A China’s leading provider of digital medical service solutions – Mediwelcome Healthcare Management & Technology Inc. (“Mediwelcome” or the “Company”, and together with its subsidiaries, the “Group”) (Stock Code: 2159), announced the unaudited consolidated interim results for the six months ended 30 June 2022 (the “Reporting Period” or the “First half of 2022”).
In the first half of 2022, Mediwelcome has narrowed in revenue and other aspects to varying degrees due to the continuous lockdown in many provinces in response to the severe pandemic in the PRC. In the first half of 2022, Mediwelcome’s revenue decreased by approximately 49.2% to approximately RMB172.5 million YoY. Gross profit was approximately RMB17.3 million. During the Reporting Period, the Group’s primarily generated revenue from medical conference services, marketing strategy and consulting services, and patient education and screening services, etc.
Continuously expanding the medical digital marketing solutions and online healthcare platforms, and striving for digital upgrading
Although the economic environment is facing great challenges under the epidemic situation, Mediwelcome always insists on continuously expanding and consolidating its integrated healthcare marketing solutions and made a concerted effort to develop its online healthcare platforms and fully implemented digital upgrade for the businesses. During the Reporting Period, medical conference services was the main revenue stream and recorded revenue of approximately RMB111.3 million, accounting for 64.5% of the total revenue. To strengthen the Group’s conference management capabilities, Mediwelcome has launched the Conference+ App for medical NGOs and pharmaceutical companies to submit onsite conference requests and monitor conference implementation. In terms of marketing strategy and consulting services, through this service, the Group assisted pharmaceutical companies in formulating and implementing effective business strategies in enhancing their brands and product awareness among physicians. During the Reporting Period, marketing strategy and consulting services recorded revenue of approximately RMB41.3 million, accounting for 23.9% of the total revenue. Patient education and screening services and CRO services recorded revenue of approximately RMB14.3 million and RMB3.7million, accounting for 8.3% and 2.1% of the total revenue, respectively.
As of June 2022, the Group has developed and iterated multiple medical digital marketing platforms and products to provide customers with customised medical digital marketing solutions, including the Giraffe Smart Medical Platform, Digital Patient Management Platform, E Conference, Giraffe Live, Deer Class, E Creation, E Insight and other products. As at 30 June 2022, the digital platforms have enrolled 384,965 registered doctor users, held 46,518 online education sessions with doctors and 25,687 online education sessions for patients, livestreamed 4,855 times, with 6,319 videos available and viewed by 1,086,328 visitors.
Meanwhile, Mediwelcome has sustained its effort to develop and expand its online healthcare platforms to cater for the increasing needs of various stakeholders in the medical field, including hospitals, doctors as well as pharmaceutical and medical equipment companies. The Group’s online healthcare platform, on top of providing doctors and patients with consistent and quality online medical service solutions, has also actively developed products and services of digital management for patients with chronic illnesses in the out-of-hospital context. As at 30 June 2022, the number of its registered doctor and patient users has reached 45,244 and 200,545, representing an increase of 69.9% and 321.2% YoY, respectively. In addition, due to the increase in the number of active patient users purchasing prescribed medicine through the Group’s internet hospital platform, revenue from internet hospital services increased by approximately 5.6% to approximately RMB1.9 YoY.
Continuously upgrading the digital marketing business, seizing the growth opportunities to create greater value
Looking forward, Mediwelcome will continue to enhance the scale of digital marketing business, and utilize its internal and external strengths and resources and focus more on customer development for digital marketing in the healthcare market. At the same time, the Group will sustain its effort to build a digital platform with precise access targeting doctors and patients, providing customers with integrated digital and intelligent marketing solutions using a digital integrated marketing system synergised by both offline and online channels, so as to create a closed loop for the whole process of digital operation. The Group will continue to upgrade its online healthcare platform and explore the application of AI technology to build a closed-loop business model from inside to outside hospitals. In addition, Mediwelcome will also leverage the favorable health policy environment and its own resources to maintain revenue growth of its professional medicine and marketing services in the traditional cardiovascular and cerebrovascular discipline, with a focus on expanding its business in the fields of oncology and chronic renal diseases to increase the coverage of customers from domestic enterprises.
The Group will continue to maintain its business scale in the traditional dominant therapeutic fields, and actively drive innovation in order to seize the opportunities arising from the rapid growth in demand for medical digital marketing and online healthcare for its steady development. While actively generating profits under its efficient operation, the Group persistently expands and develops its business model and scale to create greater value for more customers, doctors and patients.
Topic: Press release summary
The largest provider in the Integrated Healthcare Marketing Solutions Market of cardio-cerebral-vascular diseases (CCVDs), Mediwelcome Healthcare Management & Technology Inc. (“Mediwelcome” or the “Company”, together with its subsidiaries, the “Group”) is pleased to announce the unaudited consolidated interim results for the six months ended 30 June 2021 (the “Reporting Period” or the “First half of 2021”).
During the Period, Mediwelcome maintained a positive growth momentum. The Group’s total revenue reached approximately RMB339.8 million, representing an increase of approximately 145.0% YoY. Gross profit increased by 27.3% YoY to RMB35.8 million.
Revenue by service type For the six months ended 30 June (RMB’000)
2021 Proportion 2020 Proportion Change
Medical conference services 208,510 61.4% 75,087 54.1% 177.7%
Patient education and screening services 74,321 21.9% 27,453 19.8% 170.7%
Marketing strategy and consulting services 51,046 15.0% 33,151 23.9% 54.0%
CRO services 4,092 1.2% 2,920 2.1% 40.1%
Internet hospital services 1,827 0.5% 70 0.1% 2,510.0%
Total 339,796 100.0% 138,681 100.0% 145.0%
Steady Business Growth and Committed to Building a Deeply Vertical Service Platform for Internet Healthcare
In the first half of the year, Mediwelcome continued to expand and solidify its integrated healthcare marketing solutions, broaden CRO services and develop internet hospital services. During the Reporting Period, online medical seminars increased due to the outbreak of COVID-19, and more medical NGOs and pharmaceutical companies have engaged the Group to organize online medical seminars, therefore led to an increase of 177.7% YoY to RMB208.5 million in terms of the revenue from the medical conference service. In terms of patient education and screening services, the Group has successfully shifted most of its onsite patient education and screening services to its online platforms which can access more participants and increase the contract value of each project. During the Reporting Period, the revenue from the patient education and screening services was approximately RMB 74.3 million with an increase of 170.7% YoY. Meanwhile, the Group provided marketing strategy and consulting services to assist 3 customers in formulating and implementing effective business strategies to expand their markets. Thus, the Group’s revenue from the marketing strategy and consulting services increased 54.0% YoY to RMB51.0 million. Since the Group began to offer CRO services in late 2019, it leveraged its long-term and stable business relationships with pharmaceutical companies, combined with the high quality services and physicians network to steadily expand the service. In first half of 2021, the Group’s revenue from CRO services increased by 40.1% YoY to RMB4.1 million.
Mediwelcome leveraged on its resources advantages accumulated throughout the years from its service system, the Group is committed to building a service platform for Internet healthcare that is deeply vertical so as to provide professional and differentiated platform services to both doctors and patients. Through the dedicated application (the “APP”), doctors are able to transfer their patients from offline clinic to an exclusive online smart one, and patients are able to interact with their attending doctors through the platform, schedule online follow-up consultations, thus creating a highly sticky, efficient, accurate and dedicated interaction system for doctors and patients. In the first half of 2021, the Group’s internet hospital service revenue increased 25 times YoY to RMB 1.8 million. As of June 30, 2021, there were 26,629 registered physician users and 47,614 patient users on the respective version of Doctor+, representing a 690.2% and 391.0%, respectively. As of the same day, the cumulative number of online patient consultations was 44,534, an increase of 577% compared to last year. The active patient number increased from 3,194 as of 30 June 2020 to 6,918 million as of 30 June 2021.
For the six months ended 30 June
The cumulative number of registered user on Doctor+ medical platform 2021 2020 Change
Registered physician users 26,629 3,370 690.2%
Registered patient users 47,614 9,697 391.0%
Online patient consultations 44,534 6,578 577.0%
Active patient number 6,918 3,194 116.6%
Deepen Efforts on the Development of Chronic Diseases Area and Realize Diversified Business Development
Building on its existing business in chronic diseases health management, Mediwelcome continues to deepen its efforts to help more outstanding pharmaceutical companies, both domestic and foreign, to gain edges in market competition. Mediwelcome established business partnerships with 5 domestic and foreign pharmaceutical companies in the first half of 2021. The expansion into new medical fields also injected new impetus for Mediwelcome’s efficient growth. On top of the existing cardiovascular and cerebrovascular services, it keeps extending into new areas such as radiology, medical imaging, rare diseases and oncology, thereby diversifying the business development. As for business models, it has upgraded from an in-hospital one into the current out-of-hospital retail terminal service model, which has significantly broadened the overall coverage of Mediwelcome’s business. At the same time, by establishing partnerships with 4 Non-Governmental Organizations, Mediwelcome kept contributing to the development of the chronic diseases field through it’s engagement in public welfare. Mediwelcome has refined it’s years of experience in serving foreign pharmaceutical companies and helped many domestic companies achieve leapfrog development and support domestic pharmaceutical companies to rise and take off.
Explore to Develop Internet Healthcare Business and Digitalization and Create an Innovative Medical and Health Ecological System
Looking forward, Mediwelcome will will keep exploring to develop internet healthcare business and digitalization based on digital healthcare platforms to create an innovative digital healthcare business model. On 14 July 2021, Mediwelcome together with Hanwang Technology Co. and the other six companies have entered into an agreement to establish an in-depth cooperation on such aspects as precision medicine and smart medical hardware, which includes industry alliance cooperation, research cooperation and business cooperation. It will lay a solid foundation for the Group’s AI medical service platform development in the future.
Based on the real-world data and the Group’s experience covering the entire journey of patients, Mediwelcome will further explore the unmet needs of stakeholders in the healthcare industry to define and establish a comprehensive healthcare service system covering disease prevention and screening, diagnosis and treatment, rehabilitation and healthcare management. Meanwhile, Mediwelcome will further optimize its internet medical service platform in deep vertical field by ongoing consolidation of its unique advantages and efficient integration of internal and external resources, so as to provide digital solutions based on real-world medical scenarios. The Group will launch digital health management business for chronic disease patients in vertical field and a customized patient follow-up and management service model, which enables doctors to efficiently manage their own patients, meets the requirements of medical and health institutions for patient follow-up management. By collaboration with industry-leading resources, the Group will also explore and develop digital medical products for chronic disease patients, and create a fully-integrated medical ecosystem covering disease prevention and screening, diagnosis and treatment, functional rehabilitation and health management. Mediwelcome will strive to improve the efficiency of chronic disease diagnosis and treatment with medical expertise as the core, internet medical platform as the conduit, as well as bring changes to healthcare outcome of patients, with an aim to jointly creating the innovative medical and health ecological system of Mediwelcome.
About Mediwelcome Healthcare Management & Technology Inc.
Mediwelcome is the largest provider in the Integrated Healthcare Marketing Solutions Market for cardio-cerebral-vascular diseases, which primarily includes medical conference services, patient education and screening services and marketing strategy and consulting services with the goal to establish a platform which allow each key constituent of the CCVD healthcare ecosystem to communicate closely. Mediwelcome leverages high quality medical resources to extend traditional diagnosis to Internet, provides digital healthcare and construct precision medicine for chronic diseases and neurological diseases as well as patient healthcare management platform.
Our products are designed from medical institution and doctors’ perspectives with an aim to build a comprehensive medical management platform, to consolidate the relationship between diagnoses and patient behaviours, then analyze and evaluate by artificial intelligence, commercialized drugs and medical device services with real-word research, clinical research and precise medical healthcare solution. We focus on the field of noncommunicable diseases especially digitalization management solution in neurological diseases, and evaluate the intervention of solution through a profession medical perspective, stiving to change patients’ illnesses and improve their health status.
Five of the global top ten pharmaceutical companies are the Group’s customers in the past three years. As of June 30, 2021, there were 26,629 registered physician users and 47,614 patient users on the respective version of Doctor+. On 14 July 2021, Mediwelcome together with Hanwang Technology Co. and the other six companies have entered into an agreement to establish an in-depth cooperation which includes industry alliance cooperation, research cooperation and business cooperation. It lays a solid foundation for the Group’s AI medical service platform development in the future.
Topic: Press release summary