Oriental Taihua Advances Mission of Democratizing Professional Medical Devices with IPO Filing

On the day of the interview with Wu Wei, Chairman of Dongfang Taihua, the “Doctor-Patient Direct Express” platform operated by Dongfang Taihua was officially and comprehensively upgraded. The upgraded platform will place greater emphasis on patient services. Not long ago, the company’s single-channel ECG recorder, “Xinyi,” obtained a medical device registration certificate from the China Food and Drug Administration (CFDA), marking the third product from Dongfang Taihua to receive CFDA registration.

Wu Wei

In November 2013, the company’s multi-parameter monitoring system received certification from the China Food and Drug Administration (CFDA) in the form of a Medical Device Registration Certificate. This system included a 12-lead home ECG monitor, which was not only the smallest in size at the time but also a true home-use ECG monitoring device. In June 2014, the Taikong Cloud ambulatory blood pressure monitor was launched. As a wearable home device for continuous 24-hour blood pressure monitoring, it also obtained CFDA certification. According to Wu Wei, this upper-arm blood pressure monitor is the world’s first wearable ambulatory blood pressure monitor.

However, when Dongfang Taihua was established five years ago, it was positioned as an investment company.

Shifting from Investment Products to Independently Developed Products

Wu Wei told VCBeat that the company had initially invested in blood glucose test strips. The average cost of domestically produced test strips was RMB 1–2 per strip, whereas the test strips developed and manufactured by the company invested in by Dongfang Taihua had a unit cost of only RMB 0.2–0.3. “By replacing traditional offset printing with screen printing in the production process, costs can be significantly reduced. We even applied for a national patent for this technology, but due to various reasons, the project ultimately failed to gain approval.” In 2011, Wu Wei also invested in a high-profile non-invasive blood glucose monitoring project. Professor Li Gang from the Department of Biomedical Engineering at Tianjin University stated that a non-invasive blood glucose meter could be developed for RMB 400,000; however, this project eventually fizzled out for various reasons.

In fact, Dongfang Taihua’s origins as an investment firm are closely tied to Wu Wei’s professional experience prior to founding the company. With a background in engineering, Wu Wei previously worked at Foxconn, where he was responsible for site selection and construction of factory complexes, as well as investment negotiations. He later transitioned into the real estate sector, which was widely perceived as highly lucrative. Although his career progressed smoothly, the constant travel required by his work left him feeling unable to fulfill his filial duties toward his elderly parents back in his hometown in Hunan Province. This sense of responsibility inspired him to develop remote monitoring devices that would allow him to keep track of his parents’ health conditions in real time.

In April 2012, the company decided to pivot toward internet healthcare and subsequently developed a multi-parameter monitoring system, which included a 12-lead home ECG monitor, a wearable blood pressure monitor, a finger-clip pulse oximeter, and a blood glucose meter. Learning from previous lessons, Wu Wei realized that breaking through the technical bottlenecks of non-invasive blood glucose monitoring was no easy task. Although data acquisition was straightforward, the accuracy of the data was poor. Furthermore, due to the lack of established standards, non-invasive blood glucose technology had no regulatory certification in China. Consequently, Wu Wei later discontinued the blood glucose meter business. To focus on refining and specializing their core products, the pulse oximeter project was also terminated.

Affordable Medical Devices

Wu Wei positions Dongfang Taihua as a provider of professional-grade, affordable medical devices. “Professional” means that the products meet clinical-grade standards, while “affordable” refers to high cost-performance ratio. Moreover, Wu Wei has distilled an eight-character mantra for such devices: “User-friendly products, actionable data.” He believes that only by analyzing big data and uncovering deeper insights hidden within can more substantive services be delivered.

In Wu Wei’s view, only by offering affordable prices that are accessible to everyone can the home adoption of medical devices be realized. Therefore, the upcoming product is planned to be priced at 299 yuan. Patients who have undergone 24-hour ambulatory electrocardiogram (ECG) monitoring during hospitalization are well aware that, due to limited equipment availability, appointments must be made in advance, with each test costing between 100 and 200 yuan. Meanwhile, the average purchase price for a 24-hour Holter monitor (ambulatory ECG device) procured by hospitals ranges from 20,000 to 30,000 yuan.

Moreover, Xinyi can detect arrhythmias more accurately than the 24-hour Holter monitoring offered by hospitals. According to Wu Wei, test reports issued by the Beijing Medical Laboratory Center show that the arrhythmia detection rate for hospital-based dynamic monitoring devices is 62%, whereas Xinyi’s detection rate reaches 91%.

“Xinyi,” the first wearable dynamic ECG monitor in China, has been granted an invention patent for the complete device. It features improved core algorithms based on existing home-use 12-lead ECG monitors. Its two-piece integrated electrodes adhere to the left chest, eliminating the hassle of lead wires and undressing, while remaining immune to external environmental interference.

Compared with 12-lead ECG monitors, the Xinyi device collects less data and can only detect arrhythmias. In contrast, the 12-lead ECG system uses ten electrodes to acquire information, enabling it to also detect myocardial ischemia and truly facilitate early detection of myocardial infarction. “Xinyi” primarily monitors arrhythmias, allowing observation of phenomena such as premature beats and atrial fibrillation. In daily life, excessive fatigue, emotional fluctuations, strenuous exercise, and even bathing may trigger arrhythmias.

Wu Wei also personally demonstrated how to use the Xinyi device. After downloading the app, users attach the ECG electrodes to the upper left chest and press the “Start Measurement” button; the electrocardiogram (ECG) and measurement results are then displayed in real time on the smartphone screen. The product features fashionable color options such as rose red, fruit green, and knight blue, designed to appeal to its target audience. “Xinyi’s early target users are high-stress professionals in industries such as finance and the internet. By wearing the device, they can view real-time heart rate analysis, providing an early warning for potential health risks.”

Similarly, the price of Taikong Cloud’s ambulatory blood pressure monitor from Dongfang Taihua is also relatively affordable.

“The Taikongyun ambulatory blood pressure monitor offers the same functionality as hospital equipment but at a lower cost. A single 24-hour ambulatory blood pressure monitoring session in a hospital costs over RMB 100, whereas the Taikongyun device is priced at RMB 599 and includes complementary medical services,” Wu Wei told VCBeat. He explained that the significance of ambulatory blood pressure monitoring lies in identifying risks for hypertension, cardiovascular and cerebrovascular diseases, as well as renal and ocular conditions, thereby enabling proactive management and control.

It is worth noting that all of Dongfang Taihua’s hardware devices are intelligent, marketed under the unified brand “Taikong Electronics,” while its other major health service brand is “Anxin Guanjia.” “Anxin Guanjia” serves as a key platform for enabling the intelligence of these hardware devices.

Doctor-Patient Express

The Peace of Mind Steward service comprises smart terminals and apps, cloud servers, and a medical health service team. The Taikong Cloud ambulatory blood pressure monitor and single-channel ECG recorder each have dedicated companion apps, namely the “Ambulatory Blood Pressure” app and the “Xinyi” app, respectively, while the 12-lead ECG monitoring device connects to smartphones via Bluetooth by scanning a QR code.

The “Peace of Mind Steward” service, combined with professional physician services from hospitals, constitutes Dongfang Taihua’s Direct Doctor-Patient Platform. This will also be the key business initiative that Dongfang Taihua plans to promote in the near future.

On the Doctor-Patient Direct Connect platform, Dongfang Taihua utilizes its independently developed products to measure users’ health data and uploads this information to the company’s cloud service platform. After intelligent analysis and preliminary screening by full-time professionals to correct any missed or misjudged data, the accurate information is transmitted to contracted cardiologists. These physicians then provide authoritative assessments and proper guidance, including recommendations for adjusting relevant physiological indices.

Currently, Dongfang Taihua’s in-house medical service team comprises over a dozen members and will continue to expand as the user base grows. The purpose of building a professional physician team is that only they can ensure uninterrupted 24/7 management services, whereas contracted associate chief physicians provide diagnostic services during their spare time.

Wu Wei told VCBeat that, by leveraging the "Doctor-Patient Direct Connect" platform, physicians can conveniently provide long-term postoperative management for patients, while patients can communicate with their trusted doctors to receive rehabilitation guidance and gain priority access to additional appointment slots. This establishes a streamlined healthcare channel between doctors and patients. The service platform also follows up on patient adherence to medical advice and tracks health status, thereby facilitating the management of both parties. In the event of emergencies, the backend system can provide timely alerts or participate in rescue efforts. Meanwhile, patients' family members can join the "Peace of Mind Steward" service platform free of charge, benefiting from professional monitoring and risk alerts provided by the platform's physicians.

Nevertheless, Wu Wei has always maintained that internet-based healthcare serves merely as a supplementary tool. “The internet can help hospitals triage patients, rather than competing with them for resources,” Wu stated. He believes that mobile internet technologies can effectively assist hospitals in managing out-of-hospital health and providing risk warnings in daily life. However, final diagnosis and treatment must still be conducted at hospitals. At present, the entire industry faces a significant challenge: how to enhance public awareness of self-care and encourage willingness to invest modest costs in disease prevention and monitoring.

Editor: Bu Yan