Frost & Sullivan Officially Releases 'White Paper on the Development of Systematic Modern Medical Industry in 2026' (including access methods)

01

Definition and Scope of Systematic Modern Medicine

Traditional Chinese medicine diagnosis and treatment is a diagnostic and treatment system based on traditional Chinese medical theory, using the four diagnostic methods of "inspection, auscultation and olfaction, interrogation, and pulse-taking" in combination, and integrating theories of yin-yang, five elements, organs, and meridians to diagnose and treat diseases. Western medicine diagnosis and treatment is based on scientific foundations such as physics, chemistry, biology, human anatomy, and psychology, and has developed a complete set of systems including pathology, pharmacology, and internal medicine, surgery, gynecology, and pediatrics. Western medicine can be regarded as reductionist medicine, with theories following formal logic and experimental rationality.

Traditional Chinese medicine and Western medicine each have complete theoretical systems and practical paths, but also have certain limitations. Systematic modern medicine effectively integrates the advantages of both. Aiming to improve clinical efficacy, it explores the internal connection between Western medicine's "disease differentiation" and traditional Chinese medicine's "syndrome differentiation", and clarifies the best combination point of "macro-syndrome differentiation" and "micro-disease differentiation". This is conducive to covering the entire life cycle of diseases, focusing on diseases with a long cause chain, complex mechanisms, and those that cannot be cured or show significant effects with existing drugs and conventional treatment methods.

Source: Literature search, Vinson analysis

02

Principle of Action and Advantages of Systematic Modern Medicine

Systematic modern medicine is based on the integration of traditional Chinese and Western medicine. Physical factor treatment is one of the important technical paths. Through this path, four core mechanisms work together to form a closed loop of systematic treatment: "immune activation - cell repair - targeted heat therapy - meridian regulation". The four mechanisms do not act independently but cooperate with each other: "immune activation" provides a defense foundation for the body, "cell repair" provides internal motivation for tissue repair, "targeted heat therapy" provides a targeted means for lesion removal, and "meridian regulation" provides a regulatory hub for system balance - jointly forming the core treatment logic of "holistic treatment + symptomatic treatment" of systematic modern medicine.

Source: Literature search, Vinson analysis

03

Industrial Chain Map of Systematic Modern Medicine

The value of the systematic modern medicine industry is transmitted layer by layer along the path of "components and technical services - research and development, manufacturing, and supporting services - terminal market application". Components, raw materials, and technical services in the upstream of the industrial chain lay the foundation for product manufacturing. The midstream completes device research and development, production, and technology transformation, and finally reaches downstream application scenarios, forming a value chain closed loop with clear division of labor and coordinated linkage.

01

Human Intervention Targets of Systematic Modern Medicine

Systematic modern medicine adopts a multi-target intervention strategy, integrating Western medicine's "disease differentiation" and traditional Chinese medicine's "syndrome differentiation". It conducts life-cycle management for difficult and complex diseases with a long cause chain, complex pathological mechanisms, and limited benefits from traditional treatment methods. The treatment plans of systematic modern medicine can cover the nasal cavity, throat, thyroid, breast, and back muscles in the head and neck, the liver, gallbladder, stomach area, and pelvic uterine appendages in the chest, the joints of the shoulders, elbows, wrists, hips, knees, and ankles in the limbs, the spinal area, perineum, perianal area, and skin wounds throughout the body. By linking the meridians and organs system, it regulates the qi and blood circulation of corresponding meridians by stimulating specific acupoints, thereby regulating the functions of relevant parts and organs, supporting comprehensive intervention for multiple types of diseases such as metabolism, nervous system, immune system, and tumors.

Source: Literature search, Vinson analysis

02

General Overview of Disease Suitability of Systematic Modern Medicine

Regarding metabolic diseases, immune diseases, neurological diseases, and complications related to tumors, systematic modern medicine relies on a multi-target collaborative intervention approach, taking into account local lesion control and overall body function regulation. Differentiated intervention plans are formed for different disease types:

• Metabolic Diseases:It acts on peripheral joints locally, improves local microcirculation, promotes the dissipation of metabolic deposits, and relieves joint inflammation. Through targets related to the trunk and organs, it regulates the overall metabolic function, taking into account local symptom improvement and the reshaping of the overall metabolic stability, achieving coordinated regulation of the symptoms and the root causes.

• Immune Diseases:It controls the immune microenvironment locally for diseased joints, reducing joint inflammatory reactions. At the same time, it conducts systemic regulation through trunk targets, improving the immune disorder state, taking into account local joint injury repair and the overall immune balance regulation.

• Neurological Diseases:Through coordinated intervention at targets in the head and neck, spinal area, and distal limbs, it regulates the functions of central and peripheral nerve pathways, improves nerve excitability imbalance, and relieves chain symptoms such as motor dysfunction, physical fatigue, and neurogenic pain.

• Tumor Diseases:Focusing on the body's homeostasis support, it regulates the overall immune state, improves local and systemic adverse reactions associated with radiotherapy and chemotherapy, relieves complications such as pain, fatigue, and digestive disorders, and enhances the body's tolerance and quality of life.

  
  

01

Increase in Household Income and Payment Capacity

According to data from the National Bureau of Statistics, the per capita disposable income of national residents reached 43,377 yuan in 2025, a year-on-year increase of 5.0%. Among them, the per capita disposable income of urban residents was 56,502 yuan, and that of rural residents was 24,456 yuan. With the continuous consolidation of the achievements of poverty alleviation and the in-depth implementation of the Rural Revitalization Strategy, the growth momentum of rural residents' income continued to be released. The average real annual growth rate of the per capita disposable income of rural residents from 2020 to 2025 was 6.7%, higher than the average real annual growth rate of 4.4% for urban residents during the same period. The steady increase in residents' disposable income continuously expanded the available resources for families, further strengthening the material basis for residents' consumption payments. Coupled with the change in residents' health concepts, the improvement in income conditions strengthened residents' objective consumption ability on the one hand, and on the other hand, it promoted the upgrade of public consumption awareness. The proportion and priority of health-related expenditures in the family consumption structure were gradually increasing, and residents' willingness to actively pay for health continued to grow. On this basis, domestic health consumption demands are gradually extending to sustainable and improvement-oriented medical scenarios such as chronic disease management and rehabilitation intervention. Such medical services require higher requirements for standardized diagnosis and treatment processes, multi-module collaborative intervention, and long-term monitoring and evaluation, forcing medical institutions at all levels to improve supporting hardware conditions. The steady increase in rural residents' income further opens up new space for health consumption in the lower-tier market, laying the foundation for the penetration of systematic modern medicine equipment into grassroots medical institutions. The continuous release of terminal medical service demand ultimately leads to more widespread application of systematic modern medicine equipment in medical institutions at all levels.

Source: National Bureau of Statistics, Vinson analysis

02

Increase in Demand Driven by Aging Process

Currently, global population aging is accelerating. According to data from the United Nations and WHO, the aging process in Asian countries is faster than the global average. It took only about 23 years for China to move from aging to deep aging. In 2025, the number of people aged 65 and above in China reached 2.2 billion, accounting for 15.9% of the total population. The change in population structure has led to changes in the disease spectrum in China. Because the elderly group generally faces health challenges such as chronic diseases, multiple illnesses, and declining body functions, the base of patients with degenerative diseases continues to expand. Traditional medical services mostly carry out specialized diagnosis and intervention based on disease categories. The current clinical model mostly focuses on independent diagnosis and management for single diseases, unable to fully meet the multiple health and care needs of the elderly group. Elderly patients often have multiple chronic diseases and functional impairments, and single and temporary treatments cannot cover all health needs.

Systematic overall treatment plans can, on the one hand, comprehensively consider the patient's disease status, physical and mental abilities, and actual care conditions through comprehensive assessment, integrate multiple health problems into a unified management framework, and adapt to complex health scenarios with multiple diseases. On the other hand, it combines disease treatment and rehabilitation intervention, and extends the treatment goal from symptom control to the maintenance and improvement of activity ability and independent living ability. With the continuous expansion of the elderly population, the characteristics of elderly health, characterized by multiple diseases, functional decline, and multiple care needs, are becoming increasingly prominent. Single symptomatic treatment cannot meet their holistic, continuous, and individualized needs, thus driving the continuous rise of demand for person-centered systematic overall treatment plans and supporting equipment.

Source: United Nations, WHO, Vinson analysis

03

Change in Medical Structure and Expansion of Market Space for Traditional Chinese Medicine Overseas

The supply structure of medical institutions in China is continuously optimizing, and the industry pattern is showing a hierarchical evolution. The continuous upgrading of the supply-demand structure has led to a steady release of demand for rehabilitation and chronic disease management medical equipment. At the same time, the internationalization process of traditional Chinese medicine is advancing, and the acceptance of standardized and verifiable traditional Chinese medicine physiotherapy services in overseas markets is gradually increasing. The upgrade of the domestic medical system and the opportunities in overseas markets drive the continuous expansion of the domestic and overseas markets for systematic modern medicine equipment.

Source: National Bureau of Statistics, National Health Commission, Fujian Provincial Health Commission, Vinson analysis

04

Favorable Policies Drive Expansion of Innovation Medical Devices

Domestic top-level design continues to increase policy support for the modernization of traditional Chinese medicine and the integration of traditional Chinese and Western medicine diagnosis and treatment. Supporting measures are introduced from multiple dimensions such as industry planning, review and approval, standardization construction, and digital transformation of medical institutions. Policy level clearly encourages the research and development of innovative traditional Chinese medicine medical devices, optimizes the review and approval mechanism for innovative diagnosis and treatment equipment, and promotes the integration of modern technology and traditional Chinese medicine diagnosis and treatment methods, creating a good institutional environment for the technological innovation, clinical application, and commercialization of systematic modern medicine equipment.

Source: Government official website, Vinson analysis

05

Transformation of Medical Institution Revenue Structure Drives Increase in Physiotherapy Equipment Demand

The reform of domestic medical payment continues to advance in depth, and the implementation of DRG3.0 version grouping plans is approaching. The case grouping granularity has been further refined, and the total budget constraint of medical insurance funds has been continuously strengthened. At the same time, the overseas medical payment system is transforming from fee-for-service (FFS) to value-based healthcare (VBC). The convergence of domestic and overseas policies and payment models creates conditions for the development of the systematic modern medicine industry.

Source: National Healthcare Security Administration, Vinson analysis

06

Intelligent Evolution of Systematic Modern Medicine Equipment and Innovation in Diagnosis and Treatment Paradigms

Under the industry trend of the modernization of traditional Chinese medicine and medical equipment intelligence, systematic modern medicine inherits the core diagnosis and treatment concept of traditional Chinese medicine's overall syndrome differentiation and overall treatment. At the same time, it modernizes and standardizes the traditional manual four-diagnosis diagnosis and treatment model. Based on evidence-based medicine, combined with the clinical conditions of medical institutions and individual differences of patients, it deeply integrates standardized and standardized physical treatment plans into the existing diagnosis and treatment system, gradually forming a standardized full-process diagnosis and treatment path: "screening and assessment - indication determination - informed consent - plan initiation - periodic treatment - mid-term assessment - final assessment - follow-up management - clinical conclusion". In the future, AI technology is expected to run through the entire diagnosis and treatment chain: it can assist in structuring patient diagnosis and treatment data, assist in judging indication characteristics, intelligently generate individualized acupoint compatibility and treatment parameter plans, collect treatment and efficacy data throughout the process, and assist in multi-stage efficacy assessment. Continuous real clinical data flow back to the system, driving algorithm iteration and optimization, and building an intelligent diagnosis and treatment closed loop of "detection - assessment - treatment - feedback".

Source: Literature search, Vinson analysis

07

Integration of Traditional Chinese and Western Medicine Promotes Deep Development of the Systematic Modern Medicine Industry

The integration of traditional Chinese and Western medicine establishes their own complete life perception systems from different perspectives. Their deep integration does not simply mean the simple use of therapies, but the reconstruction of the underlying diagnosis and treatment logic. Currently, the integration of traditional Chinese and Western medicine has passed the early stage of physical superposition and the middle stage of logical translation, and entered a deep integration stage characterized by "paradigm creation". In this stage, the overall syndrome differentiation thinking of traditional Chinese medicine and the standards of Western medicine's precise evidence-based medicine are no longer limited to complementary clinical means, but are transformed into a quantifiable and implementable standardized system through engineering paths. Applied to the industry, the integration technology of traditional Chinese and Western medicine further enhances the development depth of the systematic modern medicine industry. This enhancement is not simply a stacking of product functions, but a systematic reshaping of the equipment form, clinical value, and industrial boundaries from the underlying logic.

Source: Literature search, Vinson analysis

Henan Lixinghe Medical Technology Co., Ltd. was established in August 2021. It is a national high-tech enterprise, a national science and technology small enterprise, a Henan Province specialized and innovative small enterprise, and a Henan Province innovative small enterprise. The company deeply integrates traditional Chinese medicine meridian theory with modern microwave physical technology and Western medicine diagnosis and clinical verification standards, and has successfully developed a Class III traditional Chinese medicine medical device - "acupoint microwave stimulation device". Lixinghe's product aims to provide new, efficient, and safe solutions for many difficult diseases such as pain management, nervous system diseases, metabolic diseases, and autoimmune diseases, helping to implement the "Healthy China" strategy and promote the modernization, standardization, and internationalization of traditional Chinese medicine.

01

Company's Industrial Layout and Honors

The company attaches great importance to the research and development system construction, with research and development personnel accounting for over 40%. The company's technical foundation comes from cross-generation accumulation. Starting from the predecessors' deep cultivation of microwave engineering, the second generation has accumulated rich clinical experience by staying on the front line of traditional Chinese medicine clinical practice for a long time. The third generation founded Lixinghe Medical, promoting the integration of microwave engineering technology and traditional Chinese acupuncture, and developing standardized innovative products for clinical use. Therefore, the company has obtained many official recognition honors, completed domestic and international intellectual property layouts, and built a complete technical protection system, laying a solid foundation for the clinical implementation and global expansion of the product.

Source: Public information, Vinson analysis

02

Company's Core Products and Competitive Advantages

The acupoint microwave stimulation device independently developed by the company passed the full-process review by the National Medical Products Administration in June 2026, obtaining the Class III medical device registration certificate (Guoyezonu Quanjun 20263201213). It features multi-dimensional intervention, precise energy regulation, and real-time temperature monitoring.

This device relies on four core competitive advantages: it uses a non-contact focusing probe, operates based on a distributed independent microwave channel and multi-radiator array architecture, and utilizes optimized algorithms to control energy focus and attenuation from multiple sources. It transforms traditional clinical practices related to acupoint selection and energy generation into quantifiable electromagnetic field algorithms. It is equipped with a 2450MHz±50MHz microwave source module and a closed-loop adaptive energy regulation system, with a continuous adjustable output power of 0-12W per channel. It can dynamically adjust microwave output to counteract microwave propagation attenuation and maintain stable thermal and non-thermal effects. Relying on the Archimedes spiral coil structure, it achieves targeted focusing stimulation, with microwave penetration depth reaching 3-5cm. It supports 10 independent microwave sources driving multiple probes simultaneously, enabling parallel intervention for multiple acupoints and lesions. It features a high-precision real-time temperature measurement system that collects skin and subcutaneous tissue temperatures simultaneously, automatically regulating output power based on temperature thresholds, thereby stabilizing the target tissue at a treatment range of 43-45°C, balancing clinical effectiveness and safety.

Source: Public information, Frost & Sullivan analysis

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The company's industrialization and research cooperation system construction

公司以“全球产品，兰考制造”为产业化建设的核心战略方针，在河南兰考经济技术开发区打造集“研发、生产、检测、仓储”于一体的现代化制造基地，形成“首期投产 + 二期扩建”的梯次产能布局，奠定全球市场的规模化供应基础；同时高度重视产学研协同创新，搭建起“科研院所 ‑ 高校 ‑ 三甲医院”三位一体的科研合作体系。

Source: Public information, Frost & Sullivan analysis

04

公司全球化布局体系建设

The company has established global development as its core strategic direction. It has now established an overseas development framework consisting of four key components: international patent layout, international clinical research, international registration certification, and a network of overseas subsidiaries, creating a complete path for going global from technology protection to clinical validation, from compliance approval to local implementation.

• Strategic Goal: To promote China's original standardized traditional Chinese medicine treatment solutions worldwide and enhance the international influence of Chinese enterprises. The company's vision is to "overcome difficult disease treatments, serve the world, and achieve FDA and CE certifications for high-end innovative medical devices as its core strategy."

  
  

• 市场覆盖规划：短期依托PCT专利与文化接受度，深耕东南亚及“一带一路”国家；中期凭借FDA、CE准入开拓欧美主流市场；长期完成全球主要医疗市场布局。

  
  

• Geographical Support Point: Using the Greater Bay Area as a bridge to international markets, connecting with Southeast Asia and the "Belt and Road" regions; relying on regional partners to build overseas service capabilities. The Lankao Photovoltaic Base has achieved green electricity production, meeting EU carbon standards.

  
  

• Channel Strategy: For overseas channels, a "dual-track system" is adopted - in mature medical markets, the local exclusive agency model is used, while in emerging markets, overseas clinical cooperation pilots are implemented.

Source: Public information, Frost & Sullivan analysis