VCBeat has learned that Fenghe (Beijing) Technology Co., Ltd. (hereinafter referred to asFenghe (Beijing) Technology Co., Ltd.” announced the completion of a financing round led byQifu CapitalExclusive InvestmentAngel+ Round of Tens of Millions of RMBFinancing. The funds from this round will be used to further enhance the company's integrated software and hardware SPD product services and market promotion.

Fenghe Technology, established in 2018, is a leading third-party smart healthcare supply chain service provider in China. The company has R&D centers in Beijing, Hangzhou, Xi’an, and Qingdao, with subsidiaries in Shaanxi, Henan, Hubei, Sichuan, Chongqing, Anhui, Xinjiang, Zhejiang, and other regions, serving clients across more than ten provinces nationwide. Its core team has been dedicated to the technological research, development, and innovative services of comprehensive medical supply chain solutions since 2014. As a national high-tech enterprise, Fenghe Technology was the first in the industry to achieve full Internet of Things (IoT) application for medical supplies. The company consistently maintains industry-leading implementation speeds and operational efficiency, and has been featured in multiple interviews and reports by CCTV.

Fenghe Technology focuses on “Internet + Smart Medical Supply Chain Services” as its core business, integrating AI and IoT technologies into medical supply chain management. With meticulous craftsmanship, it has developed the Fenghe SPD Smart Medical Supply Chain Service System, aiming to help hospitals comply with national policies, facilitate lean management, reduce costs and improve efficiency for hospitals, patients, suppliers, and government agencies, thereby creating value for all stakeholders.

Overall Solution for Medical Consumables SPD, Image Source: Official Website of Fenghe Technology

The SPD Smart Healthcare Supply Chain Service Solution consists of four parts:

• I. Supply Management Platform:By leveraging an internet-based platform to connect hospitals with upstream suppliers, unified supplier management is achieved within the existing supply chain landscape. The platform links primary hospital warehouses with secondary clinical department stockrooms, enabling precise tracking of medical supply consumption and lean management in clinical departments. This facilitates end-to-end traceability and “zero-inventory” operations for all medical supplies across the entire hospital.

• II. Intelligent Warehouse Renovation:By deploying IoT devices such as smart cabinets for high-value consumables, intelligent warehouses, and RFID return bins, intelligent operations—including inbound processing, outbound distribution, and inventory counting—can be achieved from the central warehouse to secondary warehouses. This reduces manual workload and the probability of human error, thereby enabling intelligent warehouse management.

• III. In-Hospital Logistics Services:By deploying professional operational staff to assist in the daily management of medical supplies across warehouses at all levels and in intra-hospital logistics distribution, we truly enable healthcare professionals to return to frontline clinical duties.

• IV. AI Intelligent Analysis:The platform incorporates artificial intelligence (AI) to model, analyze, process, and mine big data, providing multi-dimensional, multi-level, and high-efficiency statistical analysis. This enables trend forecasting and issue early warning, thereby offering data-driven support for decision-making by hospital administrators.

  
  

In recent years, with the introduction and implementation of new healthcare reform policies such as zero markups on drugs and consumables, cost containment through DRG/DIP payment systems under medical insurance, and tiered classifications for smart hospitals, domestic hospital management models and supply chain systems are urgently in need of transformation. The SPD (Supply, Processing, and Distribution) service model, which aligns with the core demands of medical institutions, has gradually become a new “essential requirement” for hospitals.

According to statistics from the Medical Device Supply Chain Branch of the China Federation of Logistics & Purchasing, public hospitals in China have entered a period of rapid development for SPD (Supply, Processing, and Distribution) projects in recent years. Currently, 647 medical institutions across China have implemented SPD projects, with 83% of these projects launched between 2019 and October 2022. In terms of hospital tier, tertiary hospitals account for 76%, among which Grade A tertiary hospitals represent as high as 63%. By hospital type, general hospitals dominate, accounting for 86%. From January to October 2022 alone, more than 100 medical institutions nationwide publicly tendered SPD-related projects. Given the high growth trend observed over the past two years, it is conservatively estimated that by the end of 2023, the number of medical institutions in China implementing SPD projects will exceed 1,200.

At the policy level, the Hospital Management Institute of the National Health Commission officially issued the “Notice on Launching the Application for 2022 Medical Engineering Research Projects,” which, for the first time, included the refined management model of SPD (Supply, Processing, and Distribution) for medical consumables in the national-level research application scope. Driven by the new policy environment and comprehensive factors such as the high-quality development of hospitals, the SPD refined management model is poised to embrace new development opportunities.

It is worth mentioning that, according to Fenghe (Beijing) Technology Co., Ltd.,The company achieved nearly 200% revenue growth in the first quarter of 2023.

Regarding this financing,Liu Yanbing, Founder of Fenghe Technologystated: “As cost-containment policies such as DRG/DIP under the national health insurance system are progressively implemented, SPD services will play an increasingly pivotal role in the development of the healthcare industry. We will continue to deeply explore the application potential of big data, the Internet of Things (IoT), and artificial intelligence in the medical supply chain domain, empowering all stakeholders with digital capabilities and supporting high-quality development in healthcare institutions. Meanwhile, we will remain committed to our original mission as a third-party service provider, specializing in technological innovation and focusing on service enhancement, thereby contributing to the creation of a smarter, more efficient, and greener healthcare environment.””

Fu Zhekuan, Founding Partner of Qifu CapitalIt stated: “Digital healthcare has always been one of the key investment focuses of Qi Fu Capital. With over 500 cumulative projects in the hospital SPD (Supply, Processing, and Distribution) service sector, the value of hospital SPD services has been fully demonstrated. Driven directly by policies promoting full-process management of medical consumables and smart hospital management, and indirectly by policies such as zero markups, the ‘Two-Invoice System,’ DRGs (Diagnosis-Related Groups), and unannounced national healthcare security inspections, the industry has entered a period of rapid development. As an independent third-party hospital SPD operator, Fenghe (Beijing) Technology Co., Ltd. avoids issues related to compliance and the complex web of interests within hospital supply chains, positioning it to gradually assume a dominant role in future competition against distributor-led hospital SPD models. The Fenghe Technology team consists of serial entrepreneurs in the hospital SPD service industry and was among the first in China to enter this field. The company maintains a leading position in terms of software, hardware, business model, and the number of hospitals under its operation.””

Qifu Capital, fully named Shenzhen Qifu Private Equity Fund Management Co., Ltd., was founded by Mr. Fu Zhekuan in October 2013. As a professional fund management company specializing in private equity investment, it primarily manages early-stage venture capital funds and industrial funds. Its core strategy is dedicated to investing in new industries driven by emerging technologies, with a focus on two key sectors: the digital economy and advanced manufacturing centered on new materials. The firm has established competitive advantages in sub-sectors such as next-generation information technology, advanced manufacturing, and life sciences and healthcare. From 2020 to 2022, it was consecutively ranked among the Top 10 Early-Stage Funds by authoritative institutions including Zero2IPO Research, Clever Consulting, and the Fund of Funds Research Center. Currently, its total assets under management amount to RMB 7.5 billion, with assets under administration totaling RMB 17.8 billion. It has invested in over 300 companies, nine of which have completed initial public offerings (IPOs), while three others have passed regulatory review. Representative portfolio companies include Gaotu Techedu Inc. (NYSE: GOTU), POP MART (HKEX: 09992), and PIESAT Information Technology Co., Ltd. (SSE: 688066).