Neusoft Corporation and Lianzhong Medical to Build Provincial Medical Imaging Cloud Platform in Liaoning with Total Investment of RMB 16.4 Billion

On May 19, VCBeat learned from the announcement released by Neusoft Group that,Following deliberation by the Board of Directors,Agreed to jointly sign the “Framework Cooperation Agreement on the ‘Liaoning Medical Imaging Cloud’ Health and Medical Service Platform” and other agreements with the Liaoning Provincial Health and Family Planning Commission and LIANZHONG MEDICAL.

In accordance with the agreement, the Health and Family Planning Commission of Liaoning Province, Neusoft Corporation, and LIANZHONG MEDICAL have collaborated on the "Liaoning Medical Imaging Cloud" health and medical service platform.The Liaoning Provincial Health and Family Planning Commission has authorized Neusoft Group, in partnership with LIANZHONG MEDICAL, to serve as the builder and operator of the “Liaoning Medical Imaging Cloud” health and medical service platform.. The specific implementers of the project are Neusoft Group and LIANZHONG MEDICAL, or their authorized subsidiaries or investment companies.

According to the announcement, this collaboration,The total investment by all parties is estimated at approximately RMB 1,644.75 million, of which Neusoft Corporation or its authorized subsidiaries or investment companies will contribute approximately RMB 988.21 million in aggregate, and LIANZHONG MEDICAL or its authorized subsidiaries or investment companies will contribute approximately RMB 656.54 million in aggregate.After the platform becomes operational, all parties shall collect service fees from the platform-using entities (medical institutions at all levels) in accordance with the prices of relevant service charge items and national regulations.

All parties shall complete the construction of the “Liaoning Provincial Medical Imaging Cloud” health and medical service platform in accordance with the development plan. The project construction period is expected to last until September 2018, with the primary focus on completing the construction of the central platform for the “Liaoning Provincial Medical Imaging Cloud.”Construction of the Liaoning Provincial Medical Imaging Cloud Management Center, Consultation Center, and Settlement System, along with the implementation of pilot medical institutions’ access to the imaging cloud platform. After October 2018, the project entered its promotion phase, achieving stable operation and generating steady, gradually increasing revenue with visible profitability prospects.

Medical imaging cloud involves several aspects: medical imaging equipment, cloud storage, and medical image processing technologies, extending to hospital integrated information systems, telemedicine, and more.Haitong Securities analysts believe that Neusoft Corporation's advantages include:

(1) In terms of medical imaging equipment, Neusoft offers the MR series (Magnetic Resonance Imaging systems), CT series, XR series (X-ray radiography systems), US series (fully digital color Doppler ultrasound diagnostic systems), CL series (fully automated biochemical analyzers), PET series, and radiotherapy products.

(2) In terms of cloud service capabilities, Neusoft possesses the SaCa Cloud Application Platform and the Realsight Big Data Analytics Application Platform.

(3) Neusoft possesses a complete industrial chain in both front-end and back-end hospital systems, and the integration of imaging equipment with hospital information systems gives Neusoft a distinct competitive advantage.The incremental business volume brought by Neusoft includes: (1) Sustained and substantial service fees: As stipulated in the agreement, after the platform becomes operational, all parties shall collect service fees from the platform-using entities (medical institutions at all levels) in accordance with the pricing of relevant service charge items and national regulations.

(4) Potentially applicable imaging data.Based on conservative estimates, a Grade A tertiary hospital generates 50–100 GB of imaging data daily, with annual storage requirements reaching 10–20 TB. These massive volumes of imaging data hold significant potential application value, provided that data property rights are opened and access is permitted.

According to VCBeat,Hangzhou Lianzhong, established in 2010, is a national high-tech enterprise specializing in the development and construction of cloud-based medical imaging systems.

its independently developedGlobal Imaging “Cloud Healthcare” System Platform enables cloud-based transmission, storage, sharing, and application of comprehensive medical data. Medical experts can leverage fragmented time to provide patient services via GlobalImaging.com (web portal) and Palm Cloud Doctor (mobile app), allowing them to access dynamic imaging studies and perform professional interpretations anytime, anywhere.

In fact, as early as last October, LIANZHONG MEDICAL had already collaborated with China Telecom's Guizhou BranchSign“Strategic Cooperation Agreement on Medical Imaging Cloud” marks another major collaborative project following Lianzhong Medical’s establishment of the “Cloud Guizhou” provincial medical platform in Guizhou Province. This strong partnership with Neusoft Group signals that Lianzhong Medical is taking another solid step toward the nationwide expansion of its medical imaging cloud platform.