Ping An Healthcare announced the acquisition of Ping An Smart Healthcare, a business segment of Ping An Smart City. Going forward, while the Company continues to pursue its unique business model based on "Managed Care + Family Doctor Memberships + O2O Healthcare Services", both companies are expected to achieve business synergies, enhance efficiencies and accelerate the building of an integrated O2O healthcare services platform catering to health, sub-health, disease, chronic disease, and eldercare management, aiming to improve national health literacy and empower the initiative of "Healthy China 2030". According to the announcement, Ping An Health has entered into the Equity Transfer Agreements with Scientia Technologies Limited ("Scientia Technologies") and Ping An International Smart City Technology Co, Ltd. ("Ping An Smart Healthcare) for a consideration of USD96.8646 million. Upon the completion of the transaction, Ping An Health will hold 100% equity interest of Scientia Smart Health Technologies Limited and Ping An Yingxiang (Jiaxing) Software Company Limited (collectively referred as "Ping An Smart Healthcare").
Spokesperson of Ping An Health said that the acquisition of Ping An Smart Healthcare will further assist the Company in improving its service capabilities, and the synergies will be primarily reflected in three aspects including supplementation of chronic disease services, improvement of doctors' capabilities and primary institutions coverage. Going forward, Ping An Health is well-positioned to provide more professional, comprehensive and high-quality one-stop medical and healthcare services to its users and corporate clients, and achieve a stable and sustainable development of the Company.
In the aspect of "supplementation of chronic disease services", Ping An Smart Healthcare is an industry leader in terms of service capabilities and coverage. The Company's business covers 35 chronic diseases and its AI system offers 69 services. According to the "The Blue Book: China's Online Chronic Disease Management Industry", the market size of online chronic disease management industry reached RMB69.41 billion in 2019 and is expected to reach RMB217.71 billion in 2024, with a CAGR of 25.7% during the forecast period. The acquisition of Ping An Smart Healthcare will enhance Ping An Health's chronic disease service capabilities. Going forward, Ping An Health will deep dive into the chronic disease market with 400 million patients and further expand to the online chronic disease management market with a market value of more than RMB10 billion. The acquisition will also empower the company's health management service for corporate employees and optimize its service capabilities.
Regarding "improvement of doctors' capabilities", AskBob Medical Think-tank, a smart medical assistance under Ping An Smart Healthcare contains encyclopedia entries of nearly 12,000 diseases and over 180,000 drugs, supporting over 3,000 triages and over 20 practices. The platform empowers 49,000 internal and external doctors of the Company, enhances medical professionalism and achieves the improvement of both quality and efficiency. The efficiency of consultation is expected to increase by 20%.
Regarding "primary institutions coverage", Ping An Smart Healthcare' SaaS platform will work with Ping An Health to expand its coverage of primary healthcare network "In-store" through "Smart Monitoring", "Smart Clinic" and "Smart Village Doctor", aiming to improve the standardization and efficiency. "The 14th Five-Year Health Standardization Work Plan" of the National Health Commission has proposed two key business standards including regional health informatization and hospital informatization need to be achieved by 2025.
Ping An Health is an integral part of Ping An's managed care business model and the flagship platform of the healthcare ecosystem. Ping An Health stays focused on users, strives to improve its medical service capability and establish an integrated O2O healthcare platform. With its extensive payer resources, comprehensive supplier network, leading services and strong ecosystem, Ping An Health has established a unique business model based on "Managed Care + Family Doctor Memberships + O2O Healthcare Services". The Company was listed on the Main Board of HKEX on 4 May 2018 and was included in Hang Seng TECH Index in July 2020. As of 30 June 2022, the number of registered users on its platform exceeded 440 million, while cumulative consultations surpassing 1.3 billion. The platform has accumulated over 49,000 internal and external doctors, nutritionists, fitness trainers and counseling psychologists. In addition, the platform has also signed up more than 1,500 external famous doctors in total, aiming to provide users with "worry-free, time-saving and money-saving" healthcare services.
Ping An Smart Healthcare was an integral part of Ping An Smart City, empowering over 55,000 medical institutions in more than 180 cities, and benefited more than 1.4 million doctors. Focusing on the key areas of the healthcare system, and with the Smart Big Data platform as the core, Ping An Smart Healthcare provides multiple services such as public health emergency management, AskBob Doctor, regional smart management for chronic-disease, clinic monitoring and services etc. for the government, medical institutions, medical workers and patients.
