Jiuzhuyun Xing Health Secures RMB 30 Million Series A+ Funding to Build a Smart Healthcare Ecosystem

VCBeat (WeChat ID: vcbeat) has learned that on December 15, 2017, Shenzhen Jiumingzhu Information Technology Co., Ltd. (“Jiumingzhu”), together with its wholly-owned professional subsidiary Yunxing Health Technology (Shenzhen) Co., Ltd. (“Yunxing Health”), which operates the Yijian Cloud Platform, announced the successful completion of an RMB 30 million Series A+ financing round. This round constituted strategic investment, led by Optics Valley United Industrial Fund and Zero Degree Capital. It marks the second time Jiumingzhu and Yunxing Health have brought in significant investors since securing RMB 20 million in Series A funding in 2016. With this closing, Jiumingzhu has completed its final financing round prior to its shareholding reform.

According to official information from Jiumingzhu, the company is a seasoned innovative technology enterprise in China’s health information technology (HIT) industry. Its subsidiary, “Yunxing Health,” integrates robust internet capabilities into Jiumingzhu’s smart healthcare industrial chain. Reportedly founded in 1999 by Sanjiu Enterprise Group, Jiumingzhu inherits the group’s big health industry DNA and was one of the two original online and offline health IT enterprises under Sanjiu Group. It is a pioneer and leading provider of standardized health IT software development and operations/maintenance services in China. In 2015, the company established Yunxing Health, a specialized subsidiary focused on providing cloud platform services for small and micro medical institutions in the “Internet + Healthcare” sector. This move integrated Jiumingzhu’s full suite of online and offline medical and health product lines and operational channels, marking its comprehensive entry into the internet healthcare market.

Jiumingzhu’s strategic investor in this round, “Optics Valley United Industrial Fund / Zero Degree Capital,” is a fund and investment platform under China Electronics Optics Valley (CEOV), which belongs to the China Electronics Corporation (CEC) group. CEOV is a leading domestic smart industrial park cloud platform, with its largest shareholder being China Electronics Corporation (hereinafter referred to as “CEC”). CEC is a co-founder of “China Health and Medical Big Data Industry Development Co., Ltd.,” established under the guidance of the National Health and Family Planning Commission and the State-owned Assets Supervision and Administration Commission. As a core member of the “national team” building the national-level health and medical big data platform, CEC possesses substantial resources. This strategic investment by the CEC-affiliated industrial fund in Jiumingzhu and Yunxing Health signifies strong recognition of the company and elevates both the strategic importance and market acknowledgment of Jiumingzhu’s efforts in developing smart healthcare and constructing a health and medical big data platform.

As a strategic investor and significant shareholder in Jiumingzhu, Wang Jiewen, General Manager of Optics Valley United Industrial Fund/Zero Degree Capital, stated: “China Electronics Corporation (CEC) undertakes key initiatives for the National Health and Family Planning Commission in healthcare reform. Integrating medical big data through information technology is currently a core business segment of CEC. Within this overall business layout, Jiumingzhu’s technical capabilities, industrial resources, and profound understanding of the market will play a vital role in the concrete implementation of medical big data solutions. Meanwhile, CEC’s existing resources in healthcare informatization and government relations will open up greater development opportunities for Jiumingzhu.”

In recent years, with the rapid development of the internet, mobile internet, and smart healthcare, along with the implementation of new healthcare reform policies, the internet health and medical industry has witnessed a “Three Kingdoms” rivalry and a “Warring States” era among internet medical enterprises, smart healthcare HIT (Health Information Technology) companies, and pan-medical institutions. Leveraging their respective unique advantages and resources, these forces have formed strategic alliances, evolved, and integrated through competition and cooperation, driving the rapid growth of the internet medical industry. Against this backdrop, Jiumingzhu & Yunxing Health has emerged by focusing on policy-encouraged directions such as tiered diagnosis and treatment, medical consortia, and primary healthcare. Capitalizing on its own resource strengths, the company positions itself as a “provider of comprehensive healthcare informatization solutions, producer of precise medical big data, and enabler in building cloud-based medical and health service platforms.” By bridging HIT and internet healthcare, it is becoming an empowering connector between large and small medical institutions (B-side) and third-party medical and health resource providers (S-side), fully committed to constructing a new ecosystem for smart healthcare.

It is reported that Jiumingzhu & Yunxing Health currently serves nearly 10,000 large, medium, and small medical institutions across all provinces and municipalities in China as HIT users and B-end users of its cloud service platform. The company has accumulated precise medical big data from over 600 million patient visits, with nearly 100 million new visits added annually. Its network covers tens of thousands of licensed physicians nationwide. Furthermore, it has established cloud payment and cloud referral platforms for nearly 100 hospitals and medical groups across China, with the platform’s monthly gross merchandise value (GMV) experiencing rapid month-on-month growth, reaching the tens of millions of yuan level.

Since 2017, Shenzhen Jiumingzhu Information Technology Co., Ltd. (Jiumingzhu) and Yunxing Health have increasingly clarified their overall strategic framework and market presence, driven by the dual engines of “Healthcare IT (HIT) + Cloud Transformation.” They are comprehensively building and expanding a smart healthcare ecosystem and business operations across three dimensions: “HIT + HIT Operationalization + Medical-Health Cloud Platform,” thereby delivering superior value to users. Their complete product and operational portfolio encompasses not only the “Three-Tier Platforms, Nine Product Lines” HIT series—covering hospital information platforms/regional health platforms, hospital informatization, primary care informatization, clinical informatization, medical imaging and laboratory systems, mobile healthcare, and health checkups/health management—but also the Yunxing™ Cloud Platform series, which is fully operational and centers on cloud-based SaaS/mobile apps, cloud referrals, cloud payments, pocket hospitals, centralized drug procurement, and direct commercial insurance integration. This comprehensive suite provides nationwide regional health authorities and medical institutions of all sizes (large, medium, small, and micro) with end-to-end healthcare informatization solutions and fosters a new shared-empowerment ecosystem for building medical-health cloud service platforms.

Jiumingzhu Smart Healthcare Ecosystem Platform Framework

It is reported that Wuhu City in Anhui Province is one of the key user bases for Shenzhen Jiumingzhu Information Technology Co., Ltd.’s HIT (Health Information Technology) business segment. All public medical institutions and most private medical institutions in Wuhu have uniformly adopted Jiumingzhu’s series of HIT information products. These users range from large Grade 3A hospitals with over 2,000 beds to grassroots community health centers, including seven tertiary hospitals. As one of the first pilot cities for China’s new healthcare reform, Wuhu has received significant support from Jiumingzhu’s full suite of HIT product lines in implementing various new healthcare reform policies. This support also helped Wuhu successfully pass the Level 4 evaluation for regional health information interoperability among the first batch of cities nationwide.

Zhaoqing, Guangdong Province, is the first region to launch the cloud referral platform under the medical-health cloud platform business segment of Jiumingzhu & Yunxing Health. This initiative has enabled the online operation of a tiered diagnosis and treatment cloud referral platform connecting Guangdong Minsheng Medical Group with over 2,000 community health centers, clinics, and village health rooms in the region. By establishing a fully market-oriented virtual medical consortium, the platform empowers both Minsheng Medical Group and grassroots micro-medical institutions, facilitating bidirectional patient referrals. Through market-driven mechanisms, it achieves the rational tiered referral and分流 (diversion) of patients within the region, as advocated by the new healthcare reform. Furthermore, additional cooperative operational services will be expanded based on this platform.

Yunxing Health Cloud Service Platform Ecosystem for Small, Medium, and Micro Medical Institutions

This round of financing will further drive the continuous innovation of Jiumingzhu & Yunxing Health’s product and operational lines under its “two major business segments and three-dimensional operating model,” facilitating rapid replication and expansion across China to quickly increase market share. Over the next two years, the total number of HIT users and cloud-based B-end users is projected to reach 30,000–50,000 institutions; cumulative precise medical big data will cover over 1 billion patient visits; more than 500 healthcare institutions will adopt cloud platforms such as cloud referral and cloud payment services; and the platform’s monthly gross merchandise value (GMV) will reach the billion-yuan level. Meanwhile, the recent launch of strategic products—including Jiumingzhu’s Hospital Information Platform, Clinical Data Repository, and Hospital Group Management solutions—will significantly elevate its strategic positioning in the HIT and precise medical big data sectors, while enhancing its technical support capabilities for the informatization needs of mid-to-high-end hospitals.

Furthermore, over the past two years, Jiumingzhu & Yunxing Health has established strategic and operational partnerships with numerous leading industry enterprises. Its ecosystem platform has integrated multiple third-party resource providers and service providers (S-side and B-side), resulting in an ever-expanding “circle of partners.” These include Minsheng Medical (cloud referral services), Ping An Good Doctor (cloud SaaS and operational cooperation), Ping An Healthcare and Technology (direct commercial insurance integration and operational cooperation), WeChat/Alipay (cloud payment platforms), Kangkang Blood Pressure (chronic disease management), and iKang Guobin, among others. The engagement of these seasoned partners, along with the future open introduction of additional resource partners, is making the smart healthcare new ecosystem, spearheaded by Jiumingzhu & Yunxing Health, increasingly vibrant and prosperous.

Li Haitao, Founder and CEO of Jiumingzhu, stated, “This financing round is our last before the joint-stock reform and marks a significant milestone for Jiumingzhu. We extend our sincere gratitude to both new and existing investors and shareholders for their trust. Through this strategic financing, we will integrate and align with CEC Optics Valley’s and the China Electronics Corporation (CEC) system’s smart city resources across various regions, as well as their medical big data qualifications and capabilities. This will comprehensively accelerate the rapid, exponential growth of Jiumingzhu and Yunxing Health, further enhance and elevate Jiumingzhu’s technological sophistication and multidimensional capabilities in Healthcare IT (HIT), strengthen our control over data channels, and boost our productivity in medical big data along with our capabilities in mining, analysis, and application. Our aim is to create greater differentiated, above-expectation value for users and jointly build a new ecosystem for smart healthcare. Meanwhile, the CEC system will provide significant support in terms of capital resources, strategic direction guidance, and foresight into relevant national healthcare policies.”