Original title: Ping An Health optimized some business executives in the first half of the year to respond to stock price fluctuations and business adjustment logic
Economic Observer reporter Huang Yifan On August 18, Ping An Health Medical Technology Co., Ltd. (stock abbreviation “Ping An Good Doctor”, 1833.HK, hereinfollowing referred to as “Ping An Health”) announced its 2022 interim results report.
During the reporting period, Ping An Health’s total revenue reached 2.83 billion yuan, and the gross profit margin increased to 27.3%; the net loss was 425.8 million yuan, a decrease of 51.6% compared with 879 million in the same period last year; the number of paying users increased rapidly to over 40 million, A 4.8% increase compared to the full year of 2021.
It is worth noting that 2022 is the eighth year that Ping An Health has continued to lose money. Since its spin-off from Ping An Group in 2018, Ping An Health’s own financial health has attracted much attention.
After the results were released, as of the close on August 19, the company’s share price was HK$19.76 per share, an increase of 1.02%. However, the performance of the secondary market of Ping An Health is not satisfactory this year. As of August 19, the stock price of Ping An Health has fallen by 30.30% this year.
Regarding the results of the interim report, Ping An Health explained that in addition to the impact of the epidemic, the decline in revenue was mainly due to the decline in revenue from health services.
According to the semi-annual report, among the various sectors, medical services realized revenue of 1.132 billion yuan, down 14.5% year-on-year and 8.4% month-on-month, accounting for 40% of total revenue; health service revenue was 1.696 billion yuan, down 32% year-on-year and 25.6% month-on-month. , accounting for 60% of total revenue.
Regarding the obvious reasons for the decline in the performance of the health service sector, Zang Luoqi, Senior Vice President and Chief Financial Officer of Ping An Health, explained, “First, Ping An Health has devoted more energy and resources to deepening its strategic transformation. From the fourth quarter of 2021, Ping An Health will officially launch Initiated the deepening and transformation of Strategy 2.0. During this process, Ping An Health optimized businesses that were less related to strategic goals, and eliminated high-input and low-value income, such as malls that were less related to managed medical services. Business income. On the other hand, due to the impact of the epidemic in the first half of the year, the fulfillment of contracts and services of shopping malls and offline agencies were also restricted. To sum up, in the first half of the year, the health sector, including the overall revenue, declined.”
After cutting off some low-gross-margin mall businesses, Ping An Health’s overall gross profit margin was 27.3%, up 7.9 percentage points month-on-month and 0.5 percentage points year-on-year.
Zang Luoqi, Senior Vice President and Chief Financial Officer of Ping An Health, said at the performance media conference, “Short-term fluctuations in the stock price do not represent the long-term value of the company. There is no doubt regarding the company’s long-term profitability. Our medium-term goal is to break even and increase the number of paying users. To 50 million to 60 million.” She said, “In December last year, the company implemented a share repurchase plan at a cost of HK$730 million. The repurchase in the past period has also played a key role in stabilizing the market. The plan also reflects the confidence of the board and management in the company’s prospects.”
She also emphasized that the company took the initiative to optimize some businesses during the period, but this process takes time.
Fang Weihao, Chairman of the Board and CEO of Ping An Health, said, “With the growing space of the medical and health market, as the population ages, the opportunities for the Internet to participate in it will become more and more broad. At present, our offline hospitals are still very professional. Solve the problem of seeing a doctor for a lot of people. But our hospital is still mainly specialized, that is, the treatment and cure of the disease.” Fang Weihao said that there are many breakpoints in the process of patients seeking medical treatment, including offline hospitals and hospitals. There is a mismatch between the online, “so we use the family doctor’s hub to establish a medical consultation file for each user, to provide help for the next medical treatment, and to make up for this service breakpoint.”Return to Sohu, see more
Editor:
Disclaimer: The opinions of this article only represent the author himself, Sohu is an information publishing platform, and Sohu only provides information storage space services.