Interview with characters in this issue

Wan Chuan

"because of our deep understanding of the health industry, the company has become the first company in the industry to achieve profitable data business, and this year is also the first year of Zhongkang's second venture. Based on the growth trend of medical examination, medical care and other business, I think the company will have explosive growth opportunities in the process of steady development in the future. "

| | personal introduction |

Wanchuan, secretary of the board of directors of Zhongkang Holdings, has worked in a large state-owned enterprise and listed company in Guangdong Province. responsible for and participated in a number of capital operation projects, including mergers and acquisitions of listed companies, non-public offerings, major asset restructuring, industrial fund investment and other capital operation projects, as well as responsible for investor relations management, corporate governance, innovative development strategy and other work. Join Zhongkang Holdings in 2022, responsible for securities legal affairs, industrial investment and capital operation, promote the company to reach in-depth cooperation with a number of data exchanges, carry out multi-level cooperation with head enterprises, and explore data-driven innovative business models. jointly tap the value of big health data.

| | first label |

Committed to becoming a global leading digital technology company in the field of life sciences

| | Company profile |

China Health Holdings (02361.HK) was listed on the main board of the Hong Kong Stock Exchange in 2022. With the mission of "Smart Health Industry, Smart and healthy Life", based on big data, cloud computing and artificial intelligence, Zhonghang Holdings (Zhonghang Holdings) aims to become a global leading digital technology company in the field of life science.

The company has formed three core competencies: extensive data acquisition network, leading big data processing technology and ecological health industry platform. By providing "SaaS+ professional services" driven by big data, the company can improve customers' ability of efficient decision-making and accurate connection. And build a "health industry vertical cloud platform" around pharmaceutical retail, pharmaceutical industry, physical examination institutions, hospitals, clinics, and commercial insurance, and create a data-driven product portfolio matching full life cycle management in the vertical field. continue to promote the digital transformation and upgrading of the health industry.

In the Great Health data Company, China Health Holdings (02361.HK) has occupied a place. It has continuously hosted the 16th Sipu meeting-Health Industry (International) Ecological Conference, which has become an important weather vane for predicting the future of the industry. It is precisely because of its deep understanding and accurate grasp of the health industry that Zhongkang has become the first company in the industry to achieve data business profits and has the ability to break through the data of the whole health industry.

Where is the new performance growth point of Zhongkang Holdings in the future? What are the predictions for the industry? To this end, a reporter from the Financial Associated Press conducted an in-depth interview with Dong Mi Wanchuan of Zhongkang Holdings. It can be seen that Zhongkang's accurate prediction of the industry situation and the determined pursuit of the expected blueprint have become the cornerstone of the company's development. And the company will 2023 as the second start-up "first year" also has far-reaching implications, based on the leading advantage of the out-of-hospital market to develop the in-hospital market strategy, may allow Zhongkang to win new explosive growth opportunities.

| | take the lead to make data business profitable and start a second venture |

Reporter: how to evaluate Zhongkang's current achievements and stage?

Wan Chuan:After 16 years of development, Zhongkang Holdings' business has covered the pharmaceutical industry, retail drugstores, physical examination, hospitals and other fields. Among themThe business line of the pharmaceutical industry and retail drugstores has formed a leading position in the industry and is realizing further large-scale development; the profit model of the physical examination business has been verified in the market and has begun to enter the stage of rapid development; the technical capability of the hospital business has been verified and is speeding up the business layout and multi-point trial operation.

In order to give full play to the true value of the elements of large health data, Zhongkang is sticking to the cause that is difficult but correct and can create long-term value. First of all, compared with Zhongkang's strategic planning and corporate visionNow it is only in its infancy, and this year is also the first year of Zhongkang's second venture.Secondly, because of our deep understanding of the health industry and market demandThe company has become the first enterprise in the industry to make a profit in the data business.Moreover, Zhongkang's data products have achieved cross-border, widely used in health industry, investment research industry, commercial services, government research and other different fields; in addition, Zhongkang in the process of helping participants in the health industry to establish a strong connectionThe use of professional meetings, professional activities and media to create a unique health industry ecological platform of Zhongkang, which can be said to be the key scene for Zhongkang to realize flow realization and open up the market.

Reporter: why do you call this year the first year of the second venture?

Wan Chuan:Secondary entrepreneurship means that we are based on the leading advantages of out-of-hospital market business and industrial ecological platform.It is expanding to the vertical field of physical examination, medical treatment and so on.

The company's second venture has some congenital good conditions, such as high-quality drugstore pharmaceutical company resources, complete health ecosystem. For example, Sipu brings together mainstream enterprises and institutions in the health industry, including pharmaceuticals, commerce, capital, research and development, science and technology, medical care, health services, finance and insurance, to provide high-quality content for participants and has been widely recognized by the industry.

The second venture focuses on opening up the medical examination market and the medical market.It will help to make up Zhongkang data and business chain, break the "data isolated island", establish a life cycle closed loop of health management service chain, and realize the maximum value of large health data.

| | reverse expansion of the hospital market, or explosive growth opportunities |

Reporter: there are many medical data or information enterprises developing in the same period with Zhongkang, but no enterprise has such a large scale and influence. Where is the differential competitive advantage of Zhongkang Holdings?

Wan Chuan:On the one hand, Zhongkang always adheres to the mission and vision of the enterprise. The founding team has long recognized that the health industry needs a new medical model that is digitally driven by full-life cycle data, which can effectively improve the medical level of the whole society, the health level of the people and the efficiency of health management. and has been firmly on this road.

On the other hand, after a firm goal, the train of thought of each step is very clear. First of all, we must find a profitable model and establish the driving force for sustainable development.After building a more complete ecosystem, we will go deep into the vertical line of physical examination and medical treatment, step by step.

Therefore, this finally reflects the difference in the company's development path, which is different from aiming at the popularization path of in-hospital medical data from the very beginning. Zhongkang chose the out-of-hospital market with a higher degree of marketization to start. On the basis of the continuous expansion of the out-of-hospital market and the good growth of the out-of-hospital business, Zhongkang reversed the expansion of the in-hospital market from the out-of-hospital market and accelerated from consumer health care to the serious medical field.

Reporter: so the future growth point of the company's performance is in the hospital market?

Wan Chuan:According to the application scenario, the company's business is divided into intelligent decision cloud, intelligent retail cloud, intelligent health management cloud, and intelligent medical cloud.The company's future profit growth point will be reflected in the in-hospital and out-of-hospital market. with the expansion of consumer health care, the out-of-hospital market has ushered in a period of rapid growth, so in a certain period of time, Zhongkang will focus on consolidating the leading advantages of intelligent decision-making cloud and intelligent retail cloud. To further expand the market share outside the hospital, improve profitability and performance scale, in the medium to long term, there have been relatively clear opportunities in the hospital market Our smart health management cloud and smart medical cloud have achieved results, and the next step is to accelerate the capture of the market and expand the scale of the business.

For example, the AI-MDT system of Wisdom Health Management Cloud, which can provide medical examination centers with comprehensive functions such as in-depth interpretation of physical examination indicators, single disease management and member management, has reached more than 160 hospitals and 650 private medical examination centers, and revenue in the first half of the year increased nearly 8 times compared with the same period last year. The number of reported calls has also increased from about 100 calls per day at the beginning of the year to 20, 000 at present, and it is expected that more than 1 million medical examination data will be analyzed and processed in the whole year. At present, the scale of the domestic medical examination market has reached 500 million person-times per year, and according to Zhongkang data, it is expected to reach 870 million person-times per year in the future. this business has a huge market space and will become one of the main growth points of the company's business.

Based on the growth trend of data business such as physical examination and medical care, I think the company will have explosive growth opportunities in the process of steady development in the future.

| | AI driver creates a dedicated large model, and does not rule out cooperation with the general large model |

Reporter: how is the process of combining Zhongkang Holdings and AI? In what direction will the force be exerted in the future? Will AIGC be the performance Accelerator of the Company?

Wan Chuan:Zhongkang began to develop and adopt AI technology a long time ago, and provided a long-term driving force for Zhongkang's continuous innovation. such as,97% of our data are automatically managed through AI, and in-depth physical examination reports are generated through AI analysis. The integrated marketing decision-making SaaS system uses a number of intelligent analysis models, combined with Zhongkang data, successful cases and professional opinions to help enterprises make accurate and efficient decisions.

At the same time, we are also constantly exploring AI technology to achieve more meta-use scenarios, especially in data governance, disease early screening, the whole course of disease management, drug research and development, medical scientific research and so on. For example, based on the large language model and health industry data, Zhongkang is building a vertical special model suitable for the health field, so as to speed up the construction of Zhongkang MaaS capability. Zhongkang Medical Research platform has realized the whole process scientific research ability from topic selection, retrieval, writing, and finally forming the first draft. AIGC technology also helps our digital human products generate richer professional content faster and meet customer needs faster and more effectively.

We judge that the application of large models in various industries in the future must be the collocation pattern of general-purpose large-scale models and special-purpose large models.Zhongkang is building a dedicated vertical model of the health industry, and it will not be ruled out that it will cooperate with the general model in the market in the future.

Reporter: can you introduce the current development of data acquisition network, one of the core competitiveness of Xia Zhongkang?

* * Wanchuan: our smart retail cloud SaaS system provides customers with professional functions such as membership management and category management. At the same time, we are providing digital support for efficient decision-making and accurate upstream and downstream connections for pharmaceutical retail chains, helping drugstores to upgrade their functions and creating the first choice for closed-loop consumer health care and lifecycle health management.

At present, there are about 1600 pharmaceutical retail chains in China, covering more than 12% of the total market. The sales of cooperative drugstores accounted for 31.1% of the total market sales last year, of which 80% covered stores.Real-time synchronization of sales data, the granularity of the data reaches the sales ticket order level, ensuring the establishment of a higher quality and more valuable database.

Compared with most drug retail big data products on the market, our data cover 30 provinces and 339 cities across the country.And sank to the county-level retail drugstore, forming a broad, multi-level drugstore layout.It ensures that the data have a high reference for decision-making, and for pharmaceutical companies that expand the sinking market.The real sales data of the county can provide better decision support.

| | Industry challenges and "comprehensive digital intelligence"

Reporter: compared with the traditional industry, what are the challenges facing big data, the health industry engaged in by Zhongkang Holdings?

Wan ChuanThere are four main industry challenges.The first is the realization of data, which will be a topic of great concern in the past decade and in the next decade.Zhongkang is the first company in the industry to realize the realization of large health data. For example, the company's data-based SaaS product report has been recognized by the market.However, how to improve the expansion efficiency and deep mining data value is still worth exploring.

The second is safety complianceHealth and medical data are related to important national strategic resources such as personal privacy and population health information, and have relatively high requirements in terms of data security.

And then there's "data Island."It is mainly reflected in the disunity of standards and the difficulty of sharing.

Finally, there are market consumption habits.The industry's acceptance of data products is far from reaching the level of developed countries, which requires market education and conceptual change.

With the continuous development of the digital economy and the continuous improvement of the regulatory mechanism, we believe that these problems will eventually be properly solved.

Reporter: how does Zhongkang deal with these challenges?

Wan Chuan:First, we have established efficient data governance capabilities, which can transform various types of health care data with scattered and non-uniform standards into structured, standardized and analytically usable data elements.

The second is us.It is cooperating with data enterprises and local data exchanges to explore how to carry out data collection, governance, development and transaction in compliance and safety.

The third is to build an industrial ecological platform for all participants in the health industry, promote everyone to actively embrace the digital economy, and work together to break the "data isolated island" situation.

Fourth, with the industry-leading ecological platform and media matrix, Zhongkang can promote market education and marketing promotion more quickly and comprehensively through customer concentration scenes such as Sipu, Xiding and Midea.

Reporter: how to treat the present situation and future development direction of big data industry of health industry in China?

Wan Chuan:By 2030, the market size of the health industry may reach 16 trillion, and the industrial structure is changing. Serious medical care is still the core pillar of China's health industry, while consumer health care will become the second pillar of China's health industry.

In the pursuit of supply-demand balance and efficiency revolution in the health industry in the new decade, the construction of a health care system centered on personal health needs the support of massive data and tools. Digitalization will continuously explore the application scene of the integration of technology and health around the industrial chain, from "single point digitization" to "comprehensive digital intelligence".Health big data and digital products will see explosive growth.

Zhongkang integrates commercial and medical professional digital engines to provide comprehensive support for industry data governance and data elementalization, consolidate the core foundation for industry digitization, and ultimately maximize the value of data interaction.

Reporter: Wang Junxian Lu Afeng