Soft Demand for Private Healthcare Insurance in China Pains Ping An Good Doctor's New Business Model

Ping An Good Doctor, PAGD, pivoted its business model at the end of 2021 to become more like an HMO model for where it now focuses on providing healthcare insurance and services to corporations, away from its previous model where it was a one-stop shop that provided online consultations, healthcare e-commerce, hospital bookings, and insurance to individuals. The platform still makes these online services available to single users, but its focus is now on adding incremental users via selling its HMO product through corporations signing up. Despite the change, we still do not expect robust demand in the near term and expect revenue to increase 6% year on year in 2022.