(Yicai Global) Aug. 25 -- Shares in Ping An Healthcare and Technology slumped today after the online healthcare firm under Ping An Insurance (Group) Company of China reported a more than four-fold increase in its net deficit in the first half from a year earlier, but executives say the firm is still on track to break even in three years’ time.

Also known as Ping An Good Doctor, the company’s share price [HKG:1833] closed down 2.75 percent at HKD60.05 (USD7.71). Earlier in the day it sank 4.5 percent to HKD59.

The internet-based healthcare firm racked up losses of CNY879 million (USD135 million) in the six months ended June 30, according to its latest earnings report released yesterday. Revenue jumped 39 percent to CNY3.8 billion (USD586.7 million).

The expanding deficit is in line with the firm’s investment targets and will not dent Ping An Good Doctor’s timetable to break even in 2024 or 2025, Chief Financial Officer Ye Lan said.

The Shenzhen-based company has been investing more in building up its teams of doctors, expanding its client base, better positioning its brick-and-mortar pharmacies, promoting its insurance business and improving its technological capabilities, Ye said.

The number of registered users jumped 18.3 percent last year from the year before to 372.8 million as more people turned to online medical consultations during the Covid-19 pandemic. This increased another 7 percent in the first six months this year.

Editors: Dou Shicong, Kim Taylor