Good morning. Thank you for participating in twenty twenty four and twenty five conference of general health and technology. I am the moderator. I am investor relationship head, Guangyi State Audience. Crystal, please allow me to introduce the leaders who participated in today's conference.
They are Mr. Wu Jun, Senior Vice President of Peony Healthcare and Technology, Peony Healthcare and Technology, Vice President and Chief Financial Officer, Ms. Sang Luo Qi. The meeting consists of two parts. The first part, Mr. Leader will introduce the company's overall strategy, and Mr. Wu Chun will introduce our performance of operating And then we strongly review the company's overall performance and also to review the achievements we have achieved. In the second half of the meeting, the management will answer questions. Please raise your hands.
And for our online investors and analysts, please press 1 to ask questions. Before we start the meeting, I'll read forward looking statements disclaimer for this preponderance, except for statements of historical facts. Total statements made during the presentation and in any positive material constitute forward looking statements or our projections or expectations about future events, including but not limited to forecast, targets, estimates, and the business plan are forward looking statements. These statements involve inherent and unknown risks and uncertainties, many of which are beyond our control that could significantly affect the company's performance, growth trajectory, and actual results. Statements containing words as potential, economic factors, intents, client beliefs, will, may, should, or some expressions are typically indicative of forward looking statements.
Attendees are cautioned that these factors may materially differ from the company's actual future results. The company undertakes no obligation to publicly update or revise any forward looking statements contained in this presentation or related materials due to new information, future events, or otherwise. Please take note of these configurations. Firstly, we are going to ask our Chairman and the CEO of our company, Mr. Lito, to introduce the company's overall operating conditions.
Thank you, moderator. Dear old friends and new friends, good morning to all of you. First of I'd like to welcome you to come to our meeting site and also to join our today's conference 2024 annual results online or offline. Now it is the spring. We can see a very big red.
And let's see here. 2024, it was the year for Ping An Health to pass ten years. And of course, we have difficulties. We have achievements, but still we will forge ahead. We will follow passion and to fulfill our mission and also to be a bridge to connect our patients and doctors and to keep good health of our people.
This is our vision. Our vision is to provide every enterprise with a harmonic workplace, to provide every family with a vacation factor, to provide every user with a safe and healthy life. And also, we feel very proud about our value proposition, flourishing, time saving, and money saving. So as you can see, health care, senior care, this is something about our people's livelihood. That's why we need to follow our party's core to make innovation and to make breakthrough.
So as you can see in the past few months and years and we can see some science and documents to be issued and to connect health and the senior care plus commercial insurance and also to enhance the financial method to be used into the senior care in the year 2024. Also promotes the internet plus senior care and also to have individualized and diversified commercial insurance to meet the needs of health care of people. And also for our state health administration also want to have a WhatsApp for calculation of insurance and commercial insurance which gives us new opportunities. Government also encourage companies to further the supplementary and support medical insurance and also to protect our employees' health which means also bring us a new commercial business. Quality financial will help us to acquire and retain customers.
And also for our customers, they can intuitively feel and sense the warmth of the service so that they will have repeat purchase to improve the value of our customers. And also fast and commercial service, accurate diagnosis, and comprehensive management will help us to have a good governance and also have a good expenditure on claims. As you can see, for the acquisition, client retention, and also for our community health and senior tech system have 1.6 times more contracts and 2.9 times higher AUM. And also we need to achieve a in line growth and also we need to provide whole life cycle experience and also for our retail customers and customers provide us with a quality customer shortage for long term. Ping An has doing the layout of health and also to use AI.
AI powered us to have an Internet and a service network and also to provide us with a foothold for us to use AI. So as you can see, for the corporate, 556,000 help and also we have two forty million retail customers. As you can see, it will provide us to provide differentiated services and to serve up and better. Well, we have a very unique positioning advantage in the past two years. And also we have the transformation of our strategy and also we stick to three plus two plus four model, three players, two for subclass, and four zero two zero services.
And also, as you can see, we provide online and home company delivered services. And also, we have the home based sectors and concierge for the senior care. So as you can see, we have our customers' privacy, time saving, and money saving. So as you can see, for the 2024, we also have multi scenario AI enabled service quality and efficiency improvement. And also will help to make contribution for profit of FN business.
So as you can see, we have more than 2,900 customers and also we use the pickup and also we have the management of the health services. So as you can see, we also have some basic doctors and also we work with Peking University, healthcare department and also we have a token model and also we have the leading like the Ping An Doctor. Home so that Ping An becomes more professional and more efficient to provide the management and also we are in the leading position of the intelligent senior care. So as you can see, house monitoring, home based, senior care, as you can see, we set by step and we consolidate our service. As you can see, we have keep a robust growth in terms of the numbers of the customers we serve.
So as you can see, health care plus the Internet, and as you can see, it it gives us a big challenge by 2024 by the support of our company. And as you can see, we're able to provide seven twenty four timely responding. And, also, we have team m, team e. As you can see, we're quickly in town that customers experience. And also, we have signed more than 2,000 renowned doctors.
So as you can see, we have three hours online. We have covered nearly 4,000 hospitals and 100% top one hospitals. So as you can see, more than 2,000 sectors can cover our customers in different places in China.
We're developing industry standards and have overall comparisons with other competitors and are leading in this space. Home services has exceeded 75%. We've developed a very set of standards, only providing excellent services and connections, but also high quality service that is available. Among them, we have many corporate products as well as other products which are very much preferred by many users. And so, within the reporting period, our company has achieved a turning point for revenue.
Meanwhile, in terms of deepening strategies and scientific innovations, significant achievements have been made. In 2024, we have focused on three other areas. First, accelerated implementations of Strategy two point zero. There's a 17.6% of expanded F and the business and scenarios. And there's 35.9% of enterprises accumulated and served.
Second, AI enabled service quality enabled 62% of the cost reduction. And thirdly, there's an increase in the enhanced service networks in online and off line. Now I will hand over to my colleagues for the following introduction. Thank you very much, Mr. Do, for introduction on strategy of the company.
The reason here company has focused on the two core business and upgrading their service networks and it has developed continuously in terms of healthcare and senior healthcare as well as other business. Now, let's give the floor to President Nancy Kejun to share with us the achievements made in developing core business in the reporting period. Hello, everyone. Now, I'm going to share with you Ping An Healthcare's progress regarding our core business. 2024, our company has accelerated innovation and development.
There are some synergies between banks and other players. Improved the home doctors and the senior care services. We explore more scenarios and development in F. End. There are collaborations between health and claims settlement and medical and health benefits services, insurance plus health and senior care memberships.
There are increasingly more users being served. We extended the clinical yield insurance to other insurance with family doctors, and we serve as critical illness insurance and a million covered medical insurance and with the senior health care services and we also provide service to various kinds of users. We accelerated our competitiveness in insurance products. In 2024, we have developed the claimant services and collaborated with healthcare and taking home doctor as a connection point. Provide online consultations and offline doctor guidance and there's one stop services.
And then also enable or empower those insurance companies to have the secondary claimant rate increase. We have been very proactive in operation, benefiting from all those measures. There's a 9.6% growth of the revenue. And then, the senior care revenue that has reached $280,000,000 We also worked together with Ping An Group and initiated and tried Ping An insurance products. We strengthened the development of clients.
In terms of market exploration, in the second half of twenty twenty four, we worked together with Ping An group and to provide the health care insurance service to corporates.
And by the end of twenty twenty four, '80 '6 percent of the corporate clients accumulated reserves and were acquired from Ping Group channel. Meanwhile, based on our experiences and capabilities accumulated, we also enhanced our expansion, corporate and client base through
P'nine Health and own channels. Have continuously increased our product cross selling for same clients. With the joint efforts of Hinman Group, as well as our own efforts in client management, the members of the Company's Service as well as the business has grown significantly. There's a 2,049 enterprise that accumulated in that third and it reaches 35.9% year on year growth and a 69.7% growth of the end corporate health management business from first quarter of twenty twenty four. In terms of the Home Doctors and the Seniors Care service, we have expanded comprehensively in various areas and we have upgraded the technology doctor team and released a one stop and proactive service platform. Since that time, there are Beijing universities and home doctor authorized professional teams. And The team capabilities have been enhanced comprehensively. There are over 14,000,000 family doctor members on our platform and five times per capita annual usage of a family doctor service is plus 35% from end of twenty twenty three. That means this kind of service has been increasingly acknowledged by users. We have adopted the insurance plus health and senior care memberships and collaborations between health care and the claims settlement and we provide a one stop service to users and guaranteed expansions and business development for institutions and individual clients. We also insist on improving our capabilities online, smart housekeepers and healthcare management programs.
We have continued to provide seven by 24 service a one stop at home senior care service. And we've expanded our business to 75 cities with home based and senior care services, increasing 21 cities from the end of twenty twenty three. And in the Q3, it's going to report that of 2024, Senior Care has contributed significantly to our business. We are also expanding more scenarios in terms of corporate clients. We have also upgraded online services and we have upgraded those three services to online in store, in home, and in company services from four perspectives. Would have cleanings and settled and very quickly we also provide famous doctor consultations as well as other services. Have guaranteed our core business and are being very competitive in the market in terms of in store service. We have many services such as appointment assistance and hospital administration assistance, etc. We also work together with over 4,000 partnered hospitals, and there are 2,000 to 600 partners that track up institutions. Such a network has been upgrading and expanded constantly regarding in home services.
We have over 150 partners, senior care service providers, and we developed a healthcare service and an in home senior care service. Regarding in company service, provide doctors and lecturers and medical health care and also critical illness and risk screening, providing proactive service to all clients. Last but not least, I would like to share with you about our progress regarding AI technology in Parliament. Are over millions of consultations, data online. We have developed Ping An AI Doctor Big Data Model.
We worked with different partners and based on the big model, we leveraged our comprehensive medical models and also develop five benefits and models, integrate them with different services and apply them in the medical consultations and chronic disease management and as well as other services. With the empowerment of AI within the reporting period, the revenues and the efficiencies of different areas have been increased. And while 95% of AI assisted diagnosis accurate rate, and there's 52% of AI driven cuts and family doctors average a service cost per customer, 42% of AI driven cuts and specialists and doctors average service and per customer. With those empowerment by AI, we will continue to expand the coverage and client base and as well as having the database for medical histories. Would also accelerate AIs and technologies in various scenarios and for institutions.
That's a brief introduction on the business development of the company. Thank you very much for your sharing on the core competitiveness in the company. Thank you very much. Now let's welcome our CFO, Ms. Zhang, to share with us the outlines of the performance in 2024.
Dear investors and analysts, everyone, now I'm going to share with you our company performance within the reporting period. Just like our leaders introduced it privately, companies continue to push forward the strategy implementation and emphasize on AI empowerment. Work together with the F and B and the partners, and we've expanded our business continuously and with an increasing penetration rate of our clients. And the companies had a revenue of 3,850,000,000.00, 17 point 2 percent of year on year growth. And have been significant improvement in different areas, in the second half of the year, revenues have had an increase in the $620,000,000,000 yen about 30% of growth.
And we benefit from the collaborations between healthcare and the claim settlement and totally the revenues 3,850,000,000.00, 17 point 2 percent of growth within the reporting period. The gross profit has increased 32.7%. And we have enriched the services for companies. At the same time we have increased the volume based procurement for the company. We have very stable gross margin.
Meanwhile, we have seen more differentiated services benefiting the revenue of the company with the improvement of the efficiency of the label forces, with the AI empowerment. And every year there has been a reduction of $623,000,000 yen There's a 14.4% of expenses as rate saving.
So So now, if you look at our products, what we've found, our healthcare, insurance, product agency, and innovation during the report period. So as you can see, we have achieved the 2 point something billion and also we did the scenario and also we make innovative development. And also we have home vectors and frequency of the service is five. And also we have achieved the healthcare revenue, 2,300,000.0 yen to it. As you can see, because of the fulfillment of our requirements, we have a little bit of growth. But we still achieved the business growth around 30% in terms of senior care. We focus on the senior care concierge and all channel service capabilities. To improve our revenue and we achieved a full fold growth. And also for gross margin, we have achieved 29.1%.
So as you can see, this is the new highlight for the growth momentum. If you look at the channel and we deepen our work collaboration with partners during the reporting period and expand the scenario. So as you can see, we now expect to the savings clients now with coverage of healthcare plus insurance as well to the 22,240,000,000.00 yen meanwhile we developed our health management business and also expand the speed to acquire doctors and also we have achieved the revenue 1,420,000,000.00 yen. So healthcare for the corporate employees, we have seen the growth of 70%. So as you can see, this is a growth rapidly growth market.
So we have greatly achieved our profit status. So after just a moment, as you can see, we have achieved 158,000,000 yen. So in the past year, we continue our investments in AI and to complete the new care scenario. And, also, we see that the management of the end and to expand our network and the layout of the business in the second half of twenty twenty four. R and D, quarter on quarter, has achieved 58,000,000 yen, and the government fee administrative fee is 83,000,000 yen.
So as you can see, we have likely brought our R and D fees and administrative expense. Now we saw the data on medical and the way between medical models. So in the trial diagnosis and the report interpretation and also for the industry, Now we have quickly saved the time. Okay. So this is because of the technology powered and advantage.
So as you can see, the total expenses to 1,900,000,000.0 yen of the business growth and optimize supply chain management. Now we have greatly improved our supply chain settlement and also we upgrade and optimize supply chain. Now we have optimized and also we have a very good way to pursue the growth. So we will continue to adjust our profit. Now, with the quality improvement during the reported period from the revenue to the profit, now we have the turning point.
And also, we're deepening our 2024 strategy. And also, we have achieved a matured business model. As a healthcare technology company, being on healthcare and technology, well, we stick to high quality development. ESG is unsustainable in growth power. So for the company, we make our commitment to have sustainable value for our customers for The Us and and we have provide all scenarios, all life cycle healthcare service so that our customers, they can sense the room and differentiated services.
And also we take a proactive attitude towards Asian society and also we have senior care concierge, home based, dungeon based, and also senior care institutions. So that we guarantee elderly people they have a quality life in order to meet the challenge of Asian society and also we help to build a harmonious society. So our BN corporate, we provide more healthcare services for corporate employees. And also we have different campaigns. We work together with management team of the company to build healthy companies.
Well, last year, we started a literacy workshop for employees. So we will go into the community and companies and we will have house lectures and also we will have house screening program. When we attach great importance on operating, meanwhile, we will improve the health condition for employees to our CN customers. Well, we have live broadcast of renowned doctors. And also, we have inclusive medical service.
We have AI powered accuracy diagnosis. And also, with ESG implementing last April, we have joined the United Nations Global Commitment Organisation. And also we have been upgraded from A to AA and we are top one in healthcare and technology company. ESG has been included and engaged into our innovation and governance of the company We stick to the technology and AI and we will follow through our responsibility in the team and also we will be a benchmark and to have the social significance. This year is the eleventh year for Peanut Health and the technology.
But this is a new beginning of a new tenth year. And also for the business development and ecosystem building and return on shareholders, This will be our target for our hard work. Thank you for patience. Thank you. Now this is the second part, Q and A session for investors and analysts.
If you want to ask questions, please show me your hands. Thank you. I come from Saiqi. I'm from the team and analyst. Thank you, mister and miss Chang.
And miss Chang, thank you for your excellent presentation. First of I'd like to congratulate on your highlights and achievements. I'm very interested in AI, and, also, I'm interested in online in store phone companies delivered. So could you please tell us updates of your AI technologies? And also, could you please tell us versus the medical models for the market, what are your advantage?
And also, another question is about your deployment operation status of online in store home company delivered and other innovative services and products. Thank you. Mr. Jiang, thank you for your questions. Well, I'd like to ask mister Zhou to answer your questions about AI.
And also, miss Jin will answer your questions about online in store home company delivered. Thank you. In the past year, well, I think AI AI is very disruptive. Well, when we talk about application deployment of AI in health care, two aspects. One is computing, algorithm, data, and the other important thing is scenario.
So I think we need to have those abilities and capabilities. So speaking of page eight, Ping An, well, we have the vertical data. Well, in this presentation, we have global leading site databases like disease database, sample diseases, 2,000,000 cases data, and medical literature database. And also, we have 1,440,000,000 consultation data. So those data are proprietary data we have.
It will help us to improve the quality of our AI models. It's also our advantage. Well, when we now we are building our own capability. One is now we apply the rules like the vertical search efficiency, and also we have the knowledge map and also large language model building. Speaking of large language model, for our basic, actually, we self RMD our basic infrastructure.
And also for the logic, for the questioning, and then fencing, we make it more logic. And also, in terms of our business development, we also have the models including Q and A and consultation, conversation between patients and the doctors, and also the paper document generation. So as you can see, based on our five database capability, when we're training the general AI models. And we have our own models. Apart from those models, we also need to rely on our scenarios.
That is why we have generated 19 business scenarios. And also, we have comprehensively applied in our business scenario. Let me give you an example. In my presentation, we also mentioned about claims scenario. In this scenario, we use our knowledge map and also for business logic domain.
As you can see, we use the multi modality so that we're able to tell accurately the intention of our customers. So as you can see, business scenario is very important for insurance company. This is very important and significant. So we have the basic model plus our data plus our business scenarios application. Finally, we have our vertical models in our business.
So as you can see, which help us achieve high efficiency, low cost, and that we are able to find doctors in a more accurate way. We help our doctors to find doctors. Accurate rate is ninety five percent. So as you can see, before, during, after diagnosis, we have a whole chain management. Also, we introduced the Ping An Qi.
This is the new and the real data. So this is the model plus well, the AI. So with the data, and also we have the personalized data of doctors. So for those personalized data, we put it in the medical master model. We train this platform so that we will provide a real diagnosis twenty four hours, seven days.
So also, we will help to interpret the report. So as you can see, we applied those models into our real scenarios so that we're able to empower our business and to enhance customer experience. AI and medical model, our original intention to provide intelligent, efficient services, and to provide convenient services for our customers. So as you can see, accurate rate and professionalism, so five database which have the leading positions, this is our unique advantage. With the help of the database, we're able to produce productivity, flexibility matching.
So by generating models, and we're able to match the model with the business so that we're able to have the fast response to what different diseases and to cover diseases at different stages. Meanwhile, we're able to reduce costs. For the Ping An Medical Master, we developed this platform. We're able to achieve plus So we're able to reduce the cost while improving efficiency. But another thing is we have a scenario advantage for insurance.
As you can see, it is a very deepening and a broadened area. For example, according to the claims data, financial products data, and we're able to have a closer loop data, insurance plus health care. So in a complicated disease, in cross disciplinary consultation, in the future we're able to achieve innovative products, health care plus finance. Finally, for our doctor workbench, you know, health, health, we're able to provide online platform. So for the workbench, so the doctors will provide whole flow services.
When we provide the whole flow of services, we're able to provide end to end advantage. So we are able to offer the whole chain management. This is application and a feature of our AI application. Thank you for sharing. Now I welcome Ms. Jean to share more with us. Thank you for your question. Well, regarding the four in networks, actually, probably, we only have three ins online, in store, in home. And 2024, we have updated to four aspects.
Is an in company service added last year. We have our advantages. We have been we've been very professional in managing those networks. Since last year, based on previous foundation, we have provided those block and box faster as a service. And while in 2024, we have also seen improved efficiency, especially with the empowerment of AI and that there's an enhancement of efficiency by 6250%. By VBP, volume based on procurement and high value for money, we are developing one stop services for clients. Regarding in store, so probably those are the online services and upgrading.
Regarding in store, we have appointment and assistance and hospital administration assistance and accompanying consultations and patient caregiving services. Have upgraded all those services comprehensively. We further expanded our network and coverage. We've invited experts and doctors from top hundred hospitals. We've also expanded our supply network. Regarding in home service, we have developed Peking University system service and to provide service and at home. There is an also the senior care in home service available. There has been over 150 partners, senior care service providers. We have our advantages in providing comprehensive senior care service.
Thirdly, we also lead the development of industry standards. Then, the fourth one, which is an in company service. And with the development and expansion of our service, there are a lot of companies having such requirements as an in company service. We have developed a one on one consultation with a renewed renowned doctors and a one on one consultations with specialist doctors and doctors and lecturers and and the critical illness and risk and screenings. In the past, I'm at four years, and then these are the works and achievements that we've made.
Thank you very much, Souci sharing. Now let's give this floor to online participants.
Now the next question from John from JTI. Hello, everyone. Congratulations on the excellent performance of the company. I'm Chuang. I have two questions for you. Just now, Mr. Do had to share enough with us that we have synergy with Ping An Group.
There have been a lot of favorable policies for us. By taking this opportunity, I would like to ask the question. How did you synergize with Ping An Group? And I I don't know. What's your outlook for future development?
In the next three to five years, Ping An's good factor, what kind of platform you will develop it into? Secondly, just mention by Mr. Dou about the Senior Care Service. Since this is a huge market, in the past several years, there have been attempts in the expansion in providing such services. But this is not that successful, so we would like to understand more about your plans and developments of your senior care as well as the profitability of the senior care service. Thank you, John, for your questions.
Thank you, John. As you know, Ping An's healthcare has been integrated in a statement into Ping An's group. We are working on in-depth empowerment and service and the micro service.
We work together with Ping An Group and insurance service and serve the Ping An Group of customers. So, they have these two hubs to empower more synergized scenarios. We have explained these in privacy, such as an insurance plan to have health and senior care memberships and collaboration between health care and the claims settlement, as well as medical and health benefits services. So, are in power or increasing more scenarios and can also provide personalized benefits and services. We also support claims settlement for healthcare insurance.
And last year, we have served 1,090,000 clients, leveraging high quality source of clients from our group. There's still a lot of potential for us to grow. We developed market networks and developed core products and health care, medicals and senior care so as to have a better synergized development in those areas. So, these are interpretations and our services provided in two different areas. Believe that while we have developed in home doctors and senior care services, our own business will enter into a fast track of growth, and we will be able to empower clients more. So those are our plans for the department. Second question is about our plans for senior care service. This model, or we actually have an in-depth understanding and exploration of the market.
70% of the services will be provided at home and in community, and 70% will be supported by social institutions. Do we provide service in such a way? Because when people come to their time after retirement, and this is the time still are at home. And, currently, there are are gaps in the market. That's why we decided to position ourselves in this way. We provide senior care at home and in committee.
We have a series of service programs that we would focus on those major scenarios. And elderly people often need to see doctors in hospitals and also medical devices that are needed to facilitate screening and maintaining of their health. They need to provide at home treatment and chronic disease management. More than fifty percent of the elderly, they live by their own. And then it's not possible for their children to live together. There's more than 70% of the of the elderly people would have risk for now regarding their health. So we also provide housing services, and we are expanding services in those area.
Caring service amount, there's a sales gap about 6,000,000 among all those forty forty four million healthy people. And more 50 are taken care of by their children and their relatives. The majority of them are taken care of by those health care providers. It's rare to see that they are always being taken care by professionals. Regarding quality and senior care, people have a huge demand for that. Therefore, we have a focus on four scenarios, centering around the elderly people and their families. We are expanding our service in a range from online service to offline and in house services. We are expanding our services continuously. There's a lot of potentials in this area. Hence, by 02/1930, there will be more than 300,000,000 population of men being aged. There is a that are between cities and the rural areas. Therefore, we leverage our advantages and to match demand with supply in a precise way. And our integrated network, we're being very proactive in improving our quality of service. With the net growth of our P9 tools, we provide high quality services to clients. In the past, we have already observed that our growth of different sectors are significant in 2024. We will also leverage advantages and leveraging resources from PNAM Group.
And so we believe that those areas will fail or sectors will still maintain a high growth rate in future.
Thank you very much. Now let's move forward to our audience and then offline. Thank you for the opportunity. And congratulations on the achievements you made in 2024.
I'm Lin Peng, and I have two questions for you regarding financial aspects.
There was a special dividend and a distribution last year. So what was the criteria for such a distribution of dividends? And what are what's the policies for dividends? Now the cash flow has turned positive. Now, what's the plan for cash management or cash use?
And also your plan in investment regarding AI as well as on other service and technologies. You.
Ms. Zhang, please take your question. Thank you, Mr. Wang, for your question. So, first of all, about the special dividend payout.
In past three years, we see the strategy two point zero has been upgraded. In the half year of 2025 2024, we have made positive profits in currency. The capitals are very sufficient for us to expand our business. We also got to know that for investors and they put great emphasis on companies with high growth rate and also dividend paying out. So we have discussed it together with a board member of the board and has had a dividend distribution in November. So in order to meet the requirements of the investors and our operation, we need to improve the utilization of idle capitals and also we need to give returns to shareholders and investors who have been supporting us in for the long time.
We aim to provide a stable and long lasting profit to our investors. And just like in the all the that shareholders, we have dividend.
Ping An Healthcare is in a a high percentage position and flagship service and platform for healthcare and senior care. We're very optimistic about the future development in those areas. We will work together in synergistic way with the young group.
Speaking of the future dividend payout, well, as a platform company, where we achieved profit making, yes, we will make more profit, And, also, we will improve our administrative management. In the future, we will continue to grow our business, grow our profit. And, also, we will continue to pay our shareholders good return. Your second question is about our cash flow and the future investment plan. Yes.
If you look at our operating in the first half, we achieved a positive cash flow, and, also, we have achieved, like, the hundred million. So as you can see, now we're able to make good profit. By the end of last year in reporting period, if you look at the cash flow, cash flow equivalent, and wealth management product, it's 1,300,000,000.00 yen. So in the February and we pay the dividend, and now the cash balance is nearly 9,000,000,000 yen. So we have enough sufficient cash flow to support our investment plan as our operating.
So in the future, we will give the consideration on the capital market and the efficiency for us to use the capital so that we will have the midterm and long term cash flow plan. Well, we have three plan directions. The first direction, yes, M and A and investment. So for the company, we can see the growth. Yes.
The growth will be very important for our strategic growth. Strategic investment is our important plan. So we will continue to watch health care, medicine, and senior care targets so that by using the platform companies, using good asset, so we're able to comprehensive our ecosystem building and to improve our market share. Yes. Also, we welcome you to introduce investment target for us.
And the second direction is health care plus AI. So we keep a close eye on the AI capability building. And what is our differentiated advantage versus other companies for 2024 in AI, large language models, AI, digital operating, digital robots, we have invested over 25,000,000 yen. Yes. We have seen achievements.
So in 2025, we will continue our investment. And in the AI, we will invest over 35,000,000 yuan, and, also, we will continue to empower scenarios. And the third direction is we will focus on our core business in our financial result 2024. Actually, we have invested 90,000,000 yen. Well, also, we focus on the health checkup of companies and also health care plus insurance, product innovation and accuracy, and also the expanding network of our senior care and multi modality service scenarios building.
So we will see the market quickly. So in 2025, in incremental business, we will continue to invest, well, millions of yuan in those important business parts. Thank you. Thank you, miss Zhang. So next question will give Xing Shan.
Give online analyst, UBS. Please raise your question. Thank you, management team. Well, I have two detailed questions. The first question, so I would like our management team to introduce the health care and insurance claims.
Could you please give us some detailed description? And the second question is in the year 2024, I and subscription consumers, we can see some fluctuations. Could you please tell us reason for this kind of ups and downs under the future synergy? Thank you, Harry. Mister Jun?
Well, collaboration between health care plus insurance plus one plus one. So for the medical insurance customers, and we provide proactive services. And, also, we combine online offline survey flow, including following parts. First, well, to report. Well, originally, for our customers, so they dropped their invoices to come to us for claims.
But now we ask them to do the report before the case. Secondly, online medical consultation for the small diseases, diagnosis, prescription, all those kind of things will be done online to improve efficiency. And the third is offline accompany. So to those large hospitals to avoid unreasonable cases. And so rehabilitation and health management, we have personalized case study to reduce the second claim rate.
So as you can see, in terms of services we offer and we empower our services, and we provide quality, proactive services, and we have the whole chain management. Whole chain management will improve health of our customers so our customers can avoid diseases and going to hospital for the second time. And also, for the audit. Audit after something happened now turns into pre report. This is also benefit for improved efficiency of our service.
Thirdly, home chain management, it help us to complete customers portrait so that we're able to get accurate pricing on our product. So the collaboration of health care and insurance, we will achieve those above targets. Second question is about us at end. Subscription, consumer numbers violated in 2024. Please do not worry about it.
This is because we changed subscription model. Our original model was we did benefits, then customer paid. But now, we fulfill our benefit, then customers paid. According to our statistics, maybe you can see dropping of subscription consumers. But you can see the increase of the revenue.
If we cover the benefits of our customers, as you can see, the numbers of our customers clearly rise. So in the collaboration with FN, we like the presentation have made through our home doctors, senior care concierge, and we have the two cohorts. We will cover more customers, and we will provide cost effective service. We have our blockbusters services to enhance the experience of our customers. And also, we acquire our customers, retain our customers to improve the value, to help them to achieve better health, and also to reduce the cost.
Those will be our target so that we will have more scenarios and also for different insurance policy, productive part values, specific to different policy holders, and we will match their requirements to provide a tailored product for them. So as you can see, in the future, we will see a big potential. Thank you. But interest of time, last question. Congratulations.
Thank you, management team, for your presentation. I come from China Vision Capital, Hu Yin. My question is, in the second half, your profitability had some fluctuation. And in the future, we will continue to improve your operating and the reasons for improving operating. Thank you, Ms. Hu. Ms. Zhang. Thank you. In the second half.
Well, as you can see, the expense ratio, well, this is also a good response to your question. Very importantly in some critical business. And also, we have some prospect plan in AI in the year 2024, particularly in the second half. We invested 25,000,000 yen about 25,000,000 yen in our core business development, including employees of the company, check up, collaboration of healthcare and insurance, and also senior healthcare, and also our plan on the multi multi senior care plan. Actually, we have invested over 90,000,000 yen.
So as you can see in the gross margin and in r and d expense, you can see some slight fluctuations. But we also see good achievements through those investments. We are operating efficiency. We have greatly improved efficiency. AI powered for a u we reduced the 52%.
So which help us to improve efficiency and also help us to have the good settlement with our suppliers. So for those investment, we'll give us a long term return. In terms of business development, we do believe that senior care and corporate health checkup will grow. We'll have the big potential in the future. Speaking of the future profitability and the margins with FN operating, life science, and also for the tumor screening and for those kind of AI powered.
And also home based senior care, higher margins, proportion growing, and we will see the growth. For the BN, the product competitiveness, yes, we will improve those high margin business, like health checkup business. And we will see a better product stability in the future. Thank you. Also, I have received the question.
The question is, well, the end second half slowed down. So what is the reason for the slowing down of this b end business? Mister Jun, could you please answer this question? So for the b end, last second half, we can see the slowing down of the revenue because we focus more on the corporate health checkup business development. Second half twenty twenty four, we synergy with the human resources, financial resources, and also we have the China, Ping An, lot insurance, medical insurance.
We want to grab more market. And as you can see, we improve 3040% respectively in terms of the market share. Yes. We will focus on this business in our long term development plan. So for our company, we will focus on corporate health checkup, and we will use the health checkup plan.
And we will help corporate customers, and we will serve our corporate customers better. So as you can see the scale, the scale will reach trillion market. So as you can see, this is a preferred market. Ping An has our first mover advantage. Later, we will continue work together with our group.
And also, we will grab this opportunity. Thank you. Thank you very much. For the interest of time, this is the end of Q and A. Thank you for your questions.
And also, I'd like to thank management for your answering. If you are interested in our information, please browse our website or you can contact our investment relationship department. Thank you. This is the end of our results press conference.