Zhongwei LeKang Files IPO Prospectus: Leveraging B2B to Empower Future B2C Expansion in Remote Cardiac Monitoring

Zhongwei Laikang Technology Development (Beijing) Co., Ltd. (hereinafter referred to as “Zhongwei Laikang”) can be regarded as a pioneer in the field of remote ECG monitoring. Established in 2005, Zhongwei Laikang has been operating for 10 years. However, at the outset of its venture, the company faced the common dilemma of choosing between a business-to-business (B2B) and a business-to-consumer (B2C) model. Meng Yu, the founder of Zhongwei Laikang, along with his co-founders, decided to start by targeting the B2B sector.

Ma Chenxi, current CEO of Zhongwei Laikang, told VCBeat that when the company first launched its remote ECG monitoring services, only a small number of doctors and experts across China were willing to adopt the initiative. However, with increased market awareness, the widespread adoption of mobile internet, and Zhongwei Laikang’s years of investment and effort, B-side stakeholders in the domestic market have gradually begun to accept third-party ECG monitoring platforms assisting in patient screening, diagnosis, and rehabilitation treatment. Currently, Zhongwei Laikang’s partners include more than 100 Grade A tertiary hospitals and over 20,000 primary healthcare institutions.

“In fact, serving the B-side market is more challenging for us. However, medicine is a serious endeavor, and we aim to establish a solid foothold in this field by excelling in the B-side sector, thereby laying a robust foundation for our B2C operations,” said Ma Chenxi. He indicated that Zhongwei Laikang has completed its B2C preparations and plans to launch its consumer-facing initiatives later next year. By then, users who have already engaged with the products through B-side channels will be directly converted into C-side consumers.

2B: Persist in being a service provider

Zhongwei Laikang primarily provides remote cardiac monitoring devices and related services. Currently, the company’s business encompasses remote monitoring of multiple health indicators, including electrocardiogram (ECG), blood pressure, blood lipids, and blood glucose, making it a pioneer in China for integrating remote monitoring services with mobile phones. Starting from hospitals and collaborating with insurance and telecommunications sectors, Zhongwei Laikang remains committed to its role as a service provider.

Zhongwei Laikang’s ECG monitoring service utilizes Laikang smart ECG monitoring devices or wearable devices to instantly record and transmit electrocardiograms. The system enables remote monitoring of users’ ECG data, while also providing a range of health services, including standardized ECG management, routine blood pressure management, routine blood glucose management, exercise tracking, self-service fatigue assessment, self-service medication management, and self-service dietary management. Currently, Zhongwei Laikang employs dozens of full-time physicians online who are responsible for diagnosing user-submitted data such as ECGs, blood pressure, and blood glucose levels, providing responses within 2–15 minutes. The platform processes tens of thousands of information entries each month.

On January 12, 2006, China’s Remote ECG Monitoring Network System was officially launched, designating Zhongwei Laikang as its sole implementing agency. Relying on large and medium-sized hospitals across mainland China and advised by dozens of renowned national cardiovascular experts, the network provides users with 24-hour cardiac monitoring services delivered by professional physicians. With the launch of this network, Zhongwei Laikang’s products formally entered the market. At that time, no devices capable of remote ECG monitoring were available on the market. Zhongwei Laikang developed the first-generation remote ECG monitor, which received approval from the State Food and Drug Administration (SFDA) for market release in the same year. After years of effort and experimentation, Zhongwei Laikang has now established a product family comprising communicable ECG monitors supporting 3G/4G networks, wearable devices, and long-term ECG monitoring equipment. Furthermore, through collaboration with partners, the Laikang Monitoring Network has achieved the capability to monitor, diagnose, and manage dozens of biochemical indicators, including blood pressure, blood glucose, blood lipids, and uric acid.

In the course of its collaborations with hospitals, Zhongwei Laikang has developed a mature partnership model. Zhongwei Laikang provides comprehensive service solutions to hospitals, which can select the types of services they need based on their specific circumstances. Hospitals may choose to conduct monitoring entirely in-house or delegate it to the China Remote ECG Monitoring Network, thereby ensuring the optimal and rational allocation of medical resources. Each hospital hosts a server and a monitoring system that enable 24/7 information sharing with the Zhongwei Laikang Monitoring Center. Zhongwei Laikang does not sell equipment directly to patients; instead, hospitals purchase the devices and products and lease them to patients for use. During regular hospital operating hours, patient data is managed by the hospital’s monitoring team; outside of these hours, monitoring is handled by the Zhongwei Laikang Monitoring Center. In addition to healthcare institutions, Zhongwei Laikang partners with other entities, including telecommunications operators. Under these partnerships, Zhongwei Laikang bundles its ECG monitoring services and sells them to partners, who then offer them to individual consumers on an annual subscription basis.

Expanding into commercial insurance and national medical insurance is one of the ways Zhongwei Laikang is expanding its market space. The revenue of foreign remote ECG monitoring companies is mainly paid by insurance companies and medical insurance, and Zhongwei Laikang is also actively negotiating with relevant institutions. In the future, it is expected to cooperate with PICC Health and Ping An Insurance. At the same time, some regions in China have included remote ECG monitors in the Class B category of the national medical insurance catalog.

Zhongwei Laikang’s vision is to build an open platform that attracts users by delivering valuable services, thereby achieving sustainable growth. For instance, supporting hospital-based academic research through statistical analysis and tracking of big data can further expand product sales channels within hospitals; enabling third-party hardware devices to connect to the system can broaden the coverage of the ECG monitoring network and acquire more customers, among other benefits.