Ping An Healthcare and Technology Company Limited, a leading internet healthcare services platform in China, announced its 2020 annual results. During the reporting period, the Company kept up the great momentum for growth and recorded revenue of RMB 6,866 million, an increase of 35.5% year-on-year. In particular, online medical services, its core business, continued to deliver rapid growth and contributed revenue of RMB 1,566 million, a surge of 82.4% year-on-year.
Overall revenue rose steadily and core businesses posted rapid growth
The COVID-19 pandemic has opened up a great opportunity for rapid development of Internet healthcare in China, and the Internet healthcare industry is in an accelerated phase of development. During the reporting period, online medical services, the Company's core business, maintained rapid growth and contributed revenue of RMB 1,566 million, an increase of 82.4% year-on-year. Its contribution to the Company's total revenue increased by 5.9 percentage points from 16.9% in 2019 to 22.8%.
Driven by the strong growth of core businesses, the Company's total revenue expanded by 35.5% year-on-year to RMB 6,866 million. By excluding the impact of a financial commitment to the strategic upgrade, the Company's net loss on the traditional businesses contracted substantially by 65.6% year-on-year to RMB 239 million.
Benefiting from a growing awareness of Internet healthcare services among users, Ping An Good Doctor's core operational indicators delivered remarkable performances, benefiting from this development. As of 31 December 2020, the number of registered users of the Company reached 373 million, an increase of 57.6 million or 18.3 % from the end of 2019. Average daily consultations in 2020 grew by 23.9% year-on-year to 903 thousand. In December 2020, monthly active users and the monthly paying users reached 72.62 million and 3.98 million respectively, representing a year-on-year increase of 8.5% and 34.1% respectively.
Meanwhile, the Company continued with refined operation of user traffic, further focusing on the monetization of healthcare users in particular. During the reporting period, average conversion rate of paying users reached 4.9%, up 0.9 percentage point year-on-year, paying users of medical services accounted for 35.1%.
Launched comprehensive strategic upgrade and accelerated development of corporate clients
To capture market opportunities brought about by favourable national policies, the Company launched comprehensive strategic upgrades in mid-2020 on three fronts, namely channels, services and capabilities, and it focused on key strategic projects including the accelerated development of corporate clients, establishment of Internet hospitals, formation of doctors' teams, expansion of insurance channel product offerings and enhancement of health management services.
On corporate customer channels, in 2020, the Company upgraded its offerings of membership products. By developing corporate healthcare service products exemplified by Private Doctors, the Company built the Internet + Medical + Healthcare model and had over 1,100 corporate customers, providing all-round healthcare and medical services to enterprises and their staff.
In the future, Ping An Good Doctor will continue to improve health management services and experiences for corporate customers. Meanwhile, the Company will reach corporate customers more extensively and easily by making use of the resource pool of massive amounts of corporate customers in Ping An's integrated financial service ecosystem. This will help realize precise connection and comprehensive management, to raise the health level of corporate staff.
As regards establishment of Internet hospitals, the Company reached agreements with over 120 offline hospitals on jointly building Internet hospitals as of 31 December 2020. Fifty of these hospitals were completed and put into operation.
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