PA GOODDOCTOR (01833) Semi-Annual Report: Profit Structure Continues to Optimize, Managed Medical Service Closed Loop is on the Horizon

On August 18, PA GOODDOCTOR (01833.HK) reported a mid-year earnings performance with profit growth far exceeding revenue growthtotal revenue of 2.484 billion yuan and net profit attributable to shareholders of 219 million yuan, an increase of 63.5% year-on-year; adjusted net profit reached 227 million yuan, a 37.7% increase year-on-year. On the same day, a board announcement was made: Zhu Yougang was appointed as the chairman of the board. This "32-year veteran," who joined Ping An Group in 1994, also holds the positions of Party Secretary, Chairman, and CEO of Ping An Health Insurance, as well as Party Secretary and Chairman of Peking University Health Management Company. The construction of PA GOODDOCTOR's "managed healthcare closed loop" may usher in efficient collaboration and comprehensive deepening of ecological resources. Profit growth far exceeding revenue growth indicates structural optimization as the underlying logic With revenue at 2.484 billion yuan and profits soaring by over 60%this divergence directly reflects the ongoing optimization of PA GOODDOCTOR's business structure. Breaking down the revenue composition, the commercial insurance collaboration (F-end) business recorded 1.584 billion yuan, remaining the revenue foundation; enterprise health management (B-end) business revenue was 714 million yuan, a year-on-year increase of 65.1%, increasing its share of total revenue to 28.7%, up 11.5 percentage points year-on-year. The number of paid enterprise clients on the B-end surpassed 7,700, a year-on-year increase of over 73%. This signifies that enterprise health management is accelerating its transition from "customized projects" to "standardized products," establishing a solid foundation for scaled expansion. More critically is AI's transformative effect on cost structure. During the reporting period, AI doctors served over 9.7 million users, accurately diagnosing more than 11,300 diseases, with a diagnostic assistance accuracy rate approaching 96%, and AI's contribution to gross profit accounted for approximately 4.6%. As AI meets high-frequency standardized diagnostic needs, real doctors can focus on complex case reviews, leading to decreasing marginal service costs as scale increasesthis is the core barrier that distinguishes PA GOODDOCTOR from traditional internet healthcare platforms. Zhu Yougang's dual identity is the key to decoding the "two synergies." On the surface, this is a routine change in board personnel. In essence, it represents a "key piece" on PA GOODDOCTOR's strategic chessboard, linking both the "online + offline" and "medical + insurance" mainlines. Zhu Yougangs uniqueness lies in: one hand controlling Ping An Health Insurancerepresenting the payer; the other hand controlling Peking University Health Managementrepresenting the service provider. In the classic model of managed healthcare, the deep binding of the payer and service provider is a prerequisite for the establishment of a closed loop. Zhu Yougang overseeing both sides means that PA GOODDOCTOR's online service capabilities, Peking University's offline physical resources, and Ping An Health Insurance's insurance payment capabilities can be efficiently coupled under the coordination of the same individual. The companys board has clearly stated its optimism about the opportunities for synergy between medical services and insurance, aiming to build an integrated healthcare loop with Wuxi Online Offline Communication Information Technology Co., Ltd. The first synergy: Wuxi Online Offline Communication Information Technology Co., Ltd. integrates online advantages with Peking University Health's offline resources into a single force. PA GOODDOCTOR has 400 million registered users, a physician team of about 50,000, over 3,700 contracted experts (including 9 academicians or masters of traditional Chinese medicine, and more than 820 deans and department heads), and collaborates with 3,216 hospitals selected by Ping An (including 1,732 grade-three hospitals), having established over 500 "Ping An circles" with a three-kilometer service networkthat is the online side's traffic and supply foundation. Peking University Health Group owns 11 medical institutions, including Peking University International Hospital, with total bed capacity exceeding 10,000, covering the entire chain from prevention, screening, diagnosis, treatment to rehabilitation managementthese are the offline physical medical resources. Zhu Yougangs role as chairman of Peking University Health Management means that the online platform of PA GOODDOCTOR and the offline entities of Peking University Health are no longer a loose collaboration but "two sides of one closed loop." The second synergy: medical insurance synergy, achieving mutual empowerment between healthcare services and health insurance business. Ping An Group boasts over 200 million personal customers, with its health insurance premium scale ranked first in the country. As of the end of the reporting period, the average first-year premium for new life insurance policies enjoyed by Ping An's home service clients increased by 9.7 times, with over 310,000 clients qualifying for elderly care services, covering 140 cities nationwide. Zhu Yougangs simultaneous leadership of Ping An Health Insurance implies that the barriers between "healthcare service supply" and "insurance payment capability" are being broken down at the institutional level. Healthcare services provide differentiated product strength for customer acquisition and retention in the insurance business, while insurance payments provide a stable source of large-scale customer acquisition for healthcare servicesthis positive cycle of mutual empowerment is the core formula of the Chinese-style managed healthcare model. The two synergies point towards a single goal: to deeply build a uniquely Chinese managed healthcare model and further establish differentiated competitive advantages. Since the beginning of this year, the company has completed a series of board adjustments. As the core flagship of Ping An Group's healthcare and elderly care ecosystem, PA GOODDOCTOR's strategic positioning has not changed and will not change. Zhu Yougang's leadership signifies not a directional adjustment but an acceleration of execution. Now let's look at PA GOODDOCTOR's valuation. As of the market close on August 19, PA GOODDOCTOR's market capitalization stands at approximately 15.5 billion HKD, with a PE (TTM) of about 29 times and a price-to-book ratio of 1.34 times. Compared to similar stocks in Hong KongHYGEIA HEALTH (06078) with a PE of about 33 times, and GUSHENGTANG (02273) with a PE of about 15 timesPA GOODDOCTOR's valuation remains in the mid-range of the industry. Looking back to 2025, the company's net profit attributable to shareholders is expected to reach 380 million yuan, an increase of 366.1% year-on-year. The profit growth rate in H1 2026 continues to run at a high level; based on the first half's attributable net profit of 219 million yuan and a growth rate of 63.5%, the annual profit is expected to exceed 500 million yuan, corresponding to a forward PE of about 30 times. For a healthcare platform that possesses AI cost-reduction elasticity, high growth in enterprise health management (B-end revenue +65.1%), and deepening insurance collaboration, the space for valuation recovery is opening up. With the deep integration of medical insurance synergy and Wuxi Online Offline Communication Technology Co., Ltd.'s medical resources, PA GOODDOCTOR is accelerating the release of value in the uniquely Chinese managed healthcare model with a clearer profit path and a solid business base. In the future, its flagship effect in the Ping An Insurance Group's healthcare and elderly care ecosystem will become increasingly prominent.