Yidu Tech Inc. (“Yidu Tech” or the “Company, together with its subsidiaries and consolidated affiliated entities, the “Group”, HKEx: 2158), a healthcare big data and artificial intelligence solutions provider, announced its audited consolidated financial results for the fiscal year ended March 31, 2021 (“FY2021” or the “Period”).
FY2021 Key Highlights
- Total revenue increased 55.4% year-on-year (“YoY”) to RMB867 million:
- Revenue from Big Data Platform and Solutions increased 8.1% YoY to RMB402 million;
- Revenue from Life Sciences Solutions increased 79.3% YoY to RMB184 million;
- Revenue from Health Management Platform and Solutions increased 353.1% to RMB252 million.
- Gross profit increased 123.4% YoY to RMB327 million; gross margin rose 11.5 percentage points YoY to 37.8%.
- Non-IFRS adjusted net loss narrowed by 14.7% YoY to RMB275 million.
- As of March 31, 2021, the Company’s data intelligence infrastructure had covered more than 500 hospitals in over 20 provinces in China, and supported the development of disease registries covering over 50 disease areas to greatly improve the efficiency and effectiveness of the production of research-grade evidence. Nearly one hundred papers have been published based on the Company’s disease registries.
Ms. Gong Yingying (Rujing), Chairlady, CEO and Founder of Yidu Tech, remarked, “As the COVID-19 pandemic (“Pandemic”) brought enormous challenges and uncertainties to the global and Chinese economy, it also underlined the urgent and multi-faceted needs for precise public health management and digital health solutions. FY2021 was an extraordinary year for the Company. Committed to our mission of making precision healthcare accessible to everyone, we continuously enhanced our data intelligence infrastructure and core capabilities in the three major areas of scientific research, diagnosis and treatment, and management, and accelerated the transformation of data to insights to personalized healthcare and efficient clinical development solutions, thereby creating more value for stakeholders across the healthcare ecosystem.”
Rapid growth in revenue and profit driven by favorable policies and continuous technological advances
Yidu Tech works proactively to advance technology and promote innovation in order to address pain points in the digital transformation of the healthcare industry, all while closely adhering to government plans and policies that influence the industry. In FY2021, the Company continued to solidify its healthcare big data infrastructure, YiduCore, while actively expanding new and complementary businesses built upon YiduCore to serve existing and new customers. During the Period, the Company recorded total revenue of RMB867 million, representing a YoY increase of 55.4%, and a gross margin of 37.8%, up by 11.5 percentage points YoY. The quality and efficiency of Yidu Tech’s data processing capabilities continued to improve and as of March 31, 2021, its YiduCore had covered more than 500 hospitals in over 20 provinces.
Yidu Tech continues to enrich its labelling system for various disease areas by collaborating with renowned hospitals and experts, and utilizes symbolic knowledge inference models, deep learning and other AI technologies to constantly refines and qualifies its real-world disease models. To-date, the Company has built disease registries covering over 50 fields of diseases to improve the efficiency and effectiveness of the production of research-grade evidence. Nearly one hundred papers have been published based on the Company’s disease registries. As of March 31, 2021, Yidu Tech had applied for 905 patents (including 552 invention patents), of which 482 patents (including 59 invention patents) had been authorized and approved, demonstrating the continuous enhancement of the Company’s research and development capabilities.
Robust growth across all three key business segments to continue empowering the healthcare ecosystem
Despite the challenges posed by the Pandemic, Yidu Tech delivered strong performance and maintained solid growth in total revenue and gross profit for its three key business segments.
During the Period, the Big Data Platform and Solutions segment recorded total revenue of RMB402 million, representing a YoY increase of 8.1%, and a gross profit margin of 45.1%, up by 11.7 percentage points YoY. As of March 31, 2021, Yidu Tech had provided services and solutions to 76 research hospitals and 19 regulators and policy makers in China.
In the midst of the Pandemic last year, Yidu Tech stood at the forefront in the battle against the outbreak, assisting public health authorities in their efforts to prevent and control the spread of the virus. In particular, the Company received widespread recognition after successfully launching within seven days a pandemic response platform for the Wuhan Municipal Government at the peak of the Pandemic. Furthermore, the Company also developed a COVID-19 disease registry together with a renowned research hospital in Wuhan, and helped more than 50 doctors to conduct scientific and clinical research, and publish papers with the highest impact factor of over 30.
The Life Sciences Solutions segment recorded total revenue of RMB184 million, representing a YoY increase of 79.3%, and a gross profit margin of 21.7%, representing an increase of 8.3 percentage points. The segment experienced rapid growth in customers. As of 31 March 2021, the number of active customers increased by 45.9% YoY to 108, adding 25 new core pharmaceutical, biotech and medical device company customers. The Company also served 15 out of the top 20 global pharmaceutical companies by revenue in 2020.
In addition to expanding the customer base, Yidu Tech also took the efforts to actively enrich its solutions to enhance customer stickiness and expand the wallet share of its customers. During the Period, the overall revenue retention for Life Science Solutions customers was 124%, while the revenue retention for the core pharmaceutical, biotech and medical device company customers was 141%.
The Health Management Platform and Solutions segment recorded total revenue of RMB252 million, representing an increase of 353.1% YoY, and a gross margin of 40.7%. By leveraging the medical knowledge accumulated in YiduCore and AI technologies, Yidu Tech provides evidence-based one-stop health management solutions under the brand of “CausaHealth”. The Company also offers insurance technology and disease management solutions under the brand of “CausaCloud” to insurance companies and agencies. As of the end of the Period, the number of paying users who made at least one purchase on the Company’s health management platform exceeded five million.
On January 15, 2021, Yidu Tech was listed on the main board of the Hong Kong Stock Exchange, which marked a significant step of the Company towards more transparent and standardized corporate governance. Looking forward, Ms. Gong said, “Yidu Tech is still a very young company. We strongly believe in ‘data intelligence and green healthcare’ and will invest relentlessly in strengthening our core capabilities and developing our ecosystem ‘to make value-based precision healthcare accessible to everyone’.”