好的，大家晚上好，我是我是郑州宇。感谢大家在百忙之中抽出时间来参加今天迪安诊断 的这个交流。今天我们也是非常荣幸请到公司的首席信息官吴总，包括公司的首席 AI 科学 家王总、董秘陶总，正在朱总来给咱们去做这样一个交流。也也是给大家去讲一下公司在 AI 医疗方面的布局与展望，以及最近的一些经营情况的一些介绍。首先还是先把同时跟我 一起主持的还有我的同事医药研究员任新平，以及我们山西证券计算机行业的首席分析师 方文谦老师，来跟大家一起做这个交流。 首先还是把时间交给吴总来给我们去先做一个 PPT 的一个讲解。接下来就放开咱们这个投 资者的提问。 发言人 4 0:01:06 好的，谢谢邓总。各位投资者朋友，大家晚上好哈那也很高兴能够有一次的机会跟大家分 享一下，我们迪安诊断从过去几年开始的在 AI 医疗领域的一些业务布局，跟未来的一些商 业化的一个展望。今天我的介绍可能主要是从几个方面。首先第一个，第一步我可能会跟 大家分享一下，就是我们迪安在，因为大家可能都知道，我们迪安实际上是一个医学诊断 的一个综合解决方案的一个提供商。所以围绕着聚焦在我们迪安的主业，就是我们在诊断 治疗这个领域。 我们 AI 的一些一些已经 ...

Summary of Conference Call Company and Industry Involved - The conference call primarily discusses the advancements and strategies of a company involved in medical diagnostics, particularly focusing on AI applications in pathology and health management. Key Points and Arguments AI in Diagnostics and Treatment - The company is leveraging AI technology in pathology to enhance drug development processes, particularly in clinical testing and analysis [1] - Collaborations with leading hospitals, such as Huazhong University of Science and Technology, are aimed at developing predictive models for chronic diseases like chronic leukemia [2] - The company has established a Chronic Leukemia Discontinuation Alliance to promote predictive models in treatment [3] - A strategic partnership with Huawei focuses on AI health management, utilizing health data to generate risk assessments for major diseases [4] Health Management Applications - The AI health management system aims to provide personalized health promotion and risk assessments based on individual health data [5] - The company is developing a comprehensive AI-driven health management tool that can be utilized by both patients and healthcare providers [11] Data and AI Model Development - The company has built a robust data platform that integrates extensive medical testing data for AI training and model development [8] - A new AI model named "启迪索威" is being developed, focusing on multi-modal applications in medical diagnostics [10] - The company emphasizes the importance of data quality and governance in AI model training, having processed approximately 60 million valuable samples for research and AI learning [14] Market Strategy and Commercialization - The company has signed agreements with over 70 hospitals in Hubei for AI pathology services, achieving a market share of approximately 70% in that region [29] - The pricing strategy for AI pathology services is competitive, with costs ranging from 60 to 300 RMB per test, reflecting the value of AI in enhancing diagnostic accuracy [44] - The company aims to expand its market presence by promoting AI solutions in collaboration with government initiatives and healthcare institutions [19][20] Future Outlook - The company is optimistic about the growth of AI applications in healthcare, particularly in diagnostics and health management, as the technology becomes more accessible [40] - There is a focus on developing digital products as part of a five-year strategic plan, with an emphasis on integrating AI into existing healthcare solutions [41] Challenges and Industry Dynamics - The medical diagnostics industry is experiencing significant changes, with a notable number of companies exiting the market, leading to increased competition and consolidation [49] - The company is prepared to adapt to regulatory changes and market demands, ensuring compliance and maintaining a competitive edge [48] Other Important but Overlooked Content - The company has a dedicated AI research team, including experts from various fields, to enhance its technological capabilities [6] - There is a strong emphasis on collaboration with external experts and institutions to drive innovation in AI applications [7] - The company is also exploring the potential for data monetization through compliance with legal and regulatory standards [16][17] This summary encapsulates the key discussions and insights from the conference call, highlighting the company's strategic initiatives, market positioning, and future outlook in the medical diagnostics industry.

Investment Rating - The report assigns a "Buy" rating to the company, indicating a potential upside of 15% to 35% [5][10]. Core Insights - The company is expected to report a net loss of RMB 270 million to 370 million in 2024, primarily due to significant impairment losses on receivables and goodwill [8]. - The company is building an AI ecosystem for diagnostic and treatment services, leveraging its own computing power and cloud resources [8]. - The forecasted net profits for 2024, 2025, and 2026 are RMB -340 million, RMB 650 million, and RMB 720 million, respectively, with an expected EPS of RMB -0.55, RMB 1.03, and RMB 1.15 [8]. Financial Summary - The company's revenue is projected to decline from RMB 12,172 million in 2023 to RMB 12,741 million in 2025, before increasing to RMB 13,317 million in 2026 [13]. - The net profit for 2023 is expected to be RMB 307 million, with a significant drop to RMB -344 million in 2024, followed by a recovery in subsequent years [7][13]. - The company's total assets are expected to decrease from RMB 17,939 million in 2023 to RMB 16,485 million in 2024, before gradually increasing to RMB 19,466 million by 2026 [13].

Summary of the Conference Call Company and Industry Overview - The conference call focused on **Dian Diagnostics**, a comprehensive medical diagnostic service provider, discussing its advancements in **AI** and future commercialization prospects in the healthcare industry [1][2]. Key Points and Arguments AI Development and Applications - Dian has established a specialized AI company, **Yicai Technology**, focusing on pathology, leveraging over **100,000 pathology samples** for AI applications [2][3]. - In **2023**, Dian obtained a Class II medical device certification for its digital products and is in the process of acquiring a Class III certification, expected by **June 2025** [3]. - The company has partnered with **70+ local hospitals** in Hubei to create a digital pathology service system, achieving a **70%** implementation rate in the region [3]. - Over **3 million AI pathology diagnostic reports** have been provided to various hospitals and clients [3]. Treatment Innovations - A strategic collaboration with **Wuhan Tongji Medical College** focuses on developing a predictive model for chronic myeloid leukemia (CML) treatment, which has been presented at the **American Society of Hematology** [4][5]. - The predictive model aims to determine whether patients can reduce or stop medication, enhancing treatment efficiency and reducing costs [5][36]. Health Management and Personalized Medicine - Dian is integrating AI into personalized healthcare management, utilizing health data from wearable devices and health reports to generate health promotion documents and risk assessments [6][7]. - The company is developing precision diagnosis centers in collaboration with hospitals to enhance personalized medical services [6]. AI Ecosystem and Team Development - Dian has built a robust AI ecosystem, including a team led by **Dr. Wang Yu**, previously from Alibaba's DAMO Academy, focusing on medical imaging AI [8][9]. - The AI infrastructure includes partnerships with **Huawei** and **Alibaba Cloud** for computational resources, and a proprietary big data platform with nearly **60 million samples** for disease and discipline tagging [10][15]. Data Security and Compliance - Dian has received certifications for data security management, including **ISO 27001** and **DSM**, ensuring compliance with data protection regulations [17][18]. - The company emphasizes the importance of data quality and quantity in AI model development, with a focus on maintaining patient privacy and data security [49]. Commercialization Strategies - Dian's AI business model includes various revenue streams, such as AI-enhanced diagnostic products, health management tools, and data services for healthcare institutions [31][34]. - The company is exploring partnerships with external software providers to integrate AI tools into healthcare practices [32]. Future Outlook - The management expressed optimism about the future growth of AI applications in healthcare, emphasizing the potential for AI to enhance existing services and create new business opportunities [40][54]. - The focus remains on leveraging Dian's unique data resources and industry expertise to drive innovation and improve patient outcomes [53][54]. Other Important but Overlooked Content - The call highlighted the challenges of AI implementation in healthcare, including the need for significant computational resources and the fragmentation of medical data across various institutions [51][52]. - There is a recognition of increasing competition in the AI healthcare space, prompting Dian to focus on its unique strengths and customer base [53]. This summary encapsulates the key discussions and insights from the conference call, providing a comprehensive overview of Dian Diagnostics' current position and future strategies in the AI healthcare landscape.

Financial Performance - The estimated net profit attributable to shareholders for 2024 is expected to be a loss of between 27 million and 37 million yuan, compared to a profit of 30.75 million yuan in the previous year[3]. - The estimated net profit after deducting non-recurring gains and losses is expected to be a loss of between 30 million and 40 million yuan, compared to a profit of 29.48 million yuan in the previous year[3]. - Non-recurring gains and losses are expected to impact the net profit attributable to shareholders by an amount between 20 million and 50 million yuan, mainly from government subsidies and asset disposal gains[6]. Client and Revenue Insights - The company reported a significant increase in the number of new clients, with an operating cash flow of approximately 1.2 billion yuan during the reporting period[5]. - The overall operating revenue is under pressure due to slowing market demand and intensified industry competition[5]. Impairment Provisions - The annual provision for credit impairment losses is estimated to be between 450 million and 500 million yuan due to extended collection periods for some accounts receivable[6]. - The company anticipates goodwill impairment provisions of between 350 million and 420 million yuan due to underperformance of certain subsidiaries[6]. Strategic Focus - The company is focusing on enhancing supply chain efficiency, maximizing human resource effectiveness, and digital transformation to support sustainable development[5]. - The company is increasing R&D investment in key disease testing projects and expanding into emerging markets such as Guangdong and Vietnam[6]. Accounting Communication - The company has communicated with its accounting firm regarding the financial data related to the earnings forecast, and there are no discrepancies[4].

Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for future performance [5]. Core Views - The company has faced significant pressure on its performance in the first three quarters of 2024, with a revenue decline of 10.05% year-on-year and a net profit drop of 75.35% [2][5]. - Despite the challenges, the company is expanding its precision centers and accelerating international exploration, which may provide a second growth curve [5][4]. - The improvement in operating cash flow is notable, with a shift from negative to positive cash flow in the reporting period [3]. Summary by Sections Financial Performance - In the first three quarters of 2024, the company reported revenue of 9.258 billion yuan, a decrease of 10.05% year-on-year, and a net profit of 131 million yuan, down 75.35% [2]. - The gross margin for the first three quarters was 28.05%, a decline of 4.76 percentage points compared to the previous year, while the net margin was 3.27%, down 4.42 percentage points [3]. Cost Management - The sales expense ratio increased to 9.47%, up 0.85 percentage points year-on-year, while the management expense ratio decreased to 5.91%, down 0.41 percentage points [3]. - The company has focused on improving cash flow management, resulting in operating cash flow of 54 million yuan at the end of the reporting period [3]. Strategic Initiatives - The company has added 4 new precision centers in Q3 2024, bringing the total to 84, with 52 centers already profitable [4]. - The international expansion includes the opening of a laboratory in Vietnam, which is expected to contribute to overseas growth [4]. Future Projections - Revenue projections for 2024-2026 are estimated at 12.683 billion yuan, 13.717 billion yuan, and 14.735 billion yuan, respectively [5]. - The adjusted net profit forecasts for the same period are 261 million yuan, 501 million yuan, and 682 million yuan, reflecting a downward revision due to declining gross margins [5].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has shown improvement in cash flow, with the ICL business expanding internationally, opening new opportunities [1] - The company reported a slight pressure on performance due to a complex industry environment, with a year-on-year revenue decline of 11.89% in Q3 [1] - The cash flow situation has improved, with a net cash flow from operating activities of 54 million, recovering from a negative cash flow in the previous half [1] Financial Performance Summary - For the first three quarters of 2024, the company achieved revenue of 92.58 billion, a year-on-year decrease of 10.1%, and a net profit attributable to shareholders of 1.31 billion, down 75.4% [1] - The gross profit margin for Q1 to Q3 2024 was 28.05%, an increase of 4.76 percentage points year-on-year, while the net profit margin was 3.27%, a decrease of 4.42 percentage points year-on-year [1] - The company’s revenue for Q3 was 30.40 billion, with a net profit of 0.59 billion, reflecting a year-on-year decline of 23.81% [1] Future Projections - The company is expected to achieve total revenue of 126.70 billion, 133.22 billion, and 142.51 billion for the years 2024, 2025, and 2026 respectively [2] - The projected net profit attributable to shareholders for the same years is 3.27 billion, 6.13 billion, and 8.10 billion, indicating a significant recovery in profitability [2] - The gross margin is expected to stabilize around 27.8% in 2024, with gradual improvements in subsequent years [3] Cash Flow and Financial Ratios - The operating cash flow is projected to improve to 1.92 billion in 2025 and 2.30 billion in 2026 [4] - The company’s debt levels are expected to decrease, with a net debt ratio projected to drop to 65.7% in 2024 and further to 48.8% by 2026 [6] - The return on equity (ROE) is anticipated to rise from 4.2% in 2024 to 8.8% in 2026, reflecting improved profitability [6]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The report indicates that the company's fundamentals have bottomed out, with expectations for continued improvement in profitability and operating cash flow [1] - The company has faced challenges due to multiple factors including medical reforms, pricing adjustments, and market competition, but is expected to stabilize and recover in the future [1][2] - The report highlights a significant improvement in operating cash flow and effective management of accounts receivable, which is anticipated to continue [1] Financial Performance Summary - **Revenue Forecasts**: - 2022A: 20,282 million - 2023A: 13,408 million (down 34% YoY) - 2024E: 12,671 million (down 5% YoY) - 2025E: 12,965 million (up 2% YoY) - 2026E: 13,385 million (up 3% YoY) [1] - **Net Profit Forecasts**: - 2022A: 1,434 million - 2023A: 307 million (down 79% YoY) - 2024E: 335 million (up 9% YoY) - 2025E: 620 million (up 85% YoY) - 2026E: 885 million (up 43% YoY) [1] - **Earnings Per Share (EPS)**: - 2022A: 2.29 - 2023A: 0.49 - 2024E: 0.54 - 2025E: 0.99 - 2026E: 1.42 [1] - **Cash Flow**: - Operating cash flow is expected to improve significantly, with a net cash flow from operating activities of -0.12 billion in Q3 2024, indicating a recovery trend [1] Business Segment Performance - The report notes that the company's routine testing business is expected to see rapid growth, with a focus on enhancing its product offerings and stabilizing its market position [1] - The ICL business segment has shown a decline in revenue but is projected to stabilize as demand for diagnostic services recovers [1][2] Strategic Initiatives - The company is actively expanding its precision center strategy and accelerating its overseas operations, with new laboratories opening in Vietnam to tap into international markets [1][2] - The report emphasizes the importance of managing accounts receivable effectively to mitigate risks associated with bad debts [1]

Investment Rating - The report maintains a "Recommended" rating for the company [1]. Core Viewpoints - The company's diagnostic services continue to face pressure, with a significant impact on apparent performance due to impairment provisions. In Q3 2024, the company reported diagnostic service revenue of 1.155 billion, with ICL business revenue at 1.048 billion. The willingness to outsource remains affected by industry restructuring, rapid DRG advancement, and competition [1]. - The core strategic business is progressing steadily, with lean management contributing to future growth. The company has deepened its precision center, collaborative construction, discipline development, and group-level client expansion, adding 4 precision centers in Q3, totaling 84, with 52 achieving profitability in the same year. Q3 business revenue grew by 27.8% year-on-year [1]. - The company is a leading third-party medical testing service provider in China, with integrated "product + service" development. As the national layout improves, operational efficiency increases, and the proportion of special inspections rises, core business is expected to grow steadily in the long term. The profit forecast for 2024-2026 has been adjusted to 309 million, 612 million, and 861 million, with corresponding EPS of 0.49, 0.98, and 1.38 yuan, reflecting a PE of 26, 13, and 9 times for 2024-2026 [1]. Financial Summary - For the first nine months of 2024, the company achieved revenue of 9.258 billion (down 10.05%), net profit attributable to shareholders of 131 million (down 75.35%), and operating cash flow of 54 million (down 85.22%). Q3 2024 revenue was 3.040 billion (down 11.89%), with net profit of 59 million (down 23.81%) [1][4]. - The financial forecast indicates a revenue decline of 33.89% in 2023, followed by a projected decrease of 10.57% in 2024, with a gradual recovery expected in subsequent years [4][8].

Financial Performance - Revenue for the third quarter was RMB 3.04 billion, a decrease of 11.89% year-over-year[2] - Net profit attributable to shareholders was RMB 59.11 million, down 23.81% year-over-year[2] - Operating cash flow for the first nine months was RMB 54.2 million, a significant decrease of 85.22% year-over-year[2] - Total assets decreased by 4.81% to RMB 17.08 billion compared to the end of the previous year[2] - Net profit for the quarter decreased to 302.68 million yuan, down from 791.43 million yuan in the same period last year[18] - Sales revenue for the quarter was 9.42 billion yuan, compared to 11.78 billion yuan in the previous year[19] - Operating cash flow for the quarter was 54.20 million yuan, a significant drop from 366.81 million yuan in the same period last year[20] - The company's operating income for the current period was 9,258,110,867.57 yuan, compared to 10,292,194,930.88 yuan in the same period last year[17] - The company's operating costs for the current period were 8,491,254,006.48 yuan, compared to 8,977,566,104.97 yuan in the same period last year[17] Revenue Breakdown - Diagnostic services revenue reached RMB 1.155 billion, with ICL business contributing RMB 1.048 billion[5] - Channel product business revenue was RMB 1.912 billion, while proprietary product revenue was RMB 86 million[5] Expansion and Investments - The company added 4 new precision centers in Q3, bringing the total to 84, with 52 already profitable[6] - International expansion continued with the opening of a testing laboratory in Vietnam[6] - Long-term equity investments increased by 46.71% to RMB 983.57 million due to the acquisition of equity in an associate[5] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period is 39,463[7] - Chen Haibin, a domestic natural person, holds 26.31% of the shares, totaling 164,438,933 shares, with 123,329,200 shares under restricted sale[7] - Hong Kong Securities Clearing Corporation, an overseas legal entity, holds 3.90% of the shares, totaling 24,355,573 shares[7] - China Bank Limited - Huabao CSI Medical ETF holds 2.73% of the shares, totaling 17,079,326 shares[7] - Hangzhou Dian Holding Co., Ltd., a domestic non-state-owned legal entity, holds 1.70% of the shares, totaling 10,636,390 shares[7] - Xu Min, a domestic natural person, holds 1.60% of the shares, totaling 10,007,933 shares[7] - Morgan Stanley & Co. International PLC, an overseas legal entity, holds 0.78% of the shares, totaling 4,854,440 shares[7] - BNP Paribas - Own Funds, an overseas legal entity, holds 0.77% of the shares, totaling 4,793,600 shares[7] - Cai Ziwei, a domestic natural person, holds 0.74% of the shares, totaling 4,596,900 shares[7] Share Repurchase and Capital Reduction - As of September 30, 2024, the company has repurchased 13,406,000 shares, accounting for 2.14% of the total shares, with a total transaction amount of RMB 193,590,266[12] - The company plans to change the use of repurchased shares from "employee stock ownership plan or equity incentive" to "cancellation and corresponding reduction of registered capital," resulting in the cancellation of 1,918,600 shares and a reduction in total shares from 626,898,036 to 624,979,436[13] Financial Position - As of September 30, 2024, the company's monetary funds decreased to 1,370,982,095.00 yuan from 2,973,332,466.18 yuan at the beginning of the period[14] - The company's accounts receivable increased to 8,366,381,925.24 yuan from 8,054,200,551.87 yuan at the beginning of the period[15] - The company's inventory increased to 1,797,893,772.68 yuan from 1,508,948,754.81 yuan at the beginning of the period[15] - The company's total assets decreased to 17,075,684,838.18 yuan from 17,939,311,256.63 yuan at the beginning of the period[15] - The company's total liabilities decreased to 7,597,898,943.63 yuan from 8,034,531,783.60 yuan at the beginning of the period[16] Expenses and Income - R&D expenses decreased to 225.28 million yuan from 320.48 million yuan in the previous year[18] - Management expenses were reduced to 547.06 million yuan from 650.88 million yuan in the same period last year[18] - Investment income for the quarter was 9.18 million yuan, up from 632,086.78 yuan in the previous year[18] - Income tax expenses decreased by 47.18% to RMB 121.49 million due to lower profit[5] Cash Flow - Cash received from selling goods and providing services was 9.42 billion yuan, down from 11.78 billion yuan in the same period last year[19] - Cash paid for goods and services was 6.43 billion yuan, compared to 7.54 billion yuan in the previous year[20] - Cash paid to employees decreased to 1.62 billion yuan from 2.03 billion yuan in the same period last year[20] - Cash received from investment activities was 569.13 million yuan, down from 948.12 million yuan in the previous year[20] - Net cash flow from investment activities was -622.52 million yuan, a decrease of 85.5% compared to the previous period's -335.63 million yuan[21] - Cash received from investments was 53.12 million yuan, a decrease of 3.8% compared to the previous period's 55.20 million yuan[21] - Cash received from borrowings was 1.43 billion yuan, an increase of 37.5% compared to the previous period's 1.04 billion yuan[21] - Total cash inflow from financing activities was 1.66 billion yuan, an increase of 17.9% compared to the previous period's 1.41 billion yuan[21] - Cash paid for debt repayment was 1.53 billion yuan, a decrease of 41.5% compared to the previous period's 2.62 billion yuan[21] - Cash paid for dividends, profits, or interest payments was 654.08 million yuan, an increase of 62.5% compared to the previous period's 402.56 million yuan[21] - Total cash outflow from financing activities was 2.68 billion yuan, a decrease of 20.3% compared to the previous period's 3.36 billion yuan[21] - Net cash flow from financing activities was -1.02 billion yuan, an improvement of 47.7% compared to the previous period's -1.96 billion yuan[21] - Net increase in cash and cash equivalents was -1.60 billion yuan, an improvement of 17.1% compared to the previous period's -1.93 billion yuan[21] - Ending balance of cash and cash equivalents was 1.35 billion yuan, a decrease of 39.1% compared to the previous period's 2.22 billion yuan[21] Shareholder Pledges - The company's actual controller, Mr. Chen Haibin, and his concerted parties have pledged a cumulative 18.40% of the company's total shares, accounting for 65.69% of their holdings as of September 30, 2024[13]