KangYiTong Files IPO Prospectus: A One-Stop Informatics Platform for Medical Equipment Management Serving Over 300 Hospitals

Jiangsu Kangyitong Technology Co., Ltd. (hereinafter referred to as “Kangyitong”), an information service platform for medical equipment management, recently announced the completion of a strategic partnership with Haoyiyou Medical Technology Group. Following this collaboration, Kangyitong will leverage its innovative equipment management system alongside Haoyiyou’s high-quality resources in the healthcare industry to continuously expand its hospital-end business and achieve further growth in capital development.

Kangyitong, established in 2016, is a provider of informatics solutions for the full lifecycle management of medical equipment. By leveraging information technology, it has built a one-stop service management platform for medical equipment, thereby enhancing the overall level of hospital equipment information management.

As of now, the Kangyitong platform has covered more than 300 hospitals across China (including dozens of Grade III Class A hospitals) and undertaken dozens of projects for health commissions, including public management service platforms for medical equipment at the prefecture-level city level in multiple provinces. Taking Yichang, a model city, as an example, the Kangyitong platform is responsible for regulating 80% of the medical equipment in the city. The public management service platform for medical equipment in Wufeng County, under the jurisdiction of Yichang, is a national pilot project for Medical Community Consortia, which was also built by Kangyitong in cooperation with the local Health Commission.

As a critical support for hospitals in performing surgeries and expanding their scale, medical equipment has always been a key procurement priority. However, some hospitals exhibit blind spots in the acquisition of large-scale equipment, resulting in low utilization rates. In terms of equipment management, issues such as prioritizing procurement over preventive maintenance, foreign manufacturers holding the initiative in repair technologies, and the need for improvement in relevant institutional policies have led to hundreds of billions of yuan being spent on medical equipment maintenance and repairs across China, with unsatisfactory after-sales service outcomes.

In recent years, with the advancement of hospital informatization, hospitals have successively established foundational information systems such as Hospital Information Systems (HIS), Laboratory Information Systems (LIS), and Picture Archiving and Communication Systems (PACS). This has achieved basic digitalization of patient services and hospital management, yielding significant results in public benefit services, medical operations, healthcare management, and information security, thereby effectively enhancing hospital service capabilities and patient satisfaction. However, there remains a notable gap in the informatized management of medical equipment; some hospitals even categorize equipment management under general affairs and logistics.

According to data from the National Bureau of Statistics, by the end of 2019, there were 12,000 public hospitals in China. However, among these 12,000 public hospitals, only about 1,300 had implemented information-based management for medical equipment, accounting for merely 11%, and most of these 1,300 hospitals were Grade III Class A hospitals. For small and medium-sized hospitals and primary healthcare institutions, the limited number of equipment management personnel, coupled with the lack of high-efficiency management software support, means that equipment cannot be maintained and repaired in a timely manner. This increases surgical risks for patients and may even lead to medical accidents.

Previously, members of hospital equipment departments had to manually verify information and inspect devices during quality control, management, and maintenance. However, the large number of medical devices in hospitals, coupled with the complexity of their performance metrics, required staff to expend significant effort in device management, thereby creating a demand for informatized equipment management. Furthermore, numerous pain points exist in the mechanisms for procurement, management, quality control, and maintenance of hospital medical devices, which also hinder the unified supervision of medical devices within their jurisdictions by the health administrative authorities under the National Health Commission.

With over a decade of experience in medical device sales and management, Dai Yueyue, founder of KANGYITONG, recognized the systemic gaps in hospitals’ self-inspection and maintenance protocols for medical equipment. He decided to enter the equipment management market by leveraging third-party service providers as an entry point. By integrating an information management system, KANGYITONG launched a one-stop service management platform for medical devices. This platform connects hospitals, manufacturers, third-party service providers, and industry regulatory channels, streamlining all key links in the industrial chain to create a closed-loop operational service model. To address the diverse needs of healthcare institutions, KANGYITONG offers customized solutions tailored to each institution, thereby enhancing product acceptance.

Currently, Kangyitong’s partner team possesses extensive experience and substantial client resources in the field of medical equipment maintenance and management. The core members of its service center are primarily from leading industry players such as Philips and Siemens. In terms of research and development, Kangyitong has established close collaborative ties with multiple universities in China, thereby gaining greater technical expertise and support.

Addressing the pain points in medical equipment maintenance and care, the Kangyitong team provides hospitals with a comprehensive equipment management solution through a "data + service" model. This solution covers the entire process—from procurement and data entry to maintenance, routine inspections, efficiency analysis, and decommissioning—thereby establishing a full lifecycle management system for in-hospital medical equipment.

In terms of data, the Kangyitong platform enables hospitals to trace equipment assets, centrally manage metrology data, conduct benefit analyses based on equipment utilization, and assess the economic efficiency of devices, thereby assisting hospitals in determining whether equipment replacement is necessary. Additionally, the platform applies multi-level encryption to equipment information uploaded by hospitals to the cloud.

In terms of service, the Kangyitong platform can analyze data on parts procurement and replacement within the region to identify components with high frequencies of replacement and repair at hospitals. It then organizes staff to conduct routine inspections of these components and deploys the corresponding parts to hospitals before the end of their lifecycle, thereby improving equipment utilization efficiency.

After the hospital purchases medical equipment, KANGYITONG will attach custom RFID tags to the devices. Leveraging radio-frequency identification (RFID) technology, this enables one-click inventory checks, as well as real-time tracking of device location and status regarding transfers and logistics. Furthermore, through power-sensing modules installed on the equipment, KANGYITONG can monitor daily usage frequency and duration, analyze equipment utilization rates, and provide a data foundation for subsequent cost-benefit analyses.

In the event of equipment failure, hospitals can quickly submit service requests and complete warranty claims via mobile and PC platforms. Throughout the process, hospitals can monitor service progress in real time and review post-repair equipment parameters to determine whether the device meets clinical usage standards.

Overall, Kangyitong leverages software and platforms to connect hospitals, third-party maintenance companies, regulators, and suppliers, establishing its own service system. This helps hospitals reduce costs, improve efficiency, optimize equipment allocation, and ensure the safety of medical devices. It is reported that hospitals using the Kangyitong platform can reduce equipment operation and maintenance costs by more than 20%.

As a multi-channel connectivity platform, KANGYITONG also provides convenient services to enterprises and institutions beyond hospitals.

At present, hospitals generally operate as information silos. As the industry regulator, the National Health Commission must devote substantial time and effort to collecting and consolidating data, thereby undermining the efficiency of unified oversight of medical devices within its jurisdiction.

In response, Kangyitong enables real-time data acquisition and hierarchical data integration through unified information management of medical equipment within the region. This allows regulatory authorities to monitor equipment procurement and utilization across healthcare institutions under their jurisdiction, effectively preventing over-procurement and underutilization, thereby providing evidence for decision-making. Meanwhile, Kangyitong serves as a data analytics platform for medical consortiums and medical communities, offering functionalities such as equipment overview, maintenance statistics, and quality control statistics.

For suppliers, the Kangyitong platform aggregates task demands from numerous medical institutions, enabling enterprises to expand sales channels and efficiently leverage massive data to provide services for maintenance and upkeep segments within the industry value chain, thereby facilitating business growth. To ensure service quality, Kangyitong strictly controls supplier qualification standards, ensuring that hospitals receive high-quality services.

Regarding platform promotion, Dai Yueyue stated that in the early stages, the company’s platform expansion was very slow due to the market’s unfamiliarity with this innovative service system and a lack of supportive policies. However, driven by changes in the social environment and the efforts of the company’s team, an increasing number of hospitals have recognized the benefits brought by informatization service systems, thereby promoting the sustainable development of Kangyitong.

Moving forward, KANGYITONG will continue to collaborate with provincial and municipal Health Commissions to build a public management service platform for medical equipment, while simultaneously driving the penetration of its services into lower-tier markets, expanding gradually from provinces and cities down to towns and townships. Through this strategic partnership with Haoyiyou, KANGYITONG will gain access to extensive medical channel resources, thereby facilitating market expansion.

In consideration of service expansion, KANGYITONG will also vigorously strengthen its talent team and increase investment in personnel training, thereby providing stronger technical support capabilities for the platform and the industry.