Xinglin Yunkang Files IPO Prospectus: 80% Repeat Purchase Rate and 50% of Hospital Clients with Over 5-Year Partnerships Highlight Strong Market Trust
Data may best reflect the achievements of a company.
Founded in 2015, Xinglin Yunkang is a comprehensive service provider of Hospital Resource Planning (HRP) systems for smart hospital operations. According to the company, it has established partnerships with more than 500 hospitals, approximately 20% of which are tertiary hospitals. Notably, among Xinglin Yunkang’s client base, 50% have maintained collaborations for over five years, and the repeat purchase rate among its clients reaches 80%.
What Has Earned Xinglin Yunkang the Trust of Its Clients? We Interviewed Ding Limin, Chairman and General Manager of Xinglin Yunkang, and Zhao Liuwei, Dean of the Jin Xinglin Hospital Management Research Institute.
The decision to enter the HRP field in 2015 was related to the personal experience of Ding Limin, Chairman and General Manager of Xinglin Yunkang.
Ding Limin holds a Master’s degree in Management and has over a decade of experience in the Enterprise Resource Planning (ERP) sector. Through years of hands-on industry engagement, he keenly recognized that ERP systems would play an increasingly vital role in specialized vertical segments. Leveraging his company’s prior exploration and accumulated expertise in the hospital sector, he ultimately chose to focus on the healthcare industry, utilizing Hospital Resource Planning (HRP)—the healthcare-specific application of ERP—to help medical institutions achieve intelligent operational management.
Ding Limin undoubtedly saw the development opportunities for HRP in the healthcare industry—
First, there is a substantial demand for smart operational management in hospitals.
On one hand, the frequent introduction of macro-level policies and regulations is driving hospitals to improve the quality of medical services, reduce actual operational costs, and achieve high-quality development. For instance, initiatives such as the national performance appraisal for public hospitals, hospital accreditation reviews, and reforms in health insurance payment methods—including Diagnosis-Related Groups (DRG) and Big Data Diagnosis-Intervention Packet (DIP)—are prompting hospitals to transition from extensive management practices to refined, precision-based management.
On the other hand, after more than 20 years of medical informatization construction, smart hospital development has entered a brand-new stage. In the past, smart hospital initiatives often focused more on front-end and mid-end components such as smart clinical care and smart patient services, frequently neglecting back-end smart management infrastructure. Nowadays, an increasing number of hospitals are beginning to prioritize the smart management aspect of smart hospital development.
He added that the process of building medical informatization systems for hospitals in the past gave rise to a number of listed companies. Today, the field of smart hospital operations and management services holds similar potential to produce a new wave of prospective public companies.
Secondly, traditional ERP systems fail to meet the requirements for smart hospital management.
The healthcare services industry is clearly distinct from the manufacturing sector. A journal article titled “Research on the Application of Medical Resource Planning in Hospital Management” noted that, “In addition to sharing characteristics with manufacturing such as intangible products, absence of finished-goods inventory, labor intensity, dominance of fixed costs, difficulty in measuring variable costs, and high flexibility in service delivery, the healthcare services industry possesses a unique ‘character’ inherent to medical care.” Traditional ERP systems are evidently inadequate in meeting the established needs of healthcare clients, creating an industry-wide demand for specialized HRP system services.
Unmet needs and the low penetration rate of Hospital Resource Planning (HRP) systems also signify substantial market growth potential in the future. According to statistics from Xinglin Yunkang, if the market share for HRP systems could reach 10% based solely on the current demand estimated for tertiary and secondary hospitals, it would represent a market worth nearly RMB 6 billion.
The convergence of these factors ultimately led to the establishment of Xinglin Yunkang. According to him, the name “Xinglin Yunkang” embodies an aspirational vision: leveraging cutting-edge technologies such as cloud computing, big data, and artificial intelligence, and guided by the profound compassion of “benevolent healers,” the company aims to empower hospitals, support physicians, and fulfill its mission of “building smart healthcare management to serve Healthy China.” The trademark “Jin Xinglin” further signifies Xinglin Yunkang’s keen understanding of and attention to the current pain points in smart hospital management.
To fulfill the mission of Xinglin Yunkang, the company has advanced steadily over the past eight years—
Following the completion of preliminary preparations, Xinglin Yunkang embarked on a three-year product development and validation phase starting in 2016. It was also during this period that the company’s dual R&D center structure, with locations in Shijiazhuang, Hebei Province, and Chongqing, was essentially established.
After completing product development, Xinglin Yunkang began to launch its solutions and products into the market. The company also started expanding beyond Hebei Province to the national market. It is reported that its business has currently covered 15 provinces (autonomous regions and municipalities directly under the Central Government), with more than 500 cooperative clients. With the establishment of multiple subsidiaries, its market expansion pace is accelerating.
To better promote Xinglin Yunkang’s solutions to the industry, the company has been making frequent appearances at various healthcare IT conferences. For instance, Xinglin Yunkang participated in the CHINC conference in 2021. With the end of the pandemic, it also attended the CHIMA conference in 2023 and plans to hold its third Hospital Management Summit Forum in Q3 of this year. Furthermore, in 2023, Xinglin Yunkang established a Hospital Management Research Institute to further deepen research, innovation, and translation in hospital operational management. To better demonstrate its software system delivery capabilities, Xinglin Yunkang has currently obtained CMMI Level 3 certification.
Through continuous accumulation in the early stages, Xinglin Yunkang has currently established partnerships with more than 500 hospitals.
Hospitals face numerous pain points in building their own smart operational management systems.
On the one hand, from the perspective of overall planning, hospitals may lack HRP professionals and have no unified plan for building an HRP system.
As the construction of Hospital Resource Planning (HRP) systems in most medical institutions across China is still in its infancy, the lack of unified information planning has resulted in disorganized data storage, aggregation, and analysis. The absence of uniform standards often hinders medical institutions from effectively addressing practical challenges during their development. Furthermore, individual departments frequently fail to consider the hospital’s overall perspective; designing and developing systems solely based on departmental needs tends to exacerbate issues such as cross-departmental process breakpoints and information silos across systems, thereby intensifying the “departmental wall” problem. Additionally, the scarcity of HRP specialists makes it difficult for hospitals to achieve the desired outcomes when establishing their own HRP systems.
On the other hand, from the perspective of actual hospital needs, the complex and extensive requirements create a certain barrier to entry for the delivery of HRP systems.
Pain points in hospital operational management are often highly complex and multifaceted. For instance, human resource management frequently fails to achieve comprehensive coverage across all staff, throughout the entire process, and in all aspects, making it difficult to maximize the value of human resources. Financial management primarily relies on post-event accounting and departmental cost accounting, which prevents pre-event and in-process cost control and hinders accurate tracking of true costs under DRG/DIP payment models. Material and supply management tends to focus merely on inbound and outbound inventory records, failing to effectively ensure quality control or improve utilization efficiency. The real-time operational status of equipment is often unknown, resulting in low overall utilization efficiency of medical devices. Disconnections between operational systems and clinical business systems lead to issues such as duplicate data entry and inefficient workflows. Furthermore, inconsistent data standards result in blind and delayed decision-making in hospital management.
Furthermore, the personalized operational and management demands of different types of hospitals vary significantly, which further raises the entry barrier for industry practitioners.
Evidently, to build an HRP system tailored for hospital use and truly achieve intelligent operational management of “personnel, finances, and materials,” the provider must possess deep technical expertise in the healthcare industry, proven industry practice cases, and robust delivery capabilities.
Currently, Xinglin Yunkang offers hospital operational management consulting services and a smart hospital operations management system. Its Hospital Resource Planning (HRP) system comprises 14 subsystems, including comprehensive budget management, materials management, asset management, equipment management, human resources management, economic contract management, fund management, financial accounting, departmental full-cost accounting, medical service item cost accounting, DRG-based cost accounting, DIP-based cost accounting, performance management, and economic operation analysis. These capabilities fully meet the economic and operational management needs of hospitals.
The ability to collaborate with as many as 500 hospitals is also attributable to Xinglin Yunkang’s own accumulated strengths—
On the one hand,What sets Xinglin Yunkang apart is its genuine understanding of customer needs and its robust delivery capabilities. In the course of operational management, hospitals do not merely require a software system; rather, they seek to leverage HRP (Hospital Resource Planning) software systems to genuinely address existing management challenges and deliver tangible value. Guided by the corporate culture principles of “Supreme Goodness, Pursuit of Perfection, Commitment to Promises, and Diligent Execution,” Xinglin Yunkang places customer value creation at its core. With extensive experience in the HRP domain, Xinglin Yunkang frequently provides highly valuable management recommendations from the customer’s perspective during project delivery. By implementing these management measures through data-driven solutions and software applications, the company further enhances hospital operational efficiency and reduces operational costs. Furthermore, with a team of over 200 employees, approximately 75% of whom are technical staff, Xinglin Yunkang’s profound and integrated understanding of both management and technical issues significantly lowers communication and project delivery costs for hospitals.
On the other hand,, the proven implementation experience from previously successful HRP project deliveries has further reduced the difficulty of project deployment. According to Ding Limin, among more than 500 healthcare institutions it has partnered with, Xinglin Yunkang has never had a single unfinished or failed project. This indirectly demonstrates Xinglin Yunkang’s deep understanding of hospital operational management scenarios and affirms its core value of “Diligent Execution.” Furthermore, the 14 subsystems within its HRP system can basically meet the needs of the vast majority of healthcare institutions.
“Currently, the entire HRP (Hospital Resource Planning) sector is evolving toward integration, mobility, digitalization, and intelligence. We are further integrating technologies such as artificial intelligence with healthcare operations to upgrade our smart operational management system, thereby enhancing our product advantages and widening the gap with competitors,” mentioned Ding Limin.
Perhaps, practical collaboration examples can better illustrate the role that Xinglin Yunkang plays in facilitating smart operational management for hospitals.
Currently, with the implementation of DRG/DIP payment systems under medical insurance, public hospitals that previously pursued extensive growth models have successively incurred losses, sounding an alarm bell for their operational management. Compounded by the impact of the pandemic, a large number of public hospitals have placed greater emphasis on operational management to maintain healthy operations. Shijiazhuang Fourth Hospital is one of the representative institutions that early on sought to achieve high-quality development through refined management.
As a Grade 3A specialized hospital for obstetrics and gynecology, Shijiazhuang Fourth Hospital has ranked among the top medical institutions in China in terms of delivery volume for many consecutive years. Founded in 1956, it is the only Grade 3A specialized hospital for obstetrics and gynecology in Hebei Province that specializes in gynecology, obstetrics, prenatal diagnosis, reproductive medicine, neonatology, ophthalmology, and traditional Chinese medicine, integrating medical care, prevention, health maintenance, teaching, and scientific research. The hospital operates three campuses: Tanggu Campus, Zhongshan Campus, and Gaoxin Campus.
Zhao Liuwei, Dean of the Xinglin Hospital Management Research Institute, noted that Shijiazhuang Fourth Hospital primarily sought to address the following challenges: achieving coordinated and homogeneous development across multiple campuses; reducing operational and management costs for multi-campus operations; and further enhancing operational efficiency. By assisting Shijiazhuang Fourth Hospital in building an integrated smart operational management (HRP) system encompassing smart management, smart services, and smart decision-making, Xinglin Yunkang successfully met the hospital’s personalized needs.
First, it helps achieve integrated management of a smart finance closed-loop system.By establishing a smart financial closed-loop system encompassing “pre-event budgeting, in-process control, and post-event accounting,” with budget management as the main thread, supported by the management of materials, assets, and human resources, linked by contract management, and culminating in financial cost accounting, we achieve integrated financial management. This approach organically integrates financial systems with business systems, comprehensively promotes the fusion of business and finance, implements internal controls, and facilitates the transformation of financial management from a “transactional accounting” model to a “value-creation” model.
Second, to achieve homogeneous, integrated, and collaborative operations across multiple campuses.By achieving comprehensive coverage of the three major operational campuses of Shijiazhuang Fourth Hospital through the HRP system, efficient collaborative allocation of human, financial, and material resources has been realized. Through unified management, resource coordination and optimized allocation have been achieved, further promoting the realization of homogenized medical quality.
Third, it is to achieve dynamic management of the entire process and full chain of materials and consumables.Through coordinated material requisition across multi-campus departments, collaborative procurement with suppliers, and synchronized warehouse replenishment, comprehensive online management of the entire material lifecycle and supply chain has been achieved hospital-wide. This enables real-time visibility into current material consumption while ensuring traceability of material distribution, thereby reducing unreasonable usage and waste.
Fourth, dynamic management of equipment is implemented to enable comprehensive tracking of data throughout the entire equipment lifecycle.By systematically managing over 20,000 medical devices across its three campuses, Xinglin Yunkang enables Shijiazhuang Fourth Hospital to check device operational status with a single click, thereby maximizing equipment utilization efficiency.
Fifth, implement dynamic linkage management of human resources compensation.Through digital and dynamic management, it has resolved previous challenges in personnel management queries and statistics, further enhancing the work efficiency and quality of the relevant staff.
Finally, it can intelligently generate operational analysis reports featuring both text and graphics.This operational analysis system can generate operational analysis reports with a single click, based on the hospital's multidimensional operational analysis needs. It helps hospitals gain deeper insights into data, identify issues in their operations, improve their operational efficiency, and promote high-quality development of the hospital.
Ultimately, it has enhanced the medical service capabilities of Shijiazhuang Fourth Hospital.Key indicators, including outpatient and emergency visit volumes, hospital discharges, and deliveries, all showed certain growth; meanwhile, patients’ medical costs decreased concurrently. Average costs per visit declined for both outpatient and inpatient services, with the average outpatient cost per visit dropping by 37.66%. Operational capabilities improved significantly, marked by a notable increase in the proportion of medical service revenue and a further decline in the drug cost ratio.
It is reported that, owing to the substantial results achieved in its early-stage development, a large number of hospitals have visited this facility to learn from its construction experience. For Xinglin Yunkang, there are many similar cases. For instance, while providing Hospital Resource Planning (HRP) system services to the Shandong Mental Health Center, Xinglin Yunkang addressed the center’s high proportions of pharmaceutical costs and labor expenses during its operations by delivering an HRP system tailored for psychiatric specialties. This solution helped the mental health center comprehensively reduce material consumption costs within the supply chain, optimize its revenue structure through performance management, motivate staff, and improve operational efficiency.
"Hospitals of different types have vastly different needs in operational management. 'Through long-term practice and serving the healthcare industry, Xinglin Yunkang has been providing targeted HRP (Hospital Resource Planning) operational management solutions and software systems tailored to the unique characteristics of different hospitals, helping hospitals achieve 'specialized' operational management and realize refined management at a specialty level,' pointed out Zhao Liuwei, Dean of the Xinglin Yunkang Hospital Management Research Institute."
To better promote the adoption of Xinglin Yunkang’s solutions by healthcare institutions, Xinglin Yunkang plans to further enhance its industry reputation and increase its market share by serving “lighthouse” customers in the sector. In addition, building on its initial presence in 15 provinces (autonomous regions and municipalities directly under the Central Government), Xinglin Yunkang also aims to extend its network coverage to the prefecture-level city tier.
“"Delivery quality and customer satisfaction have always been the 'lifeline' of our operations."“The repurchase rate, to some extent, reflects customers’ recognition of Xinglin Yunkang. The continuously emerging demands from customers are also driving the rapid iteration and upgrading of our products, positioning us to become a leading enterprise in the field of smart hospital operations management.” Ding Limin expressed strong confidence in the solutions provided by Xinglin Yunkang.
He added, “Only through innovation can a company build higher industry barriers. To achieve innovation, we will continue to attract talent, deepen our engagement within the industry, and further explore and research frontier directions through our Hospital Management Research Institute, including the integration of new large GPT models, among other initiatives.”Our innovations will focus on product commercialization tailored to hospital-applicable business scenarios, guided by market demand rather than pursuing innovation for its own sake.”
It is reported that Xinglin Yunkang currently has financing intentions, and the funds will be mainly used for product research and development, achievement transformation, and sales channel construction.
“As a professional company that started with hospital operations management consulting and culminates in the delivery of HRP (Hospital Resource Planning) products, our solutions achieve effective integration of hardware and software, as well as deep unification of data and functionality. In meeting the requirements of the National Performance Examination for Public Tertiary Hospitals and the DRG/DIP payment reforms, HRP systems have become an essential necessity for refined hospital management. I am confident that our highly cohesive and execution-driven team has the capability to build the HRP system that best meets hospital needs, thereby supporting high-quality hospital development. Let us advance smart healthcare management and contribute to the Healthy China initiative!” stated Ding Limin, Chairman and General Manager of Xinglin Yunkang.