Hualian Wuyou Files IPO Prospectus: A B2B+O2O One-Stop Medical Testing Platform That Changed Its Name Three Times in Three Years

From in-home nursing to in-home pharmaceutical services and then to in-home sample collection, capital has continued to flow into the internet healthcare sector, with a closed-loop ecosystem for internet-based medical services gradually taking shape since 2015.

A single WeChat Official Account can give rise to a new model for medical testing, and “Worry-Free Testing” has achieved just that. In today’s rapidly evolving landscape of “Internet + Healthcare,” third-party laboratory services coupled with “home sample collection” partnerships with Grade 3A hospitals have become synonymous with time and cost savings.

Over a three-year entrepreneurial journey, the company has undergone three name changes—evolving from “Health Fundraising” and “Easy Testing” to its current moniker, “Huayan Wuyou” (Worry-Free Lab Tests). What underlying strengths drive this seemingly obscure player in the internet-based medical testing sector? VCBeat (WeChat ID: vcbeat) conducted an exclusive interview with Zhu Shuqin, Founder and CEO of Huayan Wuyou.

For siblings Zhu Shuqin and Zhu Zhen, their combined experience in the healthcare industry spans over two decades. It is this hard-earned expertise that has laid the foundation for their establishment of an internet-based medical laboratory testing service platform.

Zhu Shuqin told reporters that he started his career in the traditional IVD (in vitro diagnostic) industry. He previously managed genetic testing projects at Xi’an Langdi Medical Device Co., Ltd. Today’s leading players in this field, such as BGI Genomics, Berry Oncology, and AmoyDx, are all prominent figures in this circle. During his experience as an IVD distributor, Xi’an Langdi, where Zhu Shuqin was based, rapidly gained access to top-tier tertiary hospitals thanks to its strong sales performance. The person who led the sales team to win the national sales championship among listed companies for three consecutive years was none other than Zhu Zhen.

While working with hospitals on a daily basis, Zhu Shuqin identified the prevailing doctor-patient tensions in current healthcare settings. Laboratory testing windows were always crowded with long queues, as ordinary patients were required to undergo various tests for medical consultations—a process that was both time-consuming and labor-intensive. Where there are pain points, there are opportunities.

In 2014, competition in the IVD industry intensified. Traditional sales models struggled to compete with internet-based approaches, and with the widespread adoption of the sharing economy, Zhu Shuqin decided to enter the internet healthcare sector, leveraging internet information technology to transform traditional laboratory testing services. In June 2015, the HealthChou-Yi Testing platform was officially established (later renamed “Huayan Wuyou” in April 2017).

“With China’s consumption upgrade, people are not averse to services that save both time and money. The ‘Worry-Free Lab Testing’ project we have launched aims to further segment medical services, enabling hospitals to devote more energy and resources to core medical care rather than non-core medical services,” said Zhu Shuqin.

In addition to siblings Zhu Shuqin, the core management team includes three other key members from Xi’an Langdi. CTO Yang Kai graduated with a degree in Medical Laboratory Science from the Third Military Medical University and previously worked in the Department of Clinical Laboratory at the First Affiliated Hospital of the Fourth Military Medical University, where he was responsible for the management and operation of the Laboratory Information System (LIS). Project Lead Yan Ying graduated from Northwest A&F University and has been working in the biomedical field since graduation. HR Director Zhang Lizhi graduated from Harbin Medical University and has since been engaged in human resources work within the healthcare industry.

“This is a highly complementary team,” Zhu Shuqin told reporters. In addition to the strong working rapport among core members from their previous tenure at Xi’an Langdi, the team boasts comprehensive expertise in marketing, sales, laboratory testing, and IT. Currently, Huayan Wuyou is advancing with the core team formerly from Xi’an Langdi and has assembled a staff of more than 20 people.

Throughout the interview, Zhu Shuqin consistently emphasized that Huayan Wuyou is primarily designed to make it more convenient and efficient for the general public to seek medical care, undergo laboratory tests, and receive examinations by streamlining the testing process.

"Huayan Wuyou" has currently served over 1,800 users, with its service coverage extending across Xi'an. According to Zhu Shuqin, two pilot cities in Shanxi Province are also rolling out the "Huayan Wuyou" service. Currently, the average transaction value per customer for "Huayan Wuyou" ranges from approximately RMB 800 to RMB 1,000.

The clients of Huayan Wuyou are divided into two categories:

First, the O2O model targeting C-end patients, with home sample collection;

For the general population, the typical process for visiting a hospital is as follows: register → triage → wait in the designated consultation room to be called → consult with the physician. After examination by the outpatient physician, necessary test requisitions are issued → pay at the cashier window → undergo tests at the respective departments and obtain results → return to the attending physician for further consultation → receive prescription → pay → collect medication.

Currently, Huayan Wuyou focuses on optimizing and simplifying the laboratory testing process. Its WeChat official account primarily targets consumer-side (C-end) customers. Patients undergoing hospital laboratory tests often face various challenges, including multiple test items, assorted fees, long queues, and the overall medical environment.

For tests that must be conducted during specific periods, such as the menstrual cycle in women, ordinary patients often lack understanding of the clinical workflow and the physiological requirements for these examinations, sometimes resulting in futile hospital visits. For elderly individuals or patients with limited time to visit hospitals, Huayan Wuyou offers a convenient and efficient extended service.

Place an order and make payment for the desired laboratory tests via the “Worry-Free Lab Tests” WeChat Official Account. After customer service verifies your health eligibility and schedules a sampling appointment, professional medical personnel will visit your home to collect samples. The samples will be promptly delivered to the clinical laboratory of a Grade 3A hospital or a third-party testing institution. Test results can be viewed in real time on your mobile device, and printed laboratory reports will be mailed to you via SF Express.

At this point, patients can take their lab results directly to the outpatient clinic for treatment, thereby avoiding redundant processes such as repeated payments, testing, queuing, and long waits for results, thus providing greater convenience for patients.

Second, for its B2B operations, Huayan Wuyou partners with tertiary (Grade A) hospitals and primary care facilities to create a “product platform” for laboratory testing services under a B2B model.

Regarding collaborations with Grade 3A hospitals, Zhu Shuqin provided an apt analogy: “Much like JD.com, Huayan Wuyou partners with the clinical laboratories of top-tier Grade 3A hospitals in major cities. We list their laboratory tests as products on our platform for sale, effectively serving as the e-commerce department for these hospitals’ clinical laboratories.”

By securing laboratory testing services at bulk-discounted rates, promoting these services through Grade 3A hospitals, and building a strong reputation via high-quality service to enhance user stickiness, this constitutes the business model of “Huayan Wuyou” (Worry-Free Lab Tests). It is reported that Huayan Wuyou currently sees a maximum repurchase frequency of 21 times per user, with a repurchase rate of 5%.

For small clinics and primary healthcare institutions lacking the capability to perform certain laboratory tests, Huayan Wuyou primarily provides laboratory testing services to this B2B segment. This expands the range of test items available at primary care facilities, enhances the diagnostic capabilities and overall medical competence of small hospitals, and enables them to achieve laboratory testing capabilities comparable to those of Grade 3A hospitals.

“This enables individuals with limited mobility, such as pregnant women, the elderly, and people with disabilities, as well as those requiring regular follow-up visits, including patients with hyperthyroidism or hypothyroidism and diabetes, to access one-stop laboratory testing and diagnostic services at nearby clinics or community hospitals. This approach helps improve the overall efficiency of healthcare delivery,” said Zhu Shuqin. “Adopting the ‘Lab Test Worry-Free’ system would save 10–20% of the nation’s medical resources.”

In addition, Huayan Wuyou provides information technology services to certain county-level hospitals and hospitals in underdeveloped regions, such as managing online customer service on hospital websites and telephone customer service, offering online support from 8:00 AM to 10:00 PM.

Another co-founder, Zhu Zhen, cited the following figures in a media interview: In 2016, there were 198,000 primary care clinics in China. According to relevant reports, there was still a shortfall of at least 100,000 clinics. On average, five patients per clinic per day required laboratory testing, generating 1.49 million orders daily across the estimated 298,000 clinics. With an average order value of RMB 200, the total daily transaction volume from clinics amounted to RMB 298 million. Therefore, Huayan Wuyou aims to rationally unlock the medical laboratory resources of tertiary Grade A hospitals to better serve the primary healthcare sector.

From the perspective of tiered diagnosis and treatment, with Huayan Wuyou providing services to primary healthcare institutions, more patients can enjoy a medical environment where “minor illnesses are treated at their doorstep, while major diseases are managed at tertiary hospitals,” thereby alleviating the pressure on tertiary hospitals and ensuring the rational allocation of medical resources.

Furthermore, to address the fragmented nature of internet healthcare services, the Huayan Wuyou platform has integrated with Chunyu Yisheng’s online consultation service and Tencent Health’s appointment registration platform. This integration connects pre-visit processes—including appointment scheduling, online consultations, laboratory testing, and report interpretation—providing users with a one-stop service.

Huayan Wuyou acquires customers by partnering with community health service stations and clinics, posting promotional posters, and establishing collaborative relationships, while also running advertisements on channels such as iQIYI and Shaanxi Radio to attract clientele.

According to Zhu Shuqin, for C-end users, Huayan Wuyou aims to target economically developed cities with high travel costs, such as large and megacities, and penetrate markets characterized by high time costs and dense populations, including direct-administered municipalities and other megacities.

For B-side clients, establish collaborations with county-level hospitals and medical institutions in underdeveloped regions to handle data interface tasks that their internal IT departments are unable to complete. Provide IT support to hospitals in underdeveloped areas and assist small and medium-sized hospitals in building information service platforms, thereby facilitating more effective market penetration.

According to data provided by Zhu Shuqin, Huayan Wuyou has completed 1,892 online order transactions to date, saving patients a total of 66,920 hours (an average of 2–10 days per person) and reducing costs by RMB 1,206,920 (an average of RMB 10–1,200 per person).

Huayan Wuyou has established partnerships with three Grade A tertiary hospitals in Xi’an, with the potential to expand to eight hospitals, having processed a total of 5,000 laboratory specimens. Additionally, it has signed agreements with more than 50 clinics, improving consultation efficiency by 30%. In the future, Huayan Wuyou will develop a specimen management system integrated with hospital information systems, establish a database, and connect with both public medical insurance and commercial insurance platforms to address reimbursement issues.

In terms of financing, Huayan Wuyou plans to offer a 10% equity stake to raise RMB 20 million, which will be used to enhance the functionality of its IT platform, increase advertising spending, expand service coverage to additional cities, and upgrade its customer service team.