Research On The Business Model Of Internet Medical Enterprises From The Perspective Of Finance

As President Xi pointed out in his report to the 19 th national congress of the communist party of China(CPC),?The Socialism with Chinese Characteristics has entered a new era.The principal contradiction in our society has been transformed into a contradiction between the people's ever-growing needs for a better life and unbalanced and inadequate development.‘ In addition to food,clothing,housing and transportation,the most important thing in people's life is to see a doctor.Being ?difficult to see a doctor‘ and "expensive to see a doctor" have been livelihood problems that need to be solved urgently,and they are also representative manifestations of the principal contradiction in China's current society.The main reasons behind it are the insufficient amount and uneven distribution of medical resources.On April 28,2018,the general office of the state council issued the opinions on promoting the development of ?Internet + medical and health‘,emphasizing the acceleration of the development of ?Internet + medical and health‘ to ease the difficulty of medical treatment.Internet giants are also jumping into the business.The strong support of national policies and the pursuit of capital market funds all indicate the considerable development prospect of the Internet medical industry,and the recent COVID-19 makes the Internet medical industry the second battlefield of the epidemic war,which attracts much attention.However,with the development of China's Internet medical enterprises,few of them have realized profits,which makes the research on the business model of this industry extremely urgent.Based on theoretical research as a starting point,this paper adopts literature research method,theoretical deduction and induction method,double case contrast analysis,as well as the combination of quantitative and qualitative analysis and other research methods.This paper selects the two most representative leading enterprises in the Internet medical industry,namely Ali Health,a subsidiary of Alibaba Group,and Pingan Good Doctor,a subsidiary of Pingan Group,and analyzes their business models from a financial perspective and combining Internet elements.This can not only help understand its current development status and predict its future development trend,but also further provide enlightenment for the Internet medical industry to choose the business model,promote the development of the whole industry,so as to reduce social medical health problems.Through the literature,this paper found that the business model,financial strategy and related research has not unified and authoritative conclusion.Based on the existing academic views and combined with the research and analysis of this paper,this paper summarizes the whole process of Internet business model,which is to design business model,base on the traffic factor as the main basis for the selection of core business direction,and then develop financial strategy for resource allocation,and finally reflect the enterprise value.Accordingly,this paper proposes the research framework of Internet business model,which is mainly composed of four contents,namely business model,traffic factor,financial strategy and enterprise value.Its logical connection is that the traffic factor affects the choice of core business and financial performance,the business model determines the financial strategy,and the financial strategy reacts back to the business model,all of which jointly determine the enterprise value.The traffic factor is the core non-financial resource in the whole Internet industry.According to the theory of Parenting-Advantage,the traffic factor will affect the choice of the core business.Through calculation,it can be concluded that there is a certain linear relationship between traffic data and financial data.The business model can be divided into two types,respectively revenue driven model and profit driven model.The revenue driven model matches the aggressive investment strategy,while the profit driven model matches the robust investment strategy.Investment strategy can be divided into asset-light mode and asset-heavy mode.According to the principles of risk neutrality and risk hedging,the asset-light mode matches the high-risk financing strategy with low risk,while the asset-heavy mode matches the high-risk financing strategy with high risk with low risk.Finally,under the current valuation method,enterprise value is evaluated by financial indicators.Business model,flow factor and financial strategy all determine enterprise value together by influencing financial indicators.The first part of this paper mainly expounds the research background,significance and purpose,research methods and structural arrangement.The second part will summarize the domestic and foreign literature on business model,financial strategy and so on,and make theoretical analysis.The third part is the specific case analysis,in view of the Ali Health and Pingan Good Doctor,simple elaboration and analysis of related companies first,then the main business income in the profit statement based on structure,gross profit contribution,revenue growth to analyze its business model,and then research the flow factor differences and the impact of the financial strategy of the different business model,the final summary on advantages and disadvantages of the business model and industry enterprises can gain enlightenment.At the end of the paper,the research conclusions are given,and the deficiencies of the paper are analyzed and the future research prospects are discussed.Through case analysis,Ali Health business model,in accordance with the revenue accounted for from big to small in turn is medicine self-management business,medicine e-commerce platform business,consumer medical business,medicine tracing business,innovative business(including the Internet medical and health)wisdom.Ali Health chooses medical electrical business as the core business because of Alibaba Group traffic factor‘s characteristics and the number of active users are linear quantitative relationship with business income.The business model of Pingan Good Doctor is health mall business,consumer medical business,family doctor service business,health management and interactive business in the order of revenue from large to small.Because of the characteristics of the traffic factor of Pingan Group,the family doctor business is selected as the core business,and there is a linear quantitative relationship between registered users and operating income.In each business model,the medicine e-commerce business(including self-run mode and platform mode)and the consumer medical business are revenue driven,which match the aggressive investment strategy.Frequent acquisition,investment and strategic cooperation are behind the high growth rate.Internet medical treatment and smart medical treatment are in the embryonic stage,which belong to the two-wheel drive mode of revenue and profit,and are suitable for the investment strategy combining radical and steady growth,which is also the most suitable and worthy of the attention of the Internet medical industry.In addition,by contrast,Ali Health is inclined to the asset-light model with low risk,matching the high-risk financing strategy.Pingan Good Doctor tends to the high risk heavy asset model,matching the low risk financing strategy.Finally,even if the relative valuation index is flat,the business model,traffic factor and financial strategy still contribute to the increase of enterprise value through the growth of financial performance.