Xingkang Chain Files IPO Prospectus: Empowering Smart Healthcare with Health Big Data and Blockchain Governance

In 2018, the State Council issued the “Opinions on Promoting the Development of ‘Internet + Healthcare’,” which pointed out the need to accelerate the realization of interoperability and sharing of medical and health information. Focusing on the growing needs of the public, it emphasized leveraging information technology to optimize service processes, enhance service efficiency, and improve the alignment between the supply and demand of medical services.

Leveraging favorable policy tailwinds, Shanghai Xingkanglian Health Technology Co., Ltd. (hereinafter referred to as “Xingkanglian”), established on December 5, 2018, relies on the Fosun Health ecosystem to deploy smart healthcare solutions. Customer-centric, Xingkanglian is committed to developing regional smart health solutions, focusing on health big data and data governance. It provides big data support for innovation in the medical industry and the development of healthcare information systems, positioning itself as an intelligent creator of urban smart health ecosystems.

Leveraging Fosun’s extensive resources in the health industry, Xingkang Chain provides smart regional healthcare solutions through an “Internet + Industry” model. VCBeat (WeChat ID: vcbeat) has learned that, to date, Xingkang Chain has established partnerships with Fuheng Insurance, XiaoXing Doctor, Xingyi Health, Wanbang Cloud Health, and Xingbang Health Technology, among others, while holding discussions with over one hundred enterprises.

The mission of Xingkang Chain is to center on family users, addressing their diverse health needs by facilitating connections between online and offline healthcare enterprises. It integrates health services to deliver precise solutions to users, evolving from single-disease treatment toward comprehensive health management, and ultimately providing all-around health solutions centered on families.

Since its inception, Fosun has been deeply committed to the big health industry, which has now become a cornerstone of the Fosun ecosystem. Fosun has invested in and incubated numerous companies within the health sector, covering the vast majority of specialized verticals and building a comprehensive, full-chain big health ecosystem. In the internet era, Fosun is “intelligently creating” a C2M (Customer-to-Maker) Happiness Ecosystem, dedicated to enhancing the well-being and happiness of every family.

Xingkang Chain’s business model aligns naturally with Fosun’s C2M strategy. Xingkang Chain adopts a “dual-wheel drive” development model:

On one hand, it supports Fosun by linking together the internet and technology enterprises it has invested in and incubated within the health sector, thereby enabling Fosun’s member companies to connect health data in a customer-centric manner and achieve coordinated development.

On the other hand, by collaborating with these interconnected partners, comprehensive health solutions are integrated into smart cities to form a holistic health ecosystem solution. Building on this foundation, Xingkang Chain ultimately serves households and individual users.

Regarding product implementation, Mei Feng, CTO of Xingkang Chain, stated that different implementation strategies would be adopted for each enterprise and city, with products tailored to their specific circumstances. Take the “Electronic Prescription Sharing Platform” as an example.

For a long time, the high value-added nature of pharmaceuticals under the “drug-revenue-dependent healthcare” system has made it difficult to resolve the problem of expensive medical care for the public. In recent years, the state has introduced a series of policies to comprehensively eliminate drug markups, implement the “two-invoice system” for drug procurement, and advocate, support, and explore the interconnectivity and real-time sharing of prescription information with retail drug consumption data.

Prescription outflow has become an irreversible trend. Leveraging the decentralized, tamper-proof, and traceable features of blockchain technology, Xingkang Chain has built an electronic prescription sharing platform to facilitate prescription circulation and accelerate the realization of the reform goal of separating prescribing from dispensing.

The Xingkang Chain Blockchain Electronic Prescription Sharing Platform serves multiple stakeholders involved in the prescription circulation process, including physicians, patients, pharmacies, regulatory authorities, and prescription review institutions. It provides essential functionalities for prescription circulation, such as prescription issuance, prescription review and rejection, medication dispensing, prescription verification and write-off, and regulatory data analysis.

When discussing its application scenarios, Mei Feng cited several examples:

First is the follow-up consultation phase of internet hospitals. Xingkang Chain integrates online diagnosis and treatment services of internet hospitals through an electronic prescription sharing platform, issuing e-prescriptions for follow-up patients to facilitate medication selection at nearby pharmacies or opting for online delivery.

Second, regarding primary healthcare institutions. Currently, grassroots health centers face issues such as drug shortages, typically stocking only essential medicines. Xingkang Chain addresses these limitations through its electronic prescription sharing platform, supplementing the available formulary via drug delivery services and partnerships with nearby pharmacies.

Thirdly, in the area of chronic disease management. Xingkang Chain collaborates with Wanbang Cloud Health, a subsidiary of Fosun Pharma, to provide integrated diagnosis, treatment, and medication dispensing kiosks. By embedding remote consultation modules into these medication dispensing machines, patients can complete the entire process of follow-up visits and prescription pickup for chronic diseases within their residential communities.

With the assistance of an electronic prescription sharing platform, hospitals can achieve the separation of prescribing and dispensing, reduce the proportion of pharmaceutical revenue and the operational costs of hospital pharmacies, and ensure that hospitals focus on providing high-quality diagnostic and therapeutic services to patients. Patients enjoy expanded choice, as they can autonomously decide whether to purchase medications at hospital outpatient pharmacies or at retail pharmacies using their prescriptions, thereby reducing waiting times for medication pickup and enabling full-process online follow-up consultations. For pharmacies, this promotes foot traffic to brick-and-mortar stores and leverages the distributed advantages of chain pharmacies. For health regulatory authorities, it facilitates the verification of prescription authenticity and validity, oversight of the standardization of diagnostic and treatment practices and processes, and supervision of pharmacy qualifications and drug safety.

Regarding the initial strategic choice, Mei Feng told VCBeat that the original idea was to create a health industry cloud. However, after market research, it was found that 80% of the IaaS layer market had already been occupied by leading companies, making it difficult for Xingkanglian to have strong competitiveness.

Following the implementation of the “Internet + Healthcare” policy in 2018, he, with a technical background, identified untapped potential at the PaaS layer. He conceived the idea of building a “chain” to digitally interconnect large health enterprises at the SaaS layer. In his view, this approach would kill two birds with one stone:

First, it helps Fosun complete the integration of internet-based healthcare resources.

Xingkang Chain leverages two core technical standards in the healthcare sector—Health Information Exchange (HIE) and Personal Health Records (PHR)—to enable customer-centric cleansing and organization of health data across the entire customer lifecycle, facilitating its flow between different institutions within business collaboration scenarios.

Through Star Health Chain, the internet enterprises previously invested in and incubated by Fosun in a decentralized manner can be interconnected to provide comprehensive healthcare services to family clients.

Secondly, by undertaking government-led regional smart health and medical platform construction projects, we collaborate with Fosun’s health industry sector to penetrate regional cities and serve household clients.

Current national policies are centered on the transition from healthcare to health, aiming to reduce medical insurance costs by shifting medical interventions upstream, strengthening health management, and transforming from single-disease treatment to comprehensive regional health services. Against this backdrop, Mei Feng noted that since 2017, numerous regional smart healthcare platform projects have emerged at the prefecture-level city level. In his view, now is an excellent opportunity to strategically position oneself in the field of regional smart health and healthcare.

Xingkang Chain integrates vertical-sector healthcare internet enterprises and bundles them as a whole into the development of regional smart healthcare platforms. This approach not only assists governments in implementing smart health strategies but also helps internet healthcare companies establish their presence in smart city initiatives.