Health Institution Ciming Oasis Leverages Strengths for Sustainable Growth | Story of Successors

Peng Tianyi and his colleagues are working at Ciming Oasis Health Examination Center. (Photo/Peng Xueping and Peng Tianyi)

Chongqing - In the past two years, the annual business volume of Ciming Oasis Health Examination Center has grown by more than 30 percent on average. The center's leader, Peng Tianyi, is the son of Peng Xueping and chairwoman of Ciming Oasis's parent company, Chongqing-based Xueping Health Industry Group Co Ltd.

It's not surprising for a son to follow in his mother's footsteps. However, when Peng Tianyi returned from studying abroad, eager to join the family business, his mother coldly responded: "What qualifications do you have to join our company? You should first gain experience elsewhere and develop your skills. Only after going through the recruitment interviews can you enter the company!"

Building experience to apply for a role in the family business

In 2018, after returning from his studies abroad, Peng Tianyi expressed to his mother his desire to join the family business and take over sooner.

"My company doesn’t necessarily have to be passed down to my son; if a professional manager is capable, the manager can do the job just as well," his mother replied.

She insisted that Peng Tianyi first go out and gain experience before even considering the possibility of succession.

Then, Peng Tianyi first joined a medical research institute in Shanghai. Six months later, he moved to Chengdu and worked in sales for a medical equipment company.

During his time in Chengdu, Peng Tianyi also used the nutritional knowledge he gained while studying abroad to help his diabetic cousin lose weight. By the end of 2018, after eight months of effort, his cousin had lost nearly 23kg, and his blood sugar levels had returned to normal. 

This dramatic improvement in his cousin's health sparked Pengs passion for starting his own business in the health sector. Peng Tianyi pitched his entrepreneurial idea to his mother, who happily supported him with 2 million yuan ($281,102). With that, a small health food company was born, offering products such as protein bars, beef jerky, and health-friendly sweeteners.

From product development and raw material procurement to quality control and market expansion, Peng personally handled nearly every aspect of the business.

Despite his tireless efforts, Peng quickly learned that running a business was far from easy. Established brands have dominated the market, and getting into stores came with numerous expenses. To make matters worse, their products, which contained no preservatives to ensure high quality, had a short shelf life of only three months, making them less appealing to distributors.

As inventory piled up, Peng grew increasingly anxious. It was then that he fully understood his mother's wisdom: had she let him take over the family business without proper experience, the company could have faced significant problems.

Peng's company eventually closed, but his mother didn't blame him. Instead, she encouraged him, saying that this experience would increase his chances of success in future ventures.

Reflecting on his failure, Peng Tianyi realized that to succeed in business, one needs not only good products but also a sound business model and a clear path to profitability.

When Ciming Oasis posted a job opening, Peng decided to apply, ready to prove himself through his skills and experience.

Peng made it through the selection process with his overseas education and entrepreneurial background. Having spent many years studying away from home, few people at his mother's company knew who he was. Even when he reached the final interview stage, many interviewers didn't recognize him.

In the end, Peng Tianyi successfully secured a position in the family business.

After joining, he thoroughly reviewed the company's operations and identified several areas for improvement. One key issue he raised was the outdated software system the health examination center used, which led to low efficiency, poor performance, and reduced customer satisfaction. He emphasized the urgent need for an upgrade.

To address this, Peng led a team to visit several well-known competitors across the country to study their systems. Working closely with software companies, they developed a plan to upgrade the center's software.

After the upgrade, the center's digital capabilities improved significantly. Historical health data could now be easily compared and displayed, allowing customers to see changes in their health over time clearly. Everything was moving in the right direction.

In May 2022, Peng Tianyi officially took his first step toward succession, becoming the general manager of the health examination center's business division.

Upgrading performance reviews to reward excellence

The management was not easy. At that time, the health exam center's performance declined due to the pandemic and even suffered losses.

To turn the business around, Peng Tianyi tried to identify the root of the problem. He quickly realized that the center's management needed improvement.

His mother placed great emphasis on personal relationships when hiring, but there was no objective performance evaluation system to measure employees' actual contributions. Over time, some employees had become slack in their work, leading to inefficiency, poor service awareness, and a decline in the centers reputation, which ultimately affected business, Peng Tianyi found.

He proposed establishing a performance-based employee evaluation system. Each employee's performance would be tied to their workload and customer feedback. Regardless of seniority, those with poor performance would face adjustments to their role and salary based on the assessment results.

When his mother heard this plan, she frowned, saying, "Many of the employees at the health exam center have been with me for years. I can't bear to make adjustments just because they are not doing well. We could try adding new service areas to boost the centers business instead."

"It takes time and trial-and-error for new services to become profitable. If we delay too long, the company could go under. If that happens, no one will have an incomecan you live with that?" Peng's response left his mother speechless.

"By motivating everyone through reform and improving the business, everyone's situation will improve. Thats the best way to honor our founding employees," Peng explained, eventually convincing his mother to agree.

The reform was launched shortly after that. As Peng Tianyi expected, some employees strongly opposed it. A few long-time employees even complained to his mother, urging her not to let Peng Tianyi make these changes.

One day, an employee who had been with the center for over 10 years stormed into Peng Tianyi's office, slamming the desk and saying, "My salary can't be reduced, or Ill quit!"

Peng didn't lose his temper. Instead, he patiently explained the reasons behind the reform and the potential benefits employees could gain from it.

Eventually, the employee understood. He began working harder to improve his performance, and his income eventually exceeded what it had been before.

Gradually, employees adapted to the new evaluation system. A few months later, a group of energetic, motivated employees earned higher salaries. Contrary to his mother's initial fears, there wasn't a mass exodus of staff. The team remained stable, and their enthusiasm for work grew significantly.

Innovative expansion fuels stable client growth

As the company flourished due to management improvements, Peng Tianyi began to feel a little conceited.

In the second half of 2022, a company in Shenzhen specializing in post-checkup rehabilitation equipment approached him, seeking to collaborate with the Ciming Oasis to do a micro hyperbaric oxygen chamber operation project.

The proposal was to sell a large number of micro hyperbaric oxygen chambers to the center through a financing lease, with both parties jointly covering the leasing fees through the income generated. However, the center was required to pay the leasing fees upfront, while future revenues would be distributed monthly to the center.

Excited by the promising prospects, Peng Tianyi was eager to proceed. However, his mother warned, "This cooperation model doesn't hold up logically; the other party could breach the contract at any time."

"With a written contract in place, how could they possibly breach it?" Despite his mother's reservations, Peng insisted that the contract was signed.

As predicted by his mother, three months after the project launch, the other party ceased payment returns. The two sides went to court, and the equipment stopped functioning. The hefty investment was at risk of being wasted.

After this, Peng Tianyi was filled with regret. He decided to seek more advice from his mother.

Once, when his mother was hosting guests, Peng suggested a buffet, but his mother insisted on a formal table service. "Guests sit without moving, and every service is brought directly to them; isn't that a better experience?" she remarked. She added, "Isn't this the same concept we should apply in business?"

Peng Tianyi caught the deeper meaning. In fact, after a health check-up, clients often seek further medical consultations. Why not extend the service and enhance their experience?

Following this insight, Peng established a health management department at the center. It focused on providing health management services to those with abnormal test results, particularly individuals with chronic conditions. The center also created a "green channel" to connect patients with major hospitals, both domestically and abroad, helping them quickly find appropriate doctors and treatments for serious conditions.

This new business model gained market approval. In its first month, the health management services attracted over 100 clients, and the number has continued to grow steadily, now serving thousands.

As the services became more refined, the client base grew. In 2022, the center had 160,000 visits. By 2023, that number exceeded 200,000, leading the company to turn a profit.

(Huang Guanghong, a reporter from Chongqing Daily, contributed the Chinese version of this report.)