Youyang Health Files IPO Prospectus After Capturing 40% of China's Home Hyperbaric Oxygen Chamber Market Within Three Years

Hyperbaric oxygen therapy is a method that involves breathing pure oxygen or high-concentration oxygen in a hyperbaric (above atmospheric pressure) environment to treat hypoxic diseases and related conditions. Generally, hyperbaric oxygen therapy can achieve favorable therapeutic outcomes for hypoxic and ischemic diseases, as well as a series of conditions caused by hypoxia or ischemia, certain infectious diseases, and autoimmune disorders.

Since the last century, hyperbaric oxygen chambers have been widely used around the world. China started late in this field but has developed rapidly, evolving into a complete discipline. Although the development of hyperbaric oxygen chambers is booming, almost all oxygen chambers are used in hospitals, and the home portable oxygen chamber market is still in its infancy, with the market basically in a blank period.

“At present, there are only about a dozen enterprises in China engaged in the large-scale production of home-use hyperbaric oxygen chambers, and the total number of such devices in the country does not exceed 1,000 units,” said Zhang Haoran, co-founder of Zhuhai Youyang Health Industry Co., Ltd. (hereinafter referred to as “Youyang Health”) and head of its marketing department. “Insufficient awareness of the critical role of oxygen is one of the key factors restricting the development of the home-use hyperbaric oxygen chamber industry.”

Youyang Health has introduced internationally advanced research achievements in oxygen chamber technology, dedicating itself to the research, development, and production of portable Youyang Health Chambers and equipment tailored to the constitutions of diverse populations. Since its establishment three years ago, Youyang Health has remained profitable, with an annual revenue growth rate consistently maintained between 100% and 120%. On June 26, the 28th Guangzhou International Health Industry Expo opened. As one of the exhibitors, Youyang Technology’s home-use hyperbaric oxygen chambers and other products attracted significant attention from numerous businesses and individuals.

The three founders of UOxygen Technology come from entirely different professional backgrounds. Chairman Liang Ruimin is the owner of an investment group, while General Manager Li Xuxing has over a decade of experience in the real estate industry. Zhang Haoran, head of the marketing department, is a returnee who graduated from the University of Liverpool, a prestigious long-established university in the UK. The three met at Lanyang Technology, where they forged a deep friendship, and later co-founded UOxygen Health.

Lanyang Technology, founded by Liang Ruimin, specializes in the development of medical ozone equipment and was the first company in China to introduce ozone technology into the treatment of gynecological reproductive tract infections. With the addition of Li Xuxing and Zhang Haoran, Lanyang Technology flourished, gradually capturing 80% of the domestic market share in the medical ozone device industry. In November 2015, Lanyang Technology was listed on the New Third Board; in December 2017, it was acquired by Zhongzhu Group.

After Blue Oxygen Technology was acquired, Zhang Haoran and his two partners began to consider starting a business together. During a field trip to Japan, they learned about home hyperbaric oxygen chambers. “Ginza in Tokyo is known as ‘the most expensive area in Asia.’ Yet, within just one office building in Ginza, there were three hyperbaric oxygen chamber experience centers. At the time, I wanted to try it out but was told that reservations had to be made three days in advance. This clearly shows that hyperbaric oxygen chambers are widely used and highly popular in Japan.”

Upon returning to China, Zhang Haoran discovered that the domestic market was virtually untapped, with only one company engaged in the development of hyperbaric oxygen chambers. In February 2016, Youyang Health was founded, becoming the second enterprise in China to develop home-use hyperbaric oxygen chambers.

Oxygen chambers were originally developed in the 1960s as specialized military equipment through a joint effort by U.S. astronauts and the U.S. Army, before entering the civilian sector in the 1990s. Building on research advancements from multiple enterprises, Youyang Health has created a new high-end oxygen supplementation device—the Youyang Health Chamber—by integrating internationally renowned air compression systems and world-leading oxygen generation technologies, featuring secondary pressurization and intelligent control.

UO2 Health Chamber (Image provided by the company)

The Youyang Health Chamber utilizes advanced high-end sensors and high-performance CPU processors, with multi-layer circuit wiring for enhanced anti-interference capability. By continuously injecting fresh air and high-concentration oxygen into the chamber, it maintains a stable internal environment of 1.3 atmospheres pressure and 30% oxygen concentration, thereby creating a safe and specific oxygen-enriched atmospheric environment. In this setting, the rapid increase in oxygen saturation and continuous rise in dissolved oxygen open up a "golden pathway" for accelerated oxygen absorption by the human body. Large quantities of oxygen molecules enter the bloodstream through the respiratory tract, increasing the level of dissolved oxygen in the body by more than fivefold.

It is understood that the Youyang Health Capsule demonstrates excellent preventive and therapeutic effects for patients with hypertension, hyperglycemia, hyperlipidemia, cerebral infarction, coronary heart disease, gout, asthma, and other conditions. This product also offers daily health benefits such as sobering up, alleviating fatigue, improving sleep quality, enhancing memory, stimulating appetite, regulating endocrine function, accelerating wound healing, boosting immunity, promoting beauty and weight loss, and delaying aging. It is further recognized as the preferred choice for athletes’ physical recovery, military field training, high-altitude garrison duty, rehabilitation of the injured and sick, emergency care, and mountaineering expeditions.

Although UOxygen Health targets the home consumer market, the company currently promotes its hyperbaric oxygen chambers primarily through partnerships with institutions such as rehabilitation centers and beauty salons. Zhang Haoran admitted that public awareness of the importance of oxygen chambers remains insufficient, making it premature to launch directly into the home market. By collaborating with B2B partners, UOxygen Health is gradually penetrating the C2C (consumer) market.

Additionally, Youyang Health has opened more than 10 experience stores in China to enhance consumer recognition of hyperbaric oxygen chambers. Over the next three years, the company plans to open 100 experience stores across China.

Zhang Haoran stated, “Due to factors such as air pollution and population aging, the oxygen therapy industry holds significant growth potential, and hyperbaric oxygen chambers are poised to become a common household item in the future.”

Zhang Haoran stated, “When UOXY Health was founded, there were only two companies in China manufacturing home-use hyperbaric oxygen chambers. Within a few years, the number of enterprises in China with substantial scale and independent R&D capabilities for home-use hyperbaric oxygen chambers has grown to around ten.” As more players enter the home-use hyperbaric oxygen chamber industry, the value of this sector is increasingly coming to the fore.

For Youyang Health, home hyperbaric oxygen chambers are merely the “vanguard.” The company’s ultimate vision is to develop a series of gas-based products, including oxygen, ozone, hydrogen, and carbon dioxide, to create China’s first gas therapy platform.

Zhang Haoran introduced, “Compared with fixed (tablet) therapy and liquid (infusion, injection) therapy, although gas therapy has a slower onset of action, it has virtually no side effects and has been widely applied in Japan and Germany.”

In addition to home-use hyperbaric oxygen chambers, Youyang Health offers a range of gas therapy products, including home-use negative ion generators, vehicle-mounted negative ion generators, hydrogen-rich water cups, and ozone generators. The hydrogen-rich water cup has completed R&D and is in the production phase, with market launch expected in February 2020. Carbonated spring water systems are currently under development, while all other products have already been launched on the market.

On June 26, the 28th Guangzhou International Health Industry Expo opened. The expo is dedicated to providing professionals in the health industry with a one-stop international platform for communication across the entire industrial chain, from raw materials to finished products and from production to sales. UOXYGEN Health participated in the expo with its full range of gas therapy products, attracting more than 20 prospective clients and successfully signing cooperation agreements with two distributors. Zhang Haoran stated, “The expo drew large crowds and reached a highly targeted audience. We will continue to participate next year.”