Hanxing Tech Secures RMB 15 Million in Pre-A Funding to Empower Small-Scale Medical Providers with Integrated Solutions
VCBeat (WeChat: vcbeat) has learned that Nanjing Hanxing Information Technology Co., Ltd. (“Hanxing Technology”) secured RMB 15 million in Pre-A series financing from an industrial fund based in Fujian Province. It is reported that Hanxing Technology previously raised seed and angel round funding in January and September 2018, respectively, from Nanjing Xiuhe Cultural Investment and Qianhai (Jiannuo) Equity Investment.
Hanxing Technology centers its services on small and micro healthcare providers, empowering various small and medium-sized institutions—including veterinary clinics, dental practices, and community hospitals—through its comprehensive “Xiao Yi Pei Qi” suite of services, which encompasses supply chain finance for medical equipment, SaaS tools, and other integrated solutions. This enables these institutions to achieve multi-dimensional service upgrades in branding, customer acquisition, financing, and technology.
Since its establishment in December 2017, Hanxing Technology has served nearly 1,000 small hospitals across China within a year and a half, achieving a turnover of RMB 51 million and a net profit of RMB 5.5 million. “Xiao Yi Pei Qi” offers a range of comprehensive services; notably, its leasing business, underpinned by its proprietary “Medical Equipment” supply chain finance risk control model, has currently achieved zero bad debts.
Image source: Provided by the enterprise
How Did Hanxing Technology Achieve Such Results? How Did It Secure Three Rounds of Financing Within Two Years? What Is the Underlying Business Logic? With These Questions in Mind, VCBeat Conducted an Exclusive Interview with Liu Quan, Founder of Hanxing Technology, and Zhang Fan, its COO, to Hear Their Insights.
After per capita GDP reaches $10,000, people’s consumption patterns gradually shift, with greater emphasis on health and emotional well-being. This drives substantial growth in consumer healthcare, leading to the large-scale emergence of private consumer healthcare sectors such as dentistry, pet care, and medical aesthetics.
Meanwhile, under the tiered diagnosis and treatment policy, the number of primary healthcare institutions has grown; against the backdrop of multi-site practice, an increasing number of physicians are starting their own clinics. However, most physicians excel in clinical care but lack capabilities in patient acquisition and operational management. Clinics face shortages in funding, patients, marketing, brand recognition, technology, and management expertise.
“Having served as the General Manager of the Healthcare Division at an A-share listed financial leasing company for twelve years, Liu Quan stated, ‘At that time, we collaborated with thousands of medical institutions, medical device manufacturers, and distributors, through which we identified the pain points faced by small and micro enterprises, hoping to provide them with meaningful support.’”
Zhang Fan added that against the backdrop of a global economic downturn, the micro-healthcare sector has maintained rapid growth. Sub-sectors characterized by weak cyclicality, strong growth, and high value are the primary considerations for startups when selecting their strategic focus. Furthermore, compared with large hospitals, small and medium-sized hospitals and clinics are more market-oriented, offering startups greater service opportunities; once their business models are validated, they can be easily scaled and replicated.
From the perspective of small and medium-sized hospitals and clinics, Hanxing Technology provides the comprehensive service package “Xiao Yi Pei Qi,” which specifically includes medical device and equipment leasing, a curated marketplace, patient acquisition tools, SaaS-based information systems, professional training and education, brand upgrading, financial and insurance services, AI-assisted diagnosis and treatment, and physician communities.
The needs of small and medium-sized hospitals and clinics are diverse, with each requiring meticulous attention to detail. Taking the core business of “Xiao Yi Pei Qi”—medical equipment hardware—as an example, this segment accounts for 20% of a clinic’s total investment. Leveraging its strengths in assets, risk control, and capital, Hanxing Technology provides medical device leasing services structured as supply chain finance to clinics.
Other “Xiao Yi Pei Qi” services include: a preferred B2B e-commerce marketplace for online procurement of medical equipment, among other offerings; customer acquisition tools, such as one-click poster generation and user marketing solutions; professional training programs focused on enhancing physicians’ clinical skills and technical competencies; brand upgrading initiatives, whereby Hanxing Technology provides comprehensive, bundled brand empowerment services to a large number of partner small hospitals; and financial and insurance services. Hanxing Technology serves as the exclusive agent for PICC’s “An Xing Chong” product, driving patient referrals and revenue growth for veterinary hospitals. Additionally, the company has established collaborations with multiple insurance institutions and plans to launch insurance products tailored for physicians and dental practices.
In terms of industrial resources, Hanxing Technology boasts high-quality manufacturer partnerships. The company collaborates with over 50 leading medical device manufacturers, and it is understood that Hanxing Technology holds exclusive or priority cooperation rights with some of these manufacturers. Additionally, the company possesses extensive hospital resources and demonstrates strong customer acquisition capabilities. Through its comprehensive services, Hanxing Technology has established collaborations with nearly 1,000 small hospitals and clinics, among which 500 have received equipment placements. Zhang Fan projects that by the end of this year, the number of partnered small hospitals and clinics will reach 5,000.
Notably, the core team of Hanxing Technology comprises several post-1980s professionals with expertise spanning healthcare, internet, and finance. Founder Liu Quan possesses a strong background in both the healthcare industry and finance. The Chief Marketing Officer (CMO) previously served as Vice President of an A-share listed medical device group, bringing high-quality distribution resources for medical devices. Chief Operating Officer (COO) Zhang Fan has held COO positions at B2B e-commerce and supply chain fintech companies, accumulating extensive experience in industrial internet and supply chain fintech. Chief Technology Officer (CTO) Liu Baozhong formerly served as CTO of a B2B e-commerce platform, boasting rich technical experience in business-to-business (B2B) solutions.
Hanxing Technology targets small hospitals and clinics with fewer than 100 beds, addressing their unmet needs. Its “Xiao Yi Pei Qi” integrated service acquires customers through service delivery, driving customer traffic and enhancing stickiness.
Following this round of financing, Hanxing Technology will prioritize its technological investments by focusing on four key areas: first, intensifying marketing and promotional services; second, continuing the research and development of the “Xiao Yi Pei Qi” product; third, expanding business operations; and fourth, procuring data and supporting corporate operations.
Liu Quan told VCBeat that healthcare is a unique industry, and industrial improvement and upgrading require a relatively long process. Hanxing Technology has shifted from being business-driven to technology-driven, with its “Xiao Yi Pei Qi” clinic services as the development engine. By enhancing informatization upgrades for small hospitals during service delivery, it gradually accumulates big data from these institutions, ultimately achieving technology-driven smart upgrades for all 970,000 various types of diagnostic and treatment facilities across China.
Finally, Liu Quan emphasized that small hospitals currently remain a supplement to large hospitals, but they are one of the most efficient service delivery models in the healthcare industry. Given the current landscape, the number of large hospitals is decreasing, while the number of small hospitals continues to increase significantly year by year. The future of “Internet + Small Hospital” services looks promising.