Professor Zhou Yanheng on Building a 'Scholarly' Orthodontic Chain: Redefining the New Ecosystem of Private Dental Care in China

In the field of dentistry, there is a high-end dental chain institution with orthodontics as its main feature. Whether in terms of scale, professionalism, or profitability, it belongs to the leading dental chain group—Sunny Dental.

Sunny Dental’s name is derived from Peking University’s “Mr. Science” and “Mr. Democracy,” reflecting its deep historical ties with the university. Since its inception, Sunny Dental has placed great emphasis on cultivating a robust physician talent pipeline. Its core team is led by Professor Zhou Yanheng, a doctoral supervisor at Peking University School of Stomatology, and comprises over 80 full-time dentists holding master’s or doctoral degrees from prestigious institutions such as Peking University, West China School of Stomatology, Shanghai Ninth People’s Hospital, and Fourth Military Medical University. Among them, nearly 30 physicians hold doctoral degrees specifically from Peking University School of Stomatology. Sunny Dental ranks first among private dental chains in China for the number of dentists holding master’s and doctoral degrees from top-tier universities.

Beyond its team, SAI Dental Care leverages its technological and clinical strengths by operating the Invisalign China Center—the only authorized, most advanced, and most comprehensive Invisalign facility in Greater China. The organization has also established an integrated platform for medical practice, education, and research—the SAI Dental Clinical Research Institute—and collaborated with Peking University to launch the SAI Medical Development Project at Peking University Health Science Center. This initiative supports the development of its proprietary talent pipeline and has positioned SAI Dental Care as a designated referral center for complex orthodontic cases from numerous large public hospitals across China.

From an operational perspective, the philosophy of “talent first” has also enabled Saide Sunshine to achieve excellent single-store economics. Its revenue per square meter, labor productivity, and output per dental chair far exceed industry averages, with all mature stores achieving profitability. Unlike most dental chain organizations that only achieve regional distribution, Saide Sunshine has currently opened nearly 20 dental chain clinics in multiple cities across China, achieving nationwide institutional network coverage.

What kind of chain organization is this? How can an efficient single-store model be built? To address these questions, VCBeat (WeChat ID: vcbeat) conducted an exclusive interview with Professor Zhou Yanheng, founder and chief consultant expert of Sunny Dental. Professor Zhou is a member of the Executive Committee of the World Federation of Orthodontists (WFO), President of the Asian Pacific Orthodontic Society (APOS), former Chairman of the Orthodontics Professional Committee of the Chinese Stomatological Association, and former Director of the Department of Orthodontics at Peking University School of Stomatology. Sunny Dental boasts the largest number of internationally recognized excellent orthodontic cases in China (selected for the International Gallery case database) and is the first Chinese orthodontic practice to deliver a special lecture on Invisalign at an international conference.

Prof. Yanheng Zhou

Professor Zhou Yanheng earned his bachelor’s degree from the Department of Stomatology at Xi’an Medical University (now part of Xi’an Jiaotong University), majoring in stomatology—a field that was not particularly popular at the time. He later pursued graduate studies at Beijing Medical University (which later became Peking University Health Science Center), specializing in orthodontics, a relatively cutting-edge discipline then. Under the mentorship of Professor Fu Minkui, a leading authority in orthodontics in China, he became a professor in the Department of Orthodontics at Peking University at the age of 36.

In the field of orthodontics, Professor Zhou Yanheng holds significant authority and influence. He was appointed Deputy Director of the Department of Orthodontics at the age of 31, and subsequently served as Director of the Department of Orthodontics, Chairman of the Orthodontic Professional Committee of the Chinese Stomatological Association, Vice President and President of the Asian Pacific Society of Orthodontists, and Executive Committee Member of the World Federation of Orthodontists.

2015 marked a turning point. Professor Zhou Yanheng keenly perceived shifts in national policy and established Sai De Yang Guang outside the public healthcare system. At that time, the broader environment was characterized by state encouragement for physicians to practice independently. “On one hand, public healthcare is positioned as a public welfare undertaking; on the other, the government began encouraging social capital to serve as a supplement to medical services, thereby fostering healthcare development. This created increasing opportunities for physicians to move beyond the public healthcare system.”

Think Big, Start Small. Specifically in the field of orthodontics, there was previously a significant lack of awareness among the Chinese population regarding teeth straightening. However, as living standards have improved, Chinese citizens have become increasingly conscious of having neat, aesthetically pleasing, and white teeth. As a result, orthodontic treatment, categorized under consumer healthcare, has gained substantial popularity and demand among the middle class.

Moreover, orthodontics is the most technically demanding and distinctive specialty within dentistry. It falls under post-baccalaureate education, requiring specialized graduate training before one can practice. Meanwhile, it maintains close interdisciplinary connections with oral and maxillofacial surgery, periodontics, prosthodontics, implant dentistry, and pediatric dentistry, offering significant advantages for multidisciplinary treatment. Before the establishment of Smile Sun Dental, there were no large-scale specialized orthodontic chains in China; therefore, Professor Zhou Yanheng decided to focus exclusively on the field of orthodontics.

Professor Zhou Yanheng stated, “In terms of supply and demand, as people’s consumption levels continue to rise, the demand for orthodontic treatment has become increasingly strong. The Department of Orthodontics at Peking University School of Stomatology can only accommodate 4,000–5,000 new patients annually, yet there are 200,000 newborns in Beijing each year. Therefore, public dental healthcare services are severely undersupplied, which creates significant growth opportunities for private dental practices, particularly in the field of orthodontics.”

Leveraging its professional expertise in orthodontics, the strength of its expert team, and the personal influence of Professor Zhou Yanheng, Suncare Orthodontics rapidly launched and expanded across China, becoming the leading private orthodontic platform in the country. This has attracted a large number of specialist physicians and talented young doctors to join Suncare Orthodontics. With a clear positioning and objective, the company is committed to establishing a prominent presence in the private orthodontic sector and truly developing the chain of orthodontic clinics and the broader orthodontic industry.

2015 was a year of explosive growth for China’s private dental sector. Leading private dental chains aggressively opened new clinics, and several major brands leveraged capital to rapidly expand their footprint across the country. What they failed to anticipate at the time was that, despite the surge in clinic openings, there were insufficient dentists to support the operations of these facilities, resulting in severe losses for newly established clinics. This highlighted that the most significant bottleneck in the development of dental medical institutions lies in the scarcity of dental professionals.

During the same period, Saito Sunshine was established and began its nationwide chain expansion. Initially, Saito Sunshine did not embark on aggressive expansion; instead, it chose to first validate a successful single-store model.

Looking back, Professor Zhou Yanheng stated, “Since 2015, the private dental sector has surged, experiencing rapid development and a seemingly prosperous atmosphere everywhere. However, I firmly believe that this rapid expansion of clinic chains poses significant problems. The core of a dental clinic lies in its dentists; without high-quality dentists and sufficient medical talent to support operations, it is difficult for clinics to grow, let alone sustain their operations.”

To address this challenge, Side Sunshine adopted a unique strategy. The approach prioritized building a strong brand foundation and accumulating a robust talent pool. Professor Zhou Yanheng led an initial team of approximately ten dentists into the private dental market, deeply integrating China’s most specialized orthodontic experts from Peking University School of Stomatology as co-founders. “Nearly all of Side Sunshine’s dentists hold master’s or doctoral degrees. We spent four years establishing a comprehensive internal physician system. Without resolving the physician staffing issue, aggressive store expansion would easily lead to losses.”

Reporters learned that Professor Zhou Yanheng has not completely detached himself from the public healthcare system, boasting extensive personal expertise and strong industry influence. In the future, the lead physicians at its clinics will become partners of Side Sunshine.

From 2015 to 2019, over this four-year period, Sunny Dental established its own medical system, raising industry awareness of the brand and attracting a large number of dentists. During the same period, it founded the Sunny Dental Clinical Research Institute and deepened its collaboration with Peking University to develop a proprietary training system. Following the establishment of its physician network, Sunny Dental began building its operational system in 2018, with completion expected by 2020, marking the entry into a new phase of development.

With a well-established medical system and a comprehensive training framework in place, Smile Sunshine operates with remarkable efficiency. Professor Zhou Yanheng revealed, “Currently, Smile Sunshine has the lowest operational costs in the industry. Unlike other private healthcare institutions, we do not need to allocate 20%–30% of our budget to marketing for brand awareness. For chain providers, the ultimate priority is to deliver high-quality medical services, enhance technical expertise, and return to the core essence of healthcare.”

Having established its own medical, operational, and training systems, and after achieving success with pilot dental hospitals and branch clinics in multiple second- and third-tier cities, Professor Zhou Yanheng believed that 2019 was the right time to enter the capital market and pursue rapid expansion. “Sunny Dental has gained brand recognition in external markets quite quickly, but we need to make greater efforts to enhance public awareness of our brand. Admittedly, a current disadvantage in Sunny Dental’s operations is that it tends to be undervalued by investors, as our current growth pace does not align with the explosive growth typically favored by capital. However, solidifying the performance of individual clinics before accelerating expansion is the better strategy, enabling us to effectively decentralize technology and resources.”

How is the operational performance of individual clinics? Professor Zhou Yanheng shared a set of data indicating that the annual revenue of a single clinic within the system is approximately in the tens of millions of yuan. Moreover, the overall diagnostic and treatment capacity of physicians has not yet reached saturation. The utilization rate for top-tier physicians has gradually reached around 80%, while that for general practitioners remains below 50%.

Furthermore, Said Sunshine has independently established a 4,000-square-meter specialized dental hospital in Zhengzhou. “Zhengzhou was chosen as the location partly due to its lower costs and partly because Henan Province has a large population; we aim to build a top-tier dental hospital in the region.”

After establishing a strong presence in first- and second-tier cities, we are gradually expanding our coverage across China. As we extend our technical expertise to lower-tier markets, “Sai De Yang Guang currently maintains close collaborations with many hospitals, which frequently refer complex and challenging cases to us. We are currently exploring promotional efforts on various online platforms and will continuously adjust our operational strategies based on local conditions and the specific circumstances of each hospital.”

Returning to Sedy Sunshine’s core business of orthodontics, oral orthodontic services are characterized by broad population coverage, high average transaction value, high gross profit margin, strong customer stickiness, and high technical content. Currently, the Chinese orthodontics market is in a stage of rapid development, with a compound annual growth rate (CAGR) exceeding 33%, indicating substantial market potential over the next five years.

Data shows that Sunde Dental currently operates 13 dental clinics and one specialized dental hospital in Beijing, Shenzhen, Shanghai, Zhengzhou, Xiamen, Guangzhou, Xi’an, and other cities. The total clinic area exceeds 13,000 square meters, with 178 dental chairs. To date, the company has completed over 30,000 cases of malocclusion correction and 150,000 cases across various dental specialties.

In the field of orthodontics, Invisalign deserves special mention. As a representative of clear aligner therapy, its nearly transparent appearance and portability have gradually won patient favor.

Invisalign Orthodontics

As of last December, the global number of Invisalign system users exceeded 6 million, including 1.4 million teenage users (data from Q3 2018). Invisalign is driving the transformation of the orthodontic market from analog to fully digital technologies. It boasts strong product and technological innovation capabilities, including the Invisalign G Series products and patented SmartTrack aligner material, along with a powerful brand and high consumer satisfaction.

Professor Zhou Yanheng first engaged with Invisalign in 2000. In 2011, he pioneered the introduction of Invisalign to mainland China and promoted it nationwide, becoming the first physician in mainland China to receive Invisalign certification. Currently, Sunny Dental boasts a large team of senior experts and lecturers who were among the first to be certified by Invisalign. Furthermore, the Sunny Dental Galaxy SOHO Clinic is the only officially authorized Invisalign China Center, representing the highest level of clear aligner technology in China.

In the 20th century, orthodontics witnessed two epoch-making technologies: Invisalign and temporary anchorage devices (TADs). Professor Zhou Yanheng was the first orthodontist in mainland China to introduce TAD technology and developed the earliest domestic MAS temporary anchorage device system.

Coincidentally, Zhou Yanheng was the first to introduce Invisalign technology to mainland China. “After introducing Invisalign, I spent eight years localizing and standardizing the system, transforming Invisalign into a comprehensive clear aligner therapy. Before its introduction in China, only 20% of patients were suitable candidates for Invisalign; after improvements, this figure exceeded 90%. Moreover, clear aligner therapy now achieves better outcomes than traditional appliances in complex skeletal cases,” stated Professor Zhou Yanheng.

Reporters have learned that Smile Sunlight currently focuses primarily on orthodontics, which also demonstrates the highest customer retention. Regarding the future development of traditional orthodontics, Professor Zhou Yanheng revealed that it depends on the maturity of clear aligner systems. Currently, Smile Sunlight is working to transform Invisalign products into a comprehensive Invisalign treatment system. Coupled with a robust operational framework, the company will adopt differentiated strategies as it expands into second- and third-tier cities.

Regarding the industrial structure and standardization challenges of dental chains, a global perspective—such as in the United States—shows that dentistry is predominantly practitioner-led. While dentist training is highly standardized, the greatest drawback of a treatment system dominated by private practices is the inherent difficulty in achieving industry-wide standardization. “The primary reason China has been able to develop chain operations lies in its enormous patient population. For Sunny Dental, the current focus is on deepening expertise in clear aligner therapy. The team’s top priority is to modularize, regulate, and standardize the clear aligner model, establish a comprehensive operational system, and ultimately create a virtuous ecosystem for orthodontic care.”

Looking ahead to the future of dental chain practices, what kind of institutions can break through? Professor Zhou Yanheng offers his insights: “The essence of healthcare institutions remains medical technology; therefore, the true core lies with physicians. Institutions that focus solely on profit generation while neglecting their doctors will not achieve sustainable development in the long run. Models based on large-scale mergers and acquisitions or the aggregation of multiple clinics are prone to significant challenges. Ultimately, those with genuine long-term growth potential are the ones built around a core team of expert physicians.”

The regional characteristics of dental chain clinics are highly pronounced, making cross-regional expansion extremely challenging. Positioned as a specialized orthodontic practice, Sunny Dental upholds the motto of Peking University School of Stomatology—“Virtue, Scholarship, Excellence in Medicine, and Service to Society”—and has proposed a strategic plan of “Originating in the Capital, Expanding Nationwide, Rising in Central China, and Going Global,” while continuously improving its medical care, training, and standardized operational systems.

Sunny Dental boasts a substantial pool of specialized orthodontists. Each year, approximately 800 full-time graduate students pursue master’s degrees in orthodontics, and Sunny Dental enjoys high recognition among this cohort, with nearly all current orthodontic graduate students being aware of the brand. This provides a robust reserve of professional medical talent for its future expansion across China. Leveraging capital support, the company will rapidly expand into the national market, optimize resource allocation, and forge a distinctive path in chain operations.

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