, build reputation with quality, strive to provide sustainable long-term value for users, shareholders, and society, and make unremitting efforts to support the realization of the strategic goals of Digital China and Healthy China.