Longest Aims to Become China's First Rehabilitation Medical Equipment Listed Company with Over 5,000 Institutional Clients and Global Presence in 30+ Countries

He said that he had stumbled into the medical device sales field by chance, and later, also by chance, ventured into the manufacturing of rehabilitation medical equipment. Although he has been dedicated to the healthcare industry for 22 years, he still considers himself an “outsider.”

Yet it was precisely this outsider who founded Longzhijie, the first enterprise in China’s rehabilitation industry to list on the ChiNext board, propelling the rise of Chinese intelligent manufacturing in the field of rehabilitation medical equipment!

Recently, VCBeat visited Guangzhou to meet with this company located in the Guangdong High-Tech Enterprise Accelerator. By the time our reporter arrived at the fifth floor where Longzhijie is based, it was nearly quitting time, yet the employees remained highly motivated and showed no signs of slackening their efforts.

Meanwhile, Luo Yuanlong, the founder of Longzhijie, had already brewed tea, awaiting a conversation with VCBeat about himself and his company, Longzhijie...

Luo Yuanlong, Founder and General Manager of Longzhijie

Longest is a leading domestic manufacturer of rehabilitation medical equipment. Since its establishment in 2000, the company has been committed to continuous innovation and R&D in the fields of pain rehabilitation, orthopedic rehabilitation, neurological rehabilitation, and mobile healthcare. By consistently introducing new technologies and products, Longest aims to address patients' functional impairments, facilitate their reintegration into society, and improve their quality of life.

In March 2017, Beijing Chengyitong Control Engineering Technology Co., Ltd. (hereinafter referred to as “Chengyitong”; stock code: 300430) announced the acquisition of Guangzhou Longzhijie Technology Co., Ltd. for RMB 512 million. To date,The First Listed Company in China’s Rehabilitation Industry Has Emerged, Propelling Longzhijie Successfully into the Capital Market.

“Rehabilitation is a major trend for the future, but does the development of the rehabilitation industry necessarily mean that Longzhijie will thrive? That is hard to say. Capital drive is indispensable for corporate growth, and listed companies have access to the best financing platforms. Therefore, we chose to partner with Chengyitong, hoping to leverage their platform and resources to take Longzhijie to the next level,” Luo Yuanlong told VCBeat.

Meanwhile, for Chengyitong, the collaboration with Longzhijie is also a significant move to further its layout in the big health industry.

In recent years, Chengyitong has taken “Smarter Manufacturing, Healthier Public” as its corporate mission, centering on the strategic concept of being a “service provider in the big health sector,” and adopting “One Body, Two Wings; Dual-Wheel Drive"development strategy, leveraging its industrial background and inherent strengths, adhering to a development model that places equal emphasis on organic growth and inorganic expansion. While ensuring its leading position in existing industries, the company actively engages in capital operations and equity mergers and acquisitions to vigorously cultivate new business growth drivers, thereby continuously refining and strengthening its industrial layout in the 'big health services' sector."

As for why Longzhi was chosen,Liang Kai, General Manager of Chengyitong, stated“Longzhijie boasts a comprehensive portfolio of rehabilitation medical products with high technological sophistication and substantial accumulated expertise. Its team is highly motivated, which aligns well with Chengyitong’s corporate culture. Coupled with both parties’ optimistic outlook on the domestic rehabilitation market, we quickly reached a cooperation intention. Through the joint efforts of both sides,”We are confident in establishing Longzhijie as a leading rehabilitation medical device enterprise in China and a world-class player globally.”

It is reported that,With strong support from Chengyitong, Longzhijie now has three controlling subsidiaries, two participating companies, and three manufacturing bases. It has become an international rehabilitation medical equipment manufacturer integrating R&D, manufacturing, sales, and service, dedicated to providing high-quality and comprehensive solutions for the construction of rehabilitation departments in medical institutions both domestically and internationally.

What has given Chengyitong such confidence in Longzhijie?

First and foremost, let us examine the core competencies. Longest boasts the most comprehensive portfolio of rehabilitation medical equipment in China. It holds a leading position domestically in the fields of physical agent modalities—including electrotherapy, phototherapy, magnetotherapy, and pressure therapy—as well as therapeutic exercise products, earning high recognition from physical therapists and partners both in China and abroad.

A strong reputation stems from robust technical capabilities and a rigorous production system. Over the years, Longest has consistently adhered to the principle of “user experience first,” creating products for customers that deliver high therapeutic efficacy and superior comfort.

“We have always aimed to convey the idea that medical treatment should not be a source of suffering, but rather an enjoyable experience. Therefore, in designing our products, we strive to ensure patients feel as comfortable as possible,” said Luo Yuanlong.

To achieve this goal, Longzhijie has invested significant effort in research and development (R&D). In its early years, the company’s R&D expenditure accounted for nearly 20% of its revenue (currently around 10%), far exceeding the 6% threshold mandated by the state for high-tech enterprises. Meanwhile, Longzhijie established an international trade department to proactively gain insights into advanced overseas production systems and market conditions, thereby driving continuous improvements in its own R&D and manufacturing processes to better meet the needs of international users.

From a product portfolio perspective, Longzhijie also follows a unique strategy. Luo Yuanlong vividly describes Longzhijie’s products as a “Manchu-Han Imperial Feast,” allowing for the customization of different packages to meet diverse needs.

Longest currently offers dozens of products, categorized into its original three major series—orthopedic rehabilitation, pain rehabilitation, and neurological rehabilitation—as well as two newly added series: geriatric rehabilitation and postpartum rehabilitation.

Longzhijie Neurological Rehabilitation Solutions

At first glance, Longzhijie’s product portfolio appears extensive and fragmented; however, the company has categorized these offerings through its proprietary system, revealing that many products are actually interchangeable and can be bundled into combinations tailored to specific needs.

“For example, in postpartum rehabilitation, the core component is pelvic floor rehabilitation. However, postpartum rehabilitation also encompasses a range of other issues, such as skin laxity, diastasis recti abdominis, and biomechanical imbalances. How should these problems be addressed? This requires incorporating a broader array of products, thereby forming a comprehensive postpartum rehabilitation solution. In fact, many of the products used in postpartum rehabilitation are also needed in our other sectors, such as musculoskeletal pain management,” cited Luo Yuanlong as an example.

When it comes to postpartum rehabilitation, Luo Yuanlong also expressed strong optimism. In the past, people paid little attention to postpartum recovery; however, with the increasing number of advanced maternal age pregnancies, many women may experience significant pelvic floor issues after the age of 45, such as urinary incontinence and prolapse. If preventive measures and training are implemented through postpartum rehabilitation, these problems can be substantially reduced in the future.

Longzhijie Comprehensive Solution for Postpartum Rehabilitation

Furthermore, in recent years, elderly care has become a focal point of attention across all sectors of society, and elderly rehabilitation has also emerged as a key area of strategic focus for Longzhijie.

In 2017, Longest established a subsidiary—Guangzhou Longest Rehabilitation and Elderly Care Technology Co., Ltd.—and launched a series of medical devices for elderly care and rehabilitation.

Among these, the ceiling track system (electric patient lift) is a flagship product promoted by Longest. It enables patients with motor dysfunction caused by stroke or other conditions (including impairments in standing, walking, and recreational activities) to undergo rehabilitation treatment and training—such as patient transfer, positional transfer, toileting, bathing, (body-weight-supported) standing training, balance training, (body-weight-supported) gait training, and activities of daily living (ADL) training—by using specially designed vests with various functions (and related supporting slings) in conjunction with the ceiling track system.

With the aid of ceiling-mounted lift systems, both the risk of patient falls and the workload of rehabilitation therapists are significantly reduced, facilitating early intervention in rehabilitation. Meanwhile, the application of ceiling track systems can minimize the rehabilitation cycle, enabling patients to recover functional impairments as quickly as possible and return to society sooner.

Longzhijie Comprehensive Solution for Geriatric Rehabilitation

Longzhijie has visited numerous elderly care institutions and established a rehabilitation center for a nursing home in Shanghai last year.

“Service Builds Trust.” Luo Yuanlong believes that in addition to providing high-quality products, after-sales service is equally important.

The Company pioneered and implemented the industry’s highest standards in 2008. Products are covered by a free warranty for two years for the main unit and one year for accessories, effective from the date of receipt. For large-scale equipment (such as shockwave therapy devices), resident provincial maintenance engineers provide regular on-site servicing. Personalized services are available, with maintenance and warranty agreements customizable through separate contracts between both parties. Following installation, our installation engineers provide product training, along with instruction on basic maintenance and simple troubleshooting.

Currently, Longzhi’s after-sales service system comprises over 50 highly qualified after-sales service personnel distributed across all provinces, cities, and counties in China. The company commits to responding to after-sales service requests within 8 hours, providing responses from its 24-hour after-sales service center, and conducting regular customer follow-up visits.

Luo Yuanlong revealed that there are currently approximately 20,000 to 30,000 Longest products in use on the market. This means that many of the devices currently in operation may be very early models, with some even exceeding 10 years of service, yet Longest continues to provide maintenance services for them.

“It is precisely because of our years of committed, good-faith service that Longest has earned consistent acclaim from customers, becoming the rehabilitation brand they trust most. ‘Customers purchase equipment for use; if a device breaks down and no one provides repair or maintenance, it inflicts significant damage on our brand. Therefore, we regularly conduct customer satisfaction surveys to solicit feedback and continuously improve our service quality,’ said Tian Zhuang, Deputy General Manager of Longest.”

With premium products and attentive service, Longest has delivered an impressive performance record.To date, Longest has established partnerships with more than 5,000 medical institutions in China, and its products are used by over 75% of Grade A tertiary hospitals nationwide. The company’s revenue hit a new high in 2017, representing a year-on-year increase of nearly 50%.

Such an impressive performance record is inseparable from a set of highly effective operational strategies.

For large tertiary Grade A hospitals in major cities, Longzhijie adopts a product sales model. Medical institutions in developed regions such as Beijing, Shanghai, and Guangzhou have a greater need for supplemental products; for instance, when a hospital expands its services and requires new equipment, Longzhijie provides the specific products needed to fill those gaps.

In relatively underdeveloped regions such as the Central and Western parts of China, healthcare infrastructure remains inadequate. Rehabilitation services are particularly weak at county-level and community hospitals, where capabilities are being built essentially from scratch. Consequently, there is a need for Longzhijie to provide a comprehensive suite of solutions. In recent years, rehabilitation medical services have been extending down to the grassroots level, a process that coincides with the broader effort to popularize and establish rehabilitation care.

Of course, Longzhi Jie has even greater “ambitions.” In the view of President Luo Yuanlong, overseas markets offer higher profit margins, better credibility, and greater potential.

Therefore, in 2012, Longest established its International Sales Department, setting its sights on the broader overseas rehabilitation market. Over the past six years, through strong collaborations with global distributors and agents, Longest’s products have gained recognition in the international market.

Currently, the company has obtained multiple international certifications, including CE (EU SGS), FDA, NRTL, and INMETRO, and its products are exported to more than 30 countries and regions worldwide, such as the United States, Canada, Germany, Belgium, Spain, Italy, Australia, South Africa, Iran, South Korea, and Hong Kong, China.

During the expansion of its overseas business, the Longzhijie team discovered that private clinics abroad are highly developed, with rehabilitation services being more comprehensive and mature. By leveraging the well-established network of private clinics, rehabilitation care can be effectively promoted and integrated into home settings, thereby increasingly highlighting the demands of end-users (C-side).

Coupled with the widespread use of smartphones, which has led to a rising prevalence of cervical spondylosis; the surge in national fitness initiatives has also resulted in a gradual increase in patients with sports-related injuries. Furthermore, sedentary desk work has left a large number of young white-collar workers plagued by shoulder, neck, and lumbar spine issues. These conditions can be managed with adjunctive therapy using compact portable devices.

Consequently, Longest has begun to increase its investment in consumer-facing products. In the field of sports rehabilitation, Longest plans to launch a series of mobile medical devices targeted at sports enthusiasts, including handheld electrotherapy units and pneumatic exercise boards. “Many mobile medical products currently on the market focus primarily on data collection, with limited therapeutic output. In contrast, Longest specializes in devices that deliver therapeutic output, giving us significant room for growth,” said Luo Yuanlong.

Of course, consumer-facing products demand higher design standards. Achieving greater user-friendliness, precision, portability, and intelligence will be the key focus of Longzhijie’s R&D efforts. It is reported that several consumer-oriented products currently under development by the company are undergoing CE and FDA certification, and are expected to hit the market soon.

When discussing future development plans, Luo Yuanlong stated,Longzhijie aims to become the leading listed rehabilitation company in China, but it clearly has a long road ahead. In addition to continuously expanding its existing product portfolio and developing consumer-facing products, the company must also consider how to effectively engage in the downstream segment of the industry chain: rehabilitation services.

Transitioning from products to services is nearly a standard path for development across all industries. The medical device industry is no exception; relying solely on the production and sales of equipment results in a singular business model with limited value-added potential. If Longzhi Jie leverages its self-manufactured rehabilitation equipment to provide services, it will effectively enhance the value added of its operational activities and diversify its business lines.

According to VCBeat, Longzhijie and Chengyitong are currently joining forces to establish a chain of rehabilitation institutions dedicated to addressing musculoskeletal pain—SpineGuard. As a strategic partner of Longzhijie and an important component of the Ivy Rehabilitation Ecosystem, it will make its initial foray into the rehabilitation services sector.

“All of Longzhijie’s current products are designed to support the future growth of our services division. In turn, the expansion of our services business will drive product sales. This creates a cyclical, self-reinforcing model of development—this is what we call a sustainable development model,” stated Luo Yuanlong with conviction.

Chengyitong also stated that, in the future, the company will leverage Longzhijie as its platform for rehabilitation and elderly care projects. By effectively integrating the research, development, and manufacturing of rehabilitation equipment and age-appropriate assistive devices with operational services for rehabilitation and elderly care, and by consolidating resources and extending service offerings, Chengyitong aims to become a core driving force in continuously advancing technological progress and promoting the widespread value of China’s rehabilitation sector.