In October 2024, the international authoritative index company MSCI (Morgan Stanley Capital International, also known as Morgan Stanley Capital) upgraded the latest annual Environmental, Social, and Governance (referred to as "ESG") rating of Ping An Health (01833.HK) from A to AA. According to the Hang Seng Index industry classification, the company ranks at the forefront of the healthcare equipment industry. Previously, Ping An Health's MSCI ESG rating had received an A-level rating for three consecutive years, and this time it was further upgraded from A to AA, reflecting the company's ESG practices gaining further recognition from international authoritative institutions.

It is reported that the MSCI ESG rating is one of the ESG evaluation systems widely recognized by global investment institutions. The rating covers more than 16,400 issuers worldwide. Due to its authoritative and credible rating, the results are widely used by domestic and foreign investors in investment decision-making. It has become an indispensable important reference for formulating investment strategies and assessing corporate sustainable development capabilities.

Sustainable development philosophy leads product innovation

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Corporate governance is an indispensable and important part of a company's practice of ESG responsibilities. Among them, whether it can attract and retain outstanding talents, and whether it can promote employees to grow together with the company are also key factors reflecting corporate governance level and core competitiveness.

Since 2022, Ping An Health has integrated the ESG sustainable development philosophy into business processes, business management, and product service innovation. In terms of ensuring the physical and mental health of employees, the company has launched the "Easy Enterprise Health" employee health management solution for corporate customers, aiming to create a new model for domestic enterprise health management. The company has established two major product service systems, "Physical Examination +" and "Health Management +". Before, during, and after the examination, it innovatively equips dedicated health care doctors for enterprise employees, providing butler-style proactive health management services for enterprise employees and their families. By in-depth research and mining of the health management needs of workplace employees, it has achieved a closed-loop health management from "health detection, risk management" to "health intervention, medication and medical treatment", thereby helping employees comprehensively improve their health status. By the end of 2023, Ping An Health has helped a total of 1,748 enterprises to build a happy and healthy workplace, firmly occupying a leading position in the market.

AI "escort" medical quality control and user experience

The research and development of artificial intelligence technology and technological empowerment have continued to protect the quality and efficiency of Ping An Health's medical services. After years of accumulation, the Ping An Health App platform has accumulated more than 1.4 billion consultations. Through advanced AI technology, it has completed a comprehensive online consultation quality control. There are more than 50,000 heavy disease lock screen identification labels, and AI automatically generates electronic medical records. After manual inspection, the first-class rate reaches 99.8%, far exceeding the national standard. In terms of medication prescription quality control, the compliance accuracy rate reaches 100%.

In terms of improving user service experience, the effect of AI empowerment has also begun to emerge. By the end of June 2024, the "Ping An Medical Botong" large model created by Ping An Health has achieved AI empowerment for the entire medical process business scene, which can help the family doctor service efficiency increase by about 30%. At the same time, in various consultation business scenes, the service five-star praise rate exceeds 98%, the electronic medical record first-class rate is as high as 99.8%, and the medication compliance accuracy rate is 100%.

Strictly guard consumer medical privacy and securityEnsuring data security and customer privacy is a core competitive strength for Ping An Health's stable development. In this regard, the company has been continuously advancing the construction of an information security and privacy protection management system. In terms of system construction, the company has established an Information Security and Data Security Management Committee, which reports to the Audit and Risk Management Committee, to ensure the effective implementation of information security and privacy management. In 2023, the company has publicly issued the "Ping An Health Information Security and Data Security Management Policy Statement," further clarifying the relevant standards for information security and privacy protection management.

In terms of system certification, Ping An Health has obtained ISO 27001 Information Security Management System, ISO 27701 Privacy Information Management System, and ISO 27799 Personal Health Information Security Management System certifications, covering 100% of the company's business, highlighting its strict level of information security management. In terms of the entire process of information security protection, Ping An Health has built an information security protection barrier through its own risk monitoring and privacy protection actions, including data leakage prevention and emergency handling of information security incidents. For suppliers and partners, Ping An Health also carries out information security risk assessments, conducting a full-process review from the introduction of suppliers, contract signing, sampling audits, and security audits, with review requirements covering all suppliers and business partners and other third parties.

Universal Healthcare Supports Healthy China 2030

In recent years, Ping An Health has fully leveraged the timely and efficient advantages of internet medical services, breaking through the spatial and temporal limitations of medical and health services. By participating in poverty alleviation projects, aiding in epidemic prevention and disaster relief, implementing village doctor projects, and promoting universal healthcare, it has taken on its social responsibilities in multiple dimensions, practiced social welfare, and actively contributed to the harmonious development of society.

For example, to implement the "Healthy China 2030" goal, Ping An Health actively responded to the national call for poverty alleviation. Since 2018, it has implemented the "Village Doctor Project" offline, carrying out a three-dimensional health poverty alleviation project targeting village health clinics, village doctors, and villagers. By the end of 2023, Ping An Health had successively aided in the construction and upgrading of 1,228 remote rural health clinics, trained more than 11,000 village doctors, and helped more than 10,000 village doctors form pairing relationships with volunteer doctors. It has conducted more than 700 mobile health check-ups and free clinics, benefiting more than 100,000 villagers. At the same time, Ping An Health has also deeply integrated its internal medical resources to donate supplies to areas such as Yanbian Prefecture in Jilin, Hunan, and Guizhou, helping to improve the basic medical service level and health literacy of residents in impoverished areas.

At the same time, to help more patients have more professional and warm chronic disease management, Ping An Health also provides users with a one-stop "chronic disease prevention and control service" that saves worry, time, and money. Since its launch in 2021, the company has worked with Ping An Life to deeply serve more than one million users and has provided personalized custom health management plans to 800,000 users, effectively preventing and controlling chronic diseases.

As Chinese companies continue to deepen their ESG practices, their understanding of ESG is also moving from "what it is" to "how to do it." The medical and health industry itself has a social public nature and special ESG value. Looking to the future, Zhang Luoqi, Executive Vice President and Chief Financial Officer of Ping An Health, said that the company will continue to strengthen exploration and communication with all stakeholders in the direction of ESG. By integrating and applying ESG concepts and principles in business practices, it will create a sustainable and win-win cooperative industry ecosystem, create richer social value, and thus jointly promote the progress of China's ESG theory and practice, contributing to the high-quality development of China's economy and society.