Winning Health Invests RMB 100 Million in Nali Health, Becoming Its Largest Shareholder Ahead of IPO Filing

On July 13, 2016, Winning Health announced that it planned to inject RMB 100 million of its own funds into Nali Health as a capital increase. Following this capital injection, Nali Health’s registered capital would increase from RMB 35 million to RMB 93.3333 million, with Winning Internet holding a 62.5% equity stake in Nali Health. On the same day, Winning Internet, Nali Health, and its shareholders—Liu Chen, Winning Health, and Hangzhou Futong Investment Partnership (Limited Partnership)—jointly signed the Equity Investment Agreement.

VCBeat has learned that as early as October 2015, Winning Health invested RMB 30 million in Nali Health, acquiring a 20% equity stake. According to Winning Health, this capital increase aims to further promote and amplify the implementation of its Cloud Medical Strategy. Following this capital injection, Winning Health and Winning Internet will collectively hold a 70% equity stake in Nali Health, which will consequently be included in Winning Health’s consolidated financial statements.

Nali Health's Financial Performance in Recent Years

Winning Health’s Shareholding Structure Following the Capital Increase

Nali Health is a professional service provider specializing in “Internet+” healthcare informatics. It is committed to building an innovative service system and applications under the “Internet+” framework—featuring connectivity, innovation, and restructuring capabilities for medical services and patient health services—to support healthcare reform and serve public welfare.

Its nationwide-first mobile smart healthcare cloud platform, centered on tiered diagnosis and treatment, encompasses core functions covering the full spectrum of current internet healthcare services. These functions address the needs of medical institutions, physicians, and patients, and include consultation and appointment scheduling, consultation and referral, e-prescribing, coordinated laboratory and imaging services, remote joint outpatient clinics, patient management, integrated medical education, and online diagnosis.

Leveraging cloud computing and storage, along with technologies such as cloud computing, big data, and mobile internet, we have established various innovative service models that facilitate inter-hospital collaboration, physician-to-physician coordination, and hospital-patient interaction.

Currently, Nali Health has gradually established brands such as “Nali Health” and “Nali Doctor.” Its diverse product portfolio not only meets the differentiated needs of medical groups, medical consortia, healthcare institutions, physicians, and patients, but also enables the creation of personalized platform functionalities tailored to different application levels.

Furthermore, Nali Health has established a business model centered on platform services that drive high satisfaction and high returns for medical groups, medical consortia, and healthcare institutions. It also provides patients with value-added services such as personalized localized pre- and post-consultation support, health record management, and health insurance, thereby generating revenue.

It is reported that in April 2015, the Nali Health Platform was officially launched for the first time at Sir Run Run Shaw Hospital, Zhejiang University School of Medicine. This marked China’s first medical cloud platform supported by a physical hospital and centered on tiered diagnosis and treatment.

Leveraging cloud computing and mobile internet technologies, the platform provides end-to-end mobile technical support for the implementation of tiered diagnosis and treatment. It also guides the public toward appropriate levels of care while integrating third-party resources such as pharmaceutical delivery, financial payment services, and medical insurance.

As of now, the Nali Health Platform has connected with more than 500 medical institutions and various medical consortiums or healthcare groups across Zhejiang, Yunnan, Hubei, Inner Mongolia, Xinjiang, and other regions. Within Zhejiang Province, it covers 156 medical institutions in 69 districts, counties, and county-level cities across 10 prefecture-level cities. These institutions include Sir Run Run Shaw Hospital, Zhejiang University School of Medicine; The Second Affiliated Hospital of Wenzhou Medical University; Zhejiang Provincial Hospital of Traditional Chinese Medicine; Wuhan Central Hospital, Tongji Medical College, Huazhong University of Science and Technology; and The First Affiliated Hospital of Kunming Medical University, among others.

Winning Health Invests in Nali Health, Aiming to Position Nali Health as the Implementer and Service Provider for Winning Health’s Cloud Healthcare Strategy

Simultaneously, position Nali Health as the primary platform for conducting various investment and financing activities in cloud medicine-related fields and fostering diverse collaborations within the broader health industry, thereby rapidly expanding market reach and swiftly establishing a closed-loop ecosystem.

According to Winning Health, the investment in Nali Health represents a strategic move to actively position itself in the cloud healthcare industry, integrate cloud pharmacy, cloud insurance, and cloud wellness, and build an open, closed-loop ecosystem for health services. It also serves as a critical component and foundational step in implementing the company’s cloud healthcare strategy.