Meiwei Oral Healthcare Group Introduces Innovative 'Entrepreneur Partner' Model to Overcome Losses from Traditional Chain Expansion

Competition among domestic dental chain institutions has become extremely fierce. Driven by capital, large-scale chains have embarked on nationwide expansion through asset-heavy models. However, profitability remains a persistent challenge—the Sword of Damocles hanging over these companies since capital entered the dental chain sector.

To break this unfavorable impasse, and in light of the generally low oral health awareness among the Chinese public, the overall modest level of medical care in the industry, and the uneven quality of dental institutions, Meiwei Investment Management Group (hereinafter referred to as “Meiwei”) has pioneered a novel “Business Partner” model. This initiative aims to ensure that the general public can access oral health care and receive high-quality dental medical services.

By partnering with locally leading dental institutions that boast strong profitability, MEI WEI DENTAL GROUP has carved out a unique path for dental development, jointly building a stable and mutually beneficial community of interests, thereby successfully avoiding the quagmire of losses often associated with expansion.

How did this company build its “business partner” model, and what achievements has it made in its first year? To find out, VCBeat (WeChat ID: vcbeat) conducted an exclusive interview with Ms. Zhu Liya, Co-Founder of Meiwei Investment Management Group.

Julia Zhu, Co-Founder of MEI WEI Investment Management Group

According to statistics from VCBeat, there are 18,300 public general hospitals and specialized dental hospitals in China, along with 80,000 private dental hospitals and clinics. The compound annual growth rate has reached 30%, indicating that competition in the dental industry is currently extremely intense.

Nationwide dental chains in China that adopt a unified brand strategy and rely primarily on opening new stores for expansion are currently grappling with widespread losses. In contrast, local leading brands that have cultivated their regional markets for many years enjoy significantly better profitability.

There are multifaceted reasons for this. First, as the oral healthcare sector falls under the medical industry, it is not a niche suitable for short-term operations. Building brand recognition among patients, establishing and training medical teams, fostering team cohesion, and expanding market presence all require considerable time.

“For dental chain operators, ‘if they pursue large-scale expansion across China, primarily through opening new clinics, the period immediately after entering a new city will inevitably be quite challenging, as management demands and geographic coverage continue to expand,’” analyzed Zhu Liya, addressing the common challenges currently faced by dental chain institutions.

MEI WEI DENTAL GROUP has developed a distinctive growth model, adopting a “business partner” approach centered on investment-driven acquisitions and mergers. “The dental industry in China has been developing for nearly two decades, during which many outstanding regional dental brands have emerged with strong profitability. These institutions are the primary targets of our investment and M&A activities,” said Zhu Liya.

It has been reported that in just one year since its establishment, MEI WEI DENTAL GROUP has acquired nine dental brands. Through investment and mergers and acquisitions, the company has avoided initial losses and shortened the market cultivation period.

Julia also revealed to reporters: “MEI WEI DENTAL GROUP has retained the original key management personnel of the acquired dental institutions, ensuring that our management span does not become overly extended. This is the most significant difference between us and other chain organizations.”

“The greatest advantage of MEI WEI DENTAL GROUP is its openness. As long as our business philosophies align, ‘especially with dental institutions that have been deeply rooted in the market for many years in regions where we already have a presence, MEI WEI is willing to explore cooperation opportunities.’”

MEI WEI DENTAL GROUP positions itself in the broader healthcare sector, committed to ensuring that the general public has access to oral health care and dental medical services. This distinguishes it from some dental chains that target only the mid-to-high-end market. “Of course, our focus on broad healthcare does not mean we are excluding the high-end market.”

“There is still significant room for growth in China’s oral healthcare market, as public awareness of oral hygiene remains low. For instance, biannual dental cleanings are commonplace abroad, yet the vast majority of Chinese people are either unaware of this practice or do not adhere to it,” said Zhu Liya, commenting on the current state of oral health awareness and consumer habits among the Chinese public.

Select outstanding institutions in the region for collaboration

“Although MEI WEI DENTAL GROUP was established only a year ago, Julia and her colleagues in the investment department have reviewed 80 projects over the past year. ‘Currently, however, we have only nine partner brands, which is roughly 10%,’”The selection criteria and process are highly rigorous; indeed, it is a mutual selection process.”

Currently, MEI WEI DENTAL GROUP is based onBelow4 Key Considerations for Selecting Partners:

I. Possess a relatively long-standing operational track record in the region, preferably spanning 10–20 years;

II. Brands that focus on deep cultivation within a smaller geographic area, preferably within a single city;

3. Dental institutions founded by dentists, due to a relatively stable medical team and a greater passion for the industry;

IV. The leader possesses strong moral character, holds a certain status and stature within the industry, and has an entrepreneurial vision for development, which necessitates that the organization be a regional chain with a certain scale.

According to reporters, many brands currently partnered with MEI WEI DENTAL GROUP—such as Jiangxi Zhongshan Stomatology, Wuhan Tsinghua Sunshine Stomatology, and Tianjin Aichi Dental, among other chain institutions—were founded by individuals who hold prominent industry and academic standing both locally and nationwide. These founders also demonstrate strong capabilities in business management. “They each operate seven to eight or even over a dozen clinics in their respective regions, which shows that success depends not only on their academic background but also on whether they possess an entrepreneurial mindset.”

MEI WEI DENTAL GROUP’s investment, acquisition, and merger processes—from initial partnership discussions and strategic alignment to agreement drafting and subsequent financial support—are all conducted with rigorous adherence to standardized procedures.

“This is akin to discussing marriage: it is essential to thoroughly understand the other party’s character and temperament, engage in repeated communication and adjustment, and share common expectations for the future before reaching a consensus. This is critically important. In the past, some companies attempted investments, acquisitions, and mergers, but the outcomes were less than ideal, which was likely largely due to insufficient preliminary communication and understanding.”

Julia stated that MEI WEI DENTAL GROUP is willing to invest more time in thorough communication and understanding during the preliminary stages, so that even if issues arise after collaboration begins, both parties can be more accommodating, thereby preventing larger problems from emerging in the future.。“Currently, the relationship between MEI WEI DENTAL GROUP and its partners is quite harmonious, with greater mutual tolerance in collaboration, which is closely linked to the in-depth communication conducted in the early stages.”Related.”

Unified store decoration style and design, with centralized procurement of equipment and consumables.

Currently, it has been reported that MEI WEI DENTAL GROUP requires a controlling stake of more than 51% in partner institutions, with the exact percentage subject to specific circumstances. However, MEI WEI will not take over operational control. The group is willing to incur acquisition costs no lower than those of building facilities from scratch, aiming to leverage its partners’ deep local market presence, medical teams, operational management expertise, and social networks to expand market reach.

Thus, regarding this model, Julia summarized:“We actually provide post-investment management services. While operational control remains unchanged, we deliver value-added services in brand management and standardization to comprehensively enhance our partners’ medical services and operational management, serving as a robust support system for their growth from stage 1 to stage 10.”

In addition to the aforementioned controlling stakes, it is worth noting that the owners of dental institutions acquired by Meiwai Investment can also receive a portion of cash proceeds, as well as secure funding necessary for further development. This will significantly alleviate the financial pressure on the founders of these dental institutions and enable them to reach a new level of growth.

“Of course, MEI WEI DENTAL GROUP has performance and profit requirements for the dental institutions it invests in or acquires, but this is based on a shared understanding of future development between both parties,” said Zhu Liya.

“Currently, Mei Wei and its partners have largely reached a consensus on financial performance, as the invested entities hold approximately 49% equity. ‘Therefore, all parties are willing and determined to jointly improve operational profitability. There is a fundamental difference in perspective and mindset between shareholder-led operations and the professional manager model adopted by some large chain institutions.’”

Strategic Layout of MEI WEI Investment Management Group

Regarding the investor Tianyi Group, Zhu Liya stated, “Meinian Onehealth Healthcare, a subsidiary of Tianyi, is our sister company and will provide us with increasing support. Beyond customer acquisition and brand building, we can also achieve strong synergy in the medical field. For instance, dental implant procedures require patients to meet specific health criteria prior to surgery. Meinian can provide pre-operative health screenings, which will significantly reduce surgical risks and enhance patient safety.”

As a sister company, Health Intelligence Valley can provide MEI WEI DENTAL GROUP with long-term and stable property support. MEI WEI has already established collaborations with Health Intelligence Valley in Shanghai, Beijing, and Chongqing.

“MEI WEI DENTAL GROUP certainly has IPO plans. From the perspective of Chairman Yu Rong, Meinian Onehealth is a listed entity in the healthcare sector that he built. Based on his previous successful experience, he undoubtedly has a well-developed IPO plan for MEI WEI DENTAL GROUP. Moreover, both MEI WEI DENTAL GROUP and its partner team have high expectations and confidence in the IPO.”

Although MEI WEI DENTAL GROUP has been established for just one year, its entire team has many years of experience in the healthcare sector and possesses a deep understanding of the industry.

“Mei Wei’s greatest advantage is that, from the very first day of its founding, the Mei Wei team has had a clear understanding of our goals. Therefore, even though it may increase our operational costs in the short term, Mei Wei has consistently adhered to formal procedures in investment, financial management, and strategic planning. We recognize that as a company scales, it must eventually operate on a standardized track. Both Mei Wei and its partners have reached a consensus that this approach leads to more efficient and healthier business operations,” summarized Zhu Liya.

It is understood that MEI WEI DENTAL GROUP has engaged in deep cooperation with DNV GL, an internationally authoritative certification body, to jointly establish a leading management system and medical standards for dental clinics. Building on this framework, they have developed the “M+” management certification, which holds pioneering significance for the dental healthcare industry. This initiative will undoubtedly serve as a strong impetus for MEI WEI and its partners in advancing toward international standardized development, and will even play a substantial role in promoting the standardized and healthy growth of China’s dental industry.