China Health & Wellness Market

China Health & Wellness Market
Independent Market Research

Confidential For
Frost & Sullivan

Sep. 2023
© 2023 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of Frost & Sullivan.
No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.
Table of Content
1 Overview of China Health Market
1.1 Overview of Aging Population
1.2 Analysis of Payer in China Healthcare Market
1.3 Overview of Global and China Healthcare Expenditure
1.4 Favorable Policy of China Health Market
2 Overview of the China General Health and Wellness Market
3 Overview of China General Healthcare Services Market
4 Analysis of China PRC Digital Healthcare Services Market
2
China Aging Population Trend, 2018-2030E
• With the implementation of the ‘One Child Policy’ and increasing life expectancy, China has entered an aging society. From 2018 to
2022, the population is aging rapidly in China with people aged above 65 growing at a CAGR of 5.9%. According to the National
Bureau of Statistics of China (NBSC), the number of individuals aged above 65 years old is estimated to be 209.8 million in 2022.
The number of individuals aged above 65 years old is growing at a fairly fast pace and is expected to continue its growth
momentum into the future. This number is expected to reach 273.2 million by 2030, representing a CAGR of 3.4% from 2022 to
2030.
China Aging Population Trend, 2018-2030E
Period CAGR
2018-2022 5.9%
2022-2030E 3.4%
19.0% 19.6%
17.8% 18.4%
16.7% 17.3%
15.5% 16.1%
14.2% 14.9%
Million 13.5%
11.9% 12.6%
258.6 265.9 273.2

235.4 243.3 251.0
209.8 218.7 227.2
190.6 200.6
166.6 176.0
2018 2019 2020 2021 2022 2023E 2024E 2025E 2026E 2027E 2028E 2029E 2030E
Population Aged 65+ yrs % of Total Populations
Source: NBSC, Frost & Sullivan Analysis

3
Table of Content
4
China Per Capita Disposable Income, 2018-2030E
• The per capita disposable income in China was only RMB36,883.0 in 2022, which is expected to grow at a CAGR of 7.3% from 2022 to
2030 and reach RMB 64,745.1 in 2030.
China Per Capita Disposable Income, 2018-2030E
Period CAGR
2018-2022 6.9%
64,745.1
2022-2030E 7.3% 60,566.1
56,603.8
52,851.3
49,301.6
45,947.5
42,781.6
39,759.9
RMB 36,883.0
35,128.0
32,189.0
30,733.0
28,228.0
2018 2019 2020 2021 2022 2023E 2024E 2025E 2026E 2027E 2028E 2029E 2030E
Source: World Bank, Frost & Sullivan Analysis

5
Basic Medical Insurance Fund in China
• The revenue of basic medical insurance fund has increased from RMB2,138.4 billion in 2018 to RMB3,092.2 billion in 2022, with a
CAGR of 9.7%.
• The revenue is expected to continue its growth while the expenditure will experience a much higher growth if no intervention is
implemented. The revenue and the expenditure is projected to reach RMB5249.3 billion and RMB5374.8 billion in 2030, respectively.
Therefore, there is a high willingness to control the expenditure of basic medical insurance fund, which can be achieved through digital
technologies.
Revenue and Expenditure of Basic Medical Insurance Fund1, 2018-2030E
CAGR 5,249.3
Period
Revenue Expenditure 4,936.6
4,637.7
2018-2022 9.7% 8.4%
4,352.3
2022-2030E 6.8% 10.3% 4,080.2
3,821.8
Revenue 3,571.4
Expenditure 3,327.7
3,092.2
Billion RMB 2,872.8 5,374.8
5,013.7
2,484.6 4,648.5
2,442.1 4,286.8
2,138.4 3,928.4
3,579.4
3,211.2
2,835.4
2,404.3 2,459.7
2,085.4 2,103.2
1,782.2
2018 2019 2020 2021 2022 2023E 2024E 2025E 2026E 2027E 2028E 2029E 2030E
• Note 1: basic medical insurance includes URBMIS, UEBMIS and NRCMIS.
Source: NMPA, Frost & Sullivan Analysis

6
Commercial Health Insurance Fund in China
• According to China Insurance Regulatory Commission, the revenue of commercial health insurance fund has increased from RMB544.8
billion in 2018 to RMB865.3 billion in 2022, with a CAGR of 12.3%, while the expenditure has increased from RMB174.4 billion in 2018
to RMB360.0 billion in 2022, representing a CAGR of 19.9% during the indicated period.
• Commercial health insurance fund in China has shown explosive growth before 2017 due to the absence of regulation. After the
introduction of a series of regulatory measures by China Insurance Regulatory Commission, commercial health insurance premiums
began to reflect the real demand for health insurance. Along with demographic changes and increasing health awareness, the
commercial health insurance is expected to continue its growth. The revenue and the expenditure is projected to reach RMB5,967.2
billion and RMB2,704.6 billion in 2030, respectively.
Revenue and Expenditure of Commercial Health Insurance Fund, 2018-2030E
5,967.2
CAGR
Period
Revenue Expenditure 5,144.2
2018-2022 12.3% 19.9%

4,330.1
2022-2030E 27.3% 28.7%
3,503.3
Revenue 2,780.4 2,704.6

Expenditure
2,138.8 2,211.4
Billion RMB 1,774.8
1,605.7
1,403.0
1,155.2
1,087.6
817.3 844.7 865.3 799.7
706.6 601.3
544.8 459.0
235.1 402.9 360.0
174.4 292.1
2018 2019 2020 2021 2022 2023E 2024E 2025E 2026E 2027E 2028E 2029E 2030E
Source: CIRC, Frost & Sullivan Analysis

7
Table of Content
8
China Healthcare Expenditure, 2018-2030E
• The total healthcare expenditure of China has experienced steady growth. From 2018 to 2022, the total healthcare expenditure of China
has increased from RMB5,912.2 billion to RMB8812.8 billion, representing a CAGR of 10.5%. Furthermore, the rapid increase in China's
healthcare expenditures will continue in the near future. The total healthcare expenditure of China is forecasted to reach RMB12,462.3
billion and RMB16,642.5 billion by 2026 and 2030 respectively, at a CAGR of 8.3% from 2022 to 2030.
China Healthcare Expenditure, 2018-2030E
Period CAGR
2018-2022 10.5%
2022-2030E 8.3%
16,642.5
15,553.8
14,495.6
13,471.7
12,462.3
11,486.0
Billion RMB 10,566.7
9,667.6
8,812.8
8,004.3
7,230.6
6,505.7
5,912.2
2018 2019 2020 2021 2022 2023E 2024E 2025E 2026E 2027E 2028E 2029E 2030E
Source: World Bank, Frost & Sullivan Analysis

9
Healthcare Expenditure Per Capita in China, 2018-2030E
• The per capita healthcare expenditure in China has grown rapidly in recent years.
• According to information from the National Bureau of Statistics and EIU, from 2018 to 2022, the per capita healthcare expenditure has
grown from RMB 4,206.7 to RMB 5,927.5, representing a CAGR of 9.0% in this period. And the per capita healthcare expenditure is
expected to reach RMB 11,645.7 in 2030, representing a CAGR of 8.8% from 2022 to 2030.
Healthcare Expenditure Per Capita, 2018-2030E
Period CAGR
2018-2022 9.0%
2022-2030E 8.8%
11,645.7
10,820.1
10,028.6
9,256.4
RMB 8,517.0
7,827.1
7,157.9
6,525.4
5,927.5
5,112.3 5,348.1
4,669.3
4,206.7
2018 2019 2020 2021 2022 2023E 2024E 2025E 2026E 2027E 2028E 2029E 2030E

10
Per Capita Healthcare Expenditure in Total Consumption
Expenditure in China, 2015-2030E
• Per capita healthcare expenditure is an important section of per capita consumption expenditure in China and its proportion is expected
to grow in the future. By 2030, the total per capita healthcare expenditure is projected to account for 27.7% of the total consumption
expenditure.
China Consumption Expenditure Per Capita, 2015-2030E
Category CAGR 2015-2019 2019-2024E 2024E-2030E

RMB
Total Per Capita Consumption Expenditure 8.2% 7.2% 6.2%
Healthcare Expenditure as a % of Total Consumption Expenditure, Per Capita
27.2% 27.7% 30.0%

26.1% 26.6%
25.0% 25.6%
23.8% 24.4%
22.4% 22.8% 23.3% 12,191 25.0%
20.7% 21.3% 21.6% 11,264
19.6% 8,866 9,620 10,409
19.0% 6,825 7,471 8,156
5,670 6,222 20.0%
Per Capita 4,237 4,657 5,163
Healthcare 2,981 3,352 3,784
Expenditure 15.0%
41,475 43,975
36,828 39,095 10.0%
32,598 34,677
26,720 28,629 30,590
21,559 23,034 24,869
17,111 18,322 19,853 5.0%
15,712
0.0%
2015 2016 2017 2018 2019 2020E 2021E 2022E 2023E 2024E 2025E 2026E 2027E 2028E 2029E 2030E
Source: NBSC, BEA, Frost & Sullivan Analysis

11
2019 GDP Breakdown by Healthcare Expenditure Comparison, GDP
Top 10 Countries
• The chart below presents the healthcare consumption expenditure and its percentage of GDP among GDP Top 10
countries. The percentages of most countries are around 10%. However, the US has the highest percentage of
healthcare expenditure 17.8%. For India and China, the percentages are relatively low, being 3.5% and 6.7%
respectively.
GDP Breakdown by Healthcare Expenditure Comparison, 2019
Category
GDP Healthcare Expenditure as a % of GDP

Billion USD
17.8% 20.0%
18.0%
14.4% 3647
13.8% 16.0%
13.1%
11.8% 12.2% 14.0%
10.7% 11.0%
12.0%
239
Healthcare 333 496 603 10.0%
Expenditure 184 207 6.7% 8.0%
271
3.5% 893 6.0%
20,494 4.0%
103
13,407 2.0%
2,717 1,711 2,072 1,868 2,829 2,775 4,000 4,972
0.0%
India Canada Italy Brazil UK France Germany Japan China USA
12
Table of Content
13
Growth of Internet Hospitals Powered by Favorable Regulations
and Policies
• In December 2015, We Doctor established China’s first Internet hospital, the Wuzhen Internet Hospital, established the first digital
medication service center and generated the first electronic prescription.
• The number of internet hospitals in China has experienced growth since the first one launched in 2015, and the growth has been
accelerated in the recent few years. Remarkably, the number of internet hospitals has increased from 158 in May 2019 to more than
1100 in March 2021, with an approximately 7 times growth within 2 years, accelerated by the outbreak of COVID-19 pandemics.
Number of Internet Hospitals in China
Growth Expediated Growth
1 25 48 119 158 269 900 >1100
2015.12 2016.11 2017.3 2018.12 2019.5 2019.10 2020.10 2021.3
 Fluctuated policy environment  Favorable policy environment

 Industry is less defined  Clearer definition of the industry
 Market practice is less guided  More guidance on market practice
Source: NHC, Frost & Sullivan Analysis

14
Table of Content
2.1 Overview and Analysis of the China Health and Wellness Market
2.2 Analysis of China Digital Healthcare Service Market
2.3 Impact of COVID-19 on Digital Health
15
China Health and Wellness Market, 2018-2030E
• The China general health and wellness industry is one of the largest components of the national economy, which refers to services and
products related to the maintenance, recovery and promotion of health, encompassing healthcare services, pharmaceuticals, nutrition and
health products, medical devices, as well as other services or products such as digital health infrastructure etc.
• The market size of the health and wellness industry in China reached RMB10,085.8 billion in 2022 and is expected to increase to
RMB20,049.0 billion in 2030, at a CAGR of 9.0%. The following diagram sets forth the historical and forecasted market size of the health
and wellness market in China from 2018 to 2030.
China Health and Wellness Market, 2018-2030E
Period CAGR
2018-2022 8.4%
20,049.0
2022-2030E 9.0%
18,647.5
17,269.7
15,934.1
14,628.5
Billion RMB 13,399.1
12,234.4
11,137.9
10,085.8
9,486.8
8,232.6 8,570.0
7,302.3
2018 2019 2020 2021 2022 2023E 2024E 2025E 2026E 2027E 2028E 2029E 2030E
Source: Frost & Sullivan Analysis

16
Table of Content
17
Market Size of Digital Healthcare Service Industry, 2018-2030E
• The PRC digital healthcare services market has developed rapidly in recent years. It covers four key components, (i) digital healthcare
infrastructure, (ii) digital medical services, (iii) digital consumer healthcare products and services, and (iv) digital health management. According to
Frost & Sullivan, the size of the PRC digital healthcare services market reached RMB175.1 billion in 2022 and is expected to further increase to
RMB1,607.4 billion by 2030 at a CAGR of 31.9%.
Market Size of Digital Healthcare Service Industry, 2018-2030E

1607.4
Period CAGR
2018-2022 27.2%
2022-2030E 31.9% 1328.7
Billion RMB
1080.9
866.2
668.3
496.3
351.9
240.6
175.1
109.2 140.4
66.9 85.8
2018 2019 2020 2021 2022 2023E 2024E 2025E 2026E 2027E 2028E 2029E 2030E

18
Trends of China Neo-healthcare Market
Emphasis on Digital Connection
• Of the most outstanding characteristic and trend of Neo-healthcare market in China, digital connection is reflected from the three following aspects:
connection between online and offline, connection between inside and outside a healthcare institutions, and connection among healthcare
institutions.
• Digital connection between online and offline makes it possible for healthcare service that
conventionally take place offline to be enabled online, which allow both healthcare providers and
patients to benefit from diversified channel of healthcare service. In specific, from healthcare service
Connection between
provider end, it helps to reorganize and optimize the utilization of healthcare resources; from patient
online and offline
end, it helps to simplify the onerous procedure when the patients are seeking for healthcare service.
At higher level, the connection between online and offline healthcare service promote the overall
efficiency of healthcare system, improving the accessibility of healthcare resources. .
• Digital connection between inside and outside of healthcare institution is to extend the tracking of personal
data from inside of a healthcare institution to outside enabled by digital technology. In specific, medical
Connection between records are records generated within healthcare institutions, tracking the history of care a person received.
inside and outside of By connecting such records with personal health data generated outside of healthcare institutions, it creates
healthcare institution a continuity of personal health data that captures more accurate and omni-aspect health profile for a person,
which forms the basis of improving healthcare quality in terms of better healthcare decisions and more
coherent health management and efficient expense control.
• Digital connection among healthcare institutions is the linkage of different tiers of healthcare institutions and
formation of regional cooperative healthcare service network realized by digitalization. Through the sharing
Connection among
of medical information and opening of mutual transfer channel, the resulted healthcare service network can
healthcare institutions assist landing of hierarchical diagnosis and treatment, improve the convenience of patients who need
chronic disease management, and provide technical basis for telemedicine.

19
Competitive Landscape of Cities with Strategic Municipal Level Co-
operation Among Major Players
• Among all major players in China Neo-healthcare market, diversified cooperation models arise, with totally different contents and methods. As of
2023/03/31, Xikang went ahead of major players with the number of Cities with Strategic Co-operation in Municipal Level.
Cities with Strategic Year of

Major Background and listing
Business Model Description Co-operation in Strategic Co-operation Contents Establi
Player status
Municipal Level (2022) shment
Mainly focused on the Providing cloud hospital

provision of cloud hospital platform operation services,
platform services, cloud cloud hospital healthcare 29 Cities To be aligned with business backpart. 2011
Xikang healthcare services and smart services and smart healthcare
healthcare product products and solutions
Launch digital chronic disease management service model

Established and operated the empowered by the Internet hospitals, with direct settlement
Providing online medical
first online hospital in China, by public health insurance in China. Under this model,
with an innovative model of
services and health 17 Cities citywide digital consultations, treatment and management
2010
Wedoctor “Internet + Medical Health” maintenance services
services to subscribers with certain chronic diseases can be
provided.
Regional Internet Hospital establishment to improve
Was committed to building a
accessibility of comprehensive healthcare service including
health management platform
medical consultations, health management, chronic disease
that takes medicine and Providing retail pharmacy
management. Digitalization of primary healthcare institutions
health product supply chain operation services and online 10 Cities to improve management capability and further utilize big data
2019
JD Health as the core, also concentrated medical services
to cooperate with local medical insurance to better supervise
on digital-driven medical
and prevent medical insurance abuse and fraud, and better
services; listed in Hong Kong
guarantee the safety of medical insurance funds.
Pharmaceutical direct sales Ali Health established cooperation at municipal level to
business, pharmaceutical e- improve the accessibility of healthcare services including
Mainly concentrated on the
commerce platform business, medical consultation, drug prescription, health management
fields of pharmaceutical e-
medical and healthcare and etc, thereby forming the basis to manage the citizens'
Alibaba commerce, medical services
services business and 7 Cities health data at a regional level, which help the region better
2014
Health and digital healthcare; listed
pharmaceutical products control the healthcare expenditure, balance the healthcare
in Hong Kong
tracking and consumptive resources, facilitate commercial healthcare insurance
healthcare development and etc.
Providing online healthcare In the co-operation, Internet hospital platform is formed to

Operated as one of leading
services, consumer healthcare connect with local healthcare institutions. The platform
companies in the Internet
healthcare industry; listed in
services, health e-commerce 5 Cities consists of 5 modules of services, namely, online diagnosis, 2014
PAGD and health management and prescription circulation, health management, data monitoring
Hong Kong
wellness services and back-office management.
20
Entry Barriers of China Neo-healthcare Services Market
• Market players' capabilities to serve and empower multiple participants in the healthcare system
are important to attract participants to their digital healthcare solutions and platforms to achieve
growth. New entrants to the market may experience difficulties in developing such capabilities in a
Capabilities to
short period of time.
empower multiple
• For example, it is difficult to establish a platform that integrate patients, healthcare institutions,
participants medical insurance (payer) and regulators together. Other platform providers usually focus on one
or two factors. For instance, PAGD focus merely on doctors and patients to achieve online
consultation.
Comprehensive • The failure to provide comprehensive healthcare services over digital healthcare platforms that
cover the full cycle of healthcare may risk discouraging new and losing existing users, thereby
healthcare service
reducing the activeness of such platforms. Existing market players are often equipped with well-
offerings for the full
established service offerings and may find it easier than new entrants to maintain user satisfaction
healthcare cycle and attract and retain users.
• The establishment of a comprehensive and effective healthcare quality management system is

Healthcare quality
crucial to the user experience and satisfaction of healthcare services provided, as healthcare
management
services are treatment outcome oriented. New market entrants may not be able to so establish
capabilities such system in an early stage of their business.
Data accumulation • The access to large volumes of medical data and technological capabilities to ensure the
and platform scalability and reliability of digital healthcare platforms are vital to the continuous development of
technological digital healthcare solutions and platforms. In contrast, it is relatively difficult for new market
capabilities entrants to acquire such access and capabilities within a short period of time.
21
Table of Content
22
Impact of COVID-19 on Health and Wellness Industries
• Both traditional pharmaceutical industry and traditional medical service have been negatively affected, while digital
healthcare is ushering in a new period of development.
Negative Effect on Traditional Pharmaceutical Industry Positive Effect on Digital Health Service
 Policy: enhanced support
 Manufacturing: Resumption of
• National Healthcare Security
production is difficult Administration had introduced “Internet
 Circulation: circulation is obstructed medical service” in the national medical
 Retail: Quarantine reduces offline insurance document (国家医疗保障局关于
pharmaceutical sales 积极推进“互联网+”医疗服务工作指导意
见) for the first time and implemented
detailed policies to support the
development of online follow-up medical
services for common and chronic diseases
Negative Effect on Traditional Medical Service provided by Internet medical institutions for
insured persons.
 Private medical service institutions:
 Supply-side: geometric growth
Market share is likely to decline. • Regional expansion of medical institutions
• Lack of government and medical resources
subsidies • In the first three months of 2020, the
• Lack of medical insurance number of new digital healthcare companies
has exceeded 11,000
 Public medical service institutions:

Suffer from loss of competitiveness
 Demand-side: increased acceptance
• Customer churn
• The pandemic cultivated consumer
• Profit will be reduced habits, thus fostered stable digital
health customers

23
Impact of COVID-19 on Digital Health
• During the pandemic, digital health development drives policy reconstruction, optimizes supply-side resource allocation,
and accelerates demand-side cognitive behavior cultivation.
Favorable policies for digital health have been introduced Medical resources allocation has been optimized
Time Policy Document Impact

Medical
Increased Relieved resources
Notice on Strengthening online offline
Promote online can be
Informationization to Support medical resource
voluntary allocated
the Prevention and Control of services pressure
consulting to remote
Coronavirus
areas
Give full play to the
Feb role of online
2020 Notice on “Internet +
Diagnosis and Treatment”
consultation in Consumer habits cultivation has been accelerated
prevention and
Consultation Service in the
control, scientifically  The online diagnosis and treatment of the hospitals
Prevention and Control of
organize online under the administration of the National Health
Coronavirus
diagnosis and Commission has increased 17 times over the same
treatment period last year.
Guiding Opinions on Internet medical

Mar Promoting "Internet +" Medical treatment is included
2020 Insurance Services in in medical
Coronavirus Prevention insurance
Source: NHC, Frost & Sullivan Analysis

24
Table of Content
25
China Healthcare Service System
Overview
• At present, China’s healthcare providers consist of hospitals, primary healthcare institutions, and other healthcare institutions, among which
hospitals play the most important role.
• There were 36,570 hospitals in China by the end of 2021. With regards to the ownership, China’s hospitals are mainly categorized as public
hospitals and private hospitals. With regards to the specialization, China’s hospitals consist of general hospitals, specialized hospitals, TCM
hospitals, and other hospitals. With regards to the tier of hospitals, China’s hospitals are categorized as Class I hospitals, Class II hospitals and
Class III hospitals. Each tier has three levels – A, B and C, for example, Grade A Primary hospital, Grade B Primary hospital. Class and levels
are evaluated according to the hospital’s size, technique level, medical equipment, management level, service quality and etc.
• There were 977,790 primary healthcare institutions in China by the end of 2021, including community health centers/stations, rural health centers,
village clinics and others.
Chinese Healthcare Service System, 2021
Primary Healthcare Institutions Hospitals Other Healthcare Institutions

(977,790) (36,570) (13,276)
Community Health Rural Health Women

Private Center of
Centers/Stations Centers Public Hospitals &Children Care
Hospitals Disease Control
(社区卫生服务中心/站) (乡镇卫生院) (11,804) Institutions
(36,160) (24,766) (3,376)
(34,943) (3,032)
Preventive
Village Clinics General Specialized TCM Other
Others Institutions Others
(村卫生室) Hospitals Hospitals Hospitals Hospitals
(307,395) (20,307) (9,699) (4,630) (1,934) Of Special Disease (5,936)
(599,292) (932)
Class III Class II Class I Unrated

Hospitals Hospitals Hospitals Hospitals
(3,275) (10,848) (12,649) (9,798) 26
Source: NHFPC, Frost & Sullivan Analysis

26
Chinese Healthcare Service System
Recent Developments, 2017-2021
• The total number of hospitals in each tier and the total number of primary healthcare institution have both been growing, with the
number of hospitals growing at a higher rate.
Total Number of Class I Hospitals, 2017-2021 Total Number of Class II Hospitals, 2017-2021
5.9% 6.5%
12,252 12,649
10,831 11,264 10,848
10,050 9,687 10,404
8,422 9,017
2017 2018 2019 2020 2021 2017 2018 2019 2020 2021
Total Number of Class III Hospitals, 2017-2021 Total Number of Primary Healthcare Institutions, 2017-2021
8.8% 1.2%
3,275 977,790
2,749 2,996 970,036
2,340 2,548
954,390
943,639
933,024
2017 2018 2019 2020 2021 2017 2018 2019 2020 2021

27
Inversion of Medical Resources and Demands
• China’s medical resources are concentrated in large Class III hospitals and patients also preferentially seek healthcare
services in big hospitals whether they have a cancer or a cold, which leads to the severe inversion of medical resource
and diagnosis demands.
• There were only 9% (3,275) Class III hospitals out of 36,570 hospitals in China, and only 14 provinces or municipalities
possessed over 100 Class III hospitals in 2021.
Severe Inversion of Medical Resource and Diagnosis
Demand, 2021
Class III: # of Outpatient Visits:

3,275 (9%) 2,231.4 million, 57.5%
# of Outpatient Visits:
Class II: 1,254.5 million, 32.3%
10,848 (30%)
# of Outpatient
Class I: Visits:
12,649 (35%) 216.5 million,
5.6%
# of Outpatient
Unrated: Visits:
9,798 (27%) 181.3 million,
4.7%

28
Pain Points of China Healthcare Service System – Demand
Poor Consumer Experience of Healthcare Service
• Due to the scarcity of China medical resource, effective diagnosis time among the total time consumption in diagnosis process only
accounts for 4.4%. (8 minutes).
Time Structure for a Diagnosis Process, 2021
Diagnosis
4.4%
Traffic
22.8%
Waiting
28.9% Total time for
Medical
Consultancy: Registration
180 min 12.8%
Examination
31.1%

29
Pain Points of China Healthcare Service System - Supplier
Uneven Geographic Distribution of Medical Resources
• China is not only in a shortage of medical resource, but also suffer from uneven geographic distribution of existing medical resource. For
example, as one of the most developed cities in China, Beijing is abundant in medical resources, indicated by relative high number of
Class III hospitals per million population.
• Meanwhile, in those relatively underdeveloped provinces such as Hebei, Henan and Hunan, less than one hundred Class III hospitals can
be found in each province and there is on average less than one Class III hospital per million population.
Geographic Distribution of Class III Hospitals in # of Class III Hospitals Per Million Population in
China, 2019 China, 2019
<30 <1.0
30-50 1.0-1.5
50-70 1.5-2.0
70-100 2.0-4.0
>100 >4.0

30
Table of Content
2.1 Analysis of Digital Healthcare Infrastructure
2.2 Analysis of Digital Medical Service Market
2.3 Analysis of Digital Consumer Healthcare Products and Service Market
2.3 Analysis of Digital Health Management Market
31
Overview of Digital Healthcare Infrastructure
• Digital healthcare infrastructure industry refers to the infrastructure system that uses digital technology as the core and
meets healthcare needs through digital means. The digital healthcare infrastructure serves to develop the healthcare
industry, enhance national health awareness, and realize universal and equitable access to healthcare. Digital
healthcare infrastructure is the base of neo-healthcare service
• Digital healthcare infrastructure refers to a set of fundamental facilities and systems for healthcare purposes that is
based on digital technology, network technology, communication technology, electronic technology and information
technology. It is an innovative modern service system that is driven by healthcare digitalization as well as relevant
services.
Digital Healthcare Infrastructure
Elementary function Extended function

 Hospital information system (HIS)  Platform & System Construction
 Intra-hospital information  Medical data and information management
• Through digital healthcare infrastructure, medical

• Carrying out basic functions data can be shared among different specialities in
• Hospital information system (HIS) medical institutions or even among different
• Experienced the intra-hospital data connectivity medical institutions to diminish the information
and information sharing. gap in the healthcare system through such
connectivity

32
Market Size of Digital Healthcare Infrastructure Industry, 2018-
2030E
• As currently the largest part of the neo-healthcare market in China, the market size of digital healthcare infrastructure industry in China increased
from RMB 50.8 billion in 2018 to RMB 92.5 billion in 2022 with the CAGR of 16.2%. It is expected to reach RMB 610.4 billion in 2030, with the
CAGR of 26.6%.
Market Size of Digital Healthcare Infrastructure Industry, 2018-2030E
Period CAGR
2018-2022 16.2%
2022-2030E 26.6%
Billion RMB
610.4
526.2
444.8
373.8
301.5
235.2
177.5
125.9
80.4 92.5
61.4 68.7
50.8
2018 2019 2020 2021 2022 2023E 2024E 2025E 2026E 2027E 2028E 2029E 2030E

33
Future Trends of Digital Healthcare Infrastructure
• Plenty of high tier healthcare institutions and primary healthcare institutions are tend to be
included into same platform, so that the disequilibrium of healthcare resources can be
Platformization
redistributed. Thus, the number of healthcare institutions on platforms will experience
sustainable growth.
• As HIS matured increasingly, the standardization and quality of medical data will be improved
phenomenally, therefore lead to the standardization of of the cooperation between platforms to
payers (National medical insurance) and regulators (administration). Also, hierarchical diagnosis
Standardization
and treatment is advocated by government, which regulate the standard of consultation and
referral, furthermore lead to the standardization of diagnosis and treatment process. Additionally,
clinical guidelines has establish standard treatment paradigm of different diseases.
• Various functions are tend to be integrated into Platforms and optimized by information
Integration technologies to extend potential value. Thus, intensification of multiple function will be a future
trend.
• With the need to realize the life-cycle management of different disease and to deliver patient-
centered care, healthcare services are becoming more specialized. To align with such trend, it is
Specialization expected that in the future that healthcare infrastructure providers will be able to offer
corresponding software service to facilitate cooperative clinics and whole process management
of certain diseases, enhancing the specialization of healthcare.
• Protection of patient record and privacy has long been raised as a paramount issue since it helps
to maintain the fundamental fiduciary doctor-patient relationship. Thus, in order to maximize the
Securitization
benefit of such infrastructure, it is expected that in the future that infrastructure service providers
will enhance the data security, better addressing the existing concerns.

34
Entry Barriers of Digital Healthcare Infrastructure
• Public healthcare institutions still dominate China healthcare’s system, which makes that digital
healthcare infrastructure business heavily relies on public bidding and brand reputation to explore
Capability to Explore
customers. Leveraging medical resource and competent customer acquisition ability, well-
Customers
established customer group has the potential to further expand business co-operation and also
attract more customers, correspondingly.
• The application and operation of digital healthcare infrastructure in healthcare institution not only
Multi-disciplinary
require the software and hardware technique, but the experience and know-how knowledge to
technique
integrate into healthcare service is also important for a market player to serve healthcare institutions.
• Integration of digital healthcare infrastructure with healthcare services enables offline healthcare
services to move online, improving accessibility and convenience. To achieve this, a series of
functions including digital connection among different entities to break isolation of a sole medical
Service coverage
institution and efficient internal informatization, need to be systematically realized. Market players
with one-stop service coverage are preferred due to better compatibility among different function
modalities and lower vendor management costs from customers’ perspective.
• The platform provider who not only establish platform earlier but also addresses the fundamental
demands of customer will take the lead to digital healthcare infrastructure market.
First mover advantage
• The experience and knowhow required to apply and operate the digital infrastructure for medical
institutions.
• The size of investment for digital healthcare infrastructure is so large and the investment cycle is
Capital and investment
quite long, indicating the capital thresholds of this market will be high.

35
Table of Content
36
Overview of Digital Healthcare Service in China
• With the advancement of digital technology, healthcare services that conventionally take place offline is enabled online. The entire
process from registration to medicine pick-up can be digitalized, resolving the current pain points of healthcare services. In specific,
patients from areas with limited healthcare resources will be able to seek for diagnosis online, overcoming the problem of uneven
distribution of medical resources. In addition, patients who suffer from less severe disease can ask for diagnosis online rather than go to
high class hospitals, which will alleviate stress of top hospitals, sparing more resources for treating intractable diseases and promoting a
tiered medical system.
Registration Diagnosis Prescription Medicine Pick-up
Flow of
healthcare 01 02 03 04
service
Patients
Making online Place drug Digital
Consult the Get electronic
appointment/ orders online and Healthcare
doctors online prescription
registration get delivered Platform
Online Communication
Doctors
Manage Diagnose Give out Monitor patients
registrations/app patients and give electronic to follow the
ointments online guidance online prescriptions treatments

37
Market Size of Digital Medical Services Industry, 2018-2030E
• As one of the four parts of neo-healthcare market in China, the market size of digital medical service industry in China increased from RMB 4.8
billion in 2018 to RMB 49.4 billion in 2022 with the CAGR of 79.3%. It is expected to reach RMB 495.2 billion in 2030, with the CAGR of 33.4%.
Market Size of Digital Medical Services Industry, 2018-2030E
Period CAGR
2018-2022 79.3% 495.2
2022-2030E 33.4%
413.8
Billion RMB
337.4
267.6
204.6
148.8
100.3
66.8
49.4
31.7
8.8 19.5
4.8
2018 2019 2020 2021 2022 2023E 2024E 2025E 2026E 2027E 2028E 2029E 2030E

38
Digital Solution Aiming at Current Industry Pain Points
Improve medical resource allocation Optimize medical procedures
Online medical platforms can Online medical platforms can realize the
effectively integrate resources and transfer of some offline services to online,
break time and geographical such as time-consuming and laborious
restrictions. On the platform, doctors projects such as appointment registration,
can use debris time for consultation result check, payment, etc. In the hospital,
and follow-up, increasing the supply of patients only need to complete the
medical resources. The platform can diagnosis and treatment process, which
match supply and demand, so that
Digital Health shortens the time for medical treatment
patients in remote areas can also enjoy and improves the medical experience.
high-quality medical services.
Save costs for insurance fund Weaken the information asymmetry
Information barriers often exist between patients

The Internet platform can accumulate and and doctors, and diagnosis and treatment are
store information, such as health data, often based on patient's preliminary knowledge
diagnosis and treatment data etc. and previous experience, which may lead to
Integrating data and leveraging artificial misdiagnosis. Through the online platform,
intelligence can provide support for cost patients can seek experts in different fields for
containment for medical expense and comparative consultation and consultation
insurance fund. according to their own needs.

39
Future Trends of China Digital Healthcare Service Market
• Through the reform on the supply side of healthcare resources, digital medical service platforms will empower traditional healthcare
resources, address industry pain points, and enhance regional healthcare service capabilities.
• As the public health insurance and commercial health insurance are gradually
integrated, a diversified payment method under which self-payment, public health
insurance and commercial health insurance jointly pay the healthcare expenses will be
Further improvement in the medical
developed, with the payment methods being upgraded and the payment system being
service payment system driven by
improved constantly. Driven by the favorable government policies, it is expected that
further integration with public health
the integration with public health insurance in various regions will be accelerated. The
insurance and increasing penetration issuance of such favorable policies will significantly improve the public health
of commercial health insurance insurance system in the future. Public health insurance payment will gradually shift
from payment per service type to payment by disease type per person, and more
online medical services will be covered by public health insurance.
Increasing prevalence of health

• In the future, the health oriented digital medical service model will be extended to
oriented digital medical service model
more regions and cover population. Specifically, the online + offline digital chronic
and rapid expansion of digital chronic
disease management services are expected to develop rapidly.
disease management model
• With the increase of disposable income per capita and the enhancement of health
awareness, future medical service market is expected to gradually evolve into
Rapid development of membership- membership-based and customized service model to meet diverse and specialty
based healthcare service and specialty healthcare needs. Consumer demands are likely to shift from disease treatment
medical service oriented to health oriented which focus on high-end or specialty medical services,
such as assisted reproductive service. The provision of healthcare and medical
services will also develop to be cross-region.

40
Competitive Barriers of China Digital Healthcare Platform
Competitive Barriers Analysis 1 First mover advantage

In order to solve the data isolation problem caused by difference
from data access, digital healthcare platform need to be applied by
as many hospital as possible to gain sufficient scale of healthcare
First mover Extensive Specialized data. Thus, well-developed platforms are able to occupy larger
advantage Departments share of digital platform market, efficiently lower the cost of
running platform and avoid the formation of “data islands” between
hospital applying digital platforms.
1 2
2 Extensive Specialized Departments
Along with the continuous advancing of the medical research, the
specialized departments of hospital subdivide, even spun off into
separate specialized-hospital. As digital healthcare platforms
provide personal healthcare solution to patients, the therapeutic
area of digital platforms need to be adequate, and the specialized
department need to be extensive.
3 Grasping Municipal-based Access
Due to the trend of municipal-based healthcare system, influenced
by patient, healthcare institution and healthcare insurance, the
basic unit of healthcare process tends to be the city-level. Thus,
the city access is becoming a critical factor. A digital healthcare
platform is profitable, only if platforms successfully access into city
4 3 healthcare system.
4 Data & Information Safety of Platform .
Data Safety of Municipal-based
As a digital healthcare platforms, huge amount of data from
Platform Access
patients and institutions are collected and stored. All these Data
and medical information are top secrete for not only patient but
nation. Thus, the healthcare data on platforms need to be secured.

41
Table of Content
42
Consumptive Health Services
• Consumptive health service is closely related to healthy life, focusing on advocating healthy lifestyle, improving health protection, and
building a healthy environment.
Feature
Category
Steady
• Medical Cosmetology refers to a series of treatments for the
growth rate Medical purpose of changing the external shape and color of the human
Cosmetology body and enhancing the beauty of the human body through
medical means, including drugs, instruments, and operations.
Health Large
Insurance pool of • Medical tourism refers to people traveling abroad to obtain medical
exclusion customers Medical Tourism treatment. The motivation may be also for medical services
Health insurance exclusion unavailable or non-licensed in the home country.
• Products excluded from • Elderly care is the fulfillment of the special needs and requirements
health insurance, that are unique to senior citizens. This broad term encompasses
independent pricing power, Elderly Care such services as assisted living, adult day care, long term care,
unaffected by fee control nursing homes, hospice care, and home care.
policy and production barriers
• Health consultation is a meeting a patient have with a health
Large pool of potential Health Consultation consultant with the hope of getting advices on health enhancement
customers but not receiving medical treatment.
• The product has a large
audience, but the penetration • Postpartum care is a service provided to individuals in the
rate is relatively low, and Postpartum care
postpartum period, to help with postpartum recuperation and
there is more room for growth service restoration.
Steady growth rate • Rehabilitation encompasses a wide range of activities including

• With the release of demand, Rehabilitation rehabilitative medical care, physical, psychological and support
a high growth rate can be service services. People with disabilities should have access to both
maintained. general medical care and appropriate rehabilitation services.

43
Market Size of Digital Consumer Healthcare Products and Services
Industry, 2018-2030E
• The market size of digital consumer healthcare products and services industry in China increased from RMB 4.3 billion in 2018 to RMB 13.0 billion
in 2022 with the CAGR of 32.2%. It is expected to reach RMB 327.0 billion in 2030, with the CAGR of 49.6%.
• The digital consumer healthcare products and services industry is relatively the smallest part among all neo-healthcare market, while it is expected
to expand rapidly in the future with phenomenal potential.
Market Size of Digital Consumer Healthcare Products and Services Industry, 2018-2030E
Period CAGR
2018-2022 32.2%
2022-2030E 49.6% 327.0
Billion RMB
241.9
178.1
128.6
88.8
58.4
36.2
12.4 13.0 21.3
4.3 6.5 8.8
2018 2019 2020 2021 2022 2023E 2024E 2025E 2026E 2027E 2028E 2029E 2030E

44
Future Trends of Digital Consumptive Healthcare Service Industry
• Offline consumptive healthcare services have the characteristics of specialization, which means the
Consolidation of
service provider normally is specialized in a specific field, e.g. dental, medical aesthetic etc. With the
Consumptive Healthcare
migration online, the integration process will be accelerated in order to capture the diversified
Services demands from residents.
• Together with digital healthcare services market, the digital consumptive healthcare services market
Synergy with Other
is expected to play a role of supplement to keep the residents health. Moreover, with the improving
Segments in Neo-
health awareness, consumptive healthcare service will be integrated with others in a more
healthcare Market convenient manner.
• Consumptive healthcare services feature high reliance on customers paying willingness. Rising
Fast growing market disposable income has a positive effect on the purchasing power and the level of health awareness,
which will directly driving the fast growth of the market.

45
Entry Barriers of Digital Consumptive Healthcare Service Market
• Rather than provide treatment and care upon to ill population that seek for medical intervention, a
large part of consumptive healthcare, which is represented by health examination and disease
test/screening, provide services ahead of time to orient and screen disease at relatively early time
possible. By focusing on the preventive health, more people will be captured at a stage when they
Coverage of preventive
bear less disease burden, which increase the possibility of cure if interfere immediately. On the other
health
hand, it allows for the already-limited healthcare resources to be focused on the serious disease.
Companies that are able to cover such preventive health sector is able to alleviate the overall
disease burden of patients and contribute to the re-organization of medical resources, thereby
establishing a core competence in the market.
• Even though the demand towards consumptive healthcare services are independent from disease
condition or immediate demand of medical intervention, it reveals a possible demand that these
people might need to seek for serious medical care in the future. For example, healthy people who
Capability to establish a have escalated level of disease markers detected in their body during health examination might not
continuity of care be diagnosed certain disease immediately, but should be put under supervision and being actively
managed to prevent progression. Companies that are able to provide a full cycle from preventive
care, health management and serious healthcare will be able to grasp the healthcare need of a
person continuously, and differentiate themselves with the competitors given the extra value provided.
• Due to the consumptive nature of the service, and largely because the generated fee are self-paid,
consumptive healthcare service rely highly on the autonomy and willingness of the consumers
themselves. Thus, compared with the conventional healthcare, consumptive health service providers
Capability to orient and
emphasize more on attracting targeted population and maintaining adhesiveness of the users.
maintain targeted
Companies utilize digital technology well is capable of keeping omni-rounded health profile, which
population helps to better orient the targeted population through accurate buildup of user portrait, and to
maintain the users by providing precise service. In this way, user adhesiveness is established,
increasing the competitiveness of the service providers.
46
Table of Content
47
Overview of Health Management
• Health management refers to a process of comprehensive management of individual or population health risk factors. Its purpose
is to mobilize the enthusiasm of individuals and collectives, and to effectively use limited resources to achieve maximum health
effects.
Health Management Process
1 2 3 4
Information Physical Health Health

collection assessment education intervention
• Basic Information
• Current physical • Dietary intervention
• Health checkup condition • Healthy body
• Sports intervention
• Family history • Probability of a • Sound personality
• Psychological
• Past medical history certain disease in the • Mental health intervention
• Current illness future
• Nutritional intervention
• Living habit

48
Market Size of Digital Health Management Industry, 2018-2030E
• The market size of digital health management industry (realized by smart health products and service) in China increased from RMB 7.0 billion in
2018 to RMB 20.2 billion in 2022 with the CAGR of 30.4%. It is expected to reach RMB 174.7 billion in 2030, with the CAGR of 31.0%.
Market Size of Health Management Industry, 2018-2030E
Period CAGR
2018-2022 30.4%
2022-2030E 31.0%
174.7
Billion RMB 146.7
120.6
96.1
73.4
53.8
37.8
26.6
15.9 20.2
9.1 12.1
7.0
2018 2019 2020 2021 2022 2023E 2024E 2025E 2026E 2027E 2028E 2029E 2030E

49
Future Trends of Smart Healthcare Products and Services
• Driven by the demand of different people and groups, not only individuals, but also families, and
Broader scene of private companies start to use smart health products and services, with the hope of monitoring health
application and providing light healthcare service in a daily manner. This will lead to an expanded scene of smart
health product and service utilization.
• Health data generated from smart wears was historially more isolated, without being connected to a
person's medical records generated inside healthcare institutions when they are seeking for medical
Connection to serious
intervention. With the need to establish a continous health profile of patients so that more precise
healthcare
medical decision can be made, smart healthcare products and services is expected to be connected
with serious healthcare through digitalization platform.
• Even though the smart healthcare products, such as wearable devices and automatic medicine pick-
up machine, carry certain functions by themselves, the value of them is far beyond that. The
Emphasis on value of increasing use of these products enables data interaction, with which healthcare professionals can
services utilize to provide personalized healthcare solution service to users in a long term. In aware of this, it
is expected that in the future, value of service build upon smart healthcare product is more
emphasized.

50
Entry Barriers Analysis of Health Products and Services Market
Entry Barriers Analysis 1 The technical threshold of health products and service
market is relatively higher than other industries. As Chinese
health market is becoming diversified, various technology has
been leveraged. In terms of biologics and medical devices,
technical capability is the critical factor of products market
1 2 performance rather than other products attributes. However,
encouraged by favorable policies, some innovative enterprises
Relatively high technical Strict supervision and
threshold rigorous regulation focus on health market have emerged recently.
2 Strict supervision and rigorous regulation.

The safety and quality of health products and services are directly
related to the quality of lives and health of people, and have
always been the top priority of supervision and regulation. Thus,
there will be fairly strict supervision and rigorous regulation in
health market.
3 Scaled organization and standardized management.

In the field of health industry especially health services, the
content of service is relatively scattered. As it is difficult to form a
scale effect, it often requires cross-regional and multination
integration to make a profit. Thus, only if the scale of enterprise is
sufficient, the health service can be adequate and profitable.
4 3
Interaction between
Scaled organization 4 Interaction between different industrial fields.
and standardized It often requires cross-industry integration and interdisciplinary
different industrial fields
management collaboration to make a profit. Digital healthcare need not only
prescription from professional physicians but also retail pharmacy
for sufficient drug supply and express delivery for logistics chain.

51
Entry Barriers of Smart Product and Service Market - Add on
• Due to the requirement of accuracy in healthcare industry, the quality of data output by many smart
healthcare products cannot be directly adopted by healthcare institutions. For example, heart rate
Scientific background of detection function of Apple Watch, relying on photoelectric signals to detect heart rate indicators is
products and services controversial, which caused the failure of obtaining the qualification of the FDA. Therefore, during the
research and development of smart healthcare products and services, the scientific background and
the verification and endorsement from well-known healthcare institutions are crucial.
• As smart product and service directly act on the patients, relevant smart products and service
providers can extract data from user privacy information including but not limited to health information,
Data safety and privacy geographic location information, and personal biometric information. Also, some products are
protection interconnected with data platforms and result transmission systems, which are lacking in official
control. Thus, data and privacy need to be protect adequately, which is another entry barrier of smart
product and service market.
52
Verification List (1/2)
1. During the COVID19 pandemic, the acceptance of digital healthcare by both patients and doctors has increased significantly, and digital
healthcare platforms supplementary to the traditional healthcare services have also been widely recognized by the PRC government for the value
it has brought about.
2. Along with the development of digital healthcare platforms, the payment from medical insurance can be processed and regulated at municipal
level, which may achieve the goal of controllable expenses
3. Benefit from the interactions and interlinkages among demand, supplier, payer and regulator via healthcare platforms, the structure of
healthcare service tend to be regional. Particularly in suppliers and administrations, local policies of regulatory are diverse between different
regulatory regions (usually provincial area), as well as the promotion and salary package of physicians are quite various provincially. As for
demands, patients prefer to obtain healthcare services locally in the city they live or nearby rather than top tier healthcare institutions far away.
However, disequilibrium of healthcare resource between cities force patients to seek high-class public hospitals far from home. National medical
insurance, as the major payer of the healthcare system in China, the reimbursement policy and self-payment ratio is diverse from city to city.
4. Digital technology and model innovation play a crucial role to establish a precise, standardized and measurable healthcare service model,
create more medical service resources as a whole where quality hospitals have larger capacity to offer quality services, and extend healthcare
services from hospitals to households.
5. With the increasing popularity of Internet and the growing health awareness, digital healthcare services are becoming well-recognized and used
by more users
6. Xikang is one of the few companies that integrate information technology systems of medical institutions, policy makers and insurers in China.
7. Xikang commenced the Internet home care services in Ningbo in 2016, which is one of earliest provider of this service in China
8. The primary medical institutions are often equipped with advanced medical equipment, but lack of medical professionals with professional
imaging diagnosis capabilities. This is one of problems of primary health institutions.
9. Ningbo Cloud Hospital platform is among the first in the PRC healthcare industry to integrate cloud computing, IoT, mobile Internet, big data
and other technology into its infrastructure.
10. EMR is an electronic medical record generated electronically in a medical institution during consultation. Additionally, personal health data
records are generated by monitoring physical conditions through smart health products in daily life. Neo-healthcare services cover both digital
healthcare services and health management to enable the connection of EMRs through open digital channels and personal health data and
doctors can grant access to certain health related data of patients to gain an accurate and comprehensive understanding of patients’ condition.

53
Verification List (2/2)
11. These platforms covered a population of approximately 120 million in aggregate and the total medical expenditure in the relevant regions
amounted to approximately RMB130 billion in 2019.
12. Favorable policies may set up specific goals and guidelines to be reached in the future, encouraging the digitalization of healthcare going
forward
13. Remote diagnosis and treatment have been accepted and will be more widely used after the pandemic due to its high efficiency and
convenience. And the positive effect on the neo-healthcare services market is expected to continue in the future after the ease of the COVID-19
pandemic.
14. The price Xikang charge for different types of consultation during the Track Record Period are comparable to the prevailing market price.
15. The platforms of Xikang covered a population of approximately137 million in aggregate and the total medical expenditure in the relevant
regions amounted toapproximately RMB165.85 billion in 2021
54
Appendix I: Patients Visits of Medical Institutions
By Public and Private
Breakdown of Patient Visits in Hospital and Primary

Medical Institutions in China, 2021
Unit: Thousand visits
9.3
8.8%
37.6
35.8% 2,958,744
36.4%
58.2
55.4% 5,175,294
63.6%
Public institutions
Private institutions
55
Appendix II: China Medical Institution Breakdown by Private and
Public
Breakdown of Primary Medical Institution Breakdown of Hospital in China

in China
11804,
32.3%
468662,
47.9% 509128, 24766,
52.1% 67.7%
Public institution Public institution

Private institution Private institution
56
Appendix III: Competitive Landscape of the PRC Digital Healthcare
Services Market
Sub-Industry Type of market players Intensity of competition and Industry position of NEUSOFT XIKANG
• The company faces competition from competitors across China and the intensity of competition in this market
was rather high. There were roughly dozens of competitors in such market, while only very few of them had
established strategic cooperation at the municipal level.
Digital Healthcare IT solution providers, • The company ranked first in terms of number of cities with city-specific cloud hospital platforms.
such as traditional IT solution
healthcare
companies with business footprint in • The company ranked third in terms of the total number of medical institutions (including both primary medical
infrastructure the healthcare industry as well as institutions and hospitals) connected to digital healthcare platforms. Its network of medical institutions covered
industry specialized health-tech companies 3.4% of the total number of medical institutions in China, while the competitor that ranked first covered 12.6% of
the total number of medical institutions in China.
• The company was also one of the few companies whose platform network was connected to more than 2,000
hospitals in China. Its network has covered 6.6% of the total number of hospitals in China.
Digital medical services companies,
such as online medical appointment • This market is rather crowded as there were around 100 competitors providing digital healthcare platforms.
making and consultation platform • The company was among the top three players in terms of the number of medical institutions connected to the
Digital medical
companies, online prescription platform, and among the top 15 players in terms of the number of doctors registered with the platform.
services industry processing platform companies, and
• The company ranked 13th among the top 15 players in terms of Internet medical service volume. The annual
other companies providing various service volume of the top five players ranged from 84.0 million to 188.1 million.
digital medical services
• Health management service companies can be divided into private ones operated in a chain manner, and public
Health management service
Digital health ones mainly provided by public hospitals. The market is relatively scattered, with top three players contributing to
companies, such as franchise of
less than 15% of the market share in terms of revenue. This is largely due to offline nature of health check-up
management private health check-up companies
service with leads to limitations on geographical service coverage. In different regions, the respective market
industry and the health check-up
leaders are subject to restrictions on the number of physical check-up centers of such region, therefore exhibiting
departments of public hospitals
regional differences.
• There are a large number of players in this industry, with different specializations and business focuses. Sub-
industries within this industry are diversified, including IoT, home-use medical devices, medical-use devices, and
physiotherapy equipment industries, among other things, leading to a scattered market. The sub-industries each
have their own parameter and criteria with unique weight assignment to evaluate the top players. For example,
Digital consumer Digital health product companies, some of the leading players in the home-use medical devices industry have had little revenue from sales of
such as medical equipment
healthcare medical devices to hospitals, and it will fail to show their competitively advantageous position if they are ranked
companies and traditional IoT
products and within the larger digital consumer healthcare products and services industry. Meanwhile, the Company focused
product companies with healthcare
on smart healthcare products targeted at institutional settings including primary medical institutions and
services industry offering
practitioners in rural communities. Compared to the other players, its business focus is relatively unique and thus
there is no direct competitor with similar business focus. Accordingly, there is a lack of unified metrics to
qualitatively or quantitatively assess the rankings of specific players in this industry to meaningfully and
accurately reflect the competitive landscape.
57

China Health & Wellness Market

Uploaded by

Copyright:

Available Formats

China Health & Wellness Market

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

China Health & Wellness Market

Uploaded by

Copyright:

Available Formats

China Health & Wellness Market

Independent Market Research

Frost & Sullivan

1 Overview of China Health Market

1.1 Overview of Aging Population

1.2 Analysis of Payer in China Healthcare Market

1.3 Overview of Global and China Healthcare Expenditure

1.4 Favorable Policy of China Health Market

2 Overview of the China General Health and Wellness Market

3 Overview of China General Healthcare Services Market

4 Analysis of China PRC Digital Healthcare Services Market

China Aging Population Trend, 2018-2030E

258.6 265.9 273.2

Source: NBSC, Frost & Sullivan Analysis

1 Overview of China Health Market

1.1 Overview of Aging Population

1.2 Analysis of Payer in China Healthcare Market

1.3 Overview of Global and China Healthcare Expenditure

1.4 Favorable Policy of China Health Market

2 Overview of the China General Health and Wellness Market

3 Overview of China General Healthcare Services Market

4 Analysis of China PRC Digital Healthcare Services Market

China Per Capita Disposable Income, 2018-2030E

Source: World Bank, Frost & Sullivan Analysis

Revenue and Expenditure of Basic Medical Insurance Fund1, 2018-2030E

Source: NMPA, Frost & Sullivan Analysis

Revenue and Expenditure of Commercial Health Insurance Fund, 2018-2030E

2018-2022 12.3% 19.9%

Revenue 2,780.4 2,704.6

Source: CIRC, Frost & Sullivan Analysis

1 Overview of China Health Market

1.1 Overview of Aging Population

1.2 Analysis of Payer in China Healthcare Market

1.3 Overview of Global and China Healthcare Expenditure

1.4 Favorable Policy of China Health Market

2 Overview of the China General Health and Wellness Market

3 Overview of China General Healthcare Services Market

4 Analysis of China PRC Digital Healthcare Services Market

China Healthcare Expenditure, 2018-2030E

Source: World Bank, Frost & Sullivan Analysis

Healthcare Expenditure Per Capita, 2018-2030E

Source: NBSC, Frost & Sullivan Analysis

China Consumption Expenditure Per Capita, 2015-2030E

Category CAGR 2015-2019 2019-2024E 2024E-2030E

Healthcare Expenditure as a % of Total Consumption Expenditure, Per Capita

27.2% 27.7% 30.0%

Source: NBSC, BEA, Frost & Sullivan Analysis

GDP Breakdown by Healthcare Expenditure Comparison, 2019

GDP Healthcare Expenditure as a % of GDP

1 Overview of China Health Market

1.1 Overview of Aging Population

1.2 Analysis of Payer in China Healthcare Market

1.3 Overview of Global and China Healthcare Expenditure

1.4 Favorable Policy of China Health Market

2 Overview of the China General Health and Wellness Market

3 Overview of China General Healthcare Services Market

4 Analysis of China PRC Digital Healthcare Services Market

Number of Internet Hospitals in China

Growth Expediated Growth