Zhongwu Technology Files IPO Prospectus: Providing Comprehensive Medical Health Screening and Data Management Solutions

In the past two years, public attention to health has been steadily increasing. However, the health management industry still faces challenges such as low patient compliance, low market penetration, and inefficient management practices. To address these issues, various health management companies have leveraged their unique strengths in pursuit of optimal solutions. As an innovator in the health management sector, Zhongwu Technology has also put forward its own solution.

According to available information, Zhongwu Technology was established in November 2017 as an innovative enterprise providing artificial intelligence, data management services, and intelligent health management solutions. The company focuses on the application of AI, big data, and Internet of Things (IoT) technologies in the healthcare sector. By building a cloud-based platform for medical health management and intervention, it offers comprehensive health screening and management services to individuals and institutions, thereby fostering an intelligent healthcare ecosystem.

Zhongwu Technology primarily serves government (G-end) and business (B-end) markets, including community hospitals, medical-grade health management institutions, chronic disease management organizations, high-end wellness clubs, rehabilitation centers, and elderly care facilities. It provides unified health screening and testing tools, data analytics, and a health management intervention platform. The testing tools are available in both institutional and home-use versions and can be customized to meet the specific needs of B-end clients.

Currently, the health management industry in China is still in its nascent stage. Why has Zhongwu Technology chosen to focus on this sector?

Mr. Fu believes that the vast majority of people spend their entire lives striving for nothing more than four things: first, physical health; second, harmonious relationships (such as those with family, relatives, friends, and broader social connections); third, engagement in a career they are passionate about; and fourth, spiritual elevation. To achieve the latter three goals, the most fundamental prerequisite is maintaining a healthy body. In the past two years, following the trials of the pandemic, an increasing number of individuals have begun to prioritize their personal health, laying the foundation for the rapid development of the health management industry.

“At the same time, we have previously served senior cadres and earned strong recognition from our clients. Therefore, through our own efforts, we aim to contribute to improving health outcomes for more people and support the Healthy China 2030 initiative. In short, as a group of post-80s entrepreneurs, we wish to make our modest contribution to the nation’s healthcare cause.”

Currently, there are numerous health management companies in the market. How does Zhongwu Technology differ from them? What are its differentiated advantages?

Fu Xiaoqin, CEO of Zhongwu Technology, stated, “We do not target end consumers directly; instead, we provide our products and services to B-side markets such as community hospitals, specialized chronic disease management institutions, professional health management organizations, high-end wellness communities, and premium elderly care communities. This enables professional family doctors or health managers to better serve end consumers.”

Zhongwu Technology’s product portfolio encompasses both hardware and software. Leveraging talent from Tsinghua University, Shanghai Jiao Tong University, Huazhong University of Science and Technology, National University of Defense Technology, Harbin Institute of Technology, Shanghai University, East China University of Science and Technology, and Harvard University in the United States, Zhongwu Technology has developed hardware devices such as health screening robots, non-invasive health screening and detection equipment, and biochemical testing equipment, as well as software algorithms including an intelligent health data platform, a health management intervention solutions platform, and multi-source heterogeneous data homogenization technology.

(Zhongwu Technology Health Screening Robot)

It is worth noting that Zhongwu Technology’s R&D team, composed primarily of PhD holders, boasts strong innovative research and development capabilities.

In terms of hardware productsOne of Zhongwu Technology’s representative products is a non-invasive health screening and detection device. This device enables non-invasive screening without the need for blood draws or sample collection, allowing for the timely identification of functional decline prior to the onset of organic lesions. In simple terms, when a patient’s physiological functions deteriorate to a certain extent, further worsening can lead to clinically significant organic pathology. The non-invasive health screening and detection device can proactively identify suboptimal health conditions, provide real-time alerts to users, family physicians, or health managers, and facilitate early intervention. This helps slow the decline of organ function and minimize the occurrence of adverse events such as organic lesions, thereby embodying the principle of preventive care.

It is worth noting that the non-invasive health screening device has generated clinical data for pharmaceutical and medical device certification applications, achieving a concordance rate of 95%.

One of Zhongwu Technology’s representative products is an integrated biochemical testing device. It can measure multiple health indicators, including blood glucose, blood oxygen saturation, blood pressure, blood lipids, electrocardiogram (ECG), heart rate, uric acid, and cholesterol. The device holds the necessary medical device certifications and meets users’ needs for daily at-home health management.

Fu Xiaoqin stated, “The robot is equipped with non-invasive health screening devices and common chronic disease detection equipment. It features a compact, portable, and non-invasive design, making it suitable for home use. With this equipment, users can perform multi-parameter testing at home. Upon user authorization, the test data are automatically transmitted to the backend of the intelligent health platform and shared with the user’s authorized family doctor, health manager, and family members. Based on the user’s multidimensional health data, family doctors or health managers can better understand the user’s physical condition, assess health development trends, customize personalized and precise health management intervention plans, and optimize or adjust these plans as needed, while reminding the user to implement them.”

In terms of softwareZhongwu Technology enhances the accuracy of its detection tools through deep learning models and other algorithmic models. Meanwhile, Zhongwu Technology provides an intelligent health management platform to B-end markets such as community hospitals and health management institutions. This platform helps B-end institutions improve management efficiency, remotely manage patients and users, enhance user adherence, strengthen user stickiness with health management institutions, and attract new users such as white-collar workers.

For users, the intelligent health management platform provides unified testing tools and a centralized testing platform to facilitate lifelong health data management. Contracted family doctors can access users’ in-hospital and out-of-hospital test results in real time, delivering comprehensive, lifelong health management. Additionally, the platform offers precise recommendations for data analysis and health intervention plans, serving as a one-stop service hub for personal health management.

For community hospitals and health management institutions, data platforms facilitate the management of remote patients or clients by enabling precise matching, remote adjustments, real-time monitoring, and outcome tracking of health intervention programs. This enhances client engagement with health management institutions, supporting customer acquisition while reducing churn among existing clients.

For family physicians and health managers, intelligent health management platforms can reduce their workload and enhance efficiency, thereby improving the effectiveness of health management. These professionals can access users’ in-hospital and out-of-hospital test data with a single click, allowing them to promptly adjust and optimize health management plans based on this information, ultimately enhancing health outcomes.

For government departments, intelligent health management platforms can provide health data statistics. For example, the platform can analyze dietary habits of residents within a jurisdiction: in areas with high sugar consumption, there is a higher incidence of diabetes; in regions with heavy use of oil and salt, diseases such as hyperlipidemia are more prevalent. Through health data statistics, government agencies can better understand the health status of local residents.

Overall, Zhongwu Technology’s products and services deliver benefits to B-side institutions, health managers, government agencies, and end users.。

After five years of research and development, Zhongwu Technology has completed the development of its hardware and software products. This year, the company will strengthen its marketing efforts to help more B-side institutions better serve their users.

Fu Xiaoqin stated, “When planning its business model, Zhongwu Technology first conducted industry analysis and market research.”

Zhongwu Technology believes that China’s big health industry suffers from deficiencies in six key areas. First, there is a lack of a unified data platform, resulting in data silos. Second, there is an insufficient number of renowned physicians, with medical resources concentrated in well-known Grade A tertiary hospitals and unevenly distributed. Third, there is no unified and transparent payment system, placing immense pressure on medical insurance waste. Fourth, there is a shortage of general practitioners, and the number of qualified professional health managers is extremely scarce. Fifth, there is a lack of care and health management covering the entire life cycle. Sixth, there is a lack of infrastructure to empower independent physician groups.

Therefore, Zhongwu Technology contributes to the development of the broader healthcare industry by starting with a unified data platform and infrastructure that empowers physicians.

In terms of commercialization, Zhongwu Technology expands its market through word-of-mouth promotion and the development of existing clients. Specifically, Zhongwu Technology previously served the market of retired senior cadres, receiving highly positive evaluations and establishing a strong reputation in the industry. Furthermore, during the pandemic, Zhongwu Technology’s products minimized contact between users and doctors or health managers, enabling users to independently complete health screenings and remote health management. This further demonstrated the superiority of Zhongwu Technology’s products.

Furthermore, by leveraging Zhongwu Technology’s tools, professional health management institutions can deliver effective health management services to household users, who will then demonstrate a higher willingness to pay. As these institutions reap benefits, Zhongwu Technology will be able to expand its market presence.

In 2022, Zhongwu Technology plans to establish a nationwide distribution system with automated back-end settlement, implementing localized operational management across different regions. The system will primarily supply A+C products to B-side clients, offering options for both single and multiple product selections. Notably, Zhongwu Technology will not encroach upon the interests of B-side partners and will retain the majority of profits within the B-side channel.

Among these, Product A is a testing device and data platform with hardware as its carrier, while Product C is an exclusive, targeted health intervention product. Featuring a pure plant-based formula rooted in the concept of “medicine and food sharing the same origin,” the product has obtained relevant qualifications and licenses. Primarily targeting common chronic diseases such as hypertension, hyperlipidemia, diabetes, coronary heart disease, and hyperuricemia, it was developed under the leadership of experts from Harvard University. Currently, some products have been approved for projects by the National Health Commission of China, and others are in the process of applying for drug registration numbers.

Zhongwu Technology plans to help health management institutions significantly improve their management outcomes through health intervention products. Its flagship health intervention products will be used by clients under the guidance of health managers with medical backgrounds within these institutions.

In summary, Zhongwu Technology will leverage word-of-mouth marketing, product empowerment, and value monetization to penetrate the existing market and expand into new growth markets.