Chenxi Health Secures Over RMB 1 Billion in Series A Funding to Accelerate 'New Quality Productive Forces' Initiative Led by Sinopharm Holding

On April 10, Medi Cover, a health management and comprehensive patient service platform under Sinopharm Group, announced the completion of its Series A financing round, raising over RMB 100 million. The round was led by Shanghai International Group Asset Management Co., Ltd. (“Shanghai International Asset Management”), with participation from Yaojin Capital (formerly Sinopharm China International) and Sichuan Innovation Development Investment Management Co., Ltd. Following the introduction of Pacific Insurance in April 2022, the company has further strengthened its capital base and will continue to accelerate business expansion, reinforcing the ecosystem of new quality productive forces established by Sinopharm Group.

During this year's Two Sessions,Yu Qingming, Deputy to the National People's Congress of China, Party Secretary and Chairman of Sinopharm Group Co., Ltd."Accelerate the development of a modern pharmaceutical distribution system to empower new quality productive forces, and integrate medical services, pharmaceuticals, patients, and insurance to enable the public to better enjoy the convenience of accessing healthcare and medications."

As China’s largest distributor of pharmaceuticals and healthcare products and a leading supply chain service provider, Sinopharm Holding is committed to building a widely accessible, high-efficiency managed health service platform. This initiative serves as a key measure to cultivate new quality productive forces and develop strategic emerging industries. The platform will integrate Sinopharm Holding’s internal and external resources, connecting healthcare institutions, pharmaceutical companies, insurers, and patients, while establishing collaboration and coordination mechanisms across various sectors to achieve high-efficiency synergy throughout the entire industry chain. Medi Cover is primarily positioned within this platform to promote the linkage between commercial insurance and pharmaceutical innovation, leveraging its resource integration advantages to further enhance the accessibility and convenience of pharmaceutical products and services.

The parent company of Shanghai International Group Asset Management Co., Ltd., the lead investor in this round, is Shanghai International Group. As a key state-owned capital investment and operation platform in Shanghai, Shanghai International Group is the actual controller of Guotai Junan Securities, the largest shareholder of Shanghai Pudong Development Bank and Shanghai Rural Commercial Bank, and a major shareholder of China Pacific Insurance Company. Shanghai International Group Asset Management Co., Ltd. is a wholly-owned subsidiary of Shanghai International Group and serves as the group’s core entity for investment management. Its decision to lead this investment in Medi Cover reflects its confidence in the company’s long-term investment value under the strategic layout of Sinopharm Holdings.

Wang Jianbao, Deputy General Manager of Shanghai International Group Asset Management Co., Ltd.Shanghai International Group Asset Management Co., Ltd. stated: “Healthcare is a key strategic focus for us. We are actively seeking opportunities to drive high-quality, high-efficiency development in the broader health industry, aligned with the overarching trend of building a multi-tiered healthcare security system. Sinopharm Group Holdings has a clear and well-defined strategic roadmap for its ecosystem encompassing healthcare providers, pharmaceuticals, patients, and insurance. As a leading innovative integrated service provider in the ‘pharma-medical-insurance’ sector in China, Medi Cover leverages Sinopharm’s industrial chain resources to focus on innovative integration within this triad. It aims to build an integrated service platform combining medical care, pharmaceuticals, and insurance, fostering a virtuous cycle among payers, product and service providers, and end-users, thereby promoting the deep integration of high-quality pharmaceutical, medical, and health service resources with health insurance. We highly recognize Sinopharm Group Holdings’ substantial resource advantages and the steady, pragmatic operational style of the Medi Cover team.”

Li Ke, General Manager of Yaojin Capitalstated: “As a professional investment institution within the Sinopharm ecosystem that empowers through investment and supports Sinopharm’s strategic development, this marks Yaojin Capital’s third additional investment in Medi Cover. Yaojin has supported Medi Cover’s growth since its inception round, primarily driven by its endorsement of Huiminbao (city-specific supplemental medical insurance) as an inclusive commercial health livelihood project strongly backed by the government, as well as its sense of mission as an investment arm under a central state-owned enterprise to serve national strategies. This support also helps Sinopharm achieve its business layout for comprehensive digitalization across the medical-pharmaceutical-patient-insurance ecosystem. Yaojin Capital will continue to support Sinopharm in building its ecosystem, realizing mutual empowerment between Sinopharm and its ecosystem partners, and seizing the optimal opportunities in the development of China’s healthcare, pharmaceutical, and broader health industry.”

Since its establishment two years ago, Medi Cover has focused on the innovative integration of pharmaceuticals, healthcare, and insurance, achieving remarkable progress in business expansion. By the end of 2023, its Huiminbao (city-specific supplementary medical insurance) programs had covered nearly 90 cities across China, benefiting over 30 million residents. These initiatives include nationally recognized benchmark projects such as “Shanghai Huhuibao,” “Chongqing Yukuaibao,” and “Tianjin Huiminbao.” In the area of insurance for individuals with pre-existing conditions, Medi Cover has collaborated with insurance companies to develop innovative products, including insurance for assisted reproductive technologies, breast cancer recurrence, and lung cancer recurrence, gradually building an ecosystem of specialized disease insurance to address coverage challenges for this population. Its pharmaceutical enterprise services have partnered with nearly 50 pharmaceutical companies, launching more than 60 innovative payment solutions that have alleviated the financial burden of high-cost medications for hundreds of thousands of patients with critical and rare diseases and their families. Additionally, its whole-course disease management services have initially established a one-stop concierge service management system and network, providing comprehensive critical illness care support to over 100,000 families and empowering commercial insurers to transition from product-driven to service-driven models.