On August 29, Dongsoft Xikang, China's largest cloud hospital network platform, known as the 'first stock of internet nursing in Hong Kong', released its 2024 interim business performance report. In the first half of the year, the company further upgraded its business structure, achieving an 'accelerated run' of nursing services. During the reporting period, revenue from nursing services grew significantly by 123.2% to 24.48 million yuan, and the medical service business achieved 87.62 million yuan in revenue. Due to the company's focus on highly synergistic strategic businesses, the scale and synergistic effects were evident, leading to a further narrowing of the loss, with a 36.3% decrease in net loss to 60.48 million yuan.
According to relevant data, Xikang Cloud Hospital is the pioneer of the 'urban cloud hospital platform' business model. Based on nearly ten years of operation experience in the Ningbo urban cloud hospital platform, it has summarized and formed a mature and verifiable business replication model to achieve rapid business expansion. In the first half of 2024, the company continued to optimize its business structure, adopting a 'business focus strategy', further subdividing nursing services. The revenue structure based on service business has been adjusted from the previous cloud hospital platform service, internet medical service, health management service, and smart medical and health product service, to nursing services, medical services, and health management services. The revenue from nursing services, which was previously part of internet medical services, saw a significant year-on-year growth of 123.2%. It is clear that nursing services have become one of the core businesses of Xikang Cloud Hospital, bringing new momentum to business performance growth.
As of the end of June 2024, the number of medical institutions connected to the urban cloud hospital platform network has reached 0.036 million, including 2,654 hospitals, a 4.6% year-on-year increase; there are 0.137 million resident doctors, a 13.0% year-on-year increase; and 0.108 million resident nurses (with over 5 years of clinical nursing experience), a 90.4% year-on-year increase.
Strategically adjusting business architecture to maintain stable development and improve quality overall.
In the first half of 2024, Xikang Cloud Hospital integrated and adjusted its business structure based on social needs, trends in the medical industry, and the company's strategic positioning. It elevated the rapidly developing home nursing services to an independent business sector, highlighting its strategic value. It also integrated the services other than home nursing services from the original cloud hospital platform service and internet medical service into the medical service sector, and incorporated the original smart medical and health products into the health management service sector, to enhance the company's resource integration capability and business synergy. This has constructed a 'medical + nursing + health' business system, further increasing the proportion of medical services and nursing services. Furthermore, Xikang Cloud Hospital has focused on 'medical nursing services', continuously optimizing its business structure, strengthening business synergy, and improving the efficiency of resource allocation to better meet the service needs of users both inside and outside the hospital, and from offline to online. After the integration and challenge of the business structure, a clearer main business line has emerged, with further prominent advantages, a more defined profit model, and a gradual manifestation of the scale effect of the core business. In the first half of 2024, although the overall income scale fluctuated due to the adjustment of business structure, the net loss narrowed by 36.3% year-on-year, demonstrating a significantly improved sustainable operational capacity and laying a solid foundation for future turnaround from losses to profits.
At the same time, Xikang Cloud Hospital, with a focus on 'medical nursing services', continued to optimize its business structure, strengthen business synergy, and improve the efficiency of resource allocation, to more fully meet user service needs from inside the hospital to outside, and from offline to online. After the integration and challenge of the business structure, a clearer main business line has emerged, with further prominent advantages, a more defined profit model, and a gradual manifestation of the scale effect of the core business. In the first half of 2024, although the overall income scale fluctuated due to the adjustment of business structure, the net loss narrowed by 36.3% year-on-year, demonstrating a significantly improved sustainable operational capacity and laying a solid foundation for future turnaround from losses to profits.
The strategic business performance is remarkable, anchoring the long-term and solid growth track of internet home nursing.
It is worth mentioning that through business focus, Xikang Cloud Hospital's strategic business, especially in nursing and health management, has achieved significant growth. As of June 30, 2024, the volume of home nursing services exceeded 1.42 million person-times, a year-on-year increase of up to 217.3%; the service volume of nursing consultation exceeded 1.47 million person-times, a year-on-year increase of 113.1%, reflecting the initial effectiveness of the company's business focus strategy.
Taking home care business as an example, the company expands its business to the East and South China regions based on its experience and accumulation in Ningbo. In the first half of 2024, while deepening the "Zhe Li Nursing" platform in Zhejiang Province, the company will accelerate the application and promotion of the "Yu Jian Nursing at Home" platform in Henan Province, achieving full coverage of 18 cities within six months. In addition to expanding the business territory, the company also explores the home care needs of different groups, and explores the integration of multi-level service scenarios and service content innovation, and continuously extends home care and rehabilitation service projects, continuously promoting the upgrade of business functions. As of the end of June 2024, the number of service projects has increased to more than 120.
From the perspective of industry development, the current number of disabled and semi-disabled elderly in China is huge. According to data from the National Bureau of Statistics, in 2023, the population aged 65 and over in China was 216 million, accounting for 15.4% of the total population. With the deepening of the aging population and the trend of declining birthrate, the demand for high-quality, safe, and friendly care services for the elderly is becoming more prominent. In the medium and long term, with the upgrading of health consumption awareness, the promotion of national policies, and the breakthrough of digital technology, the market for home medical care services is expected to develop rapidly and has enormous growth potential.
Xikang Cloud Hospital takes aim at the industry development trend, extending professional medical and nursing services to thousands of households through technological and service model transformation, allowing everyone to obtain the same safe, reliable, and effective services in the home setting as in the hospital, and achieving seamless medical and nursing transition. The company has already established a leading advantage in this industry. In the future, with the continued outbreak of the industry, the home medical care business is expected to achieve faster business growth and contribute more performance increments with its leading advantages.
According to the plan, Xikang Cloud Hospital will continue to accelerate the expansion of urban cloud hospitals, give full play to the brand advantages of "Internet + nursing services", integrate core business resources to promote diversified business development, improve the product portfolio of medical and health services to meet the health management needs of more customers at different levels, and improve the market conversion rate of service resources and user resources accessed by the cloud hospital platform. At the same time, relying on the urban cloud hospital platform and the three major business resources, the company will continue to attract industrial ecological resources, continuously create richer application scenarios, and achieve the grand strategic goal of developing the urban cloud hospital platform economy.
