00:00Let's just talk first about the company itself so our viewers understand
00:04because you are sort of have this goal to be the Costco of healthcare but what
00:09does that mean exactly? Yeah first, thanks for having me. What the insights
00:14we get from Costco's business model is really our clinic is relatively big, 5,000
00:22square meters. Secondly, we carefully choose what services we provide. We do a
00:28lot of services but we don't do everything. Third, the quality of each
00:33service we provide must be good. Fourth, the price have to be right for the value.
00:40So this is what we got from the Costco's business model. Of course we are in a
00:46different industry. Private healthcare in China, it's been facing some pretty
00:51challenging sort of headwinds I guess you say over the past few years. A lot of
00:55your peers have actually faded out. What is the sort of market demand that you're
00:59seeing now? I think in China the national medical insurance is tightening its
01:08spending. So it impacts mainly our peers who receive revenue from national
01:14insurance. But for us we are a health consumption story. People pay us from out
01:21pocket cash or we get 10% from a commercial insurance company. So that
01:27distinguishes us from many of our peers. What also distinguishes you from peers as
01:34well is some of the expansion that you've done into Singapore, into Malaysia for
01:39instance. Talk us through I guess further plans around that and also just how
01:44you're planning to use the IPO proceeds. As many Chinese companies are going
01:49overseas, we'd like to cautiously expand overseas so we can serve those Chinese
01:57employees locally when they have medical needs. The other side of the story is
02:04really we see more and more foreigners including, sorry, more foreigners and
02:10particularly some Hong Kongers are coming to mainland China for good services at
02:16great price I would say. So with expanding overseas we have kind of brand awareness and
02:26some kind of familiarity for those foreigners who come into China for medical
02:31services. Yeah I mean your clinics are right along the border I believe in
02:34Shenzhen. So yeah. So are you interested in doing this whole medical tourism then
02:41right? Bringing patients to your clinics in China? Is that something that you're
02:44looking at? We do some kind of trend. It's just that it's just started. We'll wait
02:49and see whether this could be a main, you know, main component of revenue or it's
02:54just a phenomenal thing. So I understand there's that two-way street you want to
02:59expand so you can also increase traffic back into clinics, possibly in China. But in the
03:05overseas postings or places, where are you looking at beyond say Singapore and Malaysia?
03:11Do you have other markets that you're targeting? Yes we do. We're going to open a
03:16first multi-specialty clinic in Dubai this year. We'll start from there and see how it works out.
03:24Why target these overseas markets, right? Tell us a little bit more about Singapore, Malaysia, Dubai.
03:30What we can see is really more and more foreigners actually come to China for
03:36tourism or for business. Probably is composed less probably from, to my
03:46understand, is from the traditional Western countries. But many are actually from Southeast Asia,
03:51from Middle East Africa. So our footprint is really where the Chinese companies go and where,
03:57you know, the foreigners are coming to China.
04:01Let's talk about AI as well because I think we've seen huge disruptions this week to some models,
04:08particularly for instance in the legal sector. We saw it in the financial sector overnight and
04:13Anthropic as a company is being clear that it wants to target healthcare as among the industries that they plan to
04:19really focus on essentially. But how are you integrating AI and then what's the role
04:26that you see as well for your business?
04:29We start to benefit significantly from the development of AI technology, in particular,
04:35large language models. So based on the large language models, we build AI applications
04:41that could really help us in two aspects. First is to improve operation efficiency.
04:47We have many, over 50 AI applications like appointment confirmation, like a billing settlement,
04:55like staff scheduling, things like that, which were used to be done by human assistance.
05:01Many of the tasks done by human assistance, by human nurses and even human doctors.
05:07Those tasks can be done by AI now.
05:10So you can see our labor costs as percentage of revenue
05:14was down five percentage points over the last two years.
05:19Second, AI could help us to provide unique user experience,
05:24which is what we just started to roll out this year.
05:29We could give users flexibility to manage the schedule.
05:35For example, they can ask our AI agent,
05:37when is my next full shot?
05:40Okay, those queries, you cannot go to Doubao or GPT
05:46because they don't have personalized information of that.
05:50So things like that will help us really to provide unique user experience in today's year.
05:57And you're backed by Tencent too.
06:00So you've been able to kind of use the Tencent Cloud AI and the like in your operations.
06:05Tell us, what about diagnosis? How does AI help in that?
06:09First of all, we benefit greatly for being within the Tencent ecosystem.
06:15So we use enterprise WeChat to serve our users.
06:21Users can make appointments, teleconsultation or mini programs.
06:26We leverage Tencent's cloud AI capabilities.
06:29We even have partnership with several AI technology companies invested by Tencent.
06:35So we are very grateful to have a substantial shareholder like Tencent.
06:39Okay, so in terms of diagnosis, I think it's probably technology companies job.
06:45As the healthcare company, we more focus on leveraging the technologies
06:51to improve efficiency and offer unique user experience.
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