Image source: ByteDance official website
Recently, ByteDance completed the wholly-owned acquisition of the high-end private medical institution Meizhong Yihe.
Tianyancha App shows that after the acquisition, Meizhongyihe currently has two major shareholders, one is Xiaohe Health Technology (Beijing) Co., Ltd., which is wholly-owned by Douyin, and the other is Xiaohe Health Hong Kong Co., Ltd. , the total shareholding ratio of the two is 100%.
In September last year, Byte made its first investment in U.S.-China Yihe through the former. Nearly a year later, the latter’s stake has made Byte officially the “master” of the US-China Yihe.
Why did Byte choose the United States and China Yihe?
According to public information, the acquiree, Meizhongyihe, was established in 2006 and has grown to a large scale. It is one of the leading companies in the high-end medical field. .
Since 2011, U.S.-China Yihe has conducted 7 rounds of financing. Investors include Legend Capital, China Renaissance Capital, Everbright Capital, Hillhouse Capital, Aerospace Industry Fund, Sino-Ocean Capital, WuXi AppTec and other institutions.
According to its official website, Meizhong Yihe started as a women’s and children’s hospital, providing one-stop services for obstetrics, gynecology, pediatrics, assisted reproduction, postpartum rehabilitation, postpartum recuperation, and medical beauty, and gradually covering a full range of comprehensive outpatient services. In April 2020, Meizhong Yihe acquired Beijing Baodao Maternity Hospital and has an IVF business license in Beijing.
Up to now, US-China Yihe has a total of 7 women’s and children’s hospitals, 2 comprehensive outpatient centers and 5 confinement centers, covering the three regions of Beijing-Tianjin-Hebei, Yangtze River Delta and Pearl River Delta.
Obstetrics is the “trump card” of US-China Yihe. Meizhongyihe has disclosed to the outside world that the group currently has about 1.5 million consumer members and has served more than 500,000 high-end families. In many businesses of the group, a large part of the main revenue comes from obstetrics, and the unit price of obstetrics customers is about 70,000 yuan.
In 2019, U.S.-China Yihe was disclosed by the media that it wanted to “backdoor” the listing, and then nothing happened. In 2020, US-China Yihe sprinted for an IPO again and signed a listing assistance agreement with CICC, but the agreement was announced to be terminated in August of the following year.
Shortly after this, the United States and China Yihe received strategic financing from Xiaohe Health, a subsidiary of Byte, which held 17.58% of the shares at that time.
Behind the impressive operational achievements, the background of the founder of Meizhongyihe, Hu Lan, has also attracted attention.
According to reports, Hu Lan has a dual background of medical professional and investment banking. She graduated from Peking University School of Medicine (formerly Beijing Medical University), then went to Ohio Medical School to study for a Ph.D., and obtained a master’s degree in business administration from the University of Michigan. In 2002, Hu Lan worked for JPMorgan Chase, a famous Wall Street investment bank in the United States, as an investment bank manager. In 2005, Hu Lan returned to China and started a business in the medical field.
Hu Lan, founder of US-China Yihe
Byte obviously appreciates the female founder. After bringing Meizhong Yihe under her command, Hu Lan still serves as the chairman and general manager of Meizhong Yihe.
In addition, in September last year, in addition to investing in the United States and China Yihe, Xiaohe Health also invested in Hongda Airui, another medical company actually controlled by Hu Lan, with a shareholding ratio of 10.71%.
Hongda Airui is a multidisciplinary oncology consultation platform. It was established in 2018. It owns a private tertiary oncology hospital “Beijing Meizhong Airui Cancer Hospital”. Hu Lan is the chairman of Hongda Airui. In April this year, Xiaohe Health increased its investment in Hongda Airui, and its shareholding ratio increased to 91.13%, becoming the controlling shareholder.
In addition to this series of capital increases, Byte’s layout in the medical field can be traced back to 2020. In the eyes of the outside world, it is not too early for Byte to enter the medical field, or to catch up with the forerunners. In the past three years, Byte’s layout in the medical field has been extremely frequent and high-profile.
Through self-construction, investment, mergers and acquisitions, etc., Byte has quickly established its own territory in the medical field, covering Internet medical care, new drug research and development, medical testing, offline medical care and other sectors.
In terms of business and products, Byte has a “Xiaohe” app for patients, a “Xiaohe Doctor” app for doctors, and a medical content platform “Xiaohe Medical Dictionary” in the Internet medical sector.
In the new drug research and development sector, Byte invested in the new drug research and development platform Shuimu Future, and its AI Lab recruited AI pharmaceutical talents in Beijing, Shanghai, and California, USA.
In the medical testing sector, Byte invested in Shanghai Diying Biotechnology Co., Ltd., an in vitro diagnostic (IVD) company, and invested 1 million yuan to establish Shanghai Weihe Medical Laboratory Co., Ltd.
This year, Byte’s “Xiaohe Health” launched an AI-assisted diagnosis software for colonoscopy, which uses artificial intelligence technology to assist clinicians in real-time detection and identification of colorectal cancer lesions.
As for the offline medical sector, ByteDance established Xiaohe Medical Clinic through the acquisition of “Songguo Clinic” last year, and led the investment in Good Mood, an Internet medical platform focusing on CNS (central nervous system) and mental and mental health. Under Entity Psychology Clinic.
From the perspective of the path, the layout of bytes follows the basic sequence extending from online to offline, from light to heavy. This wholly-owned acquisition of Yihe is a further step in the medical field.
The medical and health track is an investment hotspot for major Internet companies. The assisted reproductive “test-tube baby” business license owned by US-China Yihe also means a huge potential market in the future.
Before stepping down as CEO of ByteDance, Zhang Yiming expressed his future expectations in the field of life sciences through an internal letter: “The impact of virtual reality, life sciences, and scientific computing on human life has already dawned, and we need to break through the business. Inertia to explore.”, which especially emphasized the need to “break through the inertia of business”.
But the challenges are not small. There are countless cases of Internet giants failing to do medical treatment.
An Internet medical company once said to Leifeng.com, “The early Internet giants’ acquisition and operation of medical care were all based on traffic thinking, which led the industry to an infinite war of capital attrition.”
It is still an unsolved problem how to integrate, interact and monetize the traffic accumulated by Byte in the past, algorithm advantages, and investment in the medical field with a large number of offline physical hospitals.
After acquiring the United States and China Yihe with deep pockets, what will be the next move of Byte? Leifeng Network Leifeng Network
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