Zhixing Heyi Completes Nearly RMB 10 Million Angel Funding Round, Focusing on Integrated Medical and Elderly Care Services for Disabled Seniors

VCBeat (WeChat ID: vcbeat) has recently learned that Zhuhai Zhixing Heyi Health Industry Co., Ltd. (hereinafter referred to as “Zhixing Heyi”) has completed an angel financing round of nearly RMB 10 million, funded by a well-known angel investor. The proceeds from this round will be primarily used for talent acquisition and supplementing working capital. The company has also initiated a new round of financing, with Beituo Capital serving as its long-term financial advisor.

Zhixing Heyi was established in October 2019. It is a service-oriented enterprise dedicated to providing integrated medical and elderly care services for disabled and semi-disabled seniors. Headquartered in Zhuhai, Guangdong Province, it oversees two subsidiaries: “Zhuhai Elderly and Sea Medical and Elderly Care Industry Co., Ltd.” and “Zhuhai Zhixing Heyi Doctor Group Management Co., Ltd.”

In response to gaining recognition from angel investors, Xiao Xunyong, General Manager of Zhixing Heyi, stated: “We are delighted to have found like-minded partners in China’s elderly care industry. As China rapidly transitions into an aging society, the elderly care sector is highly likely to become a significant economic pillar in the country over the next decade. However, elderly care models suited to China’s specific national conditions have yet to be clearly defined, and the current stage involves exploratory efforts by various stakeholders. In this process, securing investment partners who recognize and support our integrated medical and elderly care model will enable us to accelerate the nationwide rollout of our projects, thereby addressing the ‘pain points’ and ‘bottlenecks’ on both the supply and demand sides of the medical and elderly care market.”

Our expert and service team, committed to integrating knowledge with action, spans multiple disciplines including hospital management, rehabilitation, elderly care services, health management, and nursing. The founding team has cultivated deep expertise in the medical-elderly care and healthcare industries over many years. Notably, our Japanese chief experts in nursing and rehabilitation are distinguished scholars invited by the National Health Commission and the Ministry of Civil Affairs to deliver lectures. With six years of dedicated exploration in the field of integrated medical and elderly care, they possess profound insight into the critical pain points and bottlenecks of the sector.

Since entering an aging society in the late 20th century, China has witnessed a rapid increase in its elderly population and a significant rise in their proportion of the total population. From 2000 to 2018, the number of people aged 60 and above grew from 126 million to 249 million. During the same period, the proportion of the elderly population rose from 10.2% to 17.9%, representing an increase more than twice the global average.

According to the "2018-2019 China Long-Term Care Survey Report," approximately 4.8% of elderly individuals in China suffer from severe disability in activities of daily living (ADLs), while 7% experience moderate disability, resulting in a total disability rate of 11.8%. This implies that one in ten elderly people is unable to fully manage basic daily tasks such as dressing, eating, bathing, and using the toilet. The decline in basic self-care abilities is accompanied by a deterioration in independent living skills, with 25.4% of the elderly requiring comprehensive care. This has given rise to a massive elderly care market valued at trillions of yuan.

As early as 2016, the General Secretary pointed out that “improving the quality of elderly care services is crucial to the well-being of over 200 million seniors, particularly the more than 40 million who are disabled or partially disabled, and also affects the work and lives of their children; it is a significant issue concerning people’s quality of life.” Adhering to the principle of integrating knowledge with action to implement national directives, our business strategically focuses on the 40 million disabled and partially disabled elderly individuals, committing to provide them with integrated medical and elderly care services.

“Zhixing Heyi has precisely tapped into the core demands of the elderly care market: seniors with disabilities, partial disabilities, and dementia. The optimal solution for this segment is the integration of medical and elderly care services. The company’s construction and operational solutions for integrated medical-care centers represent the best model of such integration and have already been successfully implemented,” commented an angel investor. Indeed, Zhixing Heyi focuses on seniors with disabilities and partial disabilities, which constitute the most essential niche within the elderly care industry. With precise business positioning and strong profitability, the company addresses the high-frequency, indispensable needs for daily living assistance and medical nursing among these groups.

Zhixing Heyi’s core business focuses on providing construction and operational solutions for medical-nursing care centers in public hospitals. Through its Zhixing Heyi Medical-Nursing Care Center project, which collaborates with county-level public hospitals, the company plans to expand its presence across 19 provinces in China within three years, establishing a total of 120 medical-nursing care centers.

Currently, the company has established two medical and elderly care centers, namely the Sansui Traditional Chinese Medicine (TCM) Hospital and the Wuchuan TCM Hospital. The Medical and Elderly Care Center at Sansui TCM Hospital officially commenced operations on July 18, 2020, with an operational term of five years. As of October 2020, the center achieved a 100% occupancy rate and generated approximately RMB 4.42 million in revenue. The Medical and Elderly Care Center at Wuchuan TCM Hospital began trial operations in January 2021. As of February 10, 2021, the center recorded a 60% occupancy rate and generated approximately RMB 5.66 million in revenue.

Zhixing Heyi focuses on serving the niche market of integrated medical and elderly care for disabled and semi-disabled seniors. The company’s products break down the traditional separation between “medical care” and “elderly care,” benchmarking international standards to create a high-quality, China-specific integrated care model. This model features a service framework of “daily living assistance + medical nursing + long-term medical and elderly care fund,” aiming to address the social pain point where “one person’s disability throws the entire family off balance.”

Zhixing Heyi pioneered the integrated medical and elderly care model of “daily living assistance + medical nursing + medical-elderly long-term care fund,” developing solutions specifically tailored to China’s essential needs in this sector. It exclusively provides comprehensive integrated solutions and project implementation services for combining medical and elderly care, including “smart platform construction for hardware and software, technical training and operational support, and bed sales.” By establishing competitive barriers through top-level design, it enables rapid product replication and sustained operational capability.

The healthcare and elderly care industry is one of the sectors with the most long-tail products and the most pronounced long-tail effect. By acquiring a substantial base of elderly clients through medical-nursing care centers, it will inevitably drive the sales and profitability of long-tail products. As a pioneer and practitioner of the integrated medical and elderly care model, Zhixing Heyi Company operates medical-nursing care centers that exhibit significant long-tail effects, with profits from long-tail products reinvested to support these care centers.

The ZhiXingHeYi team possesses extensive experience in management, marketing, and operations within the healthcare and elderly care sectors. It offers comprehensive, one-stop services covering chronic disease management, rehabilitation, and nursing for the elderly, committed to achieving true deep integration of medical care and elderly support.