GUSHENGTANG and Ping An Good Doctor reached a strategic cooperation to provide rich and high-quality traditional Chinese medicine services that are "within reach"

Drinking health tea, applying summer health patches, massage cupping, visiting traditional Chinese medicine night markets... Young people who pay attention to health and wellness are driving traditional Chinese medicine culture to break new ground.

According to the latest information from the Securities Times app, on September 11th, GUSHENGTANG (02273) reached a strategic cooperation agreement with Meituan Health. GUSHENGTANG's traditional Chinese medicine division, with over 70 traditional Chinese medicine medical institutions and more than 30,000 traditional Chinese medicine practitioners, will fully join Meituan to provide users with appointment registration and online consultation services. The two parties will also collaborate on joint membership cards and providing traditional Chinese medicine medical services to corporate clients, helping to digitize, rejuvenate, and integrate traditional Chinese health services into daily life. This will further enhance the accessibility and efficiency of traditional Chinese medicine services, making high-quality traditional Chinese health services more accessible.

(GUSHENGTANG's strategic cooperation with Meituan)

According to the "Statistical Bulletin on the Development of China's Health Care Industry in 2023" recently released by the National Health Commission, the total number of visits to traditional Chinese medical and health institutions nationwide reached 1.54 billion in 2023, an increase of 310 million visits from the previous year (a growth of 25.3%). In recent years, the trend of rejuvenation in the wellness economy has become increasingly evident. Consumers aged 20-35 on Meituan account for over 66% of the total, with Guangzhou, Shanghai, Shenzhen, Hangzhou, and Beijing being the top five cities for wellness consumption.

Amid the trend of health and wellness, the well-known traditional Chinese medicine service chain management company GUSHENGTANG and Meituan Health have launched a series of online and offline collaborations to promote the high-quality development of traditional Chinese health services. Previously, GUSHENGTANG had utilized "Internet + Medical" to create an integrated "online + offline" platform, bringing renowned medical resources to counties, townships, and villages. Residents in remote areas can consult and follow-up with famous doctors through their phones without leaving their homes. This cooperation will further enhance the digital capabilities of traditional Chinese medicine services.

According to the cooperation agreement, GUSHENGTANG and Meituan Health will upgrade the digital cooperation on the supply side to create an online "convenient clinic." On one hand, over 70 traditional Chinese medicine medical institutions under GUSHENGTANG and more than 30,000 traditional Chinese medicine practitioners will gradually join Meituan. They will provide online registration and consultation services on Meituan and Dianping apps, ensuring a source of expert appointments for platform users and helping users easily access quality traditional Chinese medicine services.

(Meituan app GUSHENGTANG online page)

On the other hand, the two parties will jointly develop online traditional Chinese medicine consultation capabilities and explore a new model of "takeout delivery" for decocting Chinese herbal medicine. With the help of Meituan's instant delivery network, freshly decocted Chinese herbal medicine could be delivered in as fast as 30 minutes, providing users with a more convenient and professional traditional Chinese medicine service experience In offline settings, both parties will innovate new forms of street free clinics such as "Traditional Chinese Medicine Night Market", facilitating the "last mile" of TCM services, allowing consumers to achieve health and wellness at their doorstep.

In addition, GUSHENGTANG will also collaborate with Meituan Medical to integrate online and offline membership service systems, integrating resources to launch co-branded membership cards. In the future, Meituan users can join the GUSHENGTANG membership through the platform, enjoying year-round therapy discounts at GUSHENGTANG stores, priority reminders for famous doctor appointments, discounts on nourishing products such as ointments, and exclusive member benefits.

With the continuous expansion of people's health management needs and policy support, the market for TCM diagnostic and treatment services is growing rapidly. According to the report, by 2023, the number of TCM clinics has increased to 86,317, adding nearly 12,000 more compared to the increase of 3,000 in 2022, quadrupling the number.

Against the backdrop of high market demand, TCM diagnosis and treatment service providers represented by GUSHENGTANG are exploring new developments in digitization, standardization, chain operation, scale, and branding. As of July 2024, GUSHENGTANG has added 16 new branches within the year, with 74 offline clinics covering 20 cities domestically and internationally, continuously expanding the coverage of its offline medical service network.

Zheng Xiang, CEO of GUSHENGTANG TCM Chain Management Group, stated that the cooperation with Meituan this time has opened up a new chapter for GUSHENGTANG to expand its online and offline integrated business model, helping to promote the continuous sinking of high-quality TCM resources and drive the efficient extension of TCM medical and health services to a wider range of users, making high-quality TCM services more accessible.

Li Xiaohui, head of Meituan's Beauty and Medical Aesthetics Business Unit, stated that in recent years, more and more users have actively searched for TCM health services such as massage, cupping, and herbal patches on Meituan, seeking professional doctors. The collaboration with GUSHENGTANG this time is a major milestone for Meituan Medical in the field of TCM services. The platform will continue to deepen its industry presence, innovate supply models with high-quality TCM service institutions, accelerate the industry's standardization and digitization upgrades, and provide professional and reliable TCM health and wellness services for the general health population