Jiahewell Health Goes Public on STAR Market, Leveraging Over a Decade of Expertise in Medical Informatics

On December 14, 2021, Goodwill E-health Info Co., Ltd. (hereinafter referred to as “Goodwill E-health”) was officially listed on the STAR Market of the Shanghai Stock Exchange. The initial public offering (IPO) price was RMB 39.50 per share, with 34.47 million new shares publicly issued, raising approximately RMB 750 million in expected proceeds. According to the prospectus, the proceeds from this IPO will be primarily used for the following purposes:

As can be seen from the use of proceeds raised by the company, the majority of Goodwill E-health Info Co.,Ltd.'s funds will be allocated to the research and development of its electronic medical record (EMR) projects and the upgrading and transformation of its data centers, with the remaining funds designated for supplementary working capital and other purposes.

Goodwill E-health, formerly known as Jiamei Keyi, was jointly established in February 2006 by Xia Jun, Wang Qing, Ji Zheng, and Ren Yong. In April 2011, Jiamei Keyi was renamed Goodwill E-health and participated in the same year in formulating healthcare informatization standards issued by the Ministry of Health, including the “Scoring Criteria for Functional and Application Analysis of Electronic Medical Records” and the “Specifications for Construction of Hospital Information Platforms Centered on Electronic Medical Records.” In 2013, Goodwill E-health completed its joint-stock reform. Over the past decade, Goodwill E-health has expanded its product portfolio from electronic medical records to hospital data center platform systems, clinical management systems, internet healthcare, and other fields within the healthcare informatization sector.

Leveraging its first-mover advantage and operational expertise in electronic medical records (EMR), Goodwill E-health Info Co.,Ltd. has accumulated extensive technological and market strengths in the field of clinical healthcare informatization. Currently, its clients span all provinces, municipalities, and autonomous regions across China, excluding the Taiwan region, covering more than 1,390 hospital clients, including 424 Grade A tertiary hospitals, which accounts for over one-quarter of all Grade A tertiary hospitals nationwide. According to Frost & Sullivan, Goodwill E-health ranked first in China’s EMR market in 2020. According to IDC data, Goodwill E-health has ranked first in China’s EMR market for seven consecutive years.

Goodwill E-health has secured a large customer base by delivering healthcare informatics software products with clearly defined functional boundaries, proprietary intellectual property rights, and corresponding corporate software copyrights. Tailored to customer needs, these offerings include electronic medical record (EMR) platforms, hospital data centers, innovative applications for medical big data, and internet-based healthcare solutions.

Among these, the Electronic Medical Record (EMR) Platform is Goodwill E-health’s core software product. It comprises a Comprehensive EMR System and a Specialty-specific EMR System. The former is an enterprise-wide comprehensive solution suitable for hospital-wide deployment, while the latter is a clinical application management system developed to meet specialty-specific clinical needs, featuring in-depth clinical functionality and close alignment with specialty workflows.

The integrated electronic medical record (EMR) system is divided into inpatient EMR and outpatient EMR systems, which are designed for the inpatient and outpatient service scenarios of healthcare institutions, respectively.

The inpatient electronic medical record (EMR) system employs proprietary editor technology. It achieves specialty-specific and standardized templates in accordance with medical record management requirements, continuously optimizes them based on departmental characteristics, and integrates information and data from other clinical systems. This serves as a dedicated tool for physicians to enter medical records in a standardized, professional, and efficient manner during the diagnosis and treatment process.

Outpatient Electronic Medical Record SystemThe Outpatient Electronic Medical Record (EMR) System is designed specifically for outpatient clinical scenarios, assisting medical staff in efficiently documenting medical records and integrating healthcare data from other systems to facilitate the collection and management of outpatient patient data. This system not only addresses the inconvenience patients face when carrying historical paper-based medical records but also resolves the challenge of missing or hard-to-access outpatient medical record data during clinical research.

Specialty-specific electronic medical record (EMR) systems are tailored and optimized for individual departments. For instance, in dentistry, the product encompasses all current dental specialties, including oral and maxillofacial surgery, prosthodontics, implantology, orthodontics, endodontics, oral mucosal diseases, temporomandibular joint disorders, pediatric dentistry, and preventive care. It integrates over 1,500 dental diagnosis codes and more than 700 treatment protocols, while incorporating specialized modules such as prescription management, laboratory work orders, periodontal charting, imaging and photo management, and appointment scheduling. By providing an integrated, single-screen workstation platform that consolidates multidimensional information, the system enables dentists to efficiently perform daily clinical procedures and facilitate subsequent medical quality control.

There is also a Perioperative Anesthesia Information Management System tailored for the Department of Anesthesiology. This system encompasses various clinical anesthesia scenarios throughout the perioperative period, and effectively enhances the work efficiency of anesthesiologists by implementing functions such as data acquisition, medical documentation management, and medical quality control management.

Furthermore, Goodwill E-health has developed an Intensive Care Information Management System tailored for intensive care units (ICUs). This system enables comprehensive, real-time alerts for changes in patient condition; multi-dimensional, integrated analysis of trends in patient status; thorough and rapid documentation of clinical workflows; automatic generation of critical care nursing records; and secure, efficient closed-loop management of medical orders.

To address the needs of specialized healthcare clients, such as Maternal and Child Health Hospitals or obstetrics and gynecology departments in general hospitals, Goodwill E-health has developed an Obstetric Electronic Medical Record (EMR) System. As a specialty-specific product built upon the hospital-wide EMR system, it meets comprehensive clinical workflow requirements spanning the preconception, pregnancy, and lactation periods. The system delivers comprehensive, efficient, and diversified full-cycle care centered on pregnant and postpartum women. It also lays the foundation for statistical analysis, scientific research, regulatory reporting, and follow-up management targeting key obstetric populations, thereby providing robust information support for subsequent interconnectivity among medical institutions and collaborative care in maternal and child health services.

There is also an ECG information management system tailored for specialized programs, which comprises the in-hospital ECG system, the regional remote ECG collaborative management and control platform, and pre-hospital emergency care systems. This forms a trinity solution for full-cycle cardiac management, utilizing resting ECG for early screening, dynamic ECG for definitive diagnosis, and remote real-time ECG for rehabilitation monitoring.

Merely digitizing medical records is clearly insufficient. Goodwill E-health also leverages Enterprise Service Bus (ESB) and Hadoop technologies to integrate existing hospital information resources, enabling healthcare data exchange, storage, and governance, thereby establishing a hospital data center. While achieving internal interoperability of information systems, the data center also provides hospitals with a unified external data service interface, supporting big data and internet-based applications.

Goodwill E-health leverages artificial intelligence technology, grounded in real-world clinical data from hospitals and supported by an intelligent medical data middle platform that delivers highly centralized, standardized data integration, governance, and services. This has resulted in a comprehensive ecosystem of smart healthcare products covering multiple application scenarios—including clinical care, research support, medical administration, and patient services—thereby achieving a closed-loop smart healthcare service spanning “pre-diagnosis, during-diagnosis, and post-diagnosis” phases. It provides digital, intelligent, and refined smart healthcare solutions to medical institutions, academic and research organizations, and health regulatory authorities.

The smart healthcare product suite features five core functions: Clinical Decision Support System (CDSS), Big Data Research and Analysis Platform, AI-Powered Medical Record Content Quality Control System, Intelligent Pre-Consultation System, and Intelligent Triage System.

In the future, Goodwill E-health Info Co.,Ltd. will build an internet-based diagnosis and treatment platform that integrates services such as medical record access, online follow-up consultations, prescription renewals for chronic diseases, health insurance payments, drug delivery, and examination appointments. Relying on medical institutions at all levels and led by hospitals, the platform breaks down data barriers between internet applications and in-hospital business systems, achieving integration of internal and external hospital operations and combining online and offline services. This will help medical institutions rapidly realize the "Internet + Diagnosis and Treatment" transformation, turning internet hospitals into extensions and supplements to the informatization and digitalization of physical hospitals, thereby achieving organic integration and high-level interoperability between them.

Benefiting from the first-mover advantage in its product portfolio and driven by national policies promoting healthcare informatization in recent years, Goodwill E-health Info Co.,Ltd. has achieved rapid revenue growth. From 2018 to the first half of 2021 (hereinafter referred to as the “Reporting Period”), the company’s operating revenues reached RMB 256 million, RMB 444 million, RMB 532 million, and RMB 210 million, respectively.

From January to June 2021, Goodwill E-health Info Co.,Ltd. recorded a year-on-year increase of RMB 113 million in revenue from its medical informatics business, representing a growth rate of 124.28%. The proportion of this segment to total revenue rose to 97.41%, while the company’s overall revenue increased by 93.86% compared to the same period last year. In other words, as the primary engine for revenue growth, medical informatics contributed a significantly larger share of Goodwill E-health’s total revenue.

During the reporting period, the gross profit margins of Goodwill E-health’s electronic medical record (EMR) platform were 72.81%, 77.36%, 66.95%, and 59.22%, respectively; the gross profit margins of its hospital data centers were 57.75%, 78.90%, 58.62%, and 54.55%, respectively; and the overall gross profit margins were 38.64%, 54.65%, 49.64%, and 49.86%, respectively.

With high revenue, R&D investment naturally cannot lag behind. During the reporting period, Goodwill E-health Info Co.,Ltd.'s R&D expenses were RMB 64.4139 million, RMB 71.2405 million, RMB 92.2687 million, and RMB 63.8964 million, respectively, accounting for 25.13%, 16.05%, 7.35%, and 30.42% of the operating revenue in the corresponding periods, remaining at a relatively high level.

The returns on R&D investment are evident. As of the first half of 2021, Goodwill E-health Info Co.,Ltd. held 19 granted invention patents and 651 software copyrights in the field of healthcare informatization, with an additional 48 patent applications pending. The company also participated in the formulation of national standards and specifications for electronic medical records (EMR) as well as interoperability assessment standards. This has enabled Goodwill E-health to maintain an industry-leading position in the number of high-tier hospital clients that have successfully achieved advanced levels in EMR grading and interoperability certifications.

The prospectus shows that, based on current operating performance, orders in hand, market conditions and other factors, preliminary estimates indicate that Goodwill E-health Info Co.,Ltd. expects to achieve full-year 2021 operating revenue of approximately RMB 700 million to RMB 850 million, representing a year-on-year increase of approximately 31.62% to 59.82%; net profit attributable to shareholders of the parent company is expected to be approximately RMB 71 million to RMB 91 million, representing a year-on-year increase of approximately 233.88% to 327.92%.

Driven by policy support, electronic medical records (EMRs) will see rapid adoption and upgrades of existing systems. Furthermore, as healthcare institutions deepen their informatization efforts, EMR systems will continue to evolve toward specialization, customization, and high-end solutions. Consequently, EMR-based medical information system architectures have become the core of healthcare informatization. Under these multiple favorable conditions, the healthcare informatization market is poised for sustained growth.

According to Frost & Sullivan’s “Research Report on China’s Healthcare Informatics Market,” the emerging healthcare informatics market in China is projected to achieve a compound annual growth rate (CAGR) of 124.2% from 2020 to 2025. The healthcare informatics market primarily comprises sub-segments such as Hospital Information System (HIS) software, Electronic Medical Record System (EMRS) software, hospital information platform software, and next-generation smart diagnosis and treatment application systems. It is evident that Goodwill E-health has already established its presence across all these product lines.

With the listing of companies specializing in healthcare informatization, such as Goodwill E-health Info Co.,Ltd., more enterprises are expected to join in, collectively accelerating the development of smart hospitals. This will help hospitals achieve resource integration and process optimization, reduce operational costs, and improve service quality, work efficiency, and management standards, thereby further fostering new models and formats of health medical services and making greater contributions to the Healthy China initiative.