Lianzhong Intelligence Files IPO Prospectus After 17 Years of Focus on Healthcare IT

By the end of the 20th century, China’s healthcare sector suffered from a severe lack of overall informatization, with its backwardness and scarcity akin to that of pre-victory China during the War of Resistance Against Japanese Aggression. However, such deficiency and scarcity often have two sides: on one hand, there were no mature providers of comprehensive healthcare informatization solutions in the domestic market; on the other, healthcare institutions had an urgent demand for informatization.

Against this backdrop, in 1999—the year Macao returned to the motherland—a group of ambitious young people by the West Lake in Hangzhou resolved to overcome formidable challenges and develop a first-class, comprehensive IT solution for China’s healthcare institutions, thereby enhancing hospital management standards. Thus, Lianzhong Technology, the predecessor of MediInfo, was founded.

After 17 years of development and expansion, the company has been renamed from Lianzhong Technology to MediInfo, with its business covering all large medical institutions in six major cities, including Hangzhou, Jiaxing, Huzhou, and Yiwu. Meanwhile, MediInfo has established long-term cooperative relationships with the health commission district health platforms in Hangzhou, Wenzhou, Yiwu, and Kunshan. Currently, MediInfo’s service radius extends from Shanghai in the east to Xinjiang in the west, from Heilongjiang, Jilin, Liaoning, and Inner Mongolia in the north to Guizhou, Sichuan, and Chongqing in the south, spanning more than half of China.

Miao Tao, President of ZHEJIANG MEDIINFO I.T.CO.,LTD

“Fostering Excellence through Collaboration, Nurturing the Industry to Benefit the Public” is the corporate development philosophy that Miao Tao and his team have consistently upheld at Zhejiang Mediinfo. By uniting, attracting, and integrating all high-quality resources, Mediinfo crafts its holistic solutions to perfection, akin to polished jade. By setting industry benchmarks and establishing exemplary applications, it gently nourishes the smart healthcare sector like spring rain, bringing convenience and tangible benefits to the public.

For instance, by investing in Xidao Technology to introduce Taiwan’s advanced clinical information systems, investing in Shanghai Haozhi to develop a professional mobile nursing system, investing in Tianjin Aosheng to incorporate medical supply chain management concepts, and investing in Weiyi IoT to integrate intelligent infusion solutions, we deliver comprehensive, end-to-end solutions to our users. The renowned “Hangzhou Healthcare Model” has been realized through MediInfo’s integrated solutions and has already benefited over 100 million people.

In the context of China’s national conditions, there are three urgent issues to address in developing healthcare informatization. Based on these three major challenges, Zhejiang Mediinfo I.T. Co., Ltd. has engaged in extensive collaborations with companies such as Alibaba. Through technological research and development, it has overcome numerous obstacles and emerged as the largest and industry-leading provider of healthcare informatization solutions in Zhejiang Province.

Challenge 1: As internal IT resources expand, the hospital’s existing infrastructure struggles to provide adequate support, while costs continue to rise, rendering it incapable of building its own on-premises data center.

To address this issue, ZHEJIANG MEDIINFO I.T.CO.,LTD has entered into a strategic partnership with Alibaba Cloud, leveraging its robust capabilities in integrated software and hardware systems. On one hand, it maximizes the utilization of hospitals’ limited IT resources by deploying “private clouds” for them; on the other hand, it alleviates the shortage of internal IT resources at these hospitals by leasing external “cloud platforms,” such as Alibaba Cloud.

Challenge 2: As the number of devices and data volumes increases, hospitals’ operational and maintenance capabilities are becoming increasingly strained.

In response, ZHEJIANG MEDIINFO I.T.CO.,LTD has outsourced certain IT operations and maintenance (O&M) tasks of the hospital’s Information Department to professional IT vendors through its “Managed O&M Services” model. According to VCBeat, Mediinfo is the earliest provider of managed O&M services in China, having delivered such services to numerous Grade A tertiary hospitals, and has authored the book *Hospital IT Managed O&M: Benchmarking Studies*.

Challenge 3: Due to the frequent presence of multiple systems provided by different vendors within hospitals, information and data are largely unable to communicate seamlessly.

To address this issue, Zhejiang Mediinfo deployed an “Integration Platform” to eliminate information silos within hospitals. It is reported that the Mediinfo Integration Platform adheres to the international HL7 standards, enabling direct information sharing and interoperability among different systems. The Hangzhou First People’s Hospital Group achieved information sharing through the Mediinfo Integration Platform and passed the National Health and Medical Information Interconnectivity Standardization Maturity Assessment (Level 4, Grade B).

After its healthcare IT products reached a relatively mature stage, Miao Tao resolutely decided to take a further step by extending the business from within hospitals to the regional health sector. Targeting diverse application scenarios and service recipients, ZHEJIANG MEDIINFO I.T.CO.,LTD has gradually refined and established two major solution systems.

The target customers for the Smart Hospital Solution are medical institutions at Level II and above. This solution provides these customers with a suite of software products and supporting services related to internal business processes and management operations.

The target customers for the Smart Regional Health Solution are provincial, municipal, and county health administrative authorities, as well as their subordinate primary healthcare institutions. This solution provides these customers with regional health management software compliant with the requirements of the National Health and Family Planning Commission, business process software for primary healthcare institutions, and supporting services.

For ZHEJIANG MEDIINFO I.T.CO.,LTD, B2B business serves as the foundation of its enterprise services. However, Miao Tao is well aware that the ultimate purpose of products targeting businesses is to better serve consumers. Therefore, while developing its enterprise user base, ZHEJIANG MEDIINFO I.T.CO.,LTD has also launched a series of consumer-facing products such as Yi Tian Yuan, Dian Dian Jiu Yi, and Jiu Yi Yun, further extending its business reach into the C-end market.

In the smart hospital sector, ZHEJIANG MEDIINFO I.T.CO.,LTD leverages its B2B advantages to develop “MediGarden” for healthcare professionals. This product enables medical staff to access patient data and internal hospital information via the internet, bypassing local area network (LAN) restrictions, thereby allowing them to work anytime and anywhere. The platform currently serves over 32,000 users, a figure that continues to grow.

In the field of smart regional healthcare, Zhejiang Mediinfo leverages its advantages in building regional population health information platforms to connect all medical service institutions for data sharing. It has developed dedicated apps for physicians and residents, delivering services based on platform data while maintaining two primary data entry points for these key user groups.

In terms of patient healthcare access, ZHEJIANG MEDIINFO I.T.CO.,LTD has developed “Dian Dian Jiu Yi” to provide patients with the most effective services. As “Dian Dian Jiu Yi” seamlessly integrates with hospital systems, it not only offers all the functionalities available in third-party apps—such as appointment scheduling, online consultations, and report inquiries—but also enables a fully paperless healthcare journey. Patients can receive timely updates on their medical visits, detailed cost breakdowns, inpatient billing statements, and medication reminders.

In Miao Tao’s view, “Yi Tian Yuan” and “Dian Dian Jiu Yi” serve as two mobile entry points for smart hospitals. “Yi Tian Yuan” caters to medical staff, while “Dian Dian Jiu Yi” serves patients. Both platforms seamlessly integrate B-side resources with C-side applications, ensuring the real-time nature and integrity of information exchange. Meanwhile, “Jiu Yi Yun” (Medical Cloud) is specifically developed for physicians’ multi-site practice, providing essential SaaS-based IT services—including Hospital Information Systems (HIS) and Electronic Medical Records (EMR)—for physicians practicing at multiple locations. This offering also builds upon the accumulated advantages of ZHEJIANG MEDIINFO I.T.CO.,LTD’s traditional business operations.

Furthermore, to ensure user security, ZHEJIANG MEDIINFO I.T.CO.,LTD has obtained the production and sales licenses for commercial cryptography issued by the State Cryptography Administration, and has implemented multiple security measures to protect patient information privacy.

Miao Tao told VCBeat, “Doctors and patients are the two endpoints of healthcare services. At present, service delivery and reception primarily take place within hospitals as the institutional carriers. This landscape may evolve or diversify in the future. Therefore, leveraging the experience and resources we have accumulated through serving medical institutions, we aim to provide consumer-facing (C-end) products that meet the needs of both doctors and patients. By securing these two critical endpoints, ZHEJIANG MEDIINFO I.T.CO.,LTD will establish a complete ecological industry chain spanning from business-to-business (B-end) to consumer-to-consumer (C-end), thereby enabling us to respond calmly to drastic industry changes.”

Over more than a decade of deep engagement in the industry, ZHEJIANG MEDIINFO I.T.CO.,LTD has not only developed mature commercial products but also established a well-defined business model. Its B2B offerings, encompassing hardware, software, and related services, constitute the company’s most traditional and primary source of revenue. In its core business operations, ZHEJIANG MEDIINFO I.T.CO.,LTD has distilled three key insights:

① Focus on establishing industry benchmark case studies to attract potential clients through positive word-of-mouth within the sector;

② By securing customer endorsement through thorough pre-sales communication and refraining from initiating malicious competition within the industry, the company essentially ensures the quality of contracts for every project;

③ By strictly controlling project milestones, maximize the optimization of the project cycle to ensure overall project profitability.

Furthermore, ZHEJIANG MEDIINFO I.T.CO.,LTD also focuses on the ecological layout of its medical business to expand the company's profit growth points:

① Introduce the Taiwanese nursing care system, covering consultation, training, practical operations, process optimization, and systematic standard certification, and expand its own industrial chain through more segmented and specialized products;

② Build an internet hospital ecosystem to achieve closed-loop management across pre-hospital, in-hospital, and post-hospital stages, thereby enabling the application of big data in healthcare.

③ For provincial (municipal) Health and Family Planning Commissions, establish a cloud-based healthcare supervision platform, including an appointment registration platform, disease control platform, medical cost analysis platform, and big data analytics;

④ Health Card Operations: Building a convenient and beneficial medical service ecosystem, exploring the establishment of a sustainable operational model. Currently piloted in Nanchang City for a population of 5.3 million, with gradual expansion to surrounding cities.

In recent years, Zhejiang Mediinfo I.T. Co., Ltd. has maintained steady growth in both revenue scale and profitability. In addition to its mature business model, several other key factors have contributed to this performance:

① The market size of the healthcare informatization industry continues to grow, with software and services maintaining robust growth rates;

② Increasingly mature products and high-quality services have led more customers to choose ZHEJIANG MEDIINFO I.T.CO.,LTD’s solutions;

③ ZHEJIANG MEDIINFO I.T.CO.,LTD consistently maintains high R&D investment and rapid product iteration cycles, enabling swift conversion of products into orders;

④ In recent years, ZHEJIANG MEDIINFO I.T.CO.,LTD has seen the results of its market expansion outside Zhejiang Province, adding new provincial markets in Sichuan, Shaanxi, Inner Mongolia, Xinjiang, and Jiangxi;

When discussing why ZHEJIANG MEDIINFO I.T.CO.,LTD has achieved its current market position, Miao Tao expressed no surprise. He believes that it is precisely due to the company’s 17 years of focused dedication and accumulated expertise in the healthcare informatization industry that it has gained recognition from numerous healthcare service providers, as well as health authorities at the provincial, municipal, and county levels.

In November 2015, Zhejiang Mediinfo I.T. Co., Ltd. was successfully listed on the New Third Board. With access to broader financing channels, the company ushered in a new peak of development. As the saying goes, success hinges on “dedication.” Miao Tao and Zhejiang Mediinfo have spent over a decade honing their craft; achieving success has become almost inevitable.