Haoxinqing Completes RMB 125 Million Series A Funding Round, the Largest Single Investment in China's Mental Health Sector

On May 7, VCBeat learned that Fine Hin Internet Hospital had completed a RMB 125 million Series A financing round. The round was led by 6 Dimensions Capital, with participation from CDIB Venture Capital (Huachuang) and existing investor KIP from South Korea. According to Chen Guanwei, Founder and CEO of Fine Hin, the funds will be used to further expand business scale, increase R&D investment in intelligent diagnosis and treatment systems, and recruit top-tier talent.

Founded in 2016, Fine Hin has remained focused on the central nervous system (CNS) field. By leveraging an intelligent diagnosis and treatment system alongside its internet hospital service framework, it provides smart rehabilitation management and online medical services to patients with psychiatric and psychological disorders. It has now grown into China’s largest internet hospital specializing in the CNS sector.

Within less than a year of its establishment, Haixinqing secured RMB 50 million in angel-round funding led by Nhwa Pharmaceutical and gained access to all medical resources associated with Nhwa Pharmaceutical. In 2018, Haixinqing further received investments from Neutron Capital and South Korea’s KIP. As a company deeply entrenched in the central nervous system (CNS) field, it has cumulatively raised over RMB 200 million to date, attracting participation from multiple Chinese and foreign investment institutions.

During the pandemic, numerous industries were severely impacted. Under these circumstances, it was no small feat for Haoxinqing to secure substantial financing. Chen Guanwei noted that this round of financing received support from three top-tier investors. Combined with the industrial advantages of existing shareholder Enhua Pharmaceutical in the central nervous system sector, Haoxinqing’s future business is poised for significant growth.

Chen Guanwei, Founder & CEO of Fine Hin (Image provided by the company)

Prior to founding Fine Hin, Chen Guanwei and his team co-founded the renowned IT portal “Bear Online,” the doctor-patient communication platform “Doctor Tree” focused on post-diagnosis and post-hospitalization care, and the one-hour medication delivery platform “Yao Kuai Hao,” accumulating over 15 years of experience in internet entrepreneurship.

“Striving for Perfection” is Chen Guanwei’s pursuit. In 2016, as national policies on internet healthcare gradually became clearer, this successful serial entrepreneur once again set his entrepreneurial sights on an internet hospital focused on the central nervous system.

Common mental disorders also include anxiety disorders and obsessive-compulsive disorder (OCD). Among these, anxiety disorders have the highest prevalence rate at 5%, making them the most common condition seen in psychiatric outpatient clinics; OCD is the most difficult to cure, with a prevalence rate of approximately 2.5%.

Currently, the overall prevalence of various mental and psychological disorders in China is 17.5%, affecting 250 million individuals, while there are only 20,000 psychiatrists. This equates to 1.46 psychiatrists per 100,000 people, which is less than one-quarter of the international standard. According to an analysis of the National Mental Health Work Plan (2015–2020), psychiatric medical resources in China are primarily concentrated at the provincial and prefectural city levels. The supply of mental health services is both insufficient and unevenly distributed.

Mental illnesses have two characteristics: a prolonged course and high patient retention. As typical chronic conditions, mental illnesses require long-term, continuous care. High retention means that once patients enter the diagnostic and treatment process and develop trust in their physicians, a strong one-on-one bond is established between the doctor and the patient.

To this end, Haixinqing chose to start with psychiatrists, using professional clinical methods and technologies to assist patients with psychological and mental disorders, helping them build a medical service platform for disease and mental health.

Fine Hin leverages data algorithms to precisely match users seeking mental health support with physicians, establishing one-on-one online connections. This approach safeguards patient privacy while facilitating follow-up care by doctors. Currently, the Fine Hin Internet Hospital platform has registered over 27,000 psychiatrists and neurologists, accounting for approximately 70% of the total number of physicians in this field. The platform boasts more than 3 million registered users, with an average monthly active user base exceeding 100,000.

Since 2016, Fine Hin has been strategically deploying the application of big data in internet-based diagnosis and treatment. By leveraging big data, the company conducts effectiveness follow-ups and analyses for patients to achieve the goals of clinical management.

Fine Hin has independently developed an intelligent diagnostic and treatment system based on big data. This system can rapidly provide a preliminary classification of mental health disorders through modular and standardized screening scales. Once users receive their results, the Fine Hin platform matches them with appropriate specialists, allowing users to autonomously select services and obtain authoritative solutions.

To meet patients’ demand for face-to-face psychological counseling, Haoxinqing is actively establishing offline psychological counseling facilities. By the end of 2019, Haoxinqing’s first psychological counseling clinic was successfully launched in Beijing, aiming to provide users with an integrated online-offline healthcare service model. Supported by this online-offline integration strategy, Haoxinqing’s revenue approached RMB 300 million in 2019.

Chen Guanwei revealed that, in the short term, Fine Hin will continue to deepen its focus on the central nervous system (CNS) field, expand market scale, and strive to provide authoritative services to a broader user base with mental health needs. Meanwhile, Fine Hin is committed to contributing its share to the development of the entire industry. To this end, Fine Hin plans to strengthen academic and clinical collaborations with pharmaceutical companies, aggressively recruit talent in intelligent systems research, enhance the application of artificial intelligence and big data in assisted diagnosis, and leverage technology to improve physicians’ academic and clinical capabilities.

6 Dimensions Capital was formed in May 2017 through the merger of Allpharma Capital, founded in 2012, and YuCheng Capital, founded in 2011. By joining forces, these two teams with extensive investment experience in the industry have jointly established a specialized healthcare fund spanning China and the United States.

CDIB Venture Capital (CDIB Capital Co., Ltd.) is the overseas investment arm established under China Development Financial Holding Corporation (CDFH), Taiwan’s largest investment and financial holding institution, with multiple industrial funds in mainland China.

KIP is a leading venture capital firm in Asia. Since its establishment in Seoul, South Korea, in 1986, it has maintained a steady investment pace and gradually grown into a venture capital institution based in Asia with investment reach extending to multiple regions worldwide. KIP currently manages 46 funds, with total assets under management nearing RMB 24 billion. It focuses on the development of various emerging sectors, particularly biopharmaceuticals/big health, large-scale consumer goods and fintech, as well as high-precision technology and manufacturing.