Kingdee Healthcare Secures Over RMB 100 Million Series A Strategic Investment from JD.com and Yongjin Group, Files IPO Prospectus

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“Spring rain is as precious as oil, flowing through the streets.” On March 25 in Guangzhou, Kingdee Medical completed its Series A strategic financing, supported by the nourishing spring drizzle. This funding round was jointly led by Yongjin Group and JD.com, with a total amount exceeding RMB 100 million.

Distinguished leaders attending the event included Yin Zhiguo, General Manager of Kingdee Medical; Jin Enlin, General Manager of JD Medicine City under JD.com Group; and Ye Su, Deputy General Manager of Yonghua Investment under Yongjin Group, among other notable guests.

According to VCBeat, in addition to announcing its Series A strategic financing, Kingdee Healthcare also unveiled its post-financing strategy and new products. What are the key areas of focus? What are the new products? And why did it secure strategic investment from Yongjin Group and JD.com?

According to publicly available data from Kingdee Medical, the company has long been dedicated to hospital management in China, earning recognition as a thought leader and pioneer in mobile internet-enabled hospitals. Guided by its mission to “make healthcare services seamless and efficient,” Kingdee Medical has provided digital hospital solutions (H-ERP, HIS, LIS, EMR & CP), mobile internet hospital platforms (patient mobile service platform, mobile workforce platform, mobile supply chain e-commerce platform), and cloud hospital offerings (cloud-based HIS, online consultation and telemedicine platforms, medical consortium and tiered diagnosis and treatment platforms) to more than 3,000 hospitals and healthcare institutions. Additionally, it offers related management consulting, process optimization, implementation, operations and maintenance, and operational promotion services.

Meanwhile, on May 30, 2014, Kingdee Medical received the title of China’s first “Mobile Internet Hospital,” and was subsequently featured in special reports by hundreds of media outlets, including CCTV, Hunan Satellite TV, and Guangdong Satellite TV. This recognition was primarily driven by its advanced product implementation, secure deployment model, extensive experience in end-to-end process optimization, professional media publicity and operational promotion, and exceptional user experience.

As of March 23, 2017, Kingdee Medical had over 8.81 million users for its mobile internet hospital services, with more than 16.09 million direct hospital payment transactions, ranking first in China.

Of course, these are just some of the glossy figures that make up Kingdee Healthcare’s impressive profile. Ye Su, Deputy General Manager of Yonghua Investment under the Yongjin Group, told VCBeat that, in his view, “We are a comprehensive holding enterprise group focused on the financial services industry, private equity investment industry, and pharmaceutical industry. We value Kingdee Healthcare’s innovation capabilities within the healthcare sector, its professional team, strong execution capabilities, solid customer base, and remarkable achievements in mobile internet hospital branding and innovative business models. Kingdee Healthcare possesses the capability to deeply integrate hospitals’ internal information systems with mobile internet connectivity, offering significant potential for future development of the ‘Healthcare + Finance + Health’ model.”

Jin Enlin, General Manager of JD Medicine City under JD.com, told VCBeat, “As a pioneer in mobile internet hospitals, Kingdee Medical possesses unparalleled experience and advantages in the ‘Internet + Healthcare’ sector, making it an ideal partner for JD Medicine. Leveraging JD Medicine’s strengths, we aim to further explore e-commerce models in healthcare to better serve medical and health institutions as well as the general public.”

So, what moves will Kingdee Medical make after securing this Series A financing?

Yin Zhiguo, General Manager of Kingdee Medical

Yin Zhiguo, General Manager of Kingdee Medical, told VCBeat that following the completion of its RMB 100 million Series A financing round, the company will further integrate extensive third-party resources, activate high-value customers, and drive innovative business development.

Furthermore, this round of strategic investment will be allocated to the R&D of next-generation products such as Kingdee Cloud Hospital and the expansion of marketing channels, with a view to further exploring innovative business models oriented toward hospitals and patients.

Based on a thorough assessment of the macroeconomic and industry landscape, Kingdee Healthcare has formulated a new business strategy centered on “customer engagement, sustained leadership, model innovation, and co-creation for mutual success.” The company is committed to building the most trustworthy healthcare technology service platform, enabling seamless and efficient healthcare services.

In terms of business strategy, Kingdee Healthcare will further enhance customer satisfaction. While focusing on its two core businesses—digital hospitals and mobile internet hospitals—it will gain deep insights into the needs for refined hospital management, tap into the big data market, expand its Kingdee Medical services, and strengthen collaborations with medical schools. Regarding product strategy, it will upgrade and build cloud hospitals to redefine hospital management models. In terms of operational model, Kingdee Healthcare will pursue cross-industry innovation in its business models, achieving goals such as health management, traffic monetization, developing pharmaceutical e-commerce, providing financial services for medical scenarios, offering overseas high-end medical services, and facilitating the establishment of physician groups.

“Additionally, we will be launching a new product: Kingdee Cloud Hospital,” Yin Zhiguo told VCBeat. This is the third-generation smart hospital system, newly developed on a cloud architecture and built upon Kingdee’s first two generations of digital hospital and mobile internet hospital solutions. Guided by the open and shared philosophy of cloud computing, it leverages “cloud + endpoint” technology to facilitate collaboration between hospitals and the broader healthcare ecosystem, helping hospitals adapt their service and management models to the future medical landscape. Kingdee Cloud Hospital disrupts the traditional software sales model by offering an IT-as-a-Service (ITaaS) cloud model. Under this model, hospitals no longer need to purchase IT infrastructure; instead, they can continuously access the latest Kingdee Cloud Hospital services by paying an annual fee equivalent to the current yearly maintenance cost of their existing IT facilities, thereby leading hospitals into the era of cloud services.

“Throughout, we have upheld the core cultural philosophy of ‘Extending Innate Knowledge’ and put forward the action initiative of ‘Extending Innate Knowledge + Healthcare’ at this conference. We hope that the healthcare ecosystem, guided by the principles of ‘sharing, openness, and collaboration,’ will foster consensus among physicians and patients, as well as hospitals and society, on the basis of ‘conscience.’ By intertwining physicians’ clinical practices and patients’ healthcare-seeking behaviors with conscience and the extension of innate knowledge, we aim to return to the essence of healthcare,” Yin Zhiguo told VCBeat.

Future mobile internet hospitals will serve as platforms for online consultations, remote diagnosis and treatment, and tiered medical care, providing people with basic hospital medical services, value-added healthcare and wellness services, and specialized vertical services for specific patient populations.