Winning Health Technology Group Co., Ltd. (300253), a leading medical informatization firm, has announced a leadership change after its controlling shareholder Zhou Wei was convicted of corporate bribery in a first-instance trial. Liu Ning, one of the company's founders, has been appointed as the new chairman. The company also nominated Zhou Cheng, Zhou Wei's son, as a non-independent director candidate.
Liu Ning faces significant challenges as he takes the helm. Winning Health has been accelerating its transformation toward "building intelligent solutions covering the entire medical chain," with focus areas including internet hospitals, medical insurance payments, and health data governance. However, these transitional investments and adjustments have yet to yield substantial financial results. The company reported a net loss attributable to shareholders of 241 million yuan in the first three quarters of this year, compared to a profit during the same period last year.
The leadership transition was formally announced on November 10. Zhou Wei resigned as chairman and from all board committee positions due to personal reasons. While stepping down from executive roles, Zhou will remain as an advisor and retain positions in two subsidiaries. Liu Ning, a 1963-born Fudan University graduate with extensive experience in the company since 2004, now assumes the chairman role. He holds 4.68% of company shares directly, with his spouse holding an additional 1.67%.
The resignation follows Zhou Wei's conviction for corporate bribery. On November 5, Winning Health's subsidiary Shenzhen Winning Zhongtian Software and Zhou Wei received a criminal judgment from Guangdong's Dianbai District People's Court. The subsidiary was fined 800,000 yuan for corporate bribery, while Zhou Wei received an 18-month prison sentence and a 200,000 yuan fine. Both parties plan to appeal.
Shenzhen Winning Zhongtian, a regional subsidiary operating only in parts of Guangdong, accounted for 7.97% of the parent company's net profit in 2024. Winning Health stated that potential business restrictions on the subsidiary wouldn't significantly impact overall operations. The news nevertheless triggered a 10.38% stock price drop on November 6.
Founded in 1994, Winning Health has evolved from medical software development to broader digital health solutions. Its "1+X" strategy combines WiNEX products with digital healthcare applications powered by AI. While claiming AI deployments in nearly 150 medical institutions, the company's financial performance has deteriorated.
Revenue fell 32.27% year-on-year to 1.296 billion yuan in the first three quarters, with gross margin dropping from 41.68% in 2024 to 29.07%. The company attributes this to delayed project approvals, slow monetization of WiNEX upgrades, rigid costs, business optimizations in internet healthcare, asset impairments, and tax arrears payments. The profit decline began in 2024, when net income dropped 75.45% to 88 million yuan despite 2.782 billion yuan in revenue.
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