Quan Tech Files IPO Prospectus: Pioneering Digital Therapeutics for Sleep Disorders with Ultra-Lightweight VR Platform
“I’ve seen what this city looks like at 4 a.m. every day,” lamented a friend suffering from severe insomnia.
According to the "2021 White Paper on Exercise and Sleep" released by the Chinese Sleep Research Society, over 300 million people in China currently suffer from sleep disorders, with an insomnia rate among adults reaching as high as 38.2%. Individuals born in the late 1990s and early 2000s have also become high-risk groups for sleep disorders. There are many factors contributing to insomnia, including external influences such as air quality, temperature, humidity, noise, and other environmental conditions.
As the pace of life and the frequency of information updates accelerate, a growing number of people are trapped in anxiety and stress from daily life and work. After excluding external factors, more than 70% of the causes of insomnia actually stem from psychological aspects. In response, an innovative technology company focused on sleep intervention—Quan Technology has developed the "Zhumian Q1 Smart Sleep Device," an AI-powered digital therapy device for sleep aid.。
As a smart sleep device designed to create an all-around comfortable sleeping environment, the Zhumian Q1 product from Quan Technology features hardware that adoptsUltra-Lightweight VR Headset, Weighing Only About 100 Grams. The ergonomic design of the eye mask portion can evenly distribute the weight of the head-mounted display across the face, while also supporting users in bedLeft and right 120° lateral decubitus positionUse.
This VR headset also features3K Ultra-HD Resolution, supports both left and right eyes0 to 7.00 Diopters of Myopia Adjustment, which can meet the needs of the vast majority of people with myopia.
Zhumian Sleep Device, though exceptionally lightweight, offers comprehensive and powerful functionality. Equipped with a built-in brain-computer interface (BCI) and integrated with artificial intelligence technologies such as AI algorithm-based recognition and biological data acquisition, the device captures user data with millisecond-level precision. It leverages data from both single-use and periodic usage patterns to learn physiological parameters, optimize device performance, and tailor service plans.
According to Liu Yu, founder and CEO of Quan Technology, traditional psychological counseling and treatment approaches rely on patients imagining specific scenarios. However, due to differences in individual upbringing and life experiences, the scenes imagined by patients may diverge from those envisioned and described by the counselor. By leveraging standardized, concrete scenarios and the immersive capabilities of VR, it is possible toStandardization of Service Plans。
Additionally, sleep-aid products on the market utilize various approaches, such as electrical stimulation, aromatherapy, and cognitive behavioral training. In some cases, users need to improve insomnia through breathing exercises or meditation. However, meditation is not as simple as many people imagine; especially in the beginning, users often find it difficult to achieve a meditative state.
In response, Hangzhou Quan Technology Co., Ltd. has achieved a breakthrough in the underlying logic of its products by integrating psychological interventions into visual scenarios and music. By leveraging professional psychotherapeutic protocols to provide guided services, it can significantly enhance the effects of relaxation, stress reduction, and sleep onset. Currently, ZhuMian users'The average time to fall asleep was only 10 minutes and 40 seconds.
Methods and Principles of Quan Technology's Digital Therapeutics for Sleep
“Our approach is primarily intervention-based, using data to guide users from a state of wakefulness and anxiety into relaxation, then from relaxation into a hypnagogic ‘blur’ state, ultimately facilitating sleep onset.Users do not need to undergo any subjective training.“From a psychological perspective, we are performing hypnosis,” said Liu Yu.
Taking into account users’ sleep habits, Hangzhou Quan Technology Co., Ltd. has designed the head-mounted display to be lightweight while also incorporating thoughtful features in the strap and semi-automatic detachment mechanism. The adjustable buckle design of the headband allows users to easily turn over onto their side or subconsciously remove the eye mask after falling asleep, thereby avoiding complicated operations.
“I speak for myself” is by no means an exaggeration when applied to Liu Yu.
He himself is a loyal user of the Zhumian product. It turns out that he had undergone rigorous training in marketing roles at Xiaomi, Baidu, and Alibaba. Due to work-related stress, Liu Yu began experiencing insomnia around 2013, with severe cases even exhibiting symptoms of depression. Over the years, he has purchased countless sleep aids and has even used antidepressant medications such as Prozac.
Liu Yu, Founder and CEO of Quan Technology
How to get a good night’s sleep had long been an obsession for Liu Yu. Rather than seeking help in vain, he decided to take matters into his own hands. Thus, in 2018, the 32-year-old Liu Yu resigned from Alibaba and embarked on his entrepreneurial journey.
When Liu Yu began preparing to launch a startup in the sleep sector, he initially considered focusing on hardware as the core. However, after deeper exploration, he realized that software, algorithms, and service-based solutions are actually the key. Sleep care must be delivered in accordance with medical and scientific evidence. Therefore, he decidedApply evidence-based medicine logic to sleep intervention, and gradually expand from standalone hardware devices into the field of digital therapeutics.
In Liu Yu’s view, the goal of Quan Technology isSolving the “Last Two Kilometers” Before Sleep in the Simplest and Most Effective WayNo active training or learning is required from the user. This intervention-based solution, worn before bedtime, actively guides users from a state of wakefulness and anxiety into sleep. Grounded in psychology, it adjusts the user’s condition through single or periodic use. “Foolproof” sleep aid should be the long-awaited relief for insomnia patients.
According to Liu Yu, the company’s psychology team has accumulated over 20,000 hours of hands-on psychological counseling experience and developed more than 100 proprietary, integrated service offerings. Since its launch in December 2021, the company’s product has nearly reached break-even in the short term and has forged partnerships with numerous industry leaders.
For example, Hangzhou Quan Technology Co., Ltd. is collaborating with the Air Force Medical University of the Chinese People's Liberation Army to develop foundational data and service technologies, while also providing cognitive fatigue rehabilitation, psychological monitoring, and stress reduction services to the military. Furthermore, the company is working with Tangdu Hospital of the Air Force Medical University and Hospital 944 to jointly apply for Class II medical device certification for digital therapeutics through ethics review, clinical testing, and analysis, and is conducting joint diagnosis and treatment using digital therapeutics in collaboration with these hospitals.
Within the industry, Quan has also conducted extensive explorations. For instance, leveraging the resources of Taiping Brokerage’s headquarters, Quan Technology and Beijing Huakong Health Technology Co., Ltd. jointly created the “Zhumian-Huakong” co-branded series of customized products. These products are being promoted through omnichannel strategies within the insurance sector to facilitate the design and sales of related insurance policies, jointly unlock the value of sleep data and expand business opportunities, and launch the first-ever sleep insurance product.
“This is the fourth year since the company’s establishment. For most of the first three years, we focused on R&D investment. We faced chip supply constraints and were impacted by the pandemic, but fortunately, our products have now been launched.”In the short term, the company will prioritize obtaining Class II medical device certification for its digital therapeutics and preparing related co-authored papers for publication, thereby establishing R&D and medical barriers.“Meanwhile, we are establishing benchmark implementations in targeted service sectors such as healthcare, enabling commercial replication,” said Liu Yu.
In Liu Yu's view,Lightweight VR products are the future development trend of the entire industry.. From a service perspective, traditional basic services have largely relied on imagination and self-training. In contrast, the concrete and immersive experience offered by VR can significantly enhance the effectiveness of auxiliary medical treatment or rehabilitation. As expected, companies in the mental health sector will shift toward lightweight VR products within the next two years, and Hangzhou Quan Technology Co., Ltd. already possesses a considerable first-mover advantage.
Quan Technology'sOur long-term goal is to become the industry leader and corporate benchmark in the sleep stress relief sector.After penetrating the vertical sleep sector, we will continue to expand horizontally.Expand into other brain science-based digital therapeutics fields, such as those for ADHD and attention training.. It is reported that Quan Technology is currently undergoing Pre-A round financing to invest in the registration and declaration of medical device certificates, commercialization verification, and expansion of technical reserves.