JRSIS Health Care Corporation develops and provides smart terminal products and cloud-based services for the medical and health industry in the People's Republic of China. The company operates through its wholly owned subsidiary Yongzhou Jumi Intelligent Technology Co., Ltd., which holds the core technology and intellectual property after the reverse acquisition transaction completed in November 2023. Through its subsidiary Laidian Technology (Zhongshan) Co., Ltd., JRSIS holds a controlling variable interest of 85.53% in Yongzhou JIT, making Yongzhou JIT the operating entity for the group's smart medicine business. Yongzhou JIT focuses on intelligent medicine solutions, including automated drug dispensing, remote consultation platforms, unmanned pharmacy systems, and cloud-based medicine distribution equipment. All research, development, manufacturing, and sales activities are conducted within the PRC, and the company maintains an in-house research and development team of 8 experts. This team represents approximately 22% of Yongzhou JIT's total workforce and drives continuous innovation in smart health technologies.
Revenue is generated from 2 primary streams: the sale of smart terminal hardware and the provision of related services. Hardware sales include unmanned medicine vending machines, cloud-based smart equipment, one-stop medicine distribution systems, and open-platform software-as-a-service offerings. Service revenue encompasses installation, debugging, maintenance, custom design, and development of application software tailored to customer needs, as well as ongoing technical support for deployed systems. The company sells its products and services to both third-party and related-party customers, with related parties often purchasing hardware for resale to end users. During the periods covered in the filing, significant related-party sales were made to Guangzhou JIE, Guangzhou JIT, Youzhou Jingmi Health Technology Co., Ltd., and Yaolian (Guangzhou) Wulinwang Co., Ltd. All goods and services are based on the company's proprietary technology and manufacturing capacity, ensuring integration between hardware and software components.
JRSIS Health Care Corporation holds an outstanding position in the field of intelligent medicine products in the PRC, backed by a robust patent portfolio. As of the reporting date, Yongzhou JIT owned 2 invention patents, 16 utility model patents, 7 design patents, and 21 software copyrights, with several additional invention patents undergoing substantive examination. All core patented technologies have been incorporated into the company's products and services, providing a technological barrier to entry. The research and development team of 8 experts, representing roughly 22% of Yongzhou JIT's workforce, collaborates with institutions such as Hunan Institute of Technology to advance smart medicine techniques. This focus on innovation, combined with the ability to deliver integrated hardware-software solutions, gives the company a competitive advantage over peers offering only hardware or only software. The company's solutions are aligned with national smart city and smart life initiatives, positioning it to benefit from government-driven healthcare modernization projects.
The company serves a diverse customer base that includes governmental healthcare projects, hospital initiatives, retail pharmacies, entities in the broader health industry, and other providers of smart health services that rely on its technology. Governmental projects encompass local government programs to upgrade smart medical insurance, implement smart epidemic-prevention measures, enable remote physical examinations, conduct health testing, facilitate remote consultation, process prescriptions, manage payments, and deliver medicine. Hospital projects involve smart application systems that collect drug information from out-patients, direct hospital pharmacies to prepare the correct medication, and guide patients to the appropriate pickup window. Pharmacies outside hospitals and internet-service platforms use the company's cloud-based vending equipment and application systems to offer automated drug sales and remote health services. Specific related-party customers mentioned in the filing are Guangzhou JIE, Guangzhou JIT, Youzhou Jingmi Health Technology Co., Ltd., and Yaolian (Guangzhou) Wulinwang Co., Ltd., which often purchase hardware for resale. End users of the company's products and services are medical service organizations, business enterprises, and local governments throughout China.