Arthrone Secures Over RMB 100 Million Series B Financing Led by HM Capital

On March 10, 2021, Bio4P (ID: iBio4P) learned that recently,Arthrone Co., Ltd. (referred to as: Arthrone), a leading artificial joint enterprise in China, announced the completion of an over 100-million-yuanSeries B financing,This round of financing was led by HM CAPITAL, with participation from Shenzhen CO-WIN Venture CAPITAL Investment Limited, Beijing E-town Sun Fund Management Co., Ltd., and DeCai Investment. WinX Capital served as the exclusive financial advisor.

Arthrone was founded in 2017, focusing on the research, development, production, and sales of orthopedic artificial joints. It has the most outstanding ceramic materials R&D team in China and is the only joint enterprise in China that masters the production technology of both zirconia and alumina ceramic materials. Its self-developed ceramic artificial hip joint prosthesis has broken the technical monopoly of foreign manufacturers and filled the domestic gap.

In recent years, the artificial joint market has developed rapidly. According to Orthoworld research, in 2018, artificial joints accounted for 37% of the orthopedic market with revenue of $18.9 billion, becoming the largest category, which can be described as "whoever wins the joint wins the world." At the same time, although the scale of China's joint market has been climbing year by year, imported devices still dominate the market, and domestically produced joint devices still have a long way to go. In response to the current market situation, Arthrone Co., Ltd. has clearly defined its development direction from the beginning of its establishment, gradually building a comprehensive patent layout and intellectual property protection in the joint field. Today, it not only owns cost-effective products such as zirconia and alumina ceramic hip joints but also collaborates with the University of Bologna in Italy to develop the world's first excellent prosthesis that conforms to the knee joint movement curve of the East Asian population — the Hike knee joint.

Mr. Zhang Jifeng, Chairman of Arthrone, stated: Arthrone is an innovative orthopedic device manufacturer driven by technology. Since its establishment, our team has overcome numerous challenges and gradually built up significant technological advantages and strong technical barriers. In the future, we will continue to focus on the orthopedic field, proceed steadily, and adhere to improving patients' quality of life as the center, with technological innovation as the means. We are committed to providing better treatment options for doctors and patients worldwide.

Investor Says

Mr. Luo Rushu, founding partner of HM CAPITAL, stated: Artificial joints account for nearly 40% of the global orthopedic market, making it the largest category. Meanwhile, the joint segment is the fastest-growing niche in the orthopedic implant industry. We value the tremendous market potential of artificial joints in China and, even more so, the outstanding R&D team and deep technical expertise of Arthrone. I believe that the completion of this round of financing by Arthrone, along with the consensus we have reached with the team throughout the process, will help Arthrone develop more robustly and rapidly, becoming a significant player in the joint sector in China.

Dr. Pang Yuxuan, Deputy Investment Director of Shenzhen CO-WIN Venture CAPITAL Investment Limited, stated: Arthrone is a vibrant and highly motivated team that has developed extremely rapidly over the past few years. Their self-developed artificial ceramic hip joint prosthesis has broken the technological monopoly held by foreign manufacturers, while also offering significant cost advantages. Under China’s national bulk procurement policy, innovative companies will have even greater room for development.

About HM CAPITAL

HM Capital is a vertical fund within the Gaoling Capital Group ecosystem that focuses on healthcare investments. Relying on the ecosystem advantages of Asia's private equity giant and top international medical institutions, it invests in the healthcare ecosystem multidimensionally and comprehensively. It is committed to building an industrial investment platform with international vision and local execution capabilities, helping early-stage and growth-stage healthcare companies achieve rapid growth.

About CO-WIN Venture CAPITAL

CO-WIN Venture CAPITAL is one of the first professional private equity investment companies in China, with 20 years of investment management experience, managing assets exceeding 20 billion RMB, cumulatively investing in more than 500 enterprises, and successfully facilitating over 90 companies to go public. It is a leading professional investment institution in China with long operating history and consistently excellent returns.

About Saipu Capital

Saiying Capital is a professional private equity investment management institution专注于医药健康与生命科学领域投资, jointly initiated by Sesen Biotech (SZ: 300485), Yizhuang State Investment, and Yizhuang Biomedical Park in 2016. Headquartered in Beijing Yizhuang Development Zone, Saiying Capital is currently the Vice Chairman Unit of the Biomedical Professional Committee of Beijing Venture Capital Alliance and an Observer Member Unit of the Fund Industry Association.

The fund management team of Beijing E-town Sun Fund Management Co., Ltd. possesses a deep background in the pharmaceuticals and healthcare industry along with extensive experience in venture capital investment. Since being registered as a private equity fund manager in 2016, it has managed three specialized pharmaceutical venture capital funds: "Beijing E-Town Biopharmaceutical M&A Investment Fund (Phase I Fund)", "Beijing E-Town Biopharmaceutical Industry Investment Fund (Phase II Fund)", and "Beijing E-Town SME Biopharmaceutical Venture Capital Fund (SME Fund)", with a total management scale exceeding 2 billion RMB. To date, Beijing E-town Sun Fund Management Co., Ltd. has completed investments in more than twenty medical and healthcare projects, earning consistent recognition from fund investors and project partners.

About Decai Investment

DeCai Investment, a wholly-owned subsidiary of Dezhou Caijin Group, relies on the group's AA+ credit rating and various financial instruments such as financial leasing and commercial factoring. It adheres to the integration of industry and finance, innovates financial thinking, and focuses on key layouts in fields such as new energy, new materials, and pharmaceutical health through business models like "equity + debt," "fund + base," and "state capital + social capital." It has successively initiated and established the Dezhou DeCai Industrial Innovation Fund, Dezhou Songguo Equity Investment Fund, etc., with a total scale of 7.05 billion yuan, supporting industrial transformation, upgrading, and the development of the real economy.