A：Ping An Health Medical Technology Co., Ltd. 2025 annual results conference, the theme around the company's strategic direction, annual business progress and performance. the management members present and making the introduction included the executive director, the chief executive officer, and the executive director, executive vice president and chief financial officer, ms ruoqi zhang.

A：Ping An Health, as the core flagship of Ping An Group's medical and old-age ecosystem, has ushered in new development opportunities under the synergy and empowerment of the Group's large ecology. Ping An Health's performance in 2025 can be summarized by two key words: "model verification" and "high-value growth". The model verification is reflected in the double-digit growth of the two core businesses, especially the 40% growth of enterprise supervision business. The high-value growth is reflected in the growth of more than 80% in the number of high-value customers, the improvement of service capability, the display of scientific and technological value, etc, for example, AI doctors use more than 12 million and account for more than 4.5 per cent of gross profit.

A：In the future, Ping An Health will focus on three strategies: first, to coordinate with payers to lock in more payment capacity; The second is to consolidate the four major service capabilities (to the county, home, hospital and enterprise); The third is to deepen the empowerment of science and technology and expand the scope of AI use, which will not only reduce costs but also increase income.

A：The meeting will be divided into two parts. In the first part, He Zong and Zhang Zong will introduce the company's strategic direction, annual operating progress and performance; in the second part, they will answer questions from on-site and remote investors and analysts.

A：The core service system of Ping An Health includes the four major service systems of "to the county, to the hospital, to the home, to the enterprise" and strong AI technology capabilities.

A：In recent years, the state has issued a series of policies on health care, pension and enterprise supervision. These policy dividends not only involve the competent departments, but also extend to the Ministry of Commerce and the financial supervision bureau. In the two sessions, "investing in people" has become an important discourse and policy direction. Policy dividends have driven a significant increase in the market ceiling and scale of industries such as health care, old-age care and corporate regulation, for example, the health care industry can reach RMB 10 trillion, the old-age care industry may rise from trillions to tens of trillions, and the corporate regulation industry may grow from hundreds of billions to trillions.

A：The relationship between Ping An Health and Ping An Group is a two-way enabling relationship. The Group's empowerment of Ping An Health is reflected in its huge base of paid users, rich medical ecological resources and advanced scientific and technological algorithms and data support. Ping An Health empowers the group's companies and products by enhancing product sales power through marketing scenarios, product design links, and customer relationship maintenance to improve customer value and stickiness.

A：The Kai Kang service is divided into three main steps. The first step is to work with the group's sales staff and sales organization to lock in the customer's ability to pay and the amount of entrustment. The second step is to build a service system, that is, a four-way system, including a comprehensive service network to the county, to the hospital, to the home and even to the store. The third step is the operation transformation, which converts the entrusted amount into the service performance and health improvement of the employees of the enterprise. This process is like a waterfall, from the commission amount to GMV to the profit amount gradually realized.

A：Last year, our GMV reached 3.016 billion, up more than 80% year-on-year, focusing on serving 6700 customers. At the same time, we have signed more than 3500 doctors, serving 240000 people for the aged at home, which is expected to be close to 200 this year, and we have established benchmark business rooms with a number of enterprises. We provide services such as due services, such as establishing an enterprise infirmary for a large subway company in a certain city, bringing the services of top experts in first-tier cities to enterprise employees through remote MDP multi-expert consultation, and providing on-site offline services to ensure that employees seek medical treatment anytime and anywhere. In addition, we also organize regular first aid and AED use training and other care activities to ensure the health and safety of employees in special types of work.

A：We have introduced a service mode from online to offline and then to the hospital. Users can bill through the online platform, and family doctors can help solve some problems and directly make appointments for offline examination or treatment. Cooperative hospitals such as Peking University Medical will obtain patient reports in advance, thus greatly reducing the waiting time for treatment. Family doctors will also conduct online follow-up to ensure that patients recover in good condition in time.

A：Ping An Health relies on strong scientific and technological capabilities to develop suitable AI applications based on practical application scenarios, such as AI family doctors, AI supervisors, AI stewardesses, and AI infirmary. We use the latest open source models and integrate rich financial data to achieve 1.5 billion consultation visits, with hundreds of segmentation scenarios, significantly improving service efficiency and quality. AI capabilities are reflected in the four aspects of "how fast, how fast, how to save": covering a wide range of scenarios, helping rapid revenue growth, significantly reducing costs, and improving user experience. For example, the company's revenue was 5.47 billion yuan, up 13.7 percent year-on-year, and with AI empowerment, gross profit increased steadily, operating profit turned positive, and net interest rate increased significantly.

A：The company's total revenue during the reporting period was 5.47 billion billion yuan, an increase of 13.7 percent over the same period last year, and gross profit increased by 16.3 percent over the same period last year, achieving a high growth rate for two consecutive years. Revenue from the corporate health management business grew rapidly, increasing its share to 24%. Revenue from the commercial insurance collaborative business and corporate regulatory business also maintained good growth, with the Qikang business continuously optimizing its product and service catalog, demonstrating excellent growth and development potential.

A：The corporate regulatory business presents a typical scale effect, similar to the waterfall process, locking in the payment rate, the amount of entrustment into GMV and then into revenue and profit. As the scale grows, the sales rate is expected to decrease gradually, as many commissions have a three-year renewal rate, and the increased customer stickiness will make the renewal process smoother. In addition, the company is building a "one-build" ecology and establishing ERP-level cooperation with 70000 pharmacies to ensure payment capacity while also pushing online and offline payment capacity. These inputs will be transformed into huge value after the scale effect is formed. As the scale rises, the company will strive to realize these values. The core is still to play the role of payer representative, integrate supplier resources, and provide users with the most cost-effective services and products.

A：With the addition of the new management team, we have taken a number of steps to strengthen synergies with the Group. First, in terms of digital operations, introduce the most advanced productivity tools to improve service capabilities, and focus on every aspect of the patient or customer journey, and use digital technology to optimize the experience. Secondly, the medical and health system is deeply empowered by AI technology to improve service efficiency and quality. These efforts have yielded initial results, such as innovation in business models and improved digital capabilities, giving us a first-mover advantage in medical service delivery.

A：Regarding the empowerment indicators of the commercial insurance end, we mainly focus on the following aspects: First, the M3 conversion rate, that is, the conversion of customers within three months, reflects our marketing scenario and speech conversion ability. The second is to observe the differences between the users who use our services and the control group on indicators such as the number of signatures or AOM through comparative analysis to measure the value enhancement and trust brought about by the services. The third is qualitative indicators based on word-of-mouth and satisfaction, especially in the fierce competition of financial products and insurance products, highlighting our service advantages and customer trust.

A：We have a complete supplier management system, including internal screening mechanism, allocation of weights and evaluation of the exit mechanism. This system ensures closed-loop management of supplier performance and user evaluation from online to offline. We will also dynamically adjust according to the supplier's performance and cooperation mode (such as OEM, joint name, customized OEM, etc.), and give rebate incentives in combination with gross margin or net profit improvement. Through this management system, we are committed to selecting excellent suppliers and maintaining their stability within the system, while also encouraging joint development of quality products with suppliers.

A：As at the end of the reporting period, the Company's total cash and cash equivalent financial assets amounted to RMB 9.6 billion. In terms of capital management, we mainly allocate low-risk products such as deposits and money funds, do not participate in speculative trading of derivatives, and adhere to the principle of principal safety first. Although there were special dividend projects at the beginning of the year, which led to a decrease of about 1/4 in the scale of funds, we still achieved positive returns through effective fund management measures, such as the establishment of a special account management system, and the rate of return on active management far exceeded the market benchmark interest rate, with a net operating cash flow inflow of more than 0.45 billion yuan for the whole year. In the future, the company will comprehensively consider strategic planning, business layout, capital utilization efficiency and other aspects, design future cash utilization plan and capital planning, keep an open attitude to find investment opportunities in coordination with the main business, and continue to increase investment in medical AI application, four-way service network construction, enterprise supervision product innovation and one-click payment project, so as to improve business competitiveness and service efficiency, at the same time, ensure that cash flow growth and net interest rates rise steadily.