Instead of Competing with JD Health in Drug Sales, PA GOODDOCTOR Takes a Different Path

On the evening of August 18, PA GOODDOCTOR released its interim results for 2026. In the first half of the year, the company generated revenue of RMB 2.484 billion, a slight year-on-year decrease of 0.7%; net profit attributable to shareholders during the same period was RMB 219 million, representing a year-on-year increase of 63.5%.

The primary reasons for the profit growth rate significantly outpacing revenue growth were twofold: firstly, adjustments to the revenue structure alleviated cost pressures; secondly, the low base effect resulted from various impairments and losses recorded in the same period last year.

In the first half of 2026, PA GOODDOCTOR's core business of commercial insurance synergy generated RMB 1.584 billion in revenue, basically flat compared to the same period last year, remaining the largest source of income.

During the same period, revenue from corporate health management services reached RMB 714 million, a year-on-year increase of over 60%.

However, as revenue from "other" businesses fell by 61.8% year-on-year to RMB 186 million, it largely offset the incremental revenue from corporate health management, resulting in the overall revenue scale remaining level with the same period last year.

From a growth perspective, corporate health management has become the most clear-cut source of incremental growth for PA GOODDOCTOR at present.

Unlike simply selling drugs and providing consultations to individual users, corporate health management targets corporate payers. PA GOODDOCTOR provides bundled solutions covering insurance, health protection, and medical services for enterprise employees, resulting in differences in average revenue per user (ARPU), service chains, and customer stickiness.

Nevertheless, the growth of this business remains deeply embedded within the Ping An ecosystem.

On the channel side, PA GOODDOCTOR primarily leverages Ping An's network to reach corporate clients, focusing on expanding into large and medium-sized enterprises with strong payment capabilities and willingness, while assigning dedicated service teams to key accounts;

On the product side, PA GOODDOCTOR combines commercial insurance, health protection plans, and medical health services, then addresses employees' daily health needs through family doctors and third-party medical services.

The increasing proportion of revenue from the Ping An ecosystem offers further insight. In the first half of 2026, the total amount of products and services provided by PA GOODDOCTOR to Ping An-related parties amounted to RMB 1.048 billion, a year-on-year increase of approximately 50%, accounting for over 40% of total revenue.

Changes in the revenue structure are also directly reflected on the cost side.

In the first half of 2026, PA GOODDOCTOR's operating costs were RMB 1.527 billion, a year-on-year decrease of 8.1%. A further breakdown shows that the cost of goods sold decreased from RMB 824 million in the same period last year to RMB 593 million in the first half of this year, a drop of 28%.

However, the fact that the profit growth rate far exceeded the revenue growth rate is largely related to the impairment of investments in associates.

In the first half of 2025, PA GOODDOCTOR had accrued RMB 40.05 million in impairment losses on investments in associates. However, in the same period of 2026, as there were no further signs of impairment for the relevant associates, the company did not accrue this impairment again. Consequently, "net other gains" rebounded to RMB 39 million, relieving a significant "burden" on this year's profit recovery.

Viewed within the internet healthcare industry, PA GOODDOCTOR and JD HEALTH are presenting two distinctly different paths to profitability.

In the first half of 2026, JD HEALTH's revenue reached RMB 40.888 billion, a year-on-year increase of 15.9%, with net profit of approximately RMB 3.437 billion, a year-on-year increase of about 32.4%.

Both its absolute revenue and profit scales are far higher than those of PA GOODDOCTOR. However, JD HEALTH's revenue structure still clearly leans towards pharmaceutical and health product retail. In the first half, product revenue was approximately RMB 33.9 billion, accounting for more than 80% of total revenue; platform, advertising, and other service revenues were approximately RMB 6.98 billion.

This reflects two different business models: JD HEALTH relies more on expanding revenue through its pharmaceutical supply chain and retail scale, and then improves monetization efficiency through its platform and medical services; PA GOODDOCTOR connects insurance payers, corporate clients, and medical service networks, enhancing revenue quality through a higher proportion of services.

For PA GOODDOCTOR, deep binding with the Ping An ecosystem is not a variable that needs to be shed; rather, it constitutes the very foundation of its business model.

A key point to watch for PA GOODDOCTOR in the future is whether, as the proportion of corporate health management continues to rise, this closed loop of "insurance payment + corporate health management + medical services" can continue to convert Ping An's vast corporate client resources into more stable revenue and profit growth.

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