Zhangzhongyi Submits IPO Prospectus as a Leading TCM Chronic Disease Management Chain Service Provider

Zhang Zhongyi is a chain service institution specializing in the management of chronic diseases through Traditional Chinese Medicine (TCM). Targeting the pre-hospital market, which primarily consists of patients with chronic conditions and individuals in a sub-health state, Zhang Zhongyi has chosen TCM specialties that do not rely on large-scale diagnostic and treatment equipment as its entry point. It focuses on chronic diseases where TCM demonstrates significant efficacy, which do not require the intervention of Grade A tertiary hospitals, and which are not the strong suit of such hospitals. By doing so, Zhang Zhongyi establishes connections between TCM practitioners and patients, providing both online and offline platforms to facilitate these interactions.

Zhangzhongyi provides physicians with services such as patient management, multi-site practice support, pharmaceutical supply chain management, user data management, and personal brand management. For users, it offers pre-consultation information screening, appointment scheduling, online payment, insurance claims processing, and medication delivery services.

From the perspective of patients with chronic diseases, users are uncertain about the efficacy of Traditional Chinese Medicine (TCM) and have limited understanding of it. They struggle to identify reputable TCM practitioners and lack trust in physician qualifications, medication quality, and pricing for diagnosis and treatment. Meanwhile, practical challenges include long queues for registration and inconvenient processes for consultations and follow-up visits. Additionally, using medical insurance for payment is difficult at non-designated hospitals.

From the perspective of TCM practitioners, national policies permitting multi-site practice have created a need for new practice platforms. Compared with Western medicine, TCM relies less on equipment within the existing healthcare system, offering greater flexibility in the timing and location of diagnosis and treatment. Although TCM demonstrates significant efficacy in the diagnosis and treatment of chronic diseases, it lacks effective channels for communication with patients.

Zhang Zhongyi, a chronic disease management platform connecting TCM physicians and patients, provides convenient and effective diagnostic and treatment pathways for patients while offering diverse practice opportunities for physicians. Leveraging health big data from its strategic partner, Meinian Onehealth Healthcare Group, the platform accurately captures the disease characteristics of modern populations. It utilizes Meinian Onehealth’s nationwide outlets and physical offline clinics as connection points for physicians and patients. By engaging external physicians through part-time collaborations and selecting internal full-time practitioners, Zhang Zhongyi has built a specialized team of TCM physicians. Furthermore, through negotiations with insurance companies, the platform has integrated medical insurance payment options, effectively reducing patient out-of-pocket expenses and making efficient use of idle insurance funds.

Currently, the development of internet healthcare primarily encompasses two major sectors: healthcare services and pharmaceuticals. The evolution of the healthcare sector has progressed through three stages. Initially, the focus was on patient navigation, with numerous enterprises centering on appointment registration. This was followed by the emergence of online and offline consultation services. Subsequently, the industry moved toward in-depth management of doctor-patient relationships, enabling physicians to proactively manage patient care. Finally, knowledge-based platforms appeared, featuring capabilities such as medical case management. The other sector revolves around pharmaceuticals, aiming to integrate the entire drug distribution channel, reduce intermediary links, and thereby offer lower drug prices and faster services—essentially, pharmaceutical e-commerce. Compared with other mobile health products on the market, Zhang Zhongyi does not merely direct patients into the existing medical system; instead, it creates a new space outside the current framework. This approach not only meets patients’ treatment needs but also provides a practice platform for physicians, enriching bilateral choices for both doctors and patients.

Internet healthcare has played three key roles in transforming traditional medical practice: First, it optimizes the allocation of medical resources by facilitating patient-doctor matching across different levels of care and promoting tiered diagnosis and treatment. Second, it improves patients’ healthcare experience by alleviating the longstanding issue of “three long waits and one short consultation” (i.e., prolonged waiting times for registration, consultation, and medication pickup, coupled with brief diagnostic consultations). Third, it enhances physicians’ work efficiency by eliminating unnecessary repetitive tasks.

In addition to the aforementioned effects, Zhangzhongyi also meets the following tipping points: First, “large scale and broad coverage,” targeting chronic disease management; Second, “rigid demand,” meeting patients’ diagnostic and treatment needs as well as physicians’ practice requirements; Third, “proximity to revenue”: For existing large traditional markets, it leverages the Internet to improve efficiency, such as through e-pharmacy and insurance-based cost solutions; for potentially explosive future markets, it leverages physicians’ multi-site practice to trigger growth: transforming physicians from “civil servants” who rely on their own efforts to make a living into professionals who realize their self-worth through superior medical expertise.

With the advent of China’s aging era, there is substantial societal demand for healthcare services; however, the resource allocation in existing public hospitals is far insufficient to meet these needs. As national healthcare policies are gradually liberalized, creating a more flexible employment environment for physicians, it is imperative to effectively mobilize underutilized medical resources and explore new pathways and channels to address the burgeoning healthcare demands of the future.

(The content of this article is provided by the staff of Zhang Zhongyi.)

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