Chuanshi Technology Secures Tens of Millions of RMB in Series A Funding from CEC Health Fund to Build Cloud-Based Supply Chain Infrastructure for Pharmaceutical Sector; Files IPO Prospectus

VCBeat (WeChat ID: vcbeat) has learned that on May 18, 2018, Chuanshi Technology, a leading supply chain technology enterprise in China’s pharmaceutical industry, announced that it had secured tens of millions of RMB in Series A financing from the CEC Health Fund.

Shenzhen Chuanshi Banruo Technology Co., Ltd. (hereinafter referred to as “Chuanshi Technology”), established in 2015, is dedicated to building China’s first supply chain cloud infrastructure platform that integrates socialized resources within the pharmaceutical sector, thereby supporting industrial upgrading. Leveraging this supply chain cloud infrastructure platform, the company provides more efficient, intelligent, and reliable comprehensive supply chain services to pharmaceutical manufacturers, hospitals, and pharmacies.

CEC Health Fund stated that CEC Data, as a platform company under China Electronics Corporation (CEC) providing data integration, management, and application services for key national industries and departments, serves as the core platform entity of the National Health and Medical Big Data Industry Development Group—the leading consortium in China’s health and medical big data sector—and represents the national team in this field. As a crucial capital link in CEC Data’s strategic layout of the health and medical big data industry ecosystem, CEC Health Fund focuses on investing in highly relevant sectors spurred by the health and medical data industry, including Fintech, Biotech, artificial intelligence, and next-generation internet technologies.

Chuan Shi Technology’s cloud-based supply chain infrastructure features advanced information technologies for pharmaceutical supply chains, granting it significant overall and first-mover advantages in the pharmaceutical distribution sector. Meanwhile, as key healthcare reform policies are rapidly implemented during this critical period, the pharmaceutical supply chain is entering a phase of rapid growth. Chuan Shi’s comprehensive product offerings and business model align closely with the direction and policy requirements of these healthcare reforms.

Through this investment, Chuanshi Technology will become a key strategic component of CEC Data’s layout in the pharmaceutical distribution sector. The two parties will implement healthcare supply chain big data platforms in various pilot cities, jointly build a national intelligent pharmaceutical supply chain backbone network, and establish a pharmaceutical supply chain financial services platform. Meanwhile, they will collaborate on data collection and intelligent analysis to develop supply chain big data service products tailored for government agencies, manufacturers, distributors, and medical institutions.

Yang Xinpu, Founder and CEO of Chuanshi Technology, stated, “China’s pharmaceutical distribution industry has long been plagued by various irregularities, including information fragmentation, scattered resource allocation, and low efficiency. Against the backdrop of healthcare reform, policies such as the Two-Invoice System and zero markup on drug sales have further accelerated the need for industrial upgrading. Through nearly three years of effort, Chuanshi has established a supply chain cloud infrastructure comprising three major systems: Chuanshi Cloud, Chuanshi Pharmaceutical Smart Logistics Network, and Supply Chain Big Data. Notably, Chuanshi Cloud is China’s first full-supply-chain cloud platform that integrates solutions for intelligent warehouse nodes and in-hospital logistics construction, providing end-to-end coverage from hospital departments to production bases.”

Chuan Shi Yun has also partnered with an authoritative electronic invoice service platform to pioneer an exclusive application featuring “integrated goods and invoices” plus “two-invoice traceability.” Chuan Shi Yun significantly reduces the informatization costs for enterprises and hospitals across the entire supply chain, while achieving seamless integration of core data such as orders, logistics, inventory, and traceability. Since its launch ten months ago, Chuan Shi Yun has onboarded more than 500 pharmaceutical companies and hospitals, with daily operations covering over 20,000 items of medicines and medical consumables across its network.

In the realm of smart pharmaceutical networks, Chuan Shi Technology pioneered the introduction of a fourth-party logistics (4PL) operational model. Empowered by the digital capabilities of Chuan Shi Cloud, the company completed its layout in 20 core cities within the first quarter of 2018 alone. It integrated nearly 300,000 square meters of compliant third-party pharmaceutical warehousing, established a transportation capacity network across 40 provinces and municipalities, operated over 1,200 routes and 300 stations, and served more than 2,000 end customers.

In August 2018, Handed Down will support the China Communications and Transportation Association in releasing national industry standards for pharmaceutical transportation and serve as a pilot platform to build a nationwide pharmaceutical logistics capacity network.

Furthermore, Handed Down If The Technology has initially established a comprehensive supply chain big data system covering information flows, logistics, and invoice flows, and has already launched data product application services in the field of supply chain finance.