DaiShu Health Files IPO Prospectus: A One-Stop Smart Solution for Inefficiency and High Costs in Traditional Health Screening

Purchasing power is a significant factor influencing the demand for health checkups. In recent years, the health examination industry has been strongly driven by factors such as rising consumption levels, heightened health awareness among the public, and the persistently high incidence of chronic diseases.

According to a report released by Qianzhan Industry Research Institute, the number of health checkup visits increased from 344 million in 2011 to 501 million in 2017, representing a compound annual growth rate (CAGR) of approximately 4.66%. In terms of market size, China’s health checkup market has exceeded RMB 110 billion, surpassing RMB 130 billion in 2017. The development prospects for China’s health checkup industry are substantial.

In 2018, Xunkang Information Technology (Shenzhen) Co., Ltd. (project brand: Kangaroo Health) launched the Kangaroo Smart Physical Examination System.This intelligent health examination software is built on a B/S architecture. While implementing traditional health examination business processes, it leverages the advantages of mobile internet and smart hardware to incorporate intelligent services such as questionnaire assessment, facial recognition, self-service kiosks, intelligent examination guidance, and in-hospital navigation, thereby enhancing the efficiency of the examination process and improving user experience.

Before founding Kangaroo Health, Founder and CEO Li Zhengfeng had established a company specializing in corporate infirmaries that provided workplace health and medical services. After several years of development, Li’s corporate infirmary business formed partnerships with leading enterprises such as Tencent, Vipshop, SF Express, and China Resources, delivering long-term workplace medical services to their employees.

As the company continued to grow and expand, Li Zhengfeng absorbed internet DNA and leading internet thinking through deepening services for these frontline internet enterprises. He keenly identified the more nuanced health management demands of these large corporations and resolved to devote his full energy to cultivating this sector in depth."Internet Plus Healthcare"new model.

In July 2015, Li Zhengfeng founded Kangaroo Health after painfully divesting all his shares in the physical enterprise’s infirmary. With “Internet + health checkups” as its entry point, Kangaroo Health focuses on leveraging internet technology to integrate hospitals and health examination centers across China, providing appointment scheduling for health checkups and health management services for corporate employees.

Shortly after its establishment, Kangaroo Health forged partnerships with major chain health examination providers such as Meinian Onehealth, Ciming, iKang Guobin, and Rich Healthcare. By 2016, the company had secured collaborations with renowned enterprises including Sangfor Technologies, Tencent, Vipshop, SF Express, and DJI Innovations, providing health examination and health management benefits to their employees and families. In the same year, Kangaroo Health was integrated into the City Services features of QQ Wallet and QQ Browser. In 2017, it further expanded its presence by joining the City Services sections of WeChat and Alipay, thereby establishing the most direct access pathway for users seeking health examination services.

Initially, Li Zhengfeng positioned Kangaroo Health as a platform for “aggregating health checkup resources and distributing information.” “To put it more plainly, we aim to become the ‘Ctrip’ of the health checkup industry,” said Li Zhengfeng.

After three years of development, the providers of health checkup appointment services offered by Kangaroo Health have evolved from specialized checkup centers at the outset to public hospitals nationwide. The service now covers all 33 provincial-level administrative regions and 292 cities across China, with implementation in over 3,500 medical institutions.

In 2018, Kangaroo Health underwent a business upgrade, transitioning from a mere physical examination appointment service provider to a comprehensive end-to-end solution provider for the entire physical examination process.

Li Zhengfeng stated, “It is difficult to generate profits from a standalone health checkup appointment model, and the company has been exploring new business models.”

At this point, Li Zhengfeng observed: “The traditional health checkup model no longer meets customer needs. Our clients commonly encounter issues such as outdated equipment, cumbersome procedures, and excessively long waiting times during health examinations. Through communications with hospitals, we have also learned that healthcare institutions face challenges including poor system scalability, limited interactivity, and high labor costs.”

Therefore, Kangaroo Health has developed the Kangaroo Smart Physical Examination System,Achieved information integration across the pre-, mid-, and post-examination stages to optimize health checkup processes, enhance user experience, and reduce hospital operational costs.

“Refinement, personalization, and systematization are major trends in the development of the healthcare industry, as well as requirements for building smart hospitals.” To better serve hospitals and health checkup users, Li Zhengfeng proposed a 12-character guideline:Improve Efficiency, Optimize Services, Reduce Costs, and strategically position its ecosystem around the digitalization of hospital health checkup services.

The Kangaroo Smart Health Checkup System involves multiple software and hardware modules. According to Li Zhengfeng, all software and hardware components of the system are independently developed by Kangaroo Health. Within the Kangaroo Health team, 60% are technical and product R&D personnel, with core members hailing from renowned companies such as Alibaba, Tencent, and Huawei, bringing extensive expertise in user interaction, platform architecture, big data analytics, and artificial intelligence.

Prior to the medical examination, users can complete appointment scheduling and payment via their mobile phones. Based on an assessment questionnaire, the system can recommend the optimal health checkup package for the user.

Upon arrival at the hospital, AI-powered cameras at the entrance automatically capture images of users. By comparing these images with the photos on their appointment identification documents, the system completes check-in registration and guides users to begin the medical examination process.

The Kangaroo Smart Health Checkup System features dynamic monitoring of queue lengths by department, automatically directing users to the optimal department to reduce waiting times. Its path planning and navigation functionality enables users to easily navigate to various departments, thereby alleviating pressure on information desks.

Furthermore, the integration of smart devices—such as self-service kiosks, departmental multimedia information screens, intelligent printing and binding machines, and automated tube labeling systems—with advanced algorithms helps hospitals reduce labor, material, and operational costs. After completing their health checkups, users can access one-on-one online interpretation of their reports via the “Kangaroo Health” WeChat Official Account or the “Health Report Interpretation” mini-program, as well as watch live health education streams hosted by physicians.

Image from the company's official website

If Li Zhengfeng is a veteran in the health checkup industry, then the Kangaroo Smart Health Checkup System is an emerging star. Since its launch in 2018, the Kangaroo Smart Health Checkup System has gained recognition from numerous Grade A tertiary hospitals.

After Shenzhen University General Hospital integrated the Kangaroo Smart Health Checkup System, the daily number of health checkups increased from approximately 100 to nearly 300, reducing the workload for doctors and nurses by 60% and improving physicians’ work efficiency by 50%.

Currently, the Kangaroo Smart Physical Examination System has been deployed in 15 Grade A tertiary hospitals across China. Li Zhengfeng stated, “The Kangaroo Smart Physical Examination System requires integration with other hospital systems, and its implementation is a gradual process. Moving forward, the company will continue to promote this system among Grade A tertiary hospitals.” Additionally, as a smart physical examination software based on a B/S (Browser/Server) architecture, the Kangaroo system will undergo continuous upgrades and iterations to achieve a closed-loop management of health examination services.

Li Zhengfeng also stated, “In the long run, artificial intelligence and big data will be the primary drivers of innovation and development in healthcare. Kangaroo Health will establish a new health management model centered on big data and artificial intelligence, integrating online and offline services.”

Regardless of whether it concerns end-user audiences, partner medical institutions, or the construction of interconnected platform infrastructure, every participant in the entire business process reaps the benefits brought by Kangaroo Health: it delivers a convenient and user-friendly experience for individual users; provides enterprises with comprehensive planning and promotion of employee health throughout the entire lifecycle; ensures better protection of employee information security through fully digitalized workflows compliant with Level 3 Classified Protection of Cybersecurity (MLPS 2.0) standards filed with public security authorities; and helps hospitals improve service efficiency, quality, and access to high-value patients while reducing costs.A sound business model benefits all participants, and there is no doubt that Kangaroo Health possesses this characteristic.