Jiayi Medical Debuts on Shanghai's Sci-Tech Innovation Board with Digital Operating Room Solutions

The “Sci-Tech Innovation Board” of the Shanghai Equity Custody and Trading Center officially opened for trading today. Among the initial 27 listed companies, VCBeat noted Shanghai Jiayi Medical, whose core business focuses on medical information software, exemplified by digital operating room solutions. The company also plans to enter the “smart care” market targeting elderly care institutions and home-based individuals in the future.

According to the disclosed information, Jiayi Medical was established in March 2014. The company’s founder and actual controller is Shi Hailiang, who holds a 95% equity stake. Born in 1977, Mr. Shi previously served as a Product Manager at Shanghai Maquet Medical Equipment Co., Ltd. and founded Ruixun Information in May 2008. Director Yi Jixuan holds a 5% equity stake and is Mr. Shi’s mother.

Jiayi Medical is positioned as a comprehensive enterprise engaged in research and development, sales, services, and integrated solutions. Ruixun Information is a wholly-owned subsidiary of Jiayi Medical, primarily serving as its sales arm. Prior to the establishment of Jiayi Medical, all company operations were conducted through Ruixun Information.

In addition to Jiayi Medical, Shi Hailiang and Zhang Shouhong, a director and the Board Secretary of the Company, jointly invested in establishing Jianyi Investment. Jianyi Investment primarily serves as a shareholding platform for future employee equity incentives and will not engage in specific production or operational activities.

The Company and its subsidiary, Ruixun Information, have a total of 8 employees, including 2 R&D personnel.


Products & Operations

The company’s product portfolio primarily includes digital integrated operating room systems, intelligent surgical documentation and archiving management systems, smart mobile infusion management information systems, and intelligent ward platform software. Its iBedside™ project (an intelligent product suite based on bedside devices) was shortlisted for the inaugural “Qipu Award” by the China Health Industry Innovation Platform in late 2014.

Shi Hailiang, the Company’s actual controller and core technical personnel, is a globally certified “Operating Room Digital Integration Expert” by MAQUET. The Company and its subsidiary, Ruixun Information, have collectively obtained five computer software copyrights. Ruixun Information was awarded the Software Product Registration Certificate and the Software Enterprise Accreditation Certificate by the Shanghai Municipal Commission of Economy and Informatization in 2010 and 2013, respectively.

The Company primarily offers project services through two approaches: custom development for newly established projects and secondary development of existing products. In terms of sales models, it first collaborates with industry-specific distributors in various regions to leverage their channel advantages for distribution; second, it enters into cooperation agreements with industry partners to bundle the sales of its intelligent healthcare IT systems.

As can be seen, the company is experiencing rapid growth. Revenue increased from RMB 30,000 in 2013 to RMB 1.3 million in 2014, and reached RMB 724,000 in January–February 2015 alone, exceeding half of the full-year 2014 revenue. During the same period, net profit rose from a loss of RMB 575,000 to a profit of RMB 506,000, while the gross profit margin increased from 53.33% to 95.52%, reflecting the characteristic features of information software enterprises—low marginal costs and high gross margins.

In terms of R&D expenses, the amounts for 2013 and 2014 were RMB 108,000 and RMB 132,000, respectively (the R&D expenses for 2015 have not yet been disclosed). The growth was not significant; however, the company stated that it will increase its investment in human and financial resources for R&D in the future.

From the customer perspective, a small number of clients account for the vast majority of the company’s revenue. In 2013 and in January–February 2015, there was only one client each period, while in 2014, the top two clients accounted for 82% of revenue, indicating that the company’s operations are overly reliant on a limited customer base. The company stated that it will intensify its efforts to expand its client base in the future, thereby establishing a more balanced customer structure.

The company's current funding primarily comes from its own capital, and it had not undergone any financing prior to its listing on the STAR Market.
 

Industry Background

In recent years, the focus of hospital informationization in China has gradually shifted from the primary stage, dominated by fee management and administrative functions, to an advanced stage centered on clinical informatics. This transition marks a progressive shift from a “fee-centric” model to a “patient-centric” digital hospital framework, with the digital operating room serving as a key component of this transformation.

Currently, there are nearly 1,500 Grade A tertiary hospitals and approximately 100,000 operating rooms across China, all of which have a long-term demand for transformation into digital operating rooms. Including construction costs, the total investment for a single digital operating room can reach RMB 4–5 million, indicating a substantial market size. Assuming that 3,000 operating rooms undergo digital renovation annually in China, with an average terminal cost of RMB 3 million per room, the potential terminal market size will reach RMB 9 billion.

According to VCBeat, the domestic market for digital operating rooms in China is currently dominated by foreign companies, with major players including Stryker (USA), Karl Storz (Germany), and Olympus (Japan). Other representative digital operating room solutions include the “CONDOR System,” a new operating room control center launched by Smith & Nephew (USA); ConMed’s Smart OR System (USA); BrainSUITE, introduced through a collaboration between Siemens Healthineers and Brainlab; and the Hybrid Room, developed by Philips in partnership with Skytron.

Foreign manufacturers account for 90% of the domestic market share, while domestic manufacturers compete within the remaining approximately 10% of the market.

Shenzhen Mindray, a leading domestic medical device company, launched its digital operating room/ICU equipment integration solution as early as 2009. Aerospace Changfeng entered the digital operating room sector in 2009, achieved final design and mass production in 2013, and began marketing its products in 2014.

AVC-listed company AVCON also entered the digital operating room market and released the industry’s first highly integrated digital operating room system, the ORC200, in August 2015.

Another well-known digital operating room vendor, Mediston, has its series of products currently running in over 300 hospitals across 29 provinces and municipalities in China, making it the specialized company with the most application cases in the industry.