He Mukang Files IPO Prospectus: Building the Nearest-to-Patient "Pan-DTP + New Retail" Chronic Disease Prescription Pharmacy Network

In accordance with the "Medium- and Long-Term Plan for the Prevention and Control of Chronic Diseases in China (2017–2025)" issued by the State Council, a cohort of innovative private enterprises has emerged to strengthen chronic disease prevention and control, reduce the disease burden, and improve residents' healthy life expectancy. These companies are committed to realizing social value through exploration in the primary healthcare market. Taking Hemukang as a pioneering case, on November 7, 2020, Hemukang—leveraging its deep-rooted expertise in primary-level chronic disease management and its empowerment-driven cloud pharmacy platform and franchise system featuring prescriptions comparable to those of top-tier tertiary hospitals—held its first strategic franchise cooperation signing ceremony in Guangdong Province with partners including Hunan Chuji Tang Pharmaceutical Chain Co., Ltd. and Huizhou Ruikang Pharmaceutical Co., Ltd.

Hemokang Signs Strategic Franchise Cooperation Agreement with Hunan Chuji Tang and Huizhou Ruikang

Hemukang Pan-DTP Franchise Pharmacy Project conducts comprehensive diagnostics and upgrades for brick-and-mortar pharmacies, enabling system-wide sharing and empowerment. It delivers three major service systems through the “1+1+3” model, integrating physical pharmacies with cloud-based pharmacy services:

Hemukang’s Supply Chain Empowerment System provides pharmacies with an integrated supply chain centered on disease-specific solutions. Leveraging Akang Health’s years of clinical resources and advantages in the chronic disease prescription drug supply chain, and driven by internet technology innovations, the system enables affiliated pharmacies to operate with “zero inventory” while offering treatment protocols for over 1,500 chronic, critical, and rare diseases across 21 medical specialties. With a portfolio of 16,000 prescription drug SKUs, the system also ensures access to products with core competitive advantages, including new drugs, unique dosage forms, and specialized specifications, thereby meeting the medication needs of chronic disease patients in rural areas and townships.

Leveraging the Cloud Mall SaaS system, Hemukang’s franchised new-retail pharmacies help traditional pharmacies establish their own online mobile platforms. By extending shelf space through a “shared warehouse + local warehouse” model, and driving traffic via store staff, members, and regional promoters, Hemukang achieves comprehensive coverage of online and offline private-domain regions. The construction of personal account and community operation systems enables rapid customer aggregation and expansion, thereby establishing an effective service radius. Addressing challenges faced by traditional pharmacies—such as difficulties in generating incremental growth, retaining customers, and lacking technical tools—Hemukang actively explores new pathways to empower digital transformation and upgrading. Through new-retail technologies and managed operation services, along with the construction and management of both public- and private-domain online traffic, and personalized offline medication ordering services on behalf of customers, Hemukang empowers retail pharmacies to provide integrated online-to-offline (O2O) services to end-user patients. This introduces incremental growth capabilities, enhances service value, and facilitates effective conversion between private- and public-domain traffic. Currently, Hemukang’s offline medication ordering service has been rolled out to 65,000 stores, with 120,000 registered pharmacists, serving an average of 50,000 patients daily.

Hemukang’s Chronic Disease Management System introduces five major chronic disease management programs and seven comprehensive health management systems, covering the majority of health management needs of pharmacy members. This initiative helps pharmacists and pharmacies enhance their professional service capabilities and sales guidance skills. It empowers CDC personnel training and development programs, facilitates the repositioning and training of pharmacy pharmacists, and deploys Hemukang’s team of over 150 professional pharmacists to assist pharmacies in providing patients with guidance on chronic disease adherence and rehabilitation. This enables the matching of optimal service packages post-purchase, thereby developing long-term membership package management, enhancing user stickiness, and delivering premium health management services. Building on its existing expertise in chronic disease management, Hemukang will continuously upgrade and iterate its offerings while expanding the range of covered conditions to provide smarter, higher-quality, and more comprehensive chronic disease management services for patients. Hemukang’s franchised new retail and chronic disease prescription pharmacy projects are rooted in township markets. Over the next three years, the company aims to develop 20,000 franchised or licensed stores nationwide and achieve an independent listing.

“Empower traditional pharmacies to transform from a pure commodity trading model back into a professional pharmaceutical care management system, enabling them to assume service functions in health education, monitoring, and intervention for chronic disease prevention and control, and thus truly integrate into the community-based grid healthcare system.”

Hemukang is an empowerment system proposed by Akang Health, built around the most grassroots and smallest pharmacies. Adopting a model of chronic disease-focused pan-DTP (Direct-to-Patient) plus new retail, it takes root in towns and townships to create a franchise network of professional pharmacies closest to patients. Based on constructing a service system for chronic disease rehabilitation management among grassroots chronic disease patients, it promotes the transformation of community chronic disease services from treatment-oriented to prevention-oriented. Meanwhile, it empowers pharmacies with digital platforms, technologies, tools, and a new retail pharmacy system, aiming to establish the leading brand in health management services for the general public.

Caring for health every day, serving millions of households. "He" signifies all living beings, "Mu" symbolizes the hope embodied in two of the Five Elements, and "Kang" represents the wish for all people to bathe in the sunshine of good health. Hemukang Franchise joins hands with industry peers to establish a deeply interconnected relationship of co-creation and symbiosis, where "we are in each other." We sincerely invite regional retail chains committed to mutual growth to collaborate with us, uniting thousands of individuals and tens of thousands of stores to share a common destiny, take joint action, and achieve shared development with Hemukang, ushering in a new digital era.

Leveraging digital technologies in internet healthcare, and in parallel with the grassroots expansion of Akang Health’s “Chronic Disease Rehabilitation Project,” Hemukang’s professional pharmacy management system collaborates with the village doctor network within medical consortiums to progressively promote a lightweight consultation service model. Supplemented by regional public health systems and triage/referral service points, this approach delivers treatment plans, further enhancing the closed-loop management of chronic diseases. It enables complete prescription circulation to pharmacies for pharmaceutical care services and extends patient education services through an O2O model, thereby integrating the entire chain of medical consultation, pharmaceutical services, and drug delivery. Through refined operational strategies, it provides chronic disease patients with more professional and scientifically grounded online medical services.

Jointly collaborate with the pharmaceutical industry to establish a comprehensive academic training system for pharmaceutical care services. This initiative aims to fully support C-end patients with chronic diseases, facilitate daily health management, share big data from grassroots terminals, supplement the out-of-hospital data chain, and provide an effective basis for optimizing product and market strategic layouts. It empowers grassroots commercial entities and traditional chain pharmacies at the primary care level to undergo digital transformation and enhance professional capabilities, ultimately returning to the essence of service and constructing a health welfare management system for township-level communities.

In the future, Hemukang will be dedicated to providing customers with professional, efficient, and high-quality medical and healthcare services—covering online consultations, health self-assessments, medication guidance, online follow-up visits, electronic prescriptions, and logistics distribution—by analyzing long-term continuous medication use. It aims to create a closed-loop service ecosystem integrating “medical care, pharmaceuticals, diagnostics, and insurance” to address customers’ medical and healthcare needs. The company will explore and curate product portfolios for the “PBM Chronic Disease Drug Formulary,” support the development of clinical medicine and prescription standard databases, and build a PBM-enabled electronic prescription platform. When physicians write prescriptions, the platform’s PBM engine will recommend the safest, most effective, and most cost-efficient medication regimens through a unified electronic prescription system, gradually achieving controlled healthcare expenditures under medical insurance and enabling the public to access high-quality medications at no out-of-pocket cost.