Three Healthcare Companies Listed in China's 2017 Top 100 Internet Enterprises

VCBeat (WeChat Official Account: vcbeat) has learned that on August 3, the Internet Society of China and the Information Center of the Ministry of Industry and Information Technology jointly released the 2017 “Top 100 Chinese Internet Enterprises” list in Beijing.

The top 100 Internet companies on this list cover a wide range of Internet business sectors, including comprehensive portals, healthcare, vertical portals, comprehensive e-commerce, vertical e-commerce, industrial services, digital marketing, B2B e-commerce, IDC and CDN3, online gaming, online video, personal utility tools, and online travel.

According to VCBeat (WeChat Official Account: vcbeat), only three companies with healthcare as their core business made it onto this list: Neusoft Group, Longmaster Information, and Meiyou. Among them, Neusoft Group and Longmaster Information are publicly listed companies.

In the fields of regional health and hospital informatization, Neusoft’s core business continues to maintain rapid growth. According to IDC’s industry analysis report,The company has maintained the number one market share for six consecutive years, continuing to lead the industry.

As of December 31, 2016, Neusoft had cumulatively served over 2,000 hospital clients, including more than 400 tertiary hospitals across China, facilitating 460 million patient visits nationwide. Its regional health information solutions covered national, provincial, municipal, and county-level platforms, serving over 23,000 primary healthcare institutions and reaching a population of 390 million.

In the regional healthcare sector, Neusoft has signed contracts with key clients such as the Health and Family Planning Commissions of Yan’an City, Liaoyang City, and Hangzhou. In the area of tiered diagnosis and treatment, the Yichang Tiered Diagnosis and Treatment Service Collaboration Platform was successfully selected as one of the Top 100 Practical Cases of China’s “Internet Plus” Action Initiative. Meanwhile, the launch of the “Xingguo All-in-One Machine” product has laid the foundation for the further implementation of tiered diagnosis and treatment.

In the field of hospital informatization, Neusoft has successfully expanded its reach to medical institutions such as Sichuan Provincial People's Hospital, Nanjing Children's Hospital, and Liaoning Provincial People's Hospital. Meanwhile, the company has achieved remarkable results in new product research and development innovation. It pioneered the industry-leading next-generation core hospital business platform, RealOne Suite, designed for large tertiary Grade A hospitals, which has been successfully deployed at multiple medical institutions, including Kiang Wu Hospital in Macau and Sun Yat-sen University Cancer Center.

To support clinical operations, Neusoft has successively launched specialized clinical products such as the Neusoft E-Care Critical Care Information Management System and the Hemodialysis System. To drive innovation in healthcare services, its internet-based offerings—including medical big data solutions, Daxiang Jiuyi, and RealOneConnected—have seen continuous growth in their customer base. These innovations have enabled rapid development of new business models and, through integration with traditional services, have pioneered industry-leading online-to-offline “one-stop” solutions.

In the field of medical insurance management, Neusoft continues to consolidate its position as a market leader, having signed healthy city strategic cooperation agreements with more than 20 cities.In cooperation agreements, we continue to advance the construction of Healthy Cities. Neusoft’s “Internet + Medical Insurance” public benefit service platform has been implemented in multiple provinces and municipalities. Its terminal application—the Neusoft Mobile Pharmacy Purchase “Medical Insurance Medicine Box APP”—was successfully launched as China’s first solution enabling online medication purchases using social security cards, connecting six cities.

Xikang Cloud Hospital is the flagship product of Xikang Company. It adopts multi-channel real-time collection of user health data, integrates professional medical resources, and builds a third-party platform for healthcare services connecting consumers with physicians. Relying on personalized health data, the Cloud Hospital provides one-stop, end-to-end health management and medical services through an integrated online-offline model delivered by family physicians and specialists.

Xikang Cloud Hospital provides users with personalized sub-health and chronic disease prevention and improvement plans, including but not limited to the following:Diabetes Management, Hypertension Management, Hyperlipidemia Management, Obesity Management, Sub-health Conditioning.

Xikang has established healthcare service institutions and community/physical examination centers close to the public by leveraging both self-built and collaborative models, with a focus on the characteristics and advantages of telemedicine, thereby creating a robust medical and health ecosystem for doctors and patients.

By adopting the family doctor service model (involving hospital physicians, health city community doctors, and health management center physicians), trustworthy relationships with patients are established. During the service delivery process, personalized care plans tailored to patient needs are developed based on routinely collected data (from health city community all-in-one kiosks or medical examinations). Premium services are then progressively recommended, fostering a virtuous ecosystem with active participation from both physicians and patients.

Currently, Xikang Cloud Hospital is in more than ten core cities in China17 Offline Physical Medical InstitutionsLaunched into operation, the cloud hospital’s online services have been implemented and commenced in multiple cities including Ningbo, Shenyang, and Taiyuan, while the project of integrated all-in-one machines for primary healthcare services has been expanded to five provinces, promoting the long-term sustainable development of the business.

Langma Information began its transformation into the internet healthcare sector in late 2013, initially completing its business layout in this field by early 2016, thus marking three years of intensive cultivation and development in the internet healthcare domain.

In 2014, Langma Information completed the full acquisition of Guangzhou Qisheng Information Technology Co., Ltd. for RMB 650 million, marking its initial entry into the internet healthcare sector. 39 Health Network is a brand with a 17-year history in health information. “39 Ask a Doctor” pioneered the lightweight consultation model and is China’s leading online Q&A platform for healthy living. The Disease Encyclopedia covers 14,502 diseases and symptoms. Drug Guide is a professional and comprehensive website for querying domestic and international pharmaceutical products. Famous Doctors Online, through online Q&A activities, has become the largest online consultation platform for renowned physicians in China. The Medical Assistance Tool enables online appointment registration with nearly 10,000 experts, provides access to detailed information on tens of thousands of hospitals and doctors across China, offers the most professional medical guidance, and facilitates easy appointment booking with specialists.

39 Health has attracted a massive user base through high-quality informational content. Its current monthly reach exceeds 160 million users. In 2016, its daily unique visitors (UV) across PC and mobile platforms surpassed 16 million, while the average daily page views (PV) across all devices exceeded 45 million.

As Langma Information’s internet and physical healthcare businesses continue to deepen, the user traffic value and media brand value of 39 Health Network will be continuously unlocked. Through the deep integration of 39 Health Network with physical healthcare services, users will transition from merely accessing health information to directly connecting with comprehensive healthcare services, thereby significantly enhancing their overall value.

On September 25, 2015, the Guizhou (Guiyang) Internet Hospital conducted its first online patient consultation, marking the official establishment and launch of the Guizhou Internet Hospital and positioning it among the first tier of internet hospitals in China.

Guizhou Internet Hospital centers on Grade III and Grade II hospitals, with community (township) hospitals, village health and family planning service rooms, and physical pharmacies serving as consultation points. This approach extends the reach of internet hospitals to grassroots medical and health institutions, creating a multi-tiered healthcare service structure comprising “hospitals + community service centers + village health and family planning service rooms.”

In just over a year, the Guizhou Internet Hospital has provided hundreds of thousands of services to patients in the Guizhou region, with its daily volume of video consultations exceeding 5,000.

Thanks to the ease of use and convenience of remote video consultations, even seniors aged 60 and above in Guizhou find them highly accessible. They frequently manage health metrics such as blood glucose and blood pressure through remote consultations, conveniently addressing their need for medical advice while running daily errands like grocery shopping.

Coinciding with the launch of Guizhou Internet Hospital, a mobile remote consultation service platform, the “Gui Jiankang” App, was also introduced. Currently, Gui Jiankang has integrated eight municipal hospitals, including Guiyang Maternal and Child Health Care Hospital, with appointment volumes at some hospitals accounting for more than 30% of their total outpatient visits.

Last August, Meiyou announced the completion of its RMB 1 billion Series E financing round and the dismantling of its VIE structure, marking its official return to China’s domestic capital market.

Meiyou Female Assistant (formerly known as Pomelo Menstrual Period Assistant) was established in April 2013. It is a menstrual health service tool and female community platform designed for women, and it is a product under Xiamen Meiyou Information Technology Co., Ltd.

Public information indicates that Meiyou entered the female market with a menstrual cycle management tool, boasting over 100 million users. It is the largest menstrual cycle management tool in China and the leading female community.

In addition, Meiyou has incubated the maternal and infant community Youbaobao and the fashion e-commerce platform Youzijie. Its products boast a daily active user (DAU) base of over 7 million, making it the only company that covers the complete female physiological cycle, from menstruation to pregnancy and child-rearing.

In terms of commercialization, Meiyou has chosen e-commerce and advertising as its primary revenue streams. In the e-commerce sector, Meiyou launched its community-based e-commerce platform, Youzijie, in June 2015, focusing on categories such as women's apparel, beauty products, personal care, home goods, and maternal and infant products. By May 2016, less than a year after its launch, Youzijie achieved monthly sales exceeding RMB 100 million. In the advertising sector, Meiyou primarily features brand advertisements for daily chemicals, maternal and infant products, and cosmetics, generating monthly advertising revenue of over RMB 10 million.

The ranking is primarily based on self-reported data from enterprises, using the 2016 annual data of participating internet companies as the standard reference. Data from multiple sources—including financial reports of listed companies, prospectuses of companies planning to go public, corporate audit reports, income tax returns, third-party research reports, and monitoring data from third-party data platforms—are utilized for verification, validation, and supplementation. A comprehensive evaluation analysis is conducted, and a weighted average calculation is applied to generate a composite score, which serves as the final score for each enterprise.

Overall, revenue is the most important selection criterion for this list.

According to the ranking, in 2016, the total scale of internet business revenue of the Top 100 Internet Enterprises reached RMB 1.07 trillion, surpassing the trillion-yuan mark for the first time, with a year-on-year increase of 46.8%, driving an 8.73% growth in information consumption. The total operating profit of the Top 100 Internet Enterprises in 2016 was RMB 136.286 billion, with an average operating profit margin of 9.44%. Seventy-nine companies achieved profitability, with their total profit amounting to RMB 156.959 billion and an average operating profit margin as high as 21.51%. Eleven companies had an operating profit margin exceeding 40%.

From an R&D perspective, in 2016, the top 100 internet companies invested RMB 74.96 billion in research and development, a year-on-year increase of 29.7%, with an average R&D intensity of 11.76%. The number of R&D personnel reached 156,000, a year-on-year increase of 17.65%, accounting for 19.5% of the total workforce, which was 1.3 percentage points higher than the previous year.

From the perspective of services,Among the Top 100 CompaniesThe number of industrial internet companies primarily serving enterprise clients has reached 32, with internet business revenue totaling RMB 125.862 billion, accounting for 11.77% of the total revenue of the Top 100 companies, and serving over 7 million enterprise customers.