Haoyunshuo Files IPO Prospectus: Targeting China's Booming Assisted Reproductive Technology Market with a Specialized Mobile Platform

According to VCBeat’s “2018 Assisted Reproductive Technology Industry Research Report,” VCBeat estimates that by the end of 2019, approximately 38.5 million to 46.2 million women of childbearing age in China were affected by infertility to varying degrees. Assuming all women of childbearing age have fertility needs (including those already undergoing treatment), and applying a 20% rate, approximately 7.7 million to 9.24 million women of childbearing age would require assisted reproductive technology (ART) for treatment. With the rising proportion of advanced maternal age pregnancies, the actual number of individuals requiring ART treatment is significantly higher than 7.7 million to 9.24 million. Using 2017 as the baseline year and based on the end-user market, the total existing market size for assisted reproductive technology in China was approximately RMB 572 billion.

Such a vast market has presented opportunities for many companies dedicated to the field of assisted reproductive technology (ART), including Haoyunshuo. Recognizing that this sector remained underexploited, Haoyun Wuxian (Beijing) Information Technology Co., Ltd. entered the market through the Haoyunshuo app. The app addresses the needs of users facing fertility challenges by facilitating access to information, connecting them with peers in similar situations, and enabling online consultations and medical care. As Haoyunshuo continues to expand its user base, it is steadily developing and refining its own business model, aiming to establish a stronger presence in the ART sector.

Founder of HaoYunShuoZhang Lizhong does not shy away from describing himself as a serial entrepreneur. Since 2011, he has founded three companies in succession. The first company focused on technical crowdsourcing, allowing him to accumulate technological expertise; the second ventured into video production, achieving notable success in short-form video content. For Zhang Lizhong, these experiences have all contributed to the development and growth of the current Haoyunshuo APP.

In fact, Zhang Lizhong’s early background in medical device marketing gave him a thorough understanding of the operational workflows of hospitals in China and an extensive professional network. He initially learned from friends that this sector remained underexploited. After several months of market research, during which he visited leading hospitals at the forefront of assisted reproductive technology—including Peking University Third Hospital, Peking Union Medical College Hospital, and Beijing Chaoyang Hospital—he launched the “Haoyunshuo” (Good Pregnancy Talk) app project in May 2019, with the application going live in September of the same year. Since then, major version updates have been released approximately every two weeks, totaling 20 major iterations to date. The latest version was released on June 3.Two major version updates recently released have enhanced key product features and user experience, including online consultation functionality and the expansion of professionally generated content (PGC) sections.Online medical consultations are offered in response to strong user demand, while PGC (Professional Generated Content) is developed to differentiate it from UGC (User Generated Content) and better guide the user base.

Launched in the New VersionPGC content mainly consists of four sections.The first section is“Doctor’s Insights”, featuring expert insights shared by physicians within the industry; the second segment is“TA’s Story”, primarily compiled from user interviews to share their experiences; the third section isQ&A: Medical Questions Answered; the fourth section isPregnancy Encyclopedia, delivering personalized content based on user status. By building and fostering a community, female users experiencing reproductive stress can find peers with similar experiences, thereby alleviating anxiety to some extent.

In fact, the app underwent continuous adjustments and data optimization from its launch last September through February of this year. In March, the focus shifted primarily to strengthening core functionalities. With the outbreak of the pandemic, online consultation services emerged as a prominent solution. In May, optimizations were made to this foundational feature, earning positive feedback from users. For Zhang Lizhong, nowThe biggest problem is“We have many ideas, but are constrained by the size of our team.", we can only adopt a strategy of taking small, rapid steps. There are still a large number of functional requirements in the product feature library and requirements backlog awaiting development."

Zhang Lizhong also has a clear understanding of the product’s advantages. After 20 rounds of version iterations,The product features are sufficiently comprehensive., rivaling competing products. Compared to other products on the market, Haoyunshuo isRooted in the Mobile Internet, and the layout was carried out based on this. In terms of content, the company hasProfessional Team Operations, and with its own motion capture technology, it will provide more professional audio and video content in the future.

In terms of business model, Haoyunshuo leverages its early-stage user accumulation,It has begun to successively attract B-side clients, such as medical institutions, to place advertisements.Meanwhile, the To-C segment remains the core of the business.The revenue model targeting consumer-facing users primarily involves earning commissions by connecting users with renowned physicians through online consultations.

Currently, Haoyunshuo’s external collaborations are primarily with renowned physicians in China, providing professional online consultations. Internationally, it partners with assisted reproductive technology (ART) institutions. It currently collaborates with ART institutions in Thailand, the United States, and Russia, offering comprehensive services across the entire field of assisted reproduction.

Regarding future development, Zhang Lizhong stated that, based on current relevant data, assisted reproductive technology (ART) does not typically succeed in a single attempt. According to global standards, it currently takes an average of more than three cycles to achieve success. The cost per cycle ranges from 30,000 to 50,000 yuan. Considering the current financial burden on patients,HaoYunShuo aims to enter the market through financial services by offering installment payment plans or providing related medical insurance services.

Zhang Lizhong compares the current market landscape with the medical aesthetics industry of five to six years ago, believing that public perception will shift rapidly and gradually embrace various assisted reproductive technology (ART) solutions in the future. In the short term, Zhang Lizhong hopes his company can survive.In the long term, we aim to become the "So-Young" of the assisted reproductive technology sector.. Attract users through continuously optimized high-quality content, ultimately completing the closed-loop ecosystem.

However, Zhang Lizhong also has a clear understanding of the current state of the industry:

Public awareness of assisted reproductive technology remains insufficient.Currently, a large proportion of individuals of reproductive age are unaware that fertility is time-sensitive. This is particularly true for women, whose fertility declines rapidly after the age of 35. Additionally, many individuals facing reproductive health issues tend to subconsciously avoid addressing them, resulting in a low rate of treatment uptake.

The asymmetry in medical resources and information is quite severe.The asymmetry in resource distribution is evident in the concentration of high-quality assisted reproductive technology (ART) institutions primarily in East, South, and North China. Information asymmetry is mainly reflected in the severe information disparity between doctors and patients, which significantly increases the time and financial costs for users.

Women bear the brunt of societal pressure when it comes to infertility.Among the factors contributing to infertility, female factors account for approximately 40%, male factors for 30%–40%, and combined factors for both partners for 20%–30%. However, ultimately, women bear 90% of the societal pressure. This mindset needs to change rapidly.

For this promising market, there is still much to be done. After securing angel funding in 2019, Haoyunshuo is currently engaging with venture capital firms, aiming to leverage further financing to expand its team, enhance monetization channels, and implement previously unrealized initiatives, thereby driving further development in the field of assisted reproduction.