Home YueTang Files IPO Prospectus: China's First Precision Medicine-Based App for Personalized Blood Sugar Management

YueTang Files IPO Prospectus: China's First Precision Medicine-Based App for Personalized Blood Sugar Management

Jan 07, 2016 08:00 CST Updated 08:00

Amid the fierce competition in the diabetes sector, YueTang stands out as a self-health management platform with significant differentiation.

Compared to similar competing products, there are three significant distinctions: First, it is the first health application in China to integrate precision medicine; second, it targets individuals with prediabetes and early-stage diabetes; third, it features a proprietary “Sugar Point” food labeling system.

The pioneers behind this unique concept are Yang Yufeng and her colleagues from the YueTang R&D team. Yang Yufeng, CEO of Beijing Yueyou Bomai Technology Co., Ltd., is a gentle, soft-spoken woman known for her approachable demeanor and warm smile. She aims to usher users into a “New Life of Joyful Sugar Restriction.” As she puts it, “In life, happiness is what matters most.”

In 2011, Beijing Yueyou Bomai Technology Co., Ltd. was registered and established. At that time, Yang Yufeng and his team had developed a product called “Yueyoumi,” an app designed for the management of 23 chronic diseases. However, due to the excessive number of conditions covered and the resulting complexity in user interaction, market adoption was hindered. The team subsequently adjusted its strategy, shifting from a comprehensive, all-encompassing platform to a specialized niche focused on improving blood glucose control and preventing and managing metabolic syndromes such as diabetes. In July 2015, they officially launched version 1.0 of “Yuetang.”

Prediabetes: The Critical Window for Reclaiming Health

Yuetang serves two types of users: one group consists of individuals with prediabetes, whose blood glucose levels exceed the normal range but have not yet reached the diagnostic threshold for diabetes; the other group comprises patients in the early stages of type 2 diabetes. Regarding blood glucose management, the following medical facts are noteworthy: Diabetes is a chronic disease that is difficult to cure. In China, one in every two adults has prediabetes. If left uncontrolled, one-third of these individuals will progress to diabetes, while the remaining two-thirds will develop other metabolic syndromes. Among patients who have had diabetes for more than ten years, the probability of developing complications is 98%, and the mortality rate associated with various complications is as high as 47%—nearly one-half. Therefore, once an individual is unfortunately diagnosed with diabetes, they may need to manage the condition for life, with a gradual progression toward other high-risk diseases.

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However, it is reassuring that individuals with prediabetes and some patients in the early stages of diabetes can successfully achieve remission and restore their health through proper lifestyle interventions, specifically Medical Nutrition Therapy (MNT). Therefore, the prodromal stage of the disease is particularly critical; early detection and early management represent the golden window—and indeed the only hope—for these patients to regain a happy and healthy life.

Therefore, unlike doctor-patient communication platforms that serve only diabetic patients, YueTang focuses more on using effective, personalized solutions to help users improve their quality of life, curb, or even reverse the risk of disease onset. With preventive medicine at its core and personalized healthy lifestyle guidelines as the entry point, it helps users easily form healthy habits through two pillar services—practical, simple-to-implement dietary and exercise plans. This enables users to achieve self-managed blood glucose improvement in a simple and effortless manner, without relying on scarce physician resources, thereby avoiding the burden of chronic diseases such as diabetes. Yang Yufeng stated that precisely because YueTang does not involve medication or specialist treatment functions, they prefer to define the product as an entry point to a precision health lifestyle service platform, rather than as a medical-grade diabetes management application.

The Foundation of Personalized Solutions: Collecting Precise Data

To provide users with truly highly personalized solutions, Yuetang begins by collecting as much basic user information data as possible from multiple dimensions and in a comprehensive manner.

Genetic testing data represents a standout feature of YueTang. Yang Yufeng believes that genetic factors form the basis for the onset of diabetes. Some patients are born with defective islet cells, leading to insufficient insulin secretion or insulin resistance, and exhibit greater sensitivity to refined grains. Consequently, their blood glucose levels rise more rapidly than those of healthy individuals after consuming the same amount of refined grains. For these patients, YueTang recommends increasing the intake of whole grains and vegetables, while specifically supplementing certain nutrients to improve islet function, such as chromium, zinc, and vitamin A. For other patients, interpretation of genetic test reports may reveal that risk factors are primarily related to sleep; in such cases, the subsequent plan will emphasize ensuring adequate sleep and avoiding staying up late as more critical measures. Furthermore, if a patient’s genetic testing indicates a risk of coronary heart disease, they should avoid strenuous exercise and engage in gentle activities instead. This approach moves away from the one-size-fits-all advice of simply “eating less and moving more” through high-intensity workouts. Therefore, in their view, every individual possesses unique genetic traits, which underscores the significance of genetic testing.

Currently, YueTang has integrated genetic testing services with Boao Yihe, a subsidiary of the renowned domestic company CapitalBio Corporation. Users can apply for genetic testing services through the YueTang app, after which they collect and send samples to the testing institution. The institution’s laboratory conducts the genetic analysis and generates a report, based on which YueTang provides in-depth interpretation for users. With mature technology, Boao Yihe is capable of testing 63 selected gene loci associated with type 2 diabetes. Building on these results, YueTang further categorizes users into seven subgroups to more meticulously identify potential genetic risks, thereby providing a precise basis for designing personalized management plans.

Health check-ups are also an indispensable source of professional data. Yuetang is collaborating with several renowned health examination institutions to build a closed-loop system encompassing “health screening – post-examination management – follow-up re-examination.” This approach integrates physiological indicators from health check-ups into personalized lifestyle optimization plans for users, preventing latent conditions detected during screenings from progressing into overt diseases. Yang Yufeng introduced that Yuetang has signed a cooperation agreement with Guizhou Yisheng Health and has collected data from 22 health examination centers in Guizhou Province. In the future, Yuetang will provide users of more health examination centers with personalized interpretations of disease risks, along with subsequent diabetes testing and services.

Furthermore, the Yuetang app features open integration with all major smart wearables and Bluetooth-enabled external devices on the market, including high-volume sellers such as Xiaomi Mi Band, Apple Watch, Fitbit trackers, and Microsoft Band. These diverse smart devices comprehensively capture various health metrics—including exercise data, sleep patterns, body fat percentage, blood pressure, blood glucose levels, and heart rate—thereby ensuring greater precision in personalized health plans.

To this end, YueTang comprehensively analyzes genetic testing reports, health examination metrics, and user-provided basic data—such as age, gender, height, weight, daily physical activity, dietary restrictions, and personal preferences. Leveraging advanced algorithms, it ultimately delivers a personalized, precision-based integrated solution encompassing diet, exercise, and nutritional supplementation.

Most importantly for users, this program is not static; it automatically adjusts based on comprehensive health monitoring data in response to daily changes in the user’s health status and lifestyle behaviors. By establishing a 24/7 dynamic tracking system for physiological indicators, intelligent integration, and real-time feedback mechanisms, the program ensures practical implementation tailored to each individual at every moment of every day, thereby thoroughly embodying the concept of precision health.

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A Simple and Practical “Sugar Point” System

Yang Yufeng said that she had once read a foreign comic strip that deeply shocked her and completely overturned her understanding of diabetes. Who could have imagined how troublesome short trips are for people with diabetes? They need to bring sun hats and protective eyewear, and must avoid any wounds, as injuries in diabetic patients are difficult to heal. Additionally, they must take special care of their feet by wearing specialized socks, prevent insect bites, and carry essential items such as needles, insulin, and blood glucose monitors. They may even need to carry medical alert tags for emergencies.

“Anything is fine, just as long as I don’t get sick,” she remarked with emotion. Yang Yufeng, an intellectual figure, comes across as a naturally optimistic woman who embraces the “LOHAS” (Lifestyles of Health and Sustainability) lifestyle, characteristic of the new era. A graduate of Tsinghua University with a major in Communication Engineering, she underwent specialized training at Peking University Health Science Center in 2009 and is also a senior nutritionist. “Some people say that being a health manager goes against human nature, and I partially agree. No matter how healthy something is, if I truly dislike it, it is difficult to sustain. This may be one of the fundamental reasons why patient adherence is poor and challenges remain unresolved in the management of nearly all chronic diseases, such as hypertension and diabetes.”

Yuetang’s solution is to establish a “Sugar Point” system for foods. Traditional nutritional models calculate the intake ratios and ranges for staple foods, vegetables, and proteins based on the three major macronutrients, while also categorizing foods by their Glycemic Index (GI) to provide standards that allow users to perform calculations and make their own combinations within certain limits. This process remains cumbersome for average users. To address this, Yuetang assigns a “Sugar Point” value to every food item and dish, eliminating complex calculations and reducing the learning curve. As long as users can perform addition and subtraction within 30, they can enjoy both culinary pleasure and good health. Similar to the relationship between energy and calories, Sugar Points serve as an indicator of how food affects blood glucose fluctuations.

Following a comprehensive assessment, the recommended sugar point values vary among users based on their individual conditions. Users can freely choose any delicacies within the suggested sugar point limits, allowing for occasional indulgence. YueTang also provides post-consumption mitigation recommendations. According to Yang Yufeng, foods exhibit strong synergistic effects. As long as they are not clearly unhealthy options, such as those containing trans fatty acids, other natural foods from safe sources can be consumed with confidence when scientifically combined.

To achieve more user-friendly and streamlined services, YueTang not only quantifies food items but also integrates extensively with catering services, Baidu Waimai (Baidu Food Delivery), and packaged food products, offering users greater flexibility in their choices. For instance, users can jump directly to the Baidu Waimai interface to order dishes within their designated Sugar Point allowance, or scan QR codes on packaging to clearly view the corresponding Sugar Point values.

To date, YueTang has completed the glycemic index analysis for over 8,000 regional delicacies (covering cuisines from 30 provinces and 43 regions), more than 30,000 types of packaged foods, over 1 million food delivery items, and dishes from 500,000 restaurants. Yang Yufeng believes that this labor-intensive endeavor will facilitate better implementation of their services.

“We have three meals a day. Eating is both important and spontaneous; even experts cannot track or monitor patients’ daily diets. When users visit farmers’ markets, their shopping lists may change at any time. By simply shaking their smartphones, the YueTang app can instantly generate a new set of dietary recipes, offering great convenience.”

Yang Yufeng told VCBeat, “Why is diabetes management so arduous for many patients? Fundamentally, the root causes may not have been accurately identified, and the treatment plans lack specificity. If regimens are imprecise and insufficiently personalized, patient adherence will inevitably be poor. Therefore, YueTang starts with precise genetic testing to pinpoint the underlying causes of the disease, integrates additional user health data, and ultimately designs human-centric solutions. This approach clearly enhances patient adherence, making the management process significantly easier for both physicians and patients.”

In Business, It’s Unethical Not to Make Money

In fact, YueTang’s big data algorithm model is derived from the authoritative research initiated by Harvard Medical School in 1976. At that time, Harvard conducted a large-scale epidemiological follow-up study covering 120,000 participants. The research has continued to this day and has now expanded to include 240,000 individuals. Building upon Harvard’s research, YueTang underwent one year of localized exploration and referenced authoritative theories from the Chinese nutrition community, ultimately developing a model tailored to the Chinese population. YueTang not only introduces advanced foreign big data models but also benchmarks itself against two international companies: the genetic testing company 23andMe, and the established health and weight management organization Weight Watchers (the latter introduced the concept of SmartPoints). Thus, YueTang combines the strengths of both, standing on the shoulders of giants to create something new.

Yuetang’s extensive solution library has now reached the billion-level scale, encompassing over one billion personalized weekly plans (including weekly meal plans, exercise prescriptions, and nutritional supplement recommendations), more than 800 types of exercises, and nearly 7,000 data entries on nutritional supplements. This creates actionable, user-friendly, and effective solutions across three dimensions: diet, exercise, and supplementation. Within just a few months since the app’s launch, registered users have surpassed 700,000. Moreover, the platform has already begun generating revenue, fundamentally validating the feasibility of its initial design.

Yang Yufeng stated that their business logic is straightforward: the core value provided to users is targeted, precise, and personalized solutions. Although the service remains free of charge at present, with revenue temporarily derived from product revenue-sharing agreements with various partners—such as genetic testing services, Nature’s Bounty branded supplements, health foods, and wearable devices—as well as upcoming products like health protection insurance designed for individuals with diabetes in collaboration with Datebao, the future core profit driver will remain technology-intensive personalized health solutions and data interpretation capabilities.

Yang Yufeng believes that the pure internet model has limited potential in the healthcare sector. She firmly believes that the medical industry will always be driven by the latest advancements in medicine, bioinformatics, and related fields. To this end, her company is willing to make substantial investments in intellectual property to establish a technological moat at an early stage. Since the company’s inception, she has personally drafted invention disclosures for six patent applications, with plans to file more than ten additional applications next year.

Although Yuetang does not rely on online expert consultations, it has contracted with over a dozen professional hospital physicians and currently employs three full-time staff members with medical backgrounds to ensure timely and reliable responses to user inquiries. The company’s team currently consists of 33 employees, with core members possessing strong expertise across diverse disciplines, including big data, food nutrition, biology, genomics, clinical medicine, and genetics, reflecting the construction of a multidisciplinary team.

For instance, Yang Yufeng holds a Master’s degree in Communication Engineering from Tsinghua University. Prior to founding the company, he served as Chief Marketing Officer (CMO) at NEC Communications China Co., Ltd., where he was responsible for product planning and market strategy. He brings 15 years of team management experience. The co-founder and partner holds a Ph.D. in Nutrition from Peking University and serves as an Associate Professor at Peking University’s School of Public Health, with a long-standing commitment to research on nutrition and chronic diseases. The Chief Technology Officer (CTO) is an expert in personalized medical informatics who studied under Academician Sui Senfang, former Chair of the Department of Biology at Tsinghua University, and possesses extensive expertise in genomic informatics. The team also includes a Ph.D. in Medical Genetics from Peking Union Medical College, who has published multiple SCI papers in high-impact international academic journals, as well as a returnee holding a degree in Food and Human Nutrition from the University of Leeds in the UK, specializing in food research and development and industrial food composition analysis.

In terms of financing, YueTang secured RMB 10 million in angel-round investment from Hongtai Fund this May. Yang Yufeng recalls that the investment manager was formerly an endocrinologist; upon reviewing YueTang’s project, she was immediately impressed and expressed strong endorsement. Currently, YueTang is actively planning its Series A financing round.

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