Huansi Industrial Files IPO Prospectus: Leveraging 108+ Patents to Build an Intelligent Care Matrix for China's Aging Market
The Aging Wave Is Striking with Unprecedented Force.
The 2021 Seventh National Population Census showed that China's elderly population (aged 60 and above) had reached 260 million, representing a 5.44% increase compared to 2010.Amidst this wave, the “silver economy” and the “healthcare and elderly care market” have surged. The Proposal of the 14th Five-Year Plan issued by the Central Committee of the Communist Party of China also puts forward the “national strategy for actively responding to population aging” to address the challenges posed by an aging demographic. It can be said that bridging the gaps in elderly care, medical services, and social support has become a thorny issue facing all countries with aging populations.
However, not everyone is prepared for this suddenly emerging market.
In the elderly care industry, China had 4.831 million beds in elderly care institutions in 2020, equivalent to 33.0 beds per 1,000 people (data sourced from the “Statistical Communiqué on National Economic and Social Development in 2020”). This still falls short of the target set forth in the “Outline of the 14th Five-Year Plan for National Economic and Social Development and the Long-Range Objectives Through the Year 2035,” which calls for increasing the proportion of nursing-type beds in elderly care institutions to 55%.
Meanwhile, according to statistical data from the Ministry of Civil Affairs, the vacancy rate of elderly care beds in China reached as high as 50% by the end of July 2020.There are obvious problems such as the lagging development of elderly care institutions and insufficient service capacity.
Guangzhou Huansi Industrial Co., Ltd. (hereinafter referred to as “Huansi Industrial”) centers on the Yunyi Smart Nursing Bed and is driven by innovative technologies to build a product and service system for the health care of elderly people in China. Meanwhile, it develops related products through technological innovation to address market challenges.
In 2010, Huansi Industrial was established in Guangzhou, focusing primarily on the research and development of medical devices.In 2018, Zhou Kai, founder of Huansi Industrial, believed that population aging had become inevitable. Drawing on his prior experience,He positioned his strategic focus on the elderly care sector, which is still in its exploratory phase, and commenced the research and development of smart beds.
Today, as he once again looks back on this decision, Zhou Kai remarked,: “Elderly care is not merely a single market, but a complex industry with immense potential. This industry is filled with countless hybrid tracks, and the smart bed market is just one of them. Choosing this track is a relatively bold decision.”
“The bed” is an indispensable item for every elderly person in their later years, and a faithful companion that stays with them from sleep, through illness, to the end of life.Compared with the elderly care industry abroad, domestic nursing methods have yet to reach the international level of intelligence.For most elderly people, their income is insufficient to purchase even a single imported nursing bed. Huansi Industrial chose to focus on the research and development of smart beds precisely because it observed the pain points in China’s aging market. The company aims to develop affordable smart beds for the elderly and individuals with disabilities by truly addressing their needs and financial burdens.
HuanSi Industrial’s design team originated from the medical device manufacturing industry, and as a result, the mindset of continuously optimizing products has become an inherent part of the team’s DNA.The team conducted on-site visits to nursing homes and hospitals to identify emerging market needs and continuously update the usage scenarios for smart beds. Meanwhile, the company established a postdoctoral workstation in collaboration with industry-academia-research partners to accelerate technological R&D.
Today, after five years of feedback from hundreds of clinical users and over a hundred rounds of related testing, Huansi Industrial has gradually established three distinct product lines at different levels in the development of smart beds, built its own product matrix, and obtained more than 108 patents.
Specifically,In terms of core hardware, Huansi Industrial has developed the Huansi CloudWing Smart Nursing Bed and the Huansi High-Tech Medical Device Series. In terms of core software, the company has developed the IHSP Smart Care Platform, the Huansi XiaoYi AI Voice Interaction Platform, the Huansi Cloud Health Big Data Center, and the Huansi Cloud Doctor Remote Monitoring and Family Doctor Call System. Leveraging its technological strengths, Huansi Industrial has also developed smart wearable products such as speakers and watches, as well as the Huansi CloudShare Furniture Series, including air monitors and smart multi-functional home beds.
Huansi Industrial Product Matrix
It can be said that,Huansi Industrial has established its own product ecosystem.On the other hand, the company leverages the “bed” as a platform to develop a series of smart nursing beds as its “flagship” products.
One is the basic nursing bed, such beds are simple to use and easy to operate. The fully automated workflow entails minimal learning costs and a low barrier to entry, offering a high degree of user-friendliness for elderly individuals aging in place.
The second category comprises rehabilitation products that are functionally upgraded from basic nursing beds.. Such products not only feature functions like side-tilting and leg separation, but also have been functionally improved to address the needs of most disabled elderly individuals for passive rehabilitation training, thereby equipping smart beds with auxiliary functions beyond the basic capabilities of standard nursing beds.
Third, the Standard Smart Bed Product Line. This product line is currently Huanhsi Industrial’s flagship offering. In the standard version of its smart bed, Huanhsi Industrial’s design team has incorporated more than 20 sensors into the bed frame to address the diverse scenario-based needs of elderly individuals with disabilities. These sensors enable round-the-clock alerts, monitoring, and data collection for various physiological parameters, as well as for bed pressure, bed exit, and urinary incontinence events. The system also provides 24-hour monitoring to support remote care, video chatting, and real-time data transmission.
Smart Standard Nursing Bed
In addition to intelligent monitoring (powered by over 20 sensors) and remote intelligent control, this product features functions such as backrest elevation, sitting-up assistance, left/right side turning, independent left/right leg lifting, leg care, timed side turning, and reset.Meanwhile, Huansi Industrial addresses the common issue of difficulty with elimination among bedridden elderly individuals., an intelligent toilet system has been designed that enables one-time packaging, requires no connection to the sewer system, and is isolated from the indoor environment. This system facilitates bowel movements while also providing functions such as toilet seat elevation and lowering, bag replacement, storage, disinfection, flushing, cleaning, and drying.
In the future, Huansi Industrial will also establish an intelligent information management system for smart isolation nursing beds, empowering end customers through monitoring of patients' vital signs, data analysis, and creation of patient records.
As the number of competitors increases, the market is showing signs of unregulated chaos. Huansi Industrial has not chosen to follow suit but continues to focus on product development and layout in lower-tier markets.
In the face of market competition, Huansi Industrial has three strategic approaches:
First, refine products, expand the product line, and cater to market demands;
Second, formulate appropriate pricing strategies to enhance user acceptance;
3. Seek institutional collaborations in lower-tier markets to uncover more potential customers.
To break it down, in terms of product R&D, Huansi Industrial will continue to focus on its smart bed product line in the near future, constantly improving and optimizing existing smart bed features while developing new functionalities.Meanwhile, devote certain efforts to the research and development of other smart medical devices, such as outdoor monitoring systems, air quality sensors, and heart rate monitoring devices.
Regarding the current development of smart beds, Zhou Kai believes that many new technologies can be leveraged to further expand their functionality and practicality.。
As for pricing, Huansi Industrial has its own strategy.Compared with well-known imported brands, Huansi Industrial’s smart bed products are priced at only 50%–60% of theirs. By eliminating brand premium considerations, this pricing strategy has endowed the company with a certain competitive edge. As a result, during the pandemic control period from 2020 to 2021, Huansi Industrial’s standard smart beds gained traction in the medical market, with sales recorded across all product tiers.
Finally, Huansi Industrial has adopted a proactive strategy to seek collaborations with various institutional clients. Currently, Huansi Industrial has established stable business relationships with Guangzhou Yuexiu Group and subsidiaries of China Resources Group, covering areas such as the sales of long-term care insurance and the leasing of smart beds and rehabilitation equipment. Meanwhile, supported by policies including Guangzhou’s “Long-Term Care Insurance” initiative, Huansi Industrial has reached agreements with certain institutions on diverse sales models, including leasing and cooperative partnerships.
Despite the ongoing impact of the pandemic on the industry, Huansi Industrial’s total revenue has exceeded RMB 20 million to date.
From Zhou Kai’s perspective, Huansi Industrial will evolve from a pure medical device manufacturer focused on production and R&D into an enterprise-level sales chain integrating production, R&D, sales, promotion, and after-sales services. By adopting an industrialized business model, it aims to address the social elderly care challenges that are difficult for multi-stakeholder markets to resolve.
Behind this ideal blueprint, one can glimpse the mission and original aspirations of Huansi Industrial. Zhou Kai stated, “We hope to enable everyone to reasonably balance their efforts and needs, thereby enjoying the quality of life they deserve. Consumers have the freedom to choose their quality of life, while Huansi Industrial will provide seniors with a window to select a better quality of life.”
The company is currently in the midst of fundraising. In the future, Huansi Industrial will invest additional capital to further develop and enhance the functionalities of its smart beds.