Ren Zheng Medical Ethics Files IPO Prospectus: Building a Digital-Driven Home Health Management Service Ecosystem to Bridge Gaps in Primary Care

“Internet healthcare is undoubtedly poised for significant growth in the future and will become the key to addressing the fundamental challenges currently facing China’s healthcare sector. This will be achieved by leveraging cutting-edge data technologies to empower chronic disease management and health services, shifting away from the traditional clinical-centric framework, and redefining healthcare scenarios.”

This isLi Zheng, Chairman of Renzheng Medical EthicsWhile looking ahead to the future of internet-based healthcare, a focus on the present reveals that the reshaping of the medical industry by internet technology remains extremely limited. The current basic situation in China’s healthcare sector is“Emphasizing Clinical Care, Neglecting Prevention”, the primary reason for this market situation is that in the early years after the founding of the People's Republic of China, our country's productivity was underdeveloped, and we could only focus on addressing the challenges of treating acute and critical illnesses, with a significant lack of preventive interventions in the early stages.

With the rapid economic development and continuous improvement of living standards in China, this “putting the cart before the horse” healthcare system has failed to curb the rapid rise of chronic diseases. The increasingly large population of chronic disease patients not only severely affects the healthy living standards of the nation but also imposes a significant economic burden on both medical insurance systems and families.

In light of this, the state issued the Outline of the “Healthy China 2030” Plan, emphasizing prevention as the priority and the principle of “treating potential diseases before they manifest.” Guided by this outline, the government has successively introduced a series of key policies, including family doctor contracting services and the National Medium- and Long-Term Plan for Chronic Disease Prevention and Control. As a result, preventive care has gradually evolved into a new paradigm centered on primary healthcare institutions, extending from communities to households.

Meanwhile, with the development and practical application of scientific technologies such as medical-grade IoT devices, big data, and medical AI in disease prevention, new business models centered on home-based health management are emerging. These innovations are driving deep integration with primary care scenarios, continuously expanding the horizons of the broader health industry, and positioning the home health management market as the next major growth frontier.

Long before this trend, brimming with imagination and a strong sense of mission, gained momentum, Renzheng Medical Ethics had already been standing in the wind.

Beijing Renzheng Medical Ethics Technology Co., Ltd. is an internet-based healthcare technology company registered in Beijing. Established in March 2018, the company completed a joint venture and established a strategic partnership with CIIC Global (Stock Code: 06819.HK), a company listed on the Hong Kong Stock Exchange, in November of the same year. With a global perspective, Renzheng Medical Ethics is committed to empowering and enhancing trust in China’s healthcare industry through technological innovations, ultimately promoting public health welfare and enabling patients to access high-quality medical services on a global scale.

Like the vast majority of innovative enterprises, Beijing Renzheng Medical Ethics Technology Co., Ltd. was born out of its founder Li Zheng’s passion for and deep commitment to the medical field.

Li Zheng, Chairman of Renzheng Medical Ethics

Li Zheng formerly served as the General Manager of Baidu’s Healthcare Division. During his tenure, he navigated a cross-industry transition from the internet sector to healthcare. This dual shift in identity and responsibility afforded him a fresh perspective on the medical field, insights that became the foundation and original aspiration behind his establishment of Beijing Renzheng Medical Ethics Technology Co., Ltd.

On the one hand, there is the seriousness of the medical field.Li Zheng candidly remarked, “No single word can accurately describe the healthcare industry, as it is too weighty and too serious, being intimately tied to the human experiences of birth, aging, sickness, and death. Throughout my journey in the medical field, both the challenges encountered and the achievements attained have profoundly impacted me, deepening my understanding of the sector’s significance. It is a noble cause worthy of a lifetime’s dedication.”

On the other hand, these are the urgent challenges that internet healthcare needs to address at the current stage.Although the internet has accelerated its integration into every aspect of life, it has struggled to penetrate the core segments of the healthcare industry. Therefore, identifying appropriate medical scenarios, genuinely meeting patients’ actual needs, and breaking down interaction barriers among various service providers have become major and urgent challenges in the current field of internet healthcare. Li Zheng believes that the true application scenarios for the internet lie at the primary care level, within households and communities. Only with government support, by integrating online and offline services at the grassroots level, empowering primary healthcare institutions to serve communities and families more effectively, and assisting the government in implementing a tiered diagnosis and treatment system, can internet healthcare truly realize its value.

In addition to internal factors, external forces are also strengthening Li Zheng’s resolve to launch his own venture.According to the "Report on Nutrition and Chronic Disease Status of Chinese Residents (2020)," China currently has over 300 million patients with chronic diseases. In 2019, deaths attributable to chronic diseases accounted for 88.5% of all deaths in China, representing an increase of nearly 15 percentage points from 73.8% in 1991. It is projected that by 2050, as population aging accelerates further, this figure will reach a staggering level of over 90%., effectively preventing and controlling chronic diseases and properly guiding patients to improve their personal health issues have become a major challenge facing China's healthcare sector.

Home-based health services are a family-centric health management model vigorously promoted in China by Beijing Renzheng Medical Ethics Technology Co., Ltd. Leveraging medical-grade wearable devices and intelligent testing equipment, and supported by artificial intelligence, mobile internet, and Internet of Things (IoT) technologies, health managers and family doctors provide remote, safe, and reliable vital signs monitoring and health guidance services to patients with chronic diseases, individuals undergoing rehabilitation, those in a sub-health state, disabled elderly persons, and patients with limited mobility.

Qiao Shuo, General Manager of Renzheng Medical Ethics, told VCBeat, “From the perspective of the service itself,Renzheng Medical Ethics divides its service offerings into five core steps: data collection, data monitoring, intervention, effectiveness evaluation, and proposing improvement measures.Overall, it establishes a comprehensive service loop for patients, spanning from detection to health management. From a macro perspective, Beijing Renzheng Medical Ethics Technology Co., Ltd. integrates online and offline services through a “trinity” model comprising platform, devices, and services. On the one hand, offline services involve family doctors inviting patients to community health service centers for medical care; on the other hand, online services entail health managers conducting remote health management for patients via the Family Health Management Cloud Service Platform and wearable devices.

Specifically, how does Beijing Renzheng Medical Ethics Technology Co., Ltd. implement health management?

First, it is based on smart home IoT health devices.To enable physicians and health managers to monitor patients’ vital signs, home-based health management relies on smart IoT devices installed in the household. These devices track four basic vital signs, basal metabolic rate, blood glucose, and other biochemical indicators, automatically uploading the data to the cloud so that care providers can assess patients’ real-time conditions accurately.

Second, it is supported by PHR panoramic holographic data.Compared with in-hospital testing, personal health records (PHRs) generated from home-based testing data possess unique and irreplaceable value for both clinical practice and prevention. PHRs authentically reflect patients’ health status outside the hospital setting, thereby compensating for the limitations and gaps in in-hospital data. In the future, the organic integration of PHRs with electronic medical records (EMRs), coupled with advanced data processing capabilities, will maximize the value of data for health.

Third, it is driven by precise demand forecasting and efficient supply matching.Based on the patient's Personal Health Record (PHR), data regarding behavior, genetics, diet, and exercise are integrated to create a personalized health profile. This profile enables the precise matching of health products and services for the patient.

Fourth, cultivate a proactive health service industry model centered on home- and community-based scenarios.Integrate technology and services with primary healthcare institutions and communities to empower primary care, extending reach to households through community health service centers.

Currently, Beijing Renzheng Medical Ethics Technology Co., Ltd. has partnered with primary healthcare institutions in Chengdu, Langfang, and other regions to provide family health management services. On September 22, 2020, Beijing Renzheng Medical Ethics Technology Co., Ltd. signed an agreement with the Langfang Municipal Health Commission“Cooperation Agreement on Internet-Plus Home-Based Precision Care Services for Residents of Langfang City”According to the agreement, Beijing Renzheng Medical Ethics Technology Co., Ltd. (“Renzheng Medical Ethics”) will collaborate with its partner, Zhongzhi Global (Stock Code: 06819), a company listed on the Hong Kong Stock Exchange. By integrating online and offline medical service institutions via the internet, and leveraging technologies such as medical-grade wearable devices, big data-driven profiling, and precise service-matching algorithms, they will introduce high-quality medical resources from the Beijing-Tianjin-Hebei region, across China, and even globally into Langfang. This initiative aims to provide Langfang residents with precise home-based health management and care services, enabling the city’s 4.6 million residents to address their health needs locally and making healthcare services truly accessible.

In its first three years since establishment, Beijing Renzheng Medical Ethics Technology Co., Ltd. focused primarily on strengthening the foundational corporate ecosystem and expanding initial business operations. First, it developed a cloud-based platform for family health management services, which is now operational in Ningxia. Second, it established a production and R&D center in Shanghai, securing independent competitive advantages in medical wearable devices. Third, it partnered with Chengdu Jinniu Chengshi Hospital to launch collaborative projects in chronic disease management. Finally, it signed an agreement with the Langfang Municipal Health Commission for the “Internet + Home-Based Precision Care” project, which has successfully entered its second phase and served over 5,000 patients to date.

As an innovative enterprise, the remarkable achievements Beijing Renzheng Medical Ethics Technology Co., Ltd. has attained in a short period are attributable to its core competitiveness, which distinguishes it from peers in the same sector.

First, the core team members possess in-depth knowledge of the industry.Founder Li Zheng, formerly General Manager of Baidu’s Healthcare Division and Vice President of Microsoft (China) Co., Ltd., brings profound insights and unique perspectives on both the technology and healthcare sectors. Moreover, the company’s core team members each possess nearly two decades of experience in sales and operational management at leading international technology firms or pharmaceutical manufacturing and marketing enterprises, providing a sustained driving force for the company’s growth.

Second, extensive resource integration capabilities.On one hand, the team members have been deeply engaged in the medical field for many years and possess extensive medical resources on the supply side, providing substantial support to enterprises in the areas of medical devices and pharmaceuticals. On the other hand, the company has been operating at the grassroots level for nearly three years, accumulating significant experience through business exploration while establishing a certain resource advantage at this level.

Third, it is backed by strong institutional support.Zhongzhi Global is the largest healthcare credit service platform and health technology company in the North American market, serving more than 13,000 hospitals, over 72,000 pharmaceutical and medical device manufacturers, and more than one million healthcare professionals worldwide. As Zhongzhi Global’s partner in China, Beijing Renzheng Medical Ethics Technology Co., Ltd. enjoys multiple advantages at both the capital and market strategy levels. Furthermore, Zhongzhi Global’s extensive global perspective and mature business model have provided significant support to Beijing Renzheng Medical Ethics Technology Co., Ltd. in platform upgrading and healthcare security.

For the future, Renzheng Medical Ethics also has its own dimensions of thought.First, we will continue to deepen our presence in grassroots communities by collaborating closely with the government to establish an online-to-offline closed loop at the community level, enabling the public to truly experience the power of internet-based healthcare. Second, we will streamline corporate health management models, leveraging our existing expertise and resource advantages to support business expansion and further diversify our service offerings. Third, we will cultivate an ecosystem for the elderly care industry by partnering with nursing homes and related institutions, effectively integrating home-based health management concepts into all aspects of elderly care and services, while continuously exploring innovative models for elderly care.

The objectives are clear, but their realization requires reinforcement and supplementation across multiple fronts. Li Zheng told VCBeat, “For Beijing Renzheng Medical Ethics Technology Co., Ltd., the most pressing need at present is the continuous infusion of capital. Renzheng Medical Ethics aims to become the ‘Toutiao’ of the broader health sector. This means we need to aggregate vast amounts of data, as only by leveraging data can we precisely match users with medical and health services. This precise matching of supply and demand is a direction that internet healthcare companies have been continuously exploring.”

As China’s population ages at an accelerating pace and fertility rates decline, the home-based elderly care market holds immense potential and is poised to become a trillion-yuan industry in the future. However, opportunities always come with challenges. In the face of unresolved issues, companies operating in this sector must not only demonstrate exceptional resilience but also remain steadfast amid solitude, dedicating themselves to enhancing the quality of medical and health services and strengthening service systems. By doing so, they can create greater well-being for society as a whole. This has been, and continues to be, the enduring mission of Beijing Renzheng Medical Ethics Technology Co., Ltd.—in the past, present, and future.