Dajing Digital TCM Completes Series A+ Financing with Exclusive Investment from Orient Securities

In 2022, DAJING TCM, a leading enterprise in the informatization and intelligentization of Traditional Chinese Medicine (TCM), maintained its rapid growth momentum amidst the pandemic. With an increasingly comprehensive business layout and steadily improving operational performance, the company recently completed a new round of A+ financing amounting to tens of millions of yuan.

This financing round was exclusively invested by Shanghai Orient Securities Innovation Investment Co., Ltd., with Junyi Investment serving as the financial advisor. Against the backdrop of a relatively subdued capital market in the first half of the year due to the pandemic, the participation of Orient Securities, a renowned brokerage firm, not only demonstrates optimism towards Digital TCM but also signifies high recognition of DAJING TCM’s development prospects.

DAJING TCM’s Series A funding round was led by Winning Health, a benchmark enterprise in China’s healthcare informatics industry. Leveraging over two decades of extensive experience in healthcare IT, Winning Health keenly identified DAJING TCM as a “dark horse” in the field of Traditional Chinese Medicine (TCM) informatization. Over the past few years, DAJING TCM has achieved remarkable success in digitally preserving the clinical expertise of renowned senior TCM practitioners, building a digital TCM knowledge base, and developing an intelligent Clinical Decision Support System (CDSS) for TCM practice. The company has collaborated with 103 provincial-level or higher renowned senior TCM experts to extract and summarize their diagnostic and treatment experiences. DAJING TCM’s CDSS has been adopted in clinical settings by 307 tiered hospitals, while thousands of primary healthcare institutions have benefited from its smart TCM solutions. Its personalized health status identification and wellness guidance system for consumer users has become the only TCM application featured on the “Xuexi Qiangguo” platform, attracting tens of thousands of daily active users.

In 2022, DAJING TCM’s intelligent TCM ecosystem further expanded into the realm of smart hardware. The company’s intelligently designed pulse diagnostic instrument, developed over several years, has begun to enter the market. Its innovative product structure, advanced sensor technology, and cutting-edge pulse recognition algorithms make it a uniquely distinctive TCM pulse diagnostic device on the market. This device, known as the “DAJING TCM Smart Finger,” will complement the already renowned “DAJING TCM Smart Brain” (Clinical Decision Support System, CDSS) with powerful capabilities. Coupled with the anticipated launch of the “DAJING TCM Smart Eye” (intelligent tongue diagnostic instrument) by the end of this year, these components will collectively form a comprehensive intelligent TCM diagnosis and treatment robot. Through “human-machine coupling” between TCM practitioners and these intelligent software and hardware systems, high-quality, general-practice-level TCM services will be provided to a broad patient population.

At this juncture, Orient Securities, with its discerning insight, made a decisive investment in DAJING TCM. This move demonstrates its profound understanding and forward-looking vision of the industry in which DAJING TCM operates, against the backdrop of the nation’s vigorous promotion of Traditional Chinese Medicine (TCM), as well as the rapid development of the digital economy and artificial intelligence. It reflects a strong consensus between industrial capital and financial capital, and is certain to attract greater attention from investors to this relatively niche sector.

Since the promulgation of the Traditional Chinese Medicine (TCM) Law in 2017, and particularly since the release of the “Opinions of the Central Committee of the Communist Party of China and the State Council on Promoting the Inheritance, Innovation, and Development of Traditional Chinese Medicine” in 2019, interest in TCM has gradually increased. This trend has also given rise to a number of companies engaged in businesses identical or similar to those of DAJING TCM. However, after careful comparison, attentive experts and users have identified two distinct characteristics exhibited by DAJING TCM during its development—

First, prioritize steady progress over rapid expansion. Founded in 2016, the company did not initiate sales at scale until 2020, dedicating itself to research and development with patience and resilience—a rarity among startups. It is precisely this artisanal spirit and composed mindset that propelled its products to industry leadership upon launch, distinguished by superior technology, robust functionality, and meticulously refined details.

Second, tackle the hardest challenges first. Developing a high-level TCM-assisted diagnostic and treatment system requires overcoming a series of significant hurdles. These include: first, understanding and comprehending the “non-standardized” academic framework of TCM diagnosis and treatment; second, integrating TCM practices with information technology; third, embarking on a digital “Long March” starting from the foundational work of establishing data standards; and fourth, addressing the scarcity and low quality of clinical TCM data. To bypass these obstacles, many companies have opted for expedient shortcuts. In contrast, DAJING TCM has confronted these challenges head-on. Although its initial progress was arduous, its advantages have gradually become evident over time.

With the entry of Orient Securities and capital support, DAJING TCM is poised to emerge from the “quagmire” more swiftly toward a brighter future.

This concept was proposed by Li Wenyou, founder of DAJING TCM, at an academic conference several years ago. From the 2019 “Opinions of the Central Committee of the Communist Party of China and the State Council on Promoting the Inheritance, Innovation, and Development of Traditional Chinese Medicine” to this year’s “14th Five-Year Plan for the Development of Traditional Chinese Medicine,” national policies have explicitly stated support for and encouragement of the development and application of intelligent clinical decision support systems in traditional Chinese medicine (TCM). The formulation of these policies is grounded in the disciplinary characteristics of TCM, aligned with the overall goals and requirements for the development of TCM in the new era, and based on the current state of information technology and artificial intelligence. Developed through repeated deliberations and demonstrations, these policies are underpinned by profound economic, social, cultural, and technological contexts, and their vitality will become increasingly evident in the future.

DAJING TCM’s exploration of digitalization in Traditional Chinese Medicine (TCM), akin to the “intelligent transformation and digital conversion” that has emerged in the manufacturing sector in recent years, holds significant importance for innovation and development within the industry and can be regarded as the “intelligent transformation and digital conversion” of the TCM field. Digitalization in TCM can, at least to a considerable extent, address several bottleneck issues currently hindering the development of TCM—

First is the issue of evidence-based practice in Traditional Chinese Medicine (TCM). Without a digital foundation, evidence-based TCM research and real-world data studies in TCM are merely empty rhetoric.

Second is the issue of TCM heritage. Digital inheritance serves as a positive supplement to the traditional "master-apprentice" model, and DAJING TCM's practices in recent years have fully demonstrated its feasibility and importance.

Third is the issue of training and education for TCM practitioners. The vast complexity of TCM knowledge, combined with the flexible and dynamic nature of TCM clinical reasoning, makes the path to becoming a proficient TCM practitioner long and arduous. High-quality TCM Clinical Decision Support Systems (CDSS) can help junior physicians learn through clinical practice and apply their learning in clinical settings, thereby significantly improving the efficiency of TCM practitioner development.

Fourth is the issue of enhancing TCM service capacity at the primary care level. Digitalization enables the “vertical downward flow” of resources from renowned senior TCM practitioners and high-quality TCM services, representing the optimal approach to strengthening TCM service capabilities in primary healthcare institutions and improving access to quality TCM care.

Upon completion of this funding round, DAJING TCM will accelerate its initiatives across multiple operational dimensions, including R&D, marketing, and sales, injecting stronger digital vitality into the traditional Chinese medicine industry!