YanZhi APP Files IPO Prospectus: Building a Research and Investment Platform for the Healthcare Industry

YanZhi is a research and sharing platform focused on the healthcare industry, with an investment-oriented approach. By bringing together diverse participants to share information, YanZhi assists users in initiating project- or industry expertise-based collaborations and collective actions, thereby enhancing the liquidity of private equity projects.

Healthcare Investment Research Sharing Platform

Yang Xinyu, General Manager of Yan Zhi, holds a Ph.D. in Traditional Chinese Medicine (TCM) Diagnostics from Beijing University of Chinese Medicine and previously served as Executive President of Beijing Guangji Hospital of Traditional Chinese Medicine. He has been involved in investment and financing activities across the TCM industry, private healthcare, health management, medical insurance, medical aesthetics, and internet-based healthcare. Additionally, he participated in the investment and operation of the Gastroesophageal Reflux Disease (GERD) specialty department at Beijing Guangji Hospital of Traditional Chinese Medicine, bringing extensive experience in pharmaceutical industry investment and financing as well as healthcare institution operational management.

Medical projects inherently present high barriers to entry. Yang Xinyu believes that gathering professionals with specialized industry expertise within the healthcare and medical verticals to evaluate projects aligns with the broader needs of the investment industry. Furthermore, mismatches exist between project proponents and investors: while project proponents seek strategic investment, investors have an inherent need for exit opportunities, leading to misalignments in capital deployment, utilization, and exit strategies. Investors’ difficulty in understanding the product value of projects, or improper timing of investments, can further impair investment efficiency.

Yang Xinyu candidly stated that communication between capital and industry faces two major challenges: limited time and barriers arising from specialized industry knowledge. Therefore, YanZhi aims to leverage professionals to conduct in-depth research and analysis of the healthcare sector, identify projects addressing genuine industry pain points, uncover their potential value, and highlight their shortcomings. From the buyer’s perspective, this approach helps enhance project maturity, thereby fostering mutual trust between buyers and sellers, reducing difficulties in mutual understanding, and improving the effectiveness of investment activities.

The YanZhi App is designed to better serve investment and financing projects by matching resources, continuously refining its product throughout the project lifecycle. Currently, YanZhi divides the healthcare industry into 42 sub-sectors, presenting investors with a relatively comprehensive investment map.

Through pilot initiatives, YanZhi has preliminarily achieved a closed-loop business model: analysts on the platform have received compensation for their services, while buy-side institutions have obtained the industry reports they desired, as well as face-to-face investment advisory services. Building on this foundation, YanZhi is further developing a research-sharing platform oriented toward healthcare investment.

Gathering thousands of analysts

Yanzhi focuses on industry research and project evaluation. By bringing together professionals from within the industry and leveraging their research findings, Yanzhi provides think tank services that offer supportive evidence for industrial investment decisions. It aims to deliver end-to-end services to help healthcare companies, institutions, and entrepreneurs grow. Yang Xinyu stated that Yanzhi embodies a certain idealism. Given the numerous pain points in the healthcare sector, Yanzhi aggregates these challenges to identify and uncover high-quality health projects, thereby driving industry development.

For healthcare investment projects, although enterprises may come into contact with many investors, they still encounter financing difficulties. These challenges mainly stem from mismatches and investors’ limited understanding of the industry. VCBeat helps identify relatively well-matched investors to facilitate financing, assists project institutions in completing their fundraising efforts, and enhances their economic performance.

Through team-based brand promotion, including the promotion of founders’ personal brands, VCBeat Insight helps the investment community become aware of investment opportunities. However, awareness does not equate to project maturity. Therefore, VCBeat Insight also provides follow-up financing guidance and advisory services. It assists enterprises in connecting with resources to facilitate business and project incubation, such as matching financing opportunities and supporting recruitment efforts. When businesses encounter developmental challenges, VCBeat Insight conducts research and exploration to help determine their future strategic direction.

Currently, the Yanzhi platform has gathered over 2,000 analysts from various venture capital firms, investment institutions, and third-party service providers to participate in project evaluation processes in fields such as health insurance, biopharmaceuticals, surgical robots, and early tumor diagnosis. Yanzhi does not have its own independent analyst team; instead, it aims to bring together a large number of industry analysts by providing a research-sharing platform and leveraging their expertise for project assessments.

The YanZhi App showcases analysts on the platform across multiple dimensions, including professional expertise, years of experience, skills, job titles, and affiliated companies. It also categorizes projects into two main sectors: healthcare and investment. Within the investment sector, projects are further segmented by development stage—such as growth and maturity stages—each with distinct investment preferences, including strategic investments and financial investments.

YanZhi primarily aggregates industry analysts through projects and tasks. For instance, in a previous project assessment conducted by YanZhi, 30 candidates were initially shortlisted, from which buy-side institutions selected five finalists. Ultimately, one analyst was assigned to undertake and complete the project.

Providing Intellectual Support for Corporate Development

In early March this year, certain projects of Chuan Taiyi were suspended due to policy reasons. On the day the National Health and Family Planning Commission issued documents for a comprehensive cleanup of collaborations between physicians and commercial companies, Chuan Taiyi discontinued most of its app-based services and Chuan Taiyi VIP services, with only some partnered private hospitals continuing operations. However, Chuan Taiyi’s transformation had already begun prior to this. VBInsight coordinated analysts to conduct research and determined Chuan Taiyi’s transformation strategy.

In its early stages, Chuan Taiyi’s core business was adding appointment slots. Yan Zhi Bang provided them with corporate transformation consulting services, analyzing the current national landscape of social insurance and medical insurance in China, and ultimately recommended that Chuan Taiyi focus on health insurance as its strategic direction.

Chuan Taiyi will rely on insurance revenues to support the operation of its team’s business. It is reported that the first health insurance product Chuan Taiyi is able to launch is a health insurance plan anchored in public hospitals, providing Chuan Taiyi-style end-to-end services. This insurance features zero deductible, with a maximum compensation limit of RMB 200,000, and is actually priced at two to three thousand RMB. Furthermore, this insurance is underwritten by a reinsurance company, actuarially calculated by the reinsurance company, and filed with the China Insurance Regulatory Commission.

This also represents the management service model provided by Yan Zhi to startups. As these enterprises navigate their growth journeys, they encounter a wide array of challenges, and Yan Zhi leverages the intellectual resources available on its platform to offer tailored solutions.

Currently, YanZhi generates revenue by providing services to institutions, including financing, consulting, project R&D, and industry research. It explores profitability models based on the varying value of projects. YanZhi has successfully completed over ten projects and has begun to generate revenue. The YanZhi platform aims to streamline its offline services and develop an online service model or a platform economy model, thereby enabling automated project processing.

To date, Yanzhi has undergone multiple rounds of micro-angel financing, with the most recent round completed in February, raising approximately RMB 5 million at a valuation of RMB 26 million. Yanzhi has more than thirty shareholders from various sectors, including investment institutions and healthcare organizations.