Yidu Tech Announces Annual Results for Fiscal Year 2022: Delivering Strong Growth in All Three Business Segments and Enhancing Healthcare Intelligence Infrastructure

HONG KONG, June 27, 2022 – Yidu Tech Inc. ("Yidu Tech", together with its subsidiaries and consolidated affiliated entities, the “Group”, HKEx: 2158), a leading company in China’s healthcare intelligence industry, announced its annual results for the fiscal year ended March 31, 2022 (“FY2022” or the “Reporting Period”). During the Reporting Period, the Group's overall revenue continued to improve, with total revenue reaching RMB1,237 million, up 42.7% year-on-year (“YoY”), and gross profit increasing 22.0% YoY to RMB399 million. Since the fiscal year 2019, Yidu Tech has maintained considerable revenue and gross profit growth for three consecutive years.

With YiduCore, a healthcare intelligence infrastructure, as its core, Yidu Tech has made significant breakthroughs in public health, research, and diagnosis and treatment scenarios by deepening and enriching its insights into various disease areas through independent innovation. According to the "Healthcare Intelligence Market White Paper" released by Frost & Sullivan, Yidu Tech has the largest market share in the “total healthcare intelligence market”, the “medical institutions and regulators healthcare intelligence market” and the “emerging healthcare intelligence market” in China, leading the healthcare intelligence industry.

Ms. Gong Yingying (Rujing), Chairlady, CEO and Founder of Yidu Tech, remarked, "Over the past year, Yidu Tech committed to independent innovation and continued to lead the increasing intelligent and efficiency enhancement on the healthcare supply side, achieving significant strategic results under the guidance of its long-term goal of making precision healthcare accessible. We believe that with the support of the digital economy policies, the value of innovative technologies such as artificial intelligence (“AI”) and big data will continue to be highlighted. Going forward, Yidu Tech will adhere to its mission of making value-based precision healthcare accessible to everyone and strengthen its core technology capabilities and ability to cultivate the healthcare ecosystem, thereby creating long-term value for the healthcare intelligence industry."

Achieving synergies among the three business segments with a focus on specific disease areas

Since the fiscal year 2019, the three business segments of Yidu Tech have maintained rapid growth for three consecutive years. In FY2022, the Group continued to perform well, driven by efficient and synergistic development.

The Big Data Platform and Solutions segment continued to grow during the Reporting Period, with revenue up by 10.7% YoY to RMB445 million with a gross margin of 43.3%. As of March 31, 2022, Yidu Tech provided data intelligence platforms and data analytics-driven solutions to 82 leading research hospitals and 26 regulators and policy makers in China. As the value of digital technologies and AI to enable public health management has become increasingly apparent, the effectiveness and accuracy of Yidu Tech’s pandemic response and prediction algorithms have been verified in 18 cities. In addition, the public health solutions that Yidu Tech offers have been expanded from pandemic response to coping with all of the 40 infectious diseases defined by the Chinese Center for Disease Control and Prevention (“China CDC”).

Meanwhile, Yidu Tech focused its efforts on specific disease areas. In the field of solid tumors, the Group’s disease registries have covered more than 20 cancer types, including 9 of the 10 most common cancers in China. In terms of ophthalmology, the Group won a contract to construct the National Clinical Research Center (“NCRC”) of the Eye Hospital of Wenzhou Medical University, and has partnered with leading eye hospitals in North, East and South China. In the area of hematologic disease, the Group has partnered with two of the country’s only three hematologic disease NCRC hospitals to develop national disease registries. In terms of promoting real-world studies, Yidu Tech has built the Hainan Boao Lecheng Real-World Data Clinical Research Platform (Phase I), which commenced trial operations in January 2022, to accelerate the approval of fast-track drugs and devices that are urgently needed in China for clinical purposes, and facilitate researchers and regulators to generate and evaluate the validity and safety of evidence in a real-world clinical setting.

The Life Sciences Solutions segment maintained strong growth during the Reporting Period, with revenue reaching RMB359 million, a significant increase of 95.0% YoY, and a gross margin of 24.7%. As Yidu Tech empowers an increasing number of projects of all types, the Group has earned a good reputation in the life science industry, which is evidenced by its ability to engage a variety of clients. During the Reporting Period, the number of active clients grew to 141, and the number of core pharmaceutical, biotech, and medical device company customers increased to 107. The overall revenue retention rate for all clients was 122%, while the revenue retention of the core pharmaceutical, biotech, and medical device clients was 130%. Among the Group’s top 20 clients, there are 8 international pharmaceutical companies and 13 listed companies. The Group is deeply involved in the areas of solid tumor, ophthalmology, and hematologic disease, and has obtained multiple Phase III and Phase IV clinical trial contracts. The Group has proven capabilities in generating high-quality real-world evidence to empower life science clients to manage and optimize the entire product life-cycle, from obtaining drug approval, peri-launch evidence support, post-marketing growth, to label extension.

The Health Management Platform and Solutions segment grew significantly in FY2022, with revenue amounting to RMB425 million, up 68.5% YoY, and a gross margin of 27.7%. During the Reporting Period, the Group continued to increase its market penetration of the “Hui Min Bao” business and has served 1 province and 9 cities, for a total of 22 cities, including Jiangsu province (all of 13 prefecture-level cities), Beijing and Ningbo, increasing the affordability for patients. Regarding the Diabetes Program of this segment, the Group has established and validated the quantitative models for reducing glycosylated hemoglobin (“HbA1c”) through automated patient management, and achieved an average reduction of HbA1c by approximately 1% after twelve weeks of intervention. At the end of the Reporting Period, the number of active users who completed at least one transaction on Yidu Tech’s health management platform reached 12 million, more than doubling the approximately 5 million users as of March 31, 2021.

Increasing investment in research and development (“R&D”) and innovation to strengthen the core infrastructure strengths

Technological innovation is the driving force behind a country’s continuous economic development and the core competitiveness of enterprises. As a leading company in the healthcare intelligence industry, Yidu Tech empowers the digital transformation of the healthcare industry along the entire supply chain with its AI and big data technologies. During the Reporting Period, the Group's R&D expenses increased by 66.2% YoY to RMB369 million, accounting for 29.8% of total revenue.

Independently developed by Yidu Tech, YiduCore, the healthcare intelligence infrastructure, consists of algorithms and insightful medical knowledge that are continuously accumulated and rapidly iterated as the Group expands its use-case scenarios under proper authorization. As of 31 March 2022, YiduCore had covered over 800 hospitals, and the number of diseases covered by its disease knowledge graphs had exceeded 9,000, with its disease registries covering 60 disease areas. In addition, nearly 140 papers on its disease registries and data intelligence platforms have been published in prestigious journals, including Nature Medicine and Lancet Oncology, thereby effectively helping hospitals and experts accelerate the production of research-grade evidence and scale up their clinical research in a faster and safer manner.

Leveraging YiduCore’s modelling and technical capabilities, Yidu Tech has undertaken 6 national projects sponsored by central government authorities such as the Ministry of Science and Technology of the People’s Republic of China (“MOST”). In particular, the Group is also working with partners including Tsinghua University and the China CDC to develop an intelligent application to cope with major global outbreaks of infectious diseases, which has been listed as a “New Generation Artificial Intelligence” program by the MOST. In terms of R&D and independent innovation, as of March 31, 2022, the Group’s Medical Data Intelligence Platform and Disease Registry Intelligent Research Platform have been certified by the China Information Technology Security Evaluation Center, making it the only healthcare technology company in China that has passed the authoritative national-level certification. In terms of privacy protection, Yidu Tech is one of the only three healthcare technology companies in China that were certified by the China Academy of Information and Communications Technology for its multi-party secure computation and federated learning capabilities. Looking ahead, the Group will continue to adhere to data security compliance requirements and help its customers apply high-quality data in different use-case scenarios in a safe and compliant manner.

In recent years, China has been increasing its investments in digital infrastructure. According to the “14th Five-Year Plan”, China’s digital economy is expected to account for 10% of GDP in 2025. According to the Frost & Sullivan Report, the market size of China’s healthcare intelligence industry is expected to exceed RMB1.1 trillion in 2030. Overall, the healthcare intelligence industry has a vast growth potential. Going forward, with the national strategy focusing on high-quality development driven by innovation, Yidu Tech will strive to utilize big data and AI technology to bring forth “green healthcare” and move towards the Group's mission of making value-based precision healthcare accessible to everyone.

About Yidu Tech Inc.

Founded in 2014, Yidu Tech Inc. ("Yidu Tech", stock code: 2158.HK) has been focusing on the development and application of healthcare intelligence since its inception. The Group focuses on solving the pain points of intelligent applications in the three major healthcare scenarios of public health, research, and diagnosis and treatment, empowering the industry through healthcare intelligence infrastructure, and promoting the construction of a safe, accessible, and value-based healthcare system. In January 2021, Yidu Tech was successfully listed on the Main Board of the Hong Kong Stock Exchange.

Yidu Tech primarily operates in three business segments, namely Big Data Platform and Solutions, Life Sciences Solutions, and Health Management Platform and Solutions, which facilitate medical and clinical research, health management, public health management and development of innovative drugs, as well as assist the industry in reducing cost and improving efficiency, with an aim to make value-based precision healthcare accessible to everyone.