Shares of Chinese digital healthcare company ClouDr Group rose for a second consecutive day following the announcement of its integration with DeepSeek’s artificial intelligence (AI) technology. The company incorporated DeepSeek’s R1 model into its ClouDr Brain platform to enhance data-mining capabilities, improving efficiency in hospital and pharmacy operations.
Chairman and CEO Kuang Ming highlighted that this integration would optimize patient management for chronic conditions, allowing healthcare providers to improve clinical decision-making and streamline workflows. The announcement drove ClouDr’s shares up 3.7% to HK$1.67 on Thursday, following an initial surge of 27.3% at market opening. This momentum built on Wednesday’s 26.8% jump. Despite these gains, ClouDr’s shares remain well below their initial public offering (IPO) price of HK$30.50 from mid-2022.
DeepSeek has rapidly gained traction in China’s AI sector, drawing attention for its efficient and cost-effective large language models. The company’s V3 model, launched in December, was trained in just two months with significantly lower computing costs compared to competing AI solutions. This has fueled widespread adoption among Chinese businesses, including ClouDr, which now leverages DeepSeek’s capabilities to enhance its AI-driven healthcare tools.
Through this partnership, ClouDr aims to enhance its ClouD GPT and ClouD DTx models, upgrading medical knowledge graphs and clinical decision-support systems to improve diagnostic accuracy and user experience. The company operates as China’s leading provider of digital chronic-condition management software, offering tools for online consultations and prescriptions. It also provides digital marketing services to 41 pharmaceutical companies.
As of June, ClouDr’s software was installed in 2,732 hospitals, reflecting a 2.8% increase from the previous year. Its presence in pharmacies expanded by 13.9% year over year, reaching 228,331 locations—accounting for 35% of all pharmacies in China. The company’s financial performance has also improved, with net losses narrowing from 159.6 million yuan to 118.9 million yuan ($16.3 million) in the first half of last year. Revenue, primarily from in-hospital applications, grew 17.9% to 2.12 billion yuan.
Beyond software, ClouDr owns distribution rights for pharmaceuticals, including treatments for vascular dementia and type-2 diabetes. In September, its self-developed diabetes device, ClouDT-01, received medical certification from the Zhejiang Medical Products Administration. The device automates drug administration in response to fluctuating blood-glucose levels, further expanding ClouDr’s footprint in digital healthcare solutions.
READ MORE: