TIRX Acquires Ucare for $150 Million to Expand AI Health Insurance Services in China

TIRX Acquires AI Health Insurance Platform Ucare for $150 Million

BEIJING – Tian Ruixiang Holdings Ltd (NASDAQ:TIRX), a China-based insurance broker with a market cap of $14.4 million, announced it has completed the acquisition of Ucare Inc. in an all-stock deal valued at $150 million. The transaction involved issuing over 101 million Class A ordinary shares, each with a par value of $0.025.

TIRX currently trades at a Price/Book ratio of 0.37, indicating potential undervaluation relative to its assets. Despite posting a negative EBITDA of $2.85 million over the past year, the company maintains strong liquidity with a current ratio of 6.74.

Strategic Expansion Into Health Insurance

Ucare operates China’s only cloud-based AI-driven platform focused on hospital and health insurance risk management. Its technology helps reduce fraud, abuse, waste, and administrative costs for providers, payers, and institutions.

This acquisition allows TIRX to deepen its presence in in-hospital distribution channels and capture growth in the health insurance market. The company plans to integrate Ucare’s AI platform into its underwriting and claims processing workflows, leveraging existing relationships with over 4,000 hospitals.

Leadership Perspectives

"This acquisition places us at the intersection of healthcare and insurance, unlocking data-driven insights that will transform how health insurance is designed, sold, and serviced," said Sheng Xu, Chairwoman and CEO of TIRX.

Wei Zhu, CEO of Ucare, added that joining TIRX would accelerate platform deployment and enhance integration with insurance services. Ucare will continue to operate as a subsidiary of Tian Ruixiang’s VitaCare Limited, with current management remaining in place.

Financial and Operational Highlights

• TIRX distributes property and casualty insurance products including commercial property, liability, automobile, health, and life insurance in China.
• The company has posted strong revenue growth, with a 158.74% increase over the last twelve months.
• Ucare reported a net profit of $0.6 million on revenues of $5.4 million for the fiscal year ending October 31, 2024.
• The acquisition deal includes an escrow arrangement where shares are held until Ucare reaches a revenue target of RMB 150 million over three years.

Looking Ahead

The transaction is expected to close around July 2025. Through this acquisition, TIRX aims to broaden its health insurance offerings and optimize operational efficiency using AI-powered tools. This move highlights the growing role of technology in improving insurance risk management and claims processing.

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Investors and industry observers can review the company’s filings with the U.S. Securities and Exchange Commission for more detailed information on the acquisition.