Founders, Never Forget Your Original Intent: VB Weekly 1207 Highlights Entrepreneurial Spirit Amid Industry Turmoil

————————Events and Perspectives————————

Be a Resilient Person!

This can be considered the tagline for last week’s headlines.

The “industry war,” marked by a love-hate dynamic, began on November 29 when Meinian Onehealth submitted an acquisition offer to iKang Group.

Later that evening, Zhang Ligang, Chairman of iKang Group, issued an open letter stating that “the privatization process is proceeding as planned,” and denounced the competitor’s actions as “unfair competition.”

The following day, the incident continued to escalate. Yu Rong, Chairman of Meinian Onehealth, described the move as “a choice that absolutely needs to transcend the typical competitive landscape.” He presented a series of “far-sighted” arguments in support of the merger, citing significant benefits for national public health and medical reform, the elimination of disorderly and bottomless price competition, an immeasurable boost in shareholder value, and the pride associated with building a super-sized corporation.

It is a case of each side claiming to be in the right.

The incident is not yet over. On the evening of December 2, iKang Healthcare Group activated its “poison pill” plan.

On the evening of December 3, Yu Rong once again responded to the media regarding Zhang Ligang’s launch of a “poison pill” plan. “This matter is not as grave as imagined. The poison pill was within our expectations, though we did not anticipate it would come so quickly. In the case of Sina, one party was acquiring an operating company, whereas in our situation, two buyers were competing for the same target. There is a fundamental difference between the two scenarios; this poison pill is not the same as that one, and its toxicity differs as well.”

So, will this intense backlash have a significant impact on the health checkup industry?

According to industry insiders,In terms of the market size of China’s domestic health checkup industry in 2014, all private checkup centers—including Meinian Onehealth, iKang Guobin, and Ciming—held a combined market share of no more than 15%, with the remaining 85% accounted for by state-owned checkup centers. Therefore, even if the merger were successfully completed, its impact would be significant only for these two companies, while having limited implications for the industry as a whole and for consumers.

I can’t recall who once said,“Never forget the original intention of starting a business”In summary,

What followed was even more sensational,Fosun Pharma Subscribes to Guahao.com’s Preferred Shares for $65 Million。

Last Monday, Fosun Pharma issued a public announcement stating that Regal Gesture, a subsidiary of the Fosun Pharma Group, subscribed for 39.66 million preferred shares issued by Guahao.com for approximately $65 million, implying a current valuation of Guahao.com exceeding $1.5 billion.

Following the completion of this transaction, Fosun Pharma Group holds a total of 9.73% equity interest in Guahaowang.

Changes in Equity Structure Before and After the Issuance of Series E Preferred Shares

Subscribers to Series E Preferred Shares

Notably, Guahaowang had previously announced a Series C financing round; however, according to Fosun Pharma’s announcement, the company was actually undergoing a Series E financing round.

"Funding rounds are no big deal; a romantic union is the real cause for celebration."

Guahao.com Partners with San Ti Group, a Household Services Leader, to Pilot On-Demand Medical O2O Services。

Recently, Guahao.com and Santigroup Co., Ltd., a Zhejiang-based household services conglomerate, signed a strategic cooperation agreement in Hangzhou. In the future, both parties will explore new models of internet-based O2O medical services, providing the public with healthcare services such as appointment registration, medical guidance, and health consultations.

Furthermore, the two parties will jointly fund the establishment of two service platforms, “Santi Health” and “WeDoctor 365.”

Currently, Santai Group operates ten non-incorporated entities, including the Zhejiang 96365 Life Service Platform, Santai Moving Company, and Santai Air Conditioning Maintenance Company. It offers over 100 services across sixteen major categories to households and enterprises, making it the household and institutional logistics service provider with the most extensive service coverage and the widest range of service offerings in China.

The editor would like to say,1 + 1 Does Not Necessarily Equal 2; It May Even Be > 2。

So what does all these years of persistence amount to?

Another great piece of news isAier Eye Hospital Enters the Hong Kong Market。

Aier Eye Hospital announced on the evening of December 1 that its wholly-owned subsidiary, Aier Eye Hospital International (Hong Kong) Co., Ltd., plans to acquire equity assets for HK$212 million. Specifically, it intends to acquire 100% of the equity interest in Asia Medicare Group Limited for HK$182 million, and allocate HK$30 million to enable Asia Medicare Group Limited to purchase a 20% stake in Asia Eye Care Limited held by Sky Horizon Corporation Limited.

Notably, upon completion of the acquisition, Hong Kong Aier will hold 100% equity interest in Asia Medical Group, which in turn will hold an 80% stake in Asia Medicare Hong Kong Limited (operating myopia laser correction and cataract surgery centers) and an 85% stake in Asia Eye Care Limited.

Analysts point out that Aier Eye Hospital has been able to rapidly enter the Hong Kong healthcare market through its Hong Kong subsidiary platform. By effectively leveraging its mature clinic model and management expertise, the company has further refined its business model and development format, providing direct reference for its future strategy of building a robust network of hospitals and clinics. Meanwhile, this move will provide extensive experience for Aier Eye Hospital’s international expansion, lay a solid foundation for accelerating its overseas layout in the future, and inject new momentum into its rapid growth.

Huaxia Medical shares this same intention.

Huaxia Medical Launches Industry M&A, Acquiring Over 90% Equity in Eight Hospitals。

The announcement revealed that Huaxia Medical has entered into a memorandum of understanding with Gangfeng Enterprise Development to acquire the entire issued share capital of Zhuowei Investment and Baide Investment Development, which are affiliated with Gangfeng Enterprise Development. The expected consideration will not exceed HK$1.2 billion. It is reported that the target companies are currently undergoing restructuring, and they willAcquired over 90% equity stakes in eight hospitals located in Harbin, Qiqihar, Guiyang, Beijing, Tianjin, Shenyang, and Chongqing。

Currently, amid the wave of healthcare mergers and acquisitions, many companies have set their sights on private hospitals. Industry experts believe that China faces a significant shortage of medical resources, with supply far lagging behind demand. Although there are numerous private hospitals in the market, their overall quality is generally low. The market is far from saturated, and the competitive landscape has yet to take shape; consequently, related M&A activity is expected to continue for an extended period.

Huaxia Medical stated in its announcement that the consideration for this acquisition may be settled through the allotment of new shares, the issuance of convertible bonds, or the issuance of promissory notes. The issue price or initial conversion price will not exceed HK$0.9 per share, representing a discount of approximately 18.18% to the previous closing price of HK$1.10 per share.

“It’s... it’s really true that money makes things easier.”

BOE Invests RMB 3.2 Billion to Build a Digital Hospital, with Over RMB 1.1 Billion Allocated to Smart Production Lines。

BOE issued an announcement last week stating that the company plans to invest RMB 3.2 billion through its wholly-owned subsidiary, Mingde Investment, to construct the Hefei Digital General Hospital project in Hefei. Additionally, it intends to inject RMB 1.19 billion into its wholly-owned subsidiary, Beijing Shixun, to implement a complete-machine intelligent manufacturing production line project.

According to the announcement, the Hefei Hospital Project aims to establish a tiered healthcare service system in the Hefei region, comprising one digital hospital (hereinafter referred to as the “Head Hospital”), one comprehensive outpatient clinic, and several small-scale digital clinics to be set up as needed.

Phase I of the Digital Hospital Project is scheduled to commence design in December 2015, begin construction in late September 2016, and obtain operational licensing by the end of December 2018, at which point the hospital will open for clinical services. Phase II is planned to initiate planning and design in 2019, start construction in 2021, and open for clinical services in 2023.

Also... spending money to do good deeds.

December 2,India’s third-largest hospital system, Manipal Hospitals, has partnered with IBM; Manipal will use Watson for Oncology to assist its oncologists in cancer diagnosis and treatment.。

By using Watson for Oncology, doctors at Manipal can search for similar treatment plans based on patient conditions. Combined with the system's analysis of the patient's condition, physicians can obtain personalized treatment regimens tailored to each patient.

It is reported that neither party has disclosed the financial terms of this collaboration. Bakshi, a representative from Manipal, stated that Watson’s services will go live in the first half of next year and will ultimately extend to affiliated hospitals and medical institutions beyond the Manipal system.

The last item,

HTC and Under Armour to Launch Connected Smart Scales。

HTC and Under Armour are expanding their partnership, which includes a connected smart scale. The device appeared this week in the Bluetooth Special Interest Group’s official product database (though it was later removed). This connected scale will measure body weight and body fat percentage, and transmit data to nearby mobile devices via Bluetooth Low Energy 4.1.

Other details about the smart scale remain unknown, but we speculate that it can send and receive data from Under Armour’s Record app. The Record app tracks steps, sleep, and weight loss progress.

Furthermore, HTC postponed the release of its Grip smart band to 2016. The Grip is a wearable device developed through a collaboration between HTC and Under Armour. Thus, in 2016, HTC will launch an entire fitness ecosystem centered around the Grip wearable. A connected scale is expected to be the first among several connected devices within this fitness ecosystem.

Although the release date for the connected smart scale has not yet been announced, information listed under Bluetooth suggests an imminent launch. As far as we know, HTC has no press event scheduled in the United States or Europe, so a January release next year is likely.

 

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13 Chinese Hospital Presidents Discuss Internet Plus: Behind the Anxiety Lies Opportunity

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Liu Liu Nao’s B2E2C Model: Prioritizing Collaboration with Experts to Establish a Clinical-Grade Product Positioning

Decoding Trending English Terms in Internet Healthcare:Health Plan

————————Healthcare Reform————————

★Fujian: Public Hospitals' Support for Socially Run Medical Institutions Follows Established Guidelines

The Fujian Provincial Health and Family Planning Commission issued the “Guiding Opinions of Fujian Province on Public Hospitals’ Support for Socially Run Medical Institutions,” requiring public hospitals to prioritize targeted support for non-profit basic medical hospitals, specialized hospitals with scarce resources, and rehabilitation and nursing hospitals established by social capital. The policy also encourages and supports social capital in establishing large-scale general hospitals, chain hospitals, and hospital groups.

★National Health and Family Planning Commission Clarifies Tiered Diagnosis and Treatment Pathways for Hypertension and Diabetes

On December 1, 2015, the National Health and Family Planning Commission issued the "Notice on Doing a Good Job in the Pilot Work of Tiered Diagnosis and Treatment for Hypertension and Diabetes," which clarified the key tasks for tiered diagnosis and treatment of hypertension and diabetes and outlined a service flowchart for such work.

In accordance with the requirements of the National Health and Family Planning Commission, key tasks for the tiered diagnosis and treatment of hypertension and diabetes include establishing health records for patients under this tiered system, clarifying the functional roles of medical institutions at different levels, implementing a team-based contracted service model, and defining standardized service protocols for the tiered diagnosis and treatment of hypertension and diabetes.

Furthermore, the National Health and Family Planning Commission has mandated the establishment of contracted service teams comprising specialists from secondary-level hospitals and above (including traditional Chinese medicine [TCM] practitioners in relevant specialties), general practitioners from primary healthcare institutions (including TCM physicians), and community nurses. According to the Notice, pilot regions with adequate resources may also incorporate clinical dietitians and psychological counselors into these teams. The contracted service teams are primarily responsible for providing contracted services to patients and, in accordance with the scope of such services, collaborating with specialists and other relevant personnel to deliver comprehensive, continuous, and dynamic health management, disease diagnosis, and treatment services.

 

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▼PwC: Domestic Elderly Care Consumption Remains Concentrated in Medical Institutions

On December 3, PwC held a media roundtable discussion in Beijing themed “Sharing and Collaboration: Personalized Experiences in the Elderly Care Industry.”

It was disclosed at the conference that by 2020, China’s elderly population (aged 65 and above) is projected to account for 12% of the total population, equivalent to 1.2 elderly individuals per 10 Chinese citizens. Relevant agencies estimate that during the period from 2016 to 2020 (i.e., the 13th Five-Year Plan period), total consumption in China’s elderly care market will exceed RMB 10 trillion, with an average annual growth rate of 17%.

Furthermore, the significant increase in the elderly population will also be reflected in the development of the senior care industry. In the future, elderly care services will mainly fall into three categories: home-based care, community-based care (such as senior living assistance centers and nursing homes), and medical care (hospitals and clinics). Surveys indicate that most seniors aged 65–70 prefer home-based care and receiving elderly care services at home.

Relatively speaking, individuals aged 70 and above require more specialized elderly care services, typically provided by community-based care institutions. For older adults with poor health, adequate personal assistance facilities and services are particularly crucial, while professional nursing and healthcare services are also essential.

▼China’s Number of People Living with HIV Exceeds 570,000

December 1 marks the 28th World AIDS Day. It is reported that the number of people living with HIV/AIDS in China has exceeded 570,000, and the case fatality rate has decreased significantly. The HIV epidemic among young students has shown a marked increase, and men who have sex with men (MSM) have become a key population for prevention and control efforts.

As of the end of October this year, the number of people living with HIV/AIDS in China has exceeded 570,000, with nearly 90,000 new cases identified from January to October.

Notably, the number of HIV infections among young students has been rising rapidly. Over the five-year period from 2008 to 2014, the number of infected young students increased fivefold, with more than 80% of cases attributed to transmission through male-to-male sexual contact. The average HIV prevalence rate among men who have sex with men (MSM) reached 7.7% in 2014 and continues to rise.
National Health and Family Planning Commission: Pneumoconiosis Cases Rank First Among Occupational Diseases in China

On December 3, the "2014 National Report on Occupational Diseases" released by the National Health and Family Planning Commission showed that pneumoconiosis cases increased by 3,721 compared to the previous year, making it the leading occupational disease in China.

The report shows that last year, the number of occupational pneumoconiosis cases increased by 3,721 compared to 2013, with over 90% of these cases being coal worker’s pneumoconiosis and silicosis. In addition, there were 295 incidents of acute occupational poisoning, affecting 486 individuals and resulting in 2 deaths. More than 30 types of chemicals caused acute occupational poisoning, among which carbon monoxide poisoning accounted for the highest number of incidents and cases. There were 795 cases of chronic occupational poisoning, with 2 deaths, all due to benzene poisoning.

▼China’s Pharmaceutical Industry to Generate Over RMB 2.7 Trillion in Main Business Revenue in 2015

On December 1, the China Pharmaceutical Industry Information Center released the “China Pharmaceutical Industry Economic Operation Index.” The report indicates that during the 12th Five-Year Plan period, the economic scale of the pharmaceutical industry expanded rapidly, with main business revenue and total profits continuing to grow. Main business revenue is projected to exceed RMB 2.7 trillion by the end of 2015 and approach RMB 3 trillion in 2016; total profits are expected to reach RMB 270 billion by the end of 2015 and are likely to near RMB 300 billion in 2016.

▼In 2019, 10% of People in Developed Countries Will Use 3D-Printed Items

Renowned market research firm Gartner has conducted a highly intriguing study on the 3D printing technology market outlook for the coming years. Their conclusion is that by 2019, 3D printing technology will demonstrate more prominent performance in healthcare and consumer manufacturing. In fact, they predict that within the next three to four years, 10% of people in the developed world will be wearing 3D-printed items or have 3D-printed objects on their bodies.

It’s quite exhilarating!!

▼Best Hospital IT Departments: Super-Large Hospitals

Recently, Healthcare IT News presented awards to hospitals categorized by the size of their IT departments: small (25 or fewer IT staff), medium (26–75 staff), large (76–199 staff), and very large (200 or more IT staff).

The five hospitals that ultimately earned the title of Best IT Department in the Mega-Hospital category are Meridian Health, Wake Forest Baptist Medical Center, The University of Kansas Hospital, Mount Sinai Health System, and Nemours Children’s Hospital.

▼IDC: Global Fitness Tracker Market Forms a Duopoly Between Xiaomi and Fitbit

IDC, a U.S. technology market research firm, recently released its Q3 global wearable device market report, in which China’s Xiaomi ranked third in market share, trailing only U.S.-based fitness tracker maker Fitbit and smartwatch manufacturer Apple.

According to IDC’s Q3 report, the global market share rankings for wearable devices are as follows: Fitbit (22.2%), Apple (18.6%), Xiaomi (17.4%), Garmin, and BBK. The top three companies each hold a market share exceeding 15%, while vendors ranked fourth and beyond have market shares of less than 5%.

Excluding the Apple Watch, Xiaomi has become the world's second-largest fitness tracker manufacturer, trailing only Fitbit.

Apple launched the Apple Watch at the beginning of the year, but it received mediocre reviews from external observers. A recent report indicates that many users abandoned the device shortly after purchase due to a lack of practical features and poor software performance characterized by lag. Some industry insiders believe that the Apple Watch introduced under Tim Cook’s leadership is one of the worst consumer electronics products in Apple’s history.

Statistical data show that Fitbit and Xiaomi Band shipped 4.7 million and 3.7 million units, respectively, in the third quarter. Although its sales volume lagged behind, Xiaomi Band’s year-on-year growth rate was as much as eight times that of Fitbit.

It is evident that the Xiaomi Mi Band’s growth rate is far ahead of its competitors. At this pace, Xiaomi is highly likely to surpass Fitbit and become the world’s largest manufacturer of fitness trackers.

Reflections after Reading,

————————New Technologies————————

▼“Lazy” Women Are Getting Beautiful: “Wearable Skincare” Is Here

A Japanese company has invented a wearable skincare garment, which is said to deliver skincare benefits simply by being worn.

It is understood that the product works by incorporating skincare ingredients into the fabric and adding malic acid to the polyester fibers, thereby maintaining a weakly acidic state on the skin surface and achieving moisturizing effects during wear.

Regarding concerns that laundering might dilute the skincare ingredients embedded in the fabric, officials clarified that the garment’s moisturizing components are applied using a specialized processing technology and remain intact even after 50 washes.

According to reports, the new product will be launched as women’s lingerie-style apparel, targeting women aged 30 to 50. It will be sold through the company’s online store and other channels, with a tentative retail price range of 1,500–4,000 yen (approximately 78–208 yuan). Sales are expected to begin in March 2016. The company that invented the product also plans to license it to other clothing brands.

The editor simply wishes to say,

▼Google's "Needle-Free Blood Draw" System Patent Exposed

According to foreign media reports, Google recently filed a patent application for a “needle-free blood sampling” system. The system is designed as either a wrist-worn device or a handheld device capable of directly drawing blood from users’ fingertips or other parts of the body. According to relevant sources, the patent describes a blood sampling system that operates by delivering gas into a barrel containing microparticles that penetrate the skin.

“Once blood flows out from the skin, it will be absorbed by this negative-pressure cylinder. ‘This system could be used to draw small amounts of blood, for example, for blood glucose testing,’ Google explained.” This means that the technology may ultimately help patients with diabetes.

Given that Google Life Sciences has previously launched smart contact lenses capable of monitoring wearers’ blood glucose levels, as well as miniature glucose monitors, it is hardly surprising that Google has filed this patent. With at least 29 million people in the United States suffering from diabetes, these initiatives could present significant business opportunities for Google once they receive approval from the U.S. Food and Drug Administration (FDA).

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