Dingdang Cloud TCM Submits IPO Prospectus: A Key Component of Renhe Group's Integrated Internet+ Healthcare Ecosystem

Dingdang Cloud TCM was established in October 2015,YesSubsidiaries of Renhe Group, Dingdang Cloud TCM aims toBased on the sharing economy model,Building Traditional Chinese Medicine+Internet Full-Industry-Chain Natural Ecosystem Platform.

In early February 2016, the State Council issued the Outline of the Strategic Plan for the Development of Traditional Chinese Medicine (2016–2030), which explicitly stated, “Promote ‘Internet+’ TCM medical services. Vigorously develop new models of medical services such as TCM telemedicine, mobile healthcare, and smart healthcare.”

The Strategic Plan sets forth two phased goals: by 2020, to ensure that everyone has basic access to traditional Chinese medicine (TCM) services, and to establish the TCM industry as one of the important pillars of the national economy.，By 2030, traditional Chinese medicine (TCM) services will achieve full coverage. Building further upon the “Internet+” initiative launched in early 2015, a clear “Internet+” direction for TCM has been explicitly outlined. The total industrial output value of the Chinese herbal medicine industry accounts for that of the overall pharmaceutical industry.of>30%。

China has a large population. In recent years, national healthcare reform policies have been continuously adjusted, yet doctor-patient conflicts continue to escalate uncontrollably, and the difficulties and high costs associated with accessing medical care persist. The difficulty in accessing medical care stems from both the uneven distribution of medical resources and the rigidity of the healthcare system. High-quality medical resources are concentrated in major cities and large hospitals, while underdeveloped regions suffer from severe shortages, making it difficult for residents there to obtain medical services. Meanwhile, patients from across the country flock to large hospitals in major cities, where limited medical resources have led to challenges in securing appointments and an assembly-line approach to patient care. As China enters an aging society, Traditional Chinese Medicine (TCM), with its strength in “preventive treatment,” holds significant potential in health maintenance, wellness, and disease prevention. However, TCM services currently face the following challenges:

The Chinese herbal medicine market is rife with adulteration and the substitution of inferior products for genuine ones. The cultivation of domesticated Chinese medicinal materials prioritizes yield over quality, leading to concerns such as excessive pesticide residues and heavy metals, seed degeneration, and varietal drift, all of which raise serious quality concerns. Information asymmetry exists between supply and demand, compounded by a lack of efficient sales platforms and unstable supplies of certain medicinal resources. Production practices remain extensive and resource-intensive. Outdated quality standards and commercial grading systems have contributed to prevalent issues of counterfeiting and substandard products, thereby compromising medication safety and clinical efficacy while undermining market integrity.

Inappropriate Use of Medications (Indiscriminate and Abusive Use of Chinese Patent Medicines and Herbal Decoction Pieces Due to Various Causes) Leads to Severe Waste of Traditional Chinese Medicine Resources. The wide variety of herbal decoction pieces incurs high storage costs, and some pharmacies experience low sales volumes, resulting in financial losses from selling these products. The development of traditional Chinese medicine (TCM) at the primary care level mainly relies on the TCM departments within general hospitals. However, these departments constitute a small proportion of the overall hospital structure and receive relatively low status and attention, making it difficult to fully integrate and optimally allocate TCM medical resources.

The “talent shortage” of traditional Chinese medicine (TCM) practitioners in primary healthcare institutions has become a widespread phenomenon. Cao Hongxin, Director of the Department of Science and Technology under the National Administration of Traditional Chinese Medicine, once pointed out that TCM practitioners account for less than half of the licensed physicians in most county-level TCM hospitals, while their proportion in township health centers is merely one-fifth, with some facilities lacking any TCM professionals at all. Without providing reasonable compensation and career development opportunities for TCM practitioners, the development and inheritance of traditional Chinese medicine will be unsustainable.

To address the aforementioned pain points, the Dingdang Cloud TCM Platform will leverage the resources of the Renhe Group, aiming to ensure the quality of traditional Chinese medicine (TCM) decoction pieces, optimize the allocation of TCM resources, and provide a robust platform for TCM diagnosis and treatment as well as the distribution of TCM products.