Ping An Healthcare reports more than 300 per cent surge in losses, says strategic investments hit profitability in first half

Developments in line with our blueprint, says company’s chief financial officer

Shanghai-based company’s revenue rises 39 per cent to 3.8 billion yuan

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The losses at Ping An Healthcare come amid tighter scrutiny of China’s internet health care market. Photo: Reuters

Published: 6:00am, 25 Aug 2021Updated: 6:34am, 25 Aug 2021

Ping An Healthcare and Technology reported a more than 300 per cent surge in losses for the first half of this year on Tuesday.

The Shanghai-based company, a health care services unit of insurance giant Ping An Insurance and formerly known as Ping An Good Doctor, said strategic investments aimed at growing market share had weighed upon its gross margin.

“The development was in line with our blueprint,” Ye Lan, the company’s chief financial officer, said in an earnings call. She added that the strategic investments that weighed on profitability were a result of improvement efforts launched mid last year and that the company’s plan to break-even by around 2024 or 2025 was unchanged.

The losses at Ping An Healthcare come amid tighter scrutiny of China’s internet health care market. Just last week, People’s Daily called for increased scrutiny of the sector, which was worth 54.5 billion yuan (US$8.4 billion) and is expected to reach 63.6 billion yuan this year, to ensure patients’ safety.

Its loss surged 312.4 per cent year on year to 879.3 million yuan from January to June, while its gross margin declined to 26.8 per cent from 29.9 per cent. Its revenue rose 39 per cent to 3.8 billion yuan. The company also continued to see a strong inflow of new users amid the Covid-19 pandemic. Its registered users had jumped by 15.7 per cent, or about 55 million, to 400 million users as of June 30.

As part of strategic improvements, the company has been focusing on growing its corporate clients roster, the establishment of online consultations, the expansion of insurance channel product offerings and the enhancement of health management services, among others.

Ping An Healthcare reports more than 300 per cent surge in losses, says strategic investments hit profitability in first half

.css-1mniedq{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;} Developments in line with our blueprint, says company’s chief financial officer Shanghai-based company’s revenue rises 39 per cent to 3.8 billion yuan

Developments in line with our blueprint, says company’s chief financial officer

Shanghai-based company’s revenue rises 39 per cent to 3.8 billion yuan