Taiyi Liangfang Launches the First Digital TCM Innovation Institute and Files IPO Prospectus for Its Integrated 'Research-Industry-Application-Sales' Health+ Ecosystem

In recent years, the development of digital technologies, coupled with policy support and capital infusion, has increasingly heated up the traditional Chinese medicine market.

Since 2021, the state has successively issued a number of policies to promote the development of Traditional Chinese Medicine (TCM), including the “Notice of the General Office of the State Council on Issuing the 14th Five-Year Plan for the Development of Traditional Chinese Medicine” and the “Notice on Issuing the 14th Five-Year Action Plan for the Project to Enhance TCM Service Capacity at the Primary Care Level.” Last year, the “Notice of the General Office of the State Council on Issuing the Implementation Plan for Major Projects to Revitalize and Develop Traditional Chinese Medicine” further clarified the development goal that by 2025, TCM will become an important pillar in comprehensively advancing the Healthy China initiative.

After thousands of years of evolution, Traditional Chinese Medicine (TCM) has not only continued to play a vital role in the prevention and treatment of common diseases, frequently occurring illnesses, chronic conditions, refractory disorders, and major infectious diseases, but has also become a focal point of national efforts to develop the healthcare industry. Moreover, with the advancement of internet technologies, the digitalization of TCM has entered a stage of deep integration. Technologies such as big data analytics and artificial intelligence are being widely applied in TCM research and clinical practice, giving rise to numerous digital TCM applications and platforms, with intelligent TCM emerging as a key direction for development.

Despite the emergence of opportunities, market regulation in the traditional Chinese medicine (TCM) industry remains inadequate. For most enterprises, collaborating with authoritative research institutions and R&D personnel to develop products with commercial viability entails high costs, significant challenges, and unpredictable outcomes. Concerned about substantial investments yielding limited returns, many companies are hesitant to engage.

In an environment where opportunities and challenges coexist,Beijing Taiyi Liangfang Technology Co., Ltd.(hereinafter referred to as “Taiyi Liangfang”) has been exploring this field by collaborating with major medical institutions, research organizations, expert academic teams, and e-commerce platforms to establish a comprehensive sales network that ensures product promotion, thereby enabling enterprises“Integrated TCM R&D, Production, Education, Application, and Sales Health+ Solution” to effectively address critical needs in product development, endorsement, and sales channels, and provide consumers with more accessible and reliable purchasing channels, thereby integrating TCM products into the market in richer and more youth-oriented forms to enhance market recognition of the products.

Furthermore, Taiyi Liangfang has recognized the demands of traditional Chinese medicine enterprises for product upgrades and iterations, as well as for building brand-specific core competitiveness, and has established"Taiyi Liangfang Institute of Traditional Chinese Medicine"By offering diverse collaboration models—including pure R&D, R&D with endorsement, R&D and endorsement plus sales, co-branded partnerships, and equity investment—companies can partner with professional institutions and physicians. This approach validates product efficacy through academic research while safeguarding product value, enabling the low-cost, low-risk development of health products backed by professional institutions, top-tier experts, and academically led R&D, thereby facilitating the translation of expert achievements into practical applications.

Taiyi Liangfang was established in 2022. Its founder, Li Ximu, previously served as the CEO of Dingdang TCM and headed the Traditional Chinese Medicine (TCM) division at JD Health. He also founded Lishizhen, an internet-based TCM company. With 12 years of experience in the deep integration of the internet and TCM industries, he laid the foundation for the establishment of Taiyi Liangfang.

At the inception of the company, the team at Taiyi Liangfang recognizedSix Major Pain Points in the Traditional Chinese Medicine Industry:

First, market regulation is inadequate, lacking a scientific and systematic supervisory and management framework;

Second, the quality of industry practitioners is uneven, with some suppliers adulterating their products;

Third, consumer awareness of medicinal diets and related products is low; their nutritional and medical values have not been fully recognized, resulting in low willingness to pay.

Fourth, the insignificant efficacy of traditional Chinese medicine health supplements has led to a decline in consumer trust;

Fifth, the high cost of Chinese herbal medicines has led to elevated operational costs and low gross margins for medicinal diet enterprises.

Sixth, there are no benchmark enterprises in the pharmaceutical-grade medicated diet product sector. The market is dominated by consumer-grade products, which lack strong growth drivers amid the trend of consumption downgrading.

To address the six major pain points in the industry, it is essential to establish industry standards for traditional Chinese medicine (TCM), widely promote the application of expert achievements in integrated traditional Chinese and Western medicine, and cultivate benchmark enterprises.

As a new type of technology innovation company, Taiyi Liangfang adoptsA Dual-Engine Approach to Addressing Industry Challenges。

On the one hand,Comprehensive Implementation of a Multi-Channel Sales Strategy(Including planning for traditional e-commerce and live-streaming e-commerce channels, as well as the expansion of offline stores.) Meanwhile, we empower large enterprises or state-owned enterprises by assisting them in incubating health products and providing subsequent operational services.

On the other hand,Leveraging in-house R&D and incubation, we develop competitive products grounded in renowned expert prescriptions, appropriate technologies, and clinical experience.. and enhance product competitiveness through academic research and expert support.

Currently, Taiyi Liangfang has established an interactive, experience-based TCM health store business model, offering one-stop Traditional Chinese Medicine (TCM) health services that integrate light TCM wellness experiences, medicinal teas, SC-certified health products, and daily necessities. By leveraging models such as TCM cultural experiences, the company is expanding its private-domain traffic fan base and guiding the regional expansion of its stores.

Notably, all products from Taiyi Liangfang are grounded in experts’ clinical experience and prescriptions. Through rigorous R&D and process optimization, the company ensures both therapeutic efficacy and palatability. Furthermore, the brand integrates New Chinese Style design and emotional value into its offerings, enabling consumers to appreciate the charm of Traditional Chinese Medicine (TCM) culture while enjoying a healthy lifestyle, thereby showcasing a cooler image of TCM to the world.

Addressing the Challenges Faced by Enterprises in the Context of Digital Transformation Trends,Taiyi Liangfang established the first digital innovation research institute in the field of Traditional Chinese Medicine—Beijing Taiyi Liangfang Institute of Traditional Chinese Medicine.。

Taiyi Liangfang Institute of Traditional Chinese Medicine integrates resources from renowned medical experts, medical institutions, and scientific research organizations to provide academic guidance, technical support, intellectual backing, and value empowerment for industry development, thereby promoting the integrated growth of “Traditional Chinese Medicine + Health Industry.”

To date, the Research Institute has assembled an expert team comprising dozens of professionals from national-level research centers, universities of Chinese medicine, associations of Chinese medicine, academicians in the medical field, researchers, National Masters of Traditional Chinese Medicine, renowned senior TCM practitioners, medical doctors, and professors. It has established collaborative partnerships with numerous enterprises and institutions, providing one-stop “Health+” solutions integrating TCM research, education, production, application, and marketing to multiple industry clients and local governments.

At the end of last year,Xia Meng, Expert at the National Medical Center of the General Hospital of the Ministry of Emergency ManagementThe Director joined the Beijing Taiyi Liangfang Institute of Traditional Chinese Medicine. Building on extensive clinical practice, she has deeply applied TCM theories and techniques to develop a practical treatment protocol and successfully formulated a new drug. Integrating traditional TCM principles with modern technology, this medication has been validated through pharmacological and clinical trials, demonstrating efficacy in regulating female endocrine function, improving ovarian function, and enhancing oocyte quality.

In the future, Taiyi Liangfang Institute of Traditional Chinese Medicine will leverage its resource capabilities to empower the development of the TCM industry, becoming a high-quality omnichannel operator for the commercialization of expert achievements and facilitating the translation of more TCM projects into practical applications.

Traditional Chinese Medicine (TCM) healthcare is gradually becoming an “essential need.”

According to data from the "China Health and Health Statistical Yearbook 2022," the total number of visits to traditional Chinese medicine (TCM) institutions exceeded 1.2 billion in 2022. Based on the average number of outpatient visits per person and medication costs for TCM services (totaling approximately RMB 440), the market size of TCM medical services is projected to reach RMB 712.6 billion by 2026, representing a compound annual growth rate (CAGR) of 6.2% from 2022 to 2026.

In the future, driven by supportive policies and continuously rising social demand, the traditional Chinese medicine (TCM) healthcare market is poised to present even more opportunities. The deep integration of digital technologies with TCM services will propel the sector’s transformation and upgrading from isolated points to comprehensive coverage, thereby facilitating the implementation of the “Healthy China 2030” action plan. In this process, the value of Taiyi Liangfang and the Beijing Taiyi Liangfang Institute of Traditional Chinese Medicine in empowering the industry will be further demonstrated.