YunJing Health Files IPO Prospectus: A SaaS Platform Revolutionizing Hemodialysis Management in China

The CloudClean System is an integrated platform for blood purification data acquisition, storage, analysis, and statistics, serving as a comprehensive solution provider for the informatization of blood purification centers.

He Dong, the company’s founder, stated, “The Yunjing System enables managers of blood purification centers to oversee departmental operations with high efficiency and quality, while allowing medical staff to complete their daily tasks conveniently and swiftly, thereby enhancing work efficiency without compromising quality.”

By leveraging SaaS software for hemodialysis centers, we aim to establish an industry-wide informatization platform. Yunjing Software connects multiple stakeholders—including hemodialysis center operators, dialysis physicians, nurses, patients, and suppliers of equipment and consumables—to enhance platform stickiness. Subsequently, we will develop a comprehensive chronic kidney disease (CKD) management model that covers the entire patient journey, from early intervention in CKD, through dialysis treatment management, to post-dialysis discharge care. Our goal is to build a truly credible third-party dialysis service platform within the industry.



Cloud Platform Management Is an Inevitable Trend

In recent years, the number, quality, and methods of treatment for patients with acute and chronic renal failure have been progressively advancing worldwide. Currently, many well-equipped hospitals have established blood purification centers to provide blood purification therapy for patients with kidney disease.

Data shows that there are nearly 5,000 medical institutions in China with dialysis centers, including public standalone facilities, joint ventures, and private chains. The current number of patients undergoing regular dialysis is close to 400,000, with a theoretical market size reaching RMB 250 billion.

For hospital hemodialysis centers, the demand for such a system is particularly strong. Daily hemodialysis management involves cumbersome and complex processes where no errors can be tolerated. The Yunjing System integrates data acquisition, storage, analysis, and statistics for blood purification into a single platform, offering a comprehensive informatics solution for blood purification centers. The system enables managers to oversee departmental operations with high efficiency and quality, while allowing medical staff to complete their daily tasks conveniently and swiftly, thereby improving work efficiency without compromising quality.

In addition, in recent years, national policies have also played a driving role in the development of the hemodialysis industry. The critical illness medical insurance policy has greatly unleashed the demand for dialysis treatment, and social capital’s investment in dialysis services has entered a golden age. Currently, end-stage renal disease (ESRD) has been included in the reimbursement scope of the national critical illness medical insurance. In June 2014, the National Health and Family Planning Commission (NHFPC) explicitly required that pilot programs for urban and rural residents’ critical illness insurance be launched nationwide by the end of June, with full implementation across China by the end of the year. As the critical illness medical insurance policy is gradually implemented, the overall reimbursement rate will reach 90%, which will significantly unleash the demand for dialysis treatment. Meanwhile, on June 5, 2014, the NHFPC issued the “Urgent Notice on Controlling the Overly Rapid Expansion of Public Hospitals,” strictly controlling the expansion of public hospital scale and requiring all regions to suspend approval of new beds in public hospitals.

Most importantly, there are currently few companies offering hemodialysis management software on the market, and most of them suffer from high costs and poor product reputation.

Reduce operational costs, accumulate patient data, and unlock its value

Compared to software products on the market that range from 300,000 to 800,000 yuan per suite, the Yunjing System offers the advantage of lower product costs, facilitating large-scale user acquisition, thereby accumulating extensive patient data and unlocking the value of patient medical data.

How Does SaaS Reduce Costs? He Dong stated that this cost reduction is not merely about shifting from on-premise servers to cloud servers, thereby lowering software installation costs. Traditional hemodialysis management systems require an installation team to perform on-site installations at hospitals. Furthermore, tasks such as data entry, communication and understanding of requirements, product localization, and user training typically take at least 2–4 months. In contrast, the Yunjing System has reduced the installation and training cycle to just 3–7 days, while ensuring even higher quality. Moreover, the Yunjing System does not require staff for on-site installation or in-person training guidance; it can be successfully installed and used via remote control with just an internet-connected computer. This significantly reduces product operation and installation costs.

Furthermore, Yunjing stores all data on Alibaba Cloud, which not only reduces operational costs but also ensures data security. Additionally, Yunjing has implemented specific measures to safeguard hospitals’ core information and protect patient privacy. For instance, regarding contact details that hospitals are most concerned about, such as patients’ mobile phone numbers and medical insurance IDs, Yunjing employs both masking and independent encryption. Access to the correct contact information requires specialized decryption by Yunjing.

He Dong stated that this approach not only provides security assurances for hospitals but also ensures the security of Yunjing itself. “We have no intention of obtaining patients’ contact information from hospitals. Our data integration needs are limited to clinical data with scientific research value, which we use for shared data research. Regarding patients’ contact information, we also advise some hospitals that, if they are genuinely concerned about patient information leaks, they may choose not to enter such data into the system.”

Addressing Three Core Issues: Hardware Integration, Software Integration, and Data Reporting

The core challenges of hemodialysis software involve hardware integration, software interoperability, and data reporting. To address these three areas, Yunjing has developed its own solutions.

First, hardware integration in the hemodialysis industry primarily involves the following devices: hemodialysis machines, scales, blood pressure monitors, and water treatment systems.

Among these, the most urgent integration target is hemodialysis machines. In the initial phase of the Yunjing Project, the founding team jointly visited major imported hemodialysis machine manufacturers with significant market shares, such as Fresenius, B. Braun, and Gambro. The reality of the market is that these imported manufacturers have virtually no IT R&D personnel in China, making it currently impossible for them to freely open their overseas interface protocols to all users. However, on a positive note, representatives from each manufacturer have emphasized that they are open to software vendors seeking integration and will strive to align headquarters’ policies with the actual conditions of the domestic market.

Drawing on the Yunjing team’s experience in developing hospital management systems and integrating with certain hospital devices (such as sterilization equipment and endoscopic devices), the team has established its own industry-specific framework for device integration, also known as the Medical Internet of Things (MIoT). Furthermore, it has developed a proprietary methodology for advancing the construction of IoT platforms in the hemodialysis sector.

Check-in and weight data transmission at hemodialysis centers are also critical components of the dialysis process. In response to requirements from multiple provinces in China to prevent health insurance fraud through technical means, many users have raised this specific need. This involves integrating with weighing scales and implementing fingerprint-based check-in. To address these requirements, Yunjing has partnered with leading manufacturers of weighing scales that hold significant market share and offer integration capabilities.

The integration of blood pressure monitors is quite similar to that of weighing scales. There are currently few internet-connected blood pressure monitors available on the market. Yunjing has established connectivity with Omron’s Kenitaro HBP-9020 model and is preparing to integrate devices from Colin as well.

The connection of water treatment systems involves issues related to water quality monitoring, which has a significant impact on the overall quality control of dialysis centers. Yunjing’s expertise in infection prevention and control includes implementing real-time water quality monitoring. Our current approach involves collaborating with water treatment equipment manufacturers to employ sensors that enable real-time networked reading of water quality parameters. Once any parameter exceeds the established thresholds, immediate alerts are sent to designated hospital personnel and the equipment manufacturer.

Regarding software integration, the Yunjing team, with its background in hospital management systems, has accumulated extensive experience in connecting with hospital software. For instance, its hospital infection control system requires real-time monitoring of patient data across various hospital systems, including LIS (Laboratory Information System), HIS (Hospital Information System), PACS (Picture Archiving and Communication System), EMR (Electronic Medical Record), and mobile nursing systems. The hemodialysis system needs to interface with hospital data from LIS, HIS, and PACS, with LIS laboratory data being the most critical. A major trend in hospital informatics has now taken shape: all systems are providing free API access, and larger hospitals have already launched their own third-party platforms.

Yunjing’s competitive advantage lies in its successful software integration with nearly 100 Grade A tertiary hospitals. Yunjing offers software integration services free of charge, leveraging its proprietary integration tools and platform shared across all its products. All integrations can be completed remotely, typically requiring one to three days per system.

Quality control data reporting for hemodialysis is characterized by large data volumes and frequent submissions, unlike other departments such as Infection Control or the Sterile Supply Department. Consequently, there is a widespread desire among these units for information technology solutions to prioritize this issue. However, the National Blood Purification Case Registration System has not yet integrated with any software vendor. Under current circumstances, automating quality control data reporting appears to be an intractable problem. In response to this challenge, Yunjing’s product management team has explored numerous solutions. The feasible approaches implemented by Yunjing include: First, Yunjing generates reports identical in format to those required by the national online reporting platform, allowing users to simply copy and paste the data for submission. Second, where the national platform accepts email submissions, Yunjing exports attachments in the required format, enabling users to send them via email on a regular basis. Third, Yunjing provides a data submission service; once users adopt the Yunjing system and their data is entered, Yunjing’s customer support team assists them in completing the data reporting process.

Two Revenue Streams

He Dong told VCBeat that Yunjing Company will generate revenue through two primary channels.

On one hand, revenue is generated through software sales fees and subsequent user service charges. Currently, the Yunjing project relies exclusively on industry channel partners, as the company has no plans to pursue direct sales to end customers at this time. Regarding pricing, Yunjing offers channel partners discounted rates to facilitate product promotion. For hospitals, selected institutions will be offered free trial periods. The team aims to structure pricing tiers that highlight product advantages, ensuring affordability for small and medium-sized hospitals while delivering perceived value for larger institutions. This is Yunjing’s core objective: to expand product adoption across more hospitals without disrupting or disregarding the existing market landscape.Regarding future service fees, He Dong stated that charges based solely on software usage (i.e., maintenance fees) will be gradually phased out. Yunjing is exploring a VIP service model for dialysis centers, encouraging them to voluntarily pay for premium support. Examples include generating customized data reports according to each center’s requirements and assisting with the submission of quality control data. Additionally, Yunjing is keen on organizing regional training sessions, leveraging leading industry experts and major centers to support smaller hospitals and private institutions. By serving as an efficient connector within the industry, Yunjing aims to help stakeholders address practical challenges encountered in their daily operations.

The second revenue model stems from the Yunjing Hemodialysis Service Platform. The operational model, which penetrates departmental management, delivers added value beyond the products themselves, namely patient resources and medical staff resources. With the integration of the APP into the platform, a large base of vertically targeted C-end users has been accumulated. Against the backdrop of healthcare reforms such as the separation of prescribing and dispensing and tiered diagnosis and treatment, services like pharmaceutical distribution, online payment, remote consultations, and seamless referral coordination have become natural extensions for the platform. Specialized pharmaceutical e-commerce enterprises can establish storefronts on the Yunjing platform’s pharmacy section, while hospitals within the Yunjing user network can organize group purchases or conduct tendering for hemodialysis consumables through the platform. The platform assumes strict regulatory and review responsibilities, charging a service fee while ensuring efficient connectivity. Currently, hemodialysis industry vendors with an internet-oriented mindset are already in discussions regarding platform entry, and Yunjing is expected to release relevant policies shortly.

In addition, the platform will launch specialty-specific forums where hospitals can share selected patient cases (purely clinical data, with all private information removed) for collective learning and research. This approach offers three key benefits: it optimizes the utilization of expert physician resources, supports physicians’ professional development, and improves the quality of dialysis care for patients. This constitutes the core service orientation of the platform. In the future, as independent practitioners, physicians will undoubtedly enjoy greater freedom of choice on Yunjing, a specialized vertical platform dedicated to serving hospitals, patients, and doctors.

In terms of customer acquisition, Yunjing employs two primary strategies. The first is sales through industry partners. Currently, 40%–60% of hospitals in the market operate under a placement-and-operation model, and leading companies in the sector are aggressively expanding their footprint in hemodialysis centers. Yunjing has established strategic partnerships with industry players such as Fresenius, B. Braun, Biolight, Aokailong, and Care Doctor Group. The second strategy involves marketing promotion. The company has launched marketing campaigns to drive industry adoption, offering low-cost or free software trials, and collaborating with major industry enterprises to rapidly secure the largest possible share of the hemodialysis center software market.

Develop niche, high-quality SaaS products that are cloud-based and offered at competitive prices.

Whether it is a company’s ERP system or a hospital’s HIS management software, the core lies in the establishment of a standardized system. Taking ERP systems as an example, due to the significant variations in operational management across different companies, productization is not feasible; instead, only project-based (customized) solutions can be implemented. However, the cost of such project-based approaches is substantial, representing an asset-heavy model within the software industry. Under the impact of the current mobile internet boom, industries have continuously raised their demands and requirements for software. As a result, traditional software products are gradually being eliminated from the market due to poor customer experience and cost disadvantages. In the ERP market, major vendors are increasingly losing ground to companies such as DingTalk, Jinmubiao, and FXIAOKE, which focus on addressing specific departmental issues within enterprises. Consequently, traditional ERP providers are forced to retreat into niche markets serving ultra-large enterprises or state-owned enterprises.

He Dong stated that the Jingyunshuo team anticipates the Hospital Information System (HIS) sector will follow the trajectory of the ERP industry, wherein large companies will increasingly struggle to sustain operations, while cloud-based, niche, and high-quality products—similar to DingTalk and Jinmubiao—will rise to prominence. Consequently, the classification framework within hospital management systems is organized according to medical specialties. Yunjing thus positions itself as a cloud-based, niche, and high-quality SaaS provider offering affordable, premium solutions specifically for nephrology applications.

He Dong told VCBeat that to develop a successful management software, one must first clearly understand what positioning aligns with the broader industry trends. Secondly, it is essential to determine what constitutes a high-quality management system as a product.

Yunjing’s product development experience is categorized into the following levels:

Level 1: Systematization of Processes – Transitioning from existing offline paper-based and Excel-based management to online process-driven management.

Level 2: Process Standardization – Streamlining and standardizing offline workflows to enhance efficiency and minimize errors.

Level 3: Process Automation. For processes within the system that require simple decision-making, automated system judgments and operations are implemented to further enhance efficiency and improve user experience.

Level 4: Advancing Toward Intelligent Operations—Introducing artificial intelligence or machine learning capabilities into complex processes that require professional decision-making, enabling software to understand management better than human managers.

Team

He Dong, Founder, CEO, and Chief Product Officer of Jingyun Su; possesses unique insights into informatization construction and data analysis in the field of infection prevention and control (IPC), and has proposed the concept of hospital-wide IPC informatization. Expertise in cloud-based big data analytics and hospital-wide quality control. Participated in the research, development, and implementation of over 10 systems, including a Hospital Infection Control System, a Sterile Supply Department Traceability Management System, an Endoscopy Suite Traceability Management System, and a Hemodialysis Informatization Management System.

Zheng Gang, Co-founder of Jingyunsu and Head of its R&D Department. He earned his bachelor’s degree in Mathematics from Wuhan University and his master’s degree in Computer Science from Huazhong University of Science and Technology. With five years of experience in Alibaba’s search algorithm department and extensive involvement in the internet industry, he excels in internet product design and possesses in-depth understanding of mobile health, “Internet Plus,” and big data. He built Jingyunsu’s R&D team from the ground up and is also responsible for establishing the company’s institutional frameworks and corporate culture.

Yi Xiang, a graduate of Wuhan University of Science and Technology with a degree in Electronic Information Engineering, serves as the Vice President of Operations at Jingyun Su. He previously worked as a Project Manager for the DP Business Unit at Taiyu Kaida. With a professional background in the telecommunications sector, he specializes in user needs analysis and product-oriented operations.

Chen Yangyang, Product Director at Jingyunsu, formerly served as Marketing Manager at Livzon Pharmaceutical and Product Specialist in the Life Sciences Division of Corning China. An expert in life sciences research and the cell culture industry, he led the development of Ziyuan’s Cell Therapy Traceability Management System, earning widespread recognition from industry experts.

Yu Meifang, Product Consultant at Jingyunsu; Head Nurse of the Hemodialysis Center at a Tertiary Hospital; Supervisor Nurse; Certified Specialist Nurse in Blood Purification from the Chinese Nursing Association. With 13 years of experience in specialized nursing for blood purification, she excels in the practice and management of all aspects of hemodialysis quality control, and has extensive experience in vascular access maintenance, individualized dialysis care, emergency response, and patient communication and education.

Liu Bingling graduated in Clinical Medicine from the Chinese People’s Armed Police Force Medical College. He previously held positions at Baxter’s Medication Delivery segment, Eisai Co., Ltd. in Japan, and Fresenius Medical Care’s hemodialysis division in Germany. With over a decade of immersion in the healthcare industry, he possesses extensive experience in industry operations.