Shanghai Hanyu Medical's IPO Terminated: Planned to Raise RMB 1.72 Billion, Backed by CPE and Yunfeng Fund

Leid.net by Lei Jianping

Shanghai Hanyu Medical Technology Co., Ltd. ("Hanyu Medical") recently had its IPO terminated.Hanyu MedicalPrepare to list on the STAR Market. Hanyu Medical originally planned to raise 1.722 billion yuan.

Hanyu Medical once submitted its prospectus to the Hong Kong Stock Exchange in April 2021, preparing for an IPO in Hong Kong. It passed the listing hearing of the Hong Kong Stock Exchange in 2021. However, in November 2021, Hanyu Medical abandoned its plan to list on the Hong Kong Stock Exchange due to considerations such as market liquidity and market environment.

　　Annual loss of 195 million

Hanyu Medical mainly engages in the research, development, production, and commercialization of interventional devices for structural heart diseases and electrophysiology products. In the field of interventional devices for structural heart diseases, the company's ValveClamp product is included.Innovative HealthcareA mitral regurgitation interventional treatment device under the special approval process for medical devices, and is expected to become the first domestically produced product of its kind to be approved for marketing in China.

The company has laid out a refined and diversified pipeline of products under research in this field, aiming to address the unmet clinical needs in China's structural heart disease sector. It provides patients with high-quality, cost-effective integrated cardiac disease solutions to improve survival rates, life expectancy, and quality of life. In the electrophysiology product field, several self-developed products under research have achieved phased progress.

Based on the company's strong R&D capabilities in the cardiovascular field, Hanyu Medical, a subsidiary of Shanghai Hanyu Medical Technology Co., Ltd., has developed interventional cardiology devices for pets and achieved initial commercialization both in China and overseas.

The prospectus shows that Hanyu Medical's revenues for 2019, 2020, and 2021 were RMB 0, RMB 49, and RMB 3.4054 million, respectively; net losses were RMB 49.19 million, RMB 162 million, and RMB 195 million, respectively; net losses after deducting non-recurring items were RMB 56.444 million, RMB 90.698 million, and RMB 114 million, respectively.

Hanyu Medical's revenue for the first nine months of 2022 was RMB 2.1666 million, with a net loss of RMB 58.6295 million and a non-GAAP net loss of RMB 53.147 million.

　　Dai Yufeng Controls 29% Equity

As of September 30, 2022, Dai Yufeng directly held 9,195,305 shares of Hanyu Medical, accounting for 11.51%. Through his controlled enterprise Anji Ruzhe, he held 3,154,093 shares, accounting for 3.95%, and through his controlled enterprise Anji Qiyue, he held 3,444,302 shares of Hanyu Medical, accounting for 4.31%. Meanwhile, his acting-in-concert party member Yang Huixian directly held 7,350,099 shares of Hanyu Medical, accounting for 9.2%.

Therefore, Dai Yufeng and his acting-in-concert party Yang Huixian collectively control 23,143,799 shares of Hanyu Medical, accounting for 28.98%.

Dai Yufeng, born in May 1980, obtained a Bachelor of Medicine degree in Clinical Medicine from Soochow University in June 2004. From 2004 to 2006, he served as an orthopedic surgeon at Suzhou Municipal Hospital; from 2006 to 2009, he was the Marketing Director of Suzhou Xinzhu Real Estate Promotion Service Co., Ltd.; from August 2010 to November 2016, he served as the Executive Director and General Manager of Suzhou Maiguan Marketing Planning Co., Ltd. From December 2016 to December 2020, Dai Yufeng served as the Chairman and General Manager of Hanyu Limited; from December 2020 to present, he has been serving as the Chairman and General Manager of Hanyu Medical; from July 2019 to present, he has also been serving as the Chairman and General Manager of Hongyu Medical.

Yang Huixian, born in November 1981, obtained a Bachelor of Science degree in Chemistry from Minnan Normal University in July 2004 and a Master of Education degree in Curriculum and Instruction Theory from East China Normal University in July 2007. From July 2007 to November 2016, she served as a junior editor, intermediate editor, and assistant director at Shanghai Science and Technology Education Press. From December 2016 to March 2017, she served as a supervisor of Hanyu Medical. From December 2016 to the present, she has been serving as the Director of the Office of Hanyu Medical, and from March 2017 to the present, she has been serving as a director of Hanyu Medical.

Dai Yufeng and Yang Huixian are not in a marital relationship. Pan Wenzhi and Yang Huixian are spouses. According to their family arrangement, the remuneration Pan Wenzhi received for serving as a consultant during the reporting period was collected on his behalf by Yang Huixian.

Before 2016, Dr. Pan Wenzhi and his team from Zhongshan Hospital, in response to the shortcomings of existing mitral valve clip devices in clinical practice, such as long operation time and high difficulty in capture, proposed a principle-based design for a new type of mitral valve clip device through long-term exploration and desk design. Based on this design, they filed an invention patent application in July 2016 and were granted the authorization for "A Valve Clip Device" (ZL201610594219.8) (referred to as the "Clip Device Patent") in December 2017.

In December 2016, Dai Yufeng and Yang Huixian jointly established Hanyu Medical. At the same time, Zhongshan Hospital was exploring the transformation of clinical scientific and technological achievements. In April 2017, the company signed a "Patent License Agreement" with Zhongshan Hospital, stipulating that the company could obtain the exclusive license for this patent in China for an upfront fee of 1.8 million RMB and a future royalty of 2% of the sales of the patented product. The contract also stipulated that within four years from the effective date of the contract, the company could acquire all the patent rights for 5 million RMB in one lump sum.

On December 14, 2018, according to the signed "Patent License Agreement," the company signed a "Patent Transfer Contract" related to the transfer of patents with Zhongshan Hospital. By paying RMB 5 million, the company acquired the patent and all economic benefits associated with it.

It can be seen that the initial core technology of Hanyu Medical actually came from Pan Wenzhi. Yang Huixian's role in Hanyu Medical is more about holding shares on behalf of her husband.

　　CPE and Yunfeng Capital are shareholders.

In August 2020, Hanyu Medical completed a D-round financing of 500 million yuan, led by Hillhouse Capital, CPE, and Yingke Capital, with co-investments from Lanzee Hanas, Langma Peak, Mifang Capital, Dongzheng Capital, and Taifu Capital.

In March 2021, Hanyu Medical completed a nearly 500 million yuan D+ round of financing, led by Yunfeng Capital, with participation from Jiangsu Ruihua, Octagon Capital, E Fund, Lead Capital, and existing shareholder Highlight Capital.

Before the IPO, Panmao Shanghai held 21.16% of the shares, Taiyu Investment held 6.17%, Mifang Fund held 4.44%, Anji Qiyue held 4.31%, Anji Ruzhe held 3.95%, Tigermed Yingke held 3.84%, Ganzhou Biyuewu held 3.5%, Lize Fund held 3.33%, Yunfeng Fund held 2.68%, Anji Qulv held 2.15%, and Yingke Jiuyun held 2.1%.

Wuhu Chending holds 1.93%, Dongzheng Fuxiang holds 1.92%, Huzhou Jingxin holds 1.85%, Tibet Longmai De holds 1.4%, Xiamen Yuhui holds 1.33%, Yueshang Investment holds 1.27%, Yingke Shenghui holds 1.12%, Transformation and Upgrading Fund holds 1.09%, Taiming Investment holds 1.05%, Shanghai Jinci holds 0.92%, and Ruihua Capital holds 0.87%.

Editorial Responsibility: Chang Fuqiang