Arterial Network Think Tank Session V: JD, Alibaba, Fosun and Others Unveil Strategic Moves in Smart Hardware + Healthcare

The smart hardware market is booming. Abroad, there are products such as AliveCor, which uses smartphones to detect heart health conditions; Cellscope, a home diagnostic tool that leverages the camera function of smartphones; and Scanadu Scout, a mobile vital signs monitor similar to a tricorder.

What projects have entrepreneurs in China’s smart hardware sector undertaken? How are investors in related fields strategizing their portfolios, and what types of projects do they favor? The fifth session of VCBeat VB Think Tank, “The Collision Between Smart Hardware and Internet Healthcare,” reveals the answers.

At this offline salon, VCBeat invited investment heads and executives from JD.com, Alibaba, Fosun, and Xiaomi Band, among others. Ten smart hardware projects were presented and pitched, with over 200 attendees in person, setting a new record for VCBeat’s Think Tank Series. Most importantly, the event was packed with valuable insights, as guests delivered compelling presentations. Given the strong interest and demand for more, VCBeat has decided to host another offline salon focused on smart hardware in Shenzhen. Please follow VCBeat’s WeChat account and stay tuned for further announcements.

JD.com’s Investment in Smart Hardware Exceeds $100 Million

According to JD.com’s Wen Yu, between 2013 and 2015, JD.com invested in more than ten companies in the smart hardware sector, with total investments exceeding hundreds of millions of U.S. dollars.

JD Smart, now operating as an independent sub-channel on the secondary pages of JD.com’s main e-commerce platform, has seen month-over-month growth in both user numbers and average order value since its official launch earlier this year. From January to May 2015, sales revenue of JD’s smart products increased by 264% year-on-year, with user numbers growing by 215% and the average order value rising by RMB 50.

This means that JD.com will continue to increase its investment in the smart hardware sector.

In terms of investment strategy, JD.com prefers to invest more and experiment widely. “Even if the first project fails, we believe that as long as we have the technology and the team, we can develop solutions tailored to consumers.”

As the smart hardware industry is still in its early stages, there is a shortage of high-caliber interdisciplinary talent. Wen Yu believes that existing teams either specialize in hardware without understanding the internet, or vice versa. When selecting suitable smart hardware companies, JD.com’s key criteria are whether the product addresses a sufficiently large market and whether the team demonstrates strong execution capabilities.

From Wen Yu’s perspective, post-investment management of smart hardware ventures is critically important. Beyond capital and traffic, JD.com offers its own production-sales and distribution systems, provides entrepreneurial support through JD Crowdfunding, and leverages the entire JD Smart Group to incubate and accelerate startups.

Furthermore, JD.com has always maintained an open mindset in its investments in smart hardware. Wen Yu stated that smart hardware manufacturers invested in by JD.com are not only able to collaborate with JD.com, but also with Alibaba and Suning.

Xiaomi Band: The Future ID of the Human Body

Yang Fan, Vice President of Huami Technology, announced that as of June 10 this year, the cumulative shipments of Xiaomi Mi Band had exceeded 6 million units.

“Xiaomi Band is not merely a fitness tracker, but rather serves as a unique biological identifier for the user,” said Yang Fan. By syncing with smartphones to collect physiological data—such as sleep patterns and body weight—the device functions more like an embedded chip within the human body, thereby enhancing user stickiness.

In the future, Xiaomi Band will also expand into smart home and mobile payment sectors. For instance, through a partnership with Alipay, it enables small-value password-free payments, allowing users to complete transactions simply by tapping their band, thereby offering a more convenient payment experience.

Alibaba Cloud: We Are Exploring the Externalization of Medical Data Beyond Hospitals

Fu Changyou, General Manager of Alibaba Cloud’s Healthcare Cloud Division, believes that there is a fundamental difference between health and medical care. The essence of medical care lies in acquiring data. In hospitals, three types of data enable accurate diagnosis of a patient’s condition: first, medical imaging; second, biochemical testing; and third, physiological sign examination. “Currently, the data collected by smart hardware are all health-related data, which are not recognized by physicians. For the data generated by these hardware devices to be used sustainably, they must be of medical grade.”

“What Alibaba Medical Cloud aims to do is integrate these medical-grade data sets and retain them on the platform for the long term. ‘When such data are stored on Alibaba Cloud for more than five years, we can not only assess a patient’s past health status but also predict their health trajectory over the next five years,’ said Fu Changyou.”

Only on such a data platform can a smart hardware company rapidly transform into an internet data services provider. “When the data generated by hardware becomes a company’s core competitive advantage, its replaceability is zero.”

It is reported that Alibaba Medical Cloud is collaborating with medical imaging centers to migrate all imaging data to Alibaba Cloud. In the future, patient scans will be accessible from anywhere in the world. While ensuring security and privacy, Alibaba Cloud provides hospitals and patients with a web-based medical imaging center.

Meanwhile, Alibaba is also collaborating with medical laboratory centers to make all objective test data accessible to both hospitals and patients via the cloud, with data security provided by Alibaba Cloud. Fu Changyou stated that Alibaba is exploring the externalization of medical data beyond hospital settings, but emphasized that the internet will not disrupt traditional healthcare; rather, it serves merely as a supplementary tool.

In the future, Alibaba will continue to deliver cloud computing resources and capabilities to any startup, including its own users, just as routinely as water and electricity. This year, Alibaba Cloud has begun expanding into overseas markets and has established data centers in Dubai, Silicon Valley, Singapore, and Northern Europe.

Fosun Pharma: Scanaduis an internet healthcare company that can “treat pre-disease”

Place a circular plastic device, about the size of a Chinese chess piece, on your forehead, and within seconds it will upload data such as your blood pressure, heart rate, blood oxygen saturation, and electrocardiogram (ECG) to your smartphone. This is not science fiction; it is a product developed by Scanadu, a medical technology company based in Silicon Valley.

Scanadu was a project led by Fosun Pharma last year, with an investment of $35 million, completed by Fosun Kunzhong Capital, the venture capital fund under Fosun Group, and Tencent, among other institutions.

Wang Yi of Fosun Kunzhong Capital introduced that Fosun identified three major highlights in Scanadu:

First, it gained full recognition from users. In that year, Scanadu planned to raise $100,000 through crowdfunding within one month; after 30 days, they had raised a total of $1.66 million.

Second, Scanadu is undertaking a zero-to-one endeavor. As in China, digital health is subject to stringent regulatory oversight in the United States; Scanadu is working to establish a comprehensive set of standards encompassing clinical evaluation, regulatory registration processes, and other aspects of digital health.

Third, Scanadu’s approach represents a minor refinement to evidence-based medicine. Given the significant individual variability among patients, Scanadu advocates empowering consumers by placing health data—and indeed, health agency—directly in their hands. This enables individuals to track their own health trends and receive tailored recommendations, rather than relying on one-size-fits-all generalizations.

When discussing Fosun’s investment criteria for smart hardware in the internet healthcare sector, Wang Yi introduced that, for fashion and wellness products, priority is given to product design capabilities, followed by whether the company possesses concepts that lead trends and fashion, and thirdly, there must be precise market positioning and strong marketing capabilities. For consumer healthcare products, greater emphasis is placed on whether they can balance the distinct characteristics of both medical devices and consumer goods, such as the precision required in medicine and the convenience expected of consumer products.

For professional medical products, Fosun places the highest priority on safety and efficacy. “They must offer treatments and solutions that are superior, more cost-effective, or easier to administer than existing options.”

Scanadu is seeking approval from the U.S. FDA. Once approved, users will be able to use Scanadu’s products to monitor their vital signs and store the data in the cloud, enabling physicians to analyze and predict health trends based on this information for early intervention, thereby achieving the goal of “preventive healthcare.”

After the industry leaders concluded their presentations, we turn our attention to those operating in the smart hardware +Practical Insights from Healthcare Practitioners.

1. Saint Medinor Continuous Glucose Monitor

CEOWu Qingfeng:Shengmei Dinuo was established in 2003, specializing in blood glucose monitoring products. Its newly developed continuous glucose monitor follows the trend of internet-based healthcare.

The core technology of this blood glucose monitor is imported from the United States. It still employs conventional medical biochemical detection principles, with its prominent advantage lying in overcoming the limitations of traditional static, single-point blood glucose measurements. By enabling dynamic monitoring of blood glucose fluctuations, it transforms blood glucose "snapshot" testing into continuous "video-like" tracking. The device performs a blood glucose measurement every 11 seconds, generating approximately 480 data points per day. This provides effective tracking and monitoring for diabetic patients, whose blood glucose levels can change every 3 to 5 minutes.

Feature 2: Traditional blood glucose monitoring involves finger-prick testing and oral medication for control. In contrast, our continuous glucose monitor (CGM) incorporates a thumbtack-sized sensor that uses a minimally invasive approach. Worn continuously for 3 to 15 days, it allows users to view real-time blood glucose readings on mobile devices and other terminals. The data is displayed as a glucose profile on the device screen, helping physicians identify patients’ blood glucose fluctuation patterns and tailor medication accordingly.

This product, initially designed exclusively for in-hospital patients and classified as a Class III medical device, has now been expanded for out-of-hospital use.

2. Ruirui Medical:Smart Thermometer

CEOZheng Shibin:Many people may have read the book The Creative Destruction of Medicine. I believe that the future integration of digital technology with the human body is a significant direction, and I firmly hold that approximately 70% of common diseases will be diagnosable by machines in the future. This represents one of the key values of big data analytics.

Medical data analysis involves three stages. The first is ensuring the accuracy of data sources. For instance, our product measures body temperature and offers three measurement sites: forehead, oral, and axillary temperatures. We ultimately selected axillary temperature measurement because it is common knowledge, representing the most traditional and reliable method, with results that are beyond question.

Second is the precision of values. Product certification does not necessarily guarantee accuracy; the precision of all vital signs monitoring parameters can be evaluated based on three metrics. The first is data accuracy, the second is response speed—particularly in continuous monitoring, where values must promptly reflect changes—and the third is anti-interference capability.

Third, clinical applicability. In the United States, we conducted a project titled “The Impact of Continuous Temperature Monitoring on Chemotherapy Regimens for Children with Acute Leukemia,” which demonstrated that clinical implementation of temperature monitoring can be achieved with ease. For instance, insurance companies aim to collect higher premiums while minimizing payouts, and our product helps them achieve this objective. U.S. physicians carried out an 18-month two-arm clinical trial, the results of which showed that users of our app experienced a significant reduction in complications, thereby substantially lowering healthcare expenditures. Consequently, insurance companies were willing to pay for our product.

In addition to the three stages mentioned above, data analysis adheres to a key principle: continuous monitoring. Wearable devices enable this capability by performing in-depth mining of continuous data streams. For instance, if a child’s body temperature drops from 39.6°C to 36.5°C over a 30-minute period, this data can be integrated with registered information such as the child’s weight and age to determine the appropriate amount of fluid replenishment needed. This allows parents to gain a better understanding of their child’s physical condition. This serves as a vivid example of how data can guide and influence patient care.

In addition to body temperature, the company will also invest in R&D for hypertension-related products. In fact, the pathogenesis of hypertension has not been clearly elucidated to date. There are frequent real-life examples, such as patients with long-standing hypotension who suddenly develop hypertension one day, a phenomenon that physicians cannot explain. We aim to develop a product capable of detecting sudden changes in blood pressure in the future.

3. Tanghu Technology: “Glucose Meter + App”” Smart Medical Devices

CEOZheng Zhihua

Tanghu Technology positions itself as a diabetes management company, rather than a manufacturer specializing in blood glucose meters. In June 2013, we launched “Tang Hushi” (Sugar Nurse), establishing China’s first mobile health company integrating “medical devices + APP + remote services.” We subsequently introduced the first generation of compact, energy-efficient smartphone-connected blood glucose meters. In February 2014, it became the first intelligent medical device combining a “blood glucose meter + APP” to receive registration approval from the China Food and Drug Administration (CFDA). The primary aim of this inaugural product was to address patients’ difficulties in data recording. It provides feedback based on users’ dietary and exercise logs and offers diabetes consultation services, which constitute the core content of the APP.

This July, we jointly launched the second-generation Tanghushi mobile blood glucose meter with JD Smart. It is suitable for individuals aged 10 to 80. The device features automatic blood sampling, an on-screen display, and wireless data transmission.

Next, we are about to launch a standalone product whose greatest advantage is data accuracy, in compliance with the latest international standards. The ISO 15197 standard issued in 2013 stipulates that blood glucose measurement errors must be within ±10%. Our latest product will resolve the issue of data precision and is expected to be released around Q4 of this year.

Furthermore, we collaborate with various enterprises. For instance, by integrating a physician module, these data become accessible to doctors on the platform, enabling them to better serve patients. Additionally, we partner with insurance companies that offer specialized diabetes insurance products; these insurers assist us in collecting and measuring patient data. Over time, I am confident that diabetic patients will receive increasingly comprehensive services from insurance providers.

4. Yuexiang Trend Technology Co., Ltd.

CEOZhu Yudong:

Our company's products are set to be launched in the next two to three months.

After comprehensively surveying potential signal sources from head to toe, our team selected the wrist, as it harbors the highest density of signal sources. A review of the literature revealed a key signal source at this location: the pulse wave. From the pulse wave, continuous monitoring of multiple physiological parameters is possible, including heart rate, blood pressure, blood oxygen saturation, and respiration.

Pulse can be used to sense emotions or serve as a characteristic value for identity ID. Our first-generation product incorporates a front-end wireless radar module positioned at the pulse point—more precisely, integrated into a smartwatch—to continuously monitor the pulse. The signals are transmitted to the backend via the wearable device’s connectivity, where a suite of application-specific algorithms developed in the cloud processes them to reconstruct continuous user metrics such as blood pressure and heart rate, thereby enabling active tracking capabilities.

As a small company, we prefer not to develop consumer-facing (2C) devices. Instead, we will proactively engage with wearable device manufacturers to establish partnerships, aiming to become the “MediaTek of mainland China.” What are the benefits of this approach? Your annual sales volume could rapidly surge from 60,000–70,000 units to hundreds of thousands or even millions of units.

Our company can provide you with a turnkey solution for the entire technology stack, resolving 80% of the technical challenges, while allowing manufacturers to focus on product design or brand marketing. Specifically, the upstream component involves acquiring basic pulse data, which is then integrated with differentiated downstream applications, ultimately streamlining the supply chain in the wearable device industry.

5. Candy Cloud

CEOChen Haibin

Tangguo Yun is somewhat similar to Tang Hushi, as both focus on the diabetes sector. It received angel investment in 2013, secured additional angel funding in 2014, and closed its first round of financing earlier this year. If asked to evaluate which telemedicine provider is leading in the diabetes field, I truly believe it is still too early to tell.

Both my mother and my younger brother suffer from diabetes, which has profoundly impacted me. By that time, Jianzhilu had already sold 300,000 blood glucose meters. Through this process, I gained a deep understanding of diabetes, leading me to realize that addressing this condition is far from simple or easy. Consequently, I have made tackling diabetes the ultimate focus of my entrepreneurial endeavors.

Why did investors choose me? Sequoia Capital selected me because they found me to be down-to-earth; they likely believe that I am one of the few who will ultimately survive in the diabetes field.

What kind of brand does Tangguo Cloud aspire to be? I would describe it in two words: professional and warm. Professionalism is something every entrepreneur strives for. But what does “warm” mean? Let me share my personal perspective. I believe the relationship between patients and doctors is not inherently adversarial. Regarding patient experience, as my younger brother puts it, it should combine “the expertise of a specialist with the attitude of a junior nurse.” Consider this: if you were to name a product using terms like “doctor” or “physician,” might that be somewhat inappropriate?

For individuals with diabetes, psychological depression accounts for a significant proportion. Patients are often reluctant to confront the disease; therefore, it is crucial to help them overcome anxiety, fear, and other psychological challenges, and to view diabetes management as a lifestyle.

What are the most significant opportunities in the value chain? I believe there are two key points. Health is not a market; healthcare is the market. What constitutes rigid demand? First, human desire, which is also the essential driving force behind social products. Second, human fear, which is also a form of rigid demand. People are willing to spend money on treatment only when medical care addresses their fears. Therefore, there are two ways to sell health supplements: one is to market them as medical products without guaranteeing outcomes, which is fraudulent; the other is to use medical products as a guide while assuming no medical liability, which is known as selling a lifestyle.

The most critical elements in healthcare are hospitals, physicians, pharmaceuticals, and medical devices, with the physician-patient relationship being the core dynamic. Regarding the value of mobile health, I believe that healthcare should take precedence over mobility, and improvement should precede transformation. Efforts must begin by focusing on the physician-patient relationship, enhancing patient experience, emphasizing both patient and provider value, and ultimately elevating the overall value of healthcare.

 

In addition to gaining recognition from the capital market, the aforementioned 5In addition to home smart hardware companies, VCBeat’s Think Tank also invited 4Home-prepared wearable projects seeking financing were pitched on-site.

1. “Feng Xiaoliu”Wearable Smart Air Purifier

According to data released by the World Health Organization, 68% of human diseases stem from air pollution, with statistics in China indicating that 1.2 million deaths are attributable to this factor. When PM2.5 levels exceed 20, they pose severe health risks, including carcinogenic effects. In Beijing, where smog is a daily occurrence, portable air purification products have become particularly essential.

Feng Xiaoliu, an entrepreneurial team from Chongqing, has developed the “world’s first wearable smart air purifier,” which addresses the challenge of breathing fresh air when going outdoors is unavoidable.

This product delivers powerful purification, filtering out 99.9% of PM2.5 and 90% of formaldehyde, with zero particulate matter in the output air.

In addition, this product is equipped with high-precision sensors that can monitor air quality anytime and anywhere. The data includes PM2.5, CO2, temperature, humidity, formaldehyde, and VOCs. By connecting to a smartphone via Bluetooth, users can view real-time data on the app, achieving cloud-based air quality monitoring. Feng Xiaoliu stated that they employ self-developed, high-efficiency, ozone-free electrostatic precipitation technology, which can capture infinitesimally small dust particles. Furthermore, this product does not require filter replacements; it only needs to be rinsed with clean water.

It also features an intelligent air management function that automatically controls the fresh air system, air purifier, and air conditioner based on indoor air quality to optimize it autonomously.

“Feng Xiaoliu” embodies the team’s aspirations for the product: to achieve excellence across six dimensions of air quality—temperature, humidity, purity, freshness, cleanliness, and velocity.

The Feng Xiaoliu team has currently filed 20 patents for air detection and purification, of which 7 have been granted.

Most importantly, this smart air purifier is very affordable, costing only a few dozen yuan.

2. Smart Cardiac Monitor

There are many ECG monitoring devices on the market, and most user feedback centers on inconvenience, poor real-time data transmission performance, short monitoring duration, and inaccurate data. To address these issues, the Smart Health Products Division of Neusoft Xikang has developed a wearable smart cardiac monitor.

This product has been in incubation since 2008. Currently, the primary function it has largely achieved is single-lead continuous 24-hour ECG monitoring. It can acquire users' ECG waveforms in real time and transmit data by connecting to WeChat via the mobile phone's Bluetooth system.

One of the features of this product is that it can simultaneously monitor fatigue levels and energy expenditure by combining heart rate and pulse rate.

Another feature is its ease of wear. Currently, this product is primarily secured to the chest at two points. It is lightweight, with a total weight of less than 100 grams.

All data collected by the product will be stored on its proprietary cloud platform. Its user model is “smart hardware + cloud platform + professional physician services.” The team currently comprises approximately 30 R&D personnel.

3.iYSmart Toothbrush

The oral cavity serves as the entry point of the human digestive system, and oral health plays a crucial role in overall digestive well-being. The characteristics of the oral health sector—high frequency, rigid demand, and significant growth potential—align closely with the key pain points addressed by internet-based solutions. As the primary tool for maintaining oral hygiene, the toothbrush has evolved in response to the rapid development of digital health, giving rise to the smart toothbrush.

iY is a smart toothbrush designed specifically for children. In developing this product, "I Love Brushing" Company aims to use the children's toothbrush as an entry point to guide healthy lifestyle habits, helping children enjoy a happy, healthy, and self-disciplined childhood.

The first version of the toothbrush is about to be released. This toothbrush features leading-edge technology, and its algorithm is the most precise compared to competing products both domestically and internationally. Additionally, this toothbrush is highly energy-efficient, lasting up to two months on a single charge.

Smart toothbrushes are generally priced at a premium, but iY’s smart toothbrush will see its retail price drop to under RMB 100 by the end of this year.

4. Smart Wearable Devices Tailored for the Blind

For the blind community, various inconveniences frequently arise in daily life. Although China currently has a large and rapidly growing blind population, no medical institution has yet developed a smart wearable device specifically designed for blind individuals.

Currently, the best tool for the blind community is the guide dog. However, guide dogs have not been fully popularized in China due to the local environment; on one hand, the cost of guide dogs is relatively high, and on the other hand, they are not permitted access to all public places.

Li Ronggang and his team have developed a wearable device for the blind.

With this device, visually impaired users can initiate assistance with a single button press. Similar to using a ride-hailing app like Didi, they can describe their current location and specific needs, then connect with helpers via the WeChat service platform to receive support. Additionally, the device is equipped with four 5-megapixel cameras that provide stereoscopic, omnidirectional imagery for navigation and photography during mobility.

The cost of this device is approximately RMB 300, with a tentative selling price of RMB 500–600.

Special Acknowledgments: We extend our sincere gratitude to Hejun Pharmaceutical Salon, Lanxiong Sports, Hard Egg, Haidian Entrepreneurship Park, Golden Seed Venture Valley, and the China Mobile Internet Conference for their support of this event. We also welcome more friends to participate in and support the VCBeat Think Tank Forum. Thank you!

Editor: Bu Yan

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