WeDoctor Confirms Plans to Spin Off Business for STAR Market Listing, Co-founder Zhang Xiaochun Appointed CSO

Recently, rumors have been circulating that WeDoctor intends to spin off part of its business for a listing on China’s STAR Market.

Today, in a response to the media, WeDoctor stated that as an international health technology platform that has grown and primarily serves the mainland China market, it is not only maintaining close communication with international securities markets but also placing increasing emphasis on the significant potential and opportunities within the mainland Chinese securities market. The company is already advancing the process of securitizing its spun-off business units in the mainland. Regarding the timeline for its listing, WeDoctor indicated that it is not in a position to disclose details at this time.

The new opportunities in the mainland market that WeDoctor values clearly include the currently hot Shanghai Stock Exchange STAR Market. The establishment of the STAR Market and the pilot implementation of the registration-based IPO system represent a major capital market reform initiative aimed at enhancing the ability to serve technology-driven innovative enterprises, increasing market inclusiveness, and strengthening market functions. For technology-oriented companies like WeDoctor, the new mechanisms introduced by the STAR Market, such as the registration-based system and special shareholding structures, evidently offer greater room for development.

Furthermore, public information reveals that WeDoctor has recently made frequent moves in the securitization of its business. In early January, to advance its “Three-Medical Linkage” business strategy, WeDoctor acquired a significant stake in the A-share listed company Yilianzhong, increasing its holdings to become the second-largest shareholder. WeDoctor’s Chairman, Liao Jieyuan, and another senior executive joined the board of directors of Yilianzhong as non-independent directors. Meanwhile, through its investment entity, WeDoctor also took control of the Haixi Pharmaceutical Trading Center, the largest third-party online trading platform for pharmaceuticals and medical consumables in China, with Liao Jieyuan assuming the role of chairman of the company.

It has been revealed that, to advance the implementation of the aforementioned strategy, WeDoctor has recently adjusted its internal management team. Zhang Xiaochun, a co-founder of the company, has been appointed as Chief Strategy Officer (CSO), while Chen Hongzhe will serve as an advisor to assist in promoting WeDoctor’s international business. It is understood that Zhang Xiaochun possesses extensive experience in both domestic and international capital markets, as well as a background in internet entrepreneurship, having previously orchestrated multiple industrial financing, investment, and merger and acquisition transactions. Furthermore, as a co-founder, he has an in-depth understanding of WeDoctor’s overall development and its various business segments. This appointment clearly demonstrates the company’s strong commitment to this initiative.

Currently, WeDoctor’s business portfolio encompasses four core segments: WeDoctor Cloud, WeDoctor Medical Services, WeDoctor Pharmacy, and WeDoctor Health Insurance. As of October 2018, WeDoctor had connected with more than 2,700 key hospitals across 30 provinces and municipalities in China, engaging a network of 260,000 physicians. It has established an integrated healthcare resource supply system that combines online and offline services and merges general practice with specialized care. The platform boasted over 181 million real-name registered users and had served more than 690 million patient visits cumulatively. Targeting the healthcare markets in first- and second-tier cities, counties, and grassroots communities, WeDoctor has launched categorized, personalized products and service systems, developing convenient medical service solutions tailored to various scenarios for individuals, families, enterprises, and pharmacies.

Looking back at the international capital markets in 2018, the growth rate of the U.S. stock market slowed significantly, while the performance of the Hong Kong stock market was also unsatisfactory due to international influences. In contrast, reforms in China’s domestic securities market, particularly the launch of the STAR Market (Science and Technology Innovation Board), have increased opportunities for mainland technological innovation enterprises to access capital. In the pharmaceutical technology sector, spin-off listings are not uncommon. WuXi AppTec delisted from the U.S. stock market as part of its strategic transformation, completed privatization, and then split into three major business segments, which were subsequently listed on the NEEQ (National Equities Exchange and Quotations), A-shares, and the Hong Kong stock market, respectively. From WeDoctor’s perspective, opting for a spin-off listing may represent an optimized portfolio strategy to enhance overall market valuation, which could benefit the company’s long-term development.