Dekang Medical, a Rising Domestic Orthopedic Leader, Completes Series B+ Financing and Files IPO Prospectus

VCBeat learned第一时间 that recently, Decans Medical, a leading company in China providing comprehensive solutions for orthopedic surgeries, has completed a B+ round of financing worth hundreds of millions of yuan. This round was led by Fuzhe Capital and its subsidiary Guogai Fund, with participation from Xiuhu Fund, Jiaxin Silk, Yonggui Fund, and Lishui Fuchu Fund. CEC Capital served as the exclusive financial advisor to Decans Medical in this transaction.

This is the second round of financing completed by the company within a year after its Series B financing at the beginning of this year, with a scale exceeding that of the Series B round. It reflects the investors' high recognition of the company's performance in spinal collection and their full confidence in the company's R&D strength and commercialization capabilities.

After this round of financing, Decans Medical will expand the construction of production and R&D bases, supply chain and marketing infrastructure across China, and strengthen its product technology and academic advantages.

Decans Medical was founded in 2012 and is currently one of the leading companies in China.The only orthopedic digital platform enterprise with original research and development capabilities in new materials and new surgical techniques.The company successfully won bids at competitive prices in both the "12-Province Alliance Orthopedic Trauma Supplies Group Purchasing" in July 2021 and the "National Orthopedic Spinal Supplies Group Purchasing" in October this year. Particularly in the spinal group purchasing in October, Decans Medical emerged strongly, with all seven mainstream spinal product systems winning bids. Six of these systems were awarded to Group A, making it the youngest brand among the top ten China-produced brands.

To meet the national product supply, the company is about to put into operation a medical intelligent production and R&D base. This is one of the largest orthopedic device production and R&D bases in China, including Decans' "Yangtze River Delta" orthopedic implant materials and artificial organ manufacturing center, global R&D center, mechanical testing center and joint inspection center, exhibition and technical training center, etc. The total area is 60,000 square meters, with the production capacity of millions of sets of orthopedic implant materials annually.

Dr. Xu Xiaobo, founder and general manager of Decans Medical, statedIn 2022, Decans Medical experienced its fastest growth as the orthopedic industry is in a period of rapid transformation. The next 3 to 5 years will be a critical window for industry upgrading and the replacement with China-produced alternatives. Orthopedic medical devices are an important branch of high-performance medical devices, and the rise of China-produced products is an inevitable trend. Since its establishment, Decans Medical has chosen the path of innovation and original research. To date, its products have entered numerous top hospitals across China, reducing the burden of surgeries and continuously benefiting patients—this is the historical mission of all Decans employees. Meanwhile, the company will continue to build a first-class orthopedic device production base in China, becoming a new economic growth point for the region.

Chen Jianshu, Managing Director of Fuzhe Fund, saidThe health industry is one of the eight trillion-yuan industries in Zhejiang Province. Fuzhe Capital, focusing on major strategies by the provincial Party committee and government while closely following the "14th Five-Year Plan for the Development of Zhejiang Province's Health Industry," actively invests in innovative companies with high growth potential in Zhejiang’s medical and health industry. Decans Medical is one of the few domestic manufacturers in China with forward research and development capabilities in orthopedic innovation devices, successfully breaking the market monopoly held by multinational brands. It has performed exceptionally well in the centralized procurement of categories such as trauma and spine. With the gradual implementation of centralized procurement policies and breakthroughs in production capacity, the company’s performance is set to enter a fast lane of growth in the coming years. Fuzhe Capital and the State-Owned Enterprise Reform Fund led the investment in Decans Medical’s latest round of financing, supporting the development of outstanding medical device manufacturers within Zhejiang Province, promoting industrial clustering, and empowering regional economic growth.

Yuan Weifeng, a relevant responsible person from Xiuzhou District Financial Control Management Company, stated: Striving to build a number of well-known health brands, gather leading enterprises with strong driving capabilities, and form a health economic industrial cluster is an important part of implementing the decisions and arrangements of the Xiuzhou District Party Committee and government, as well as comprehensively carrying out the strategy for three emerging industries. Decans Medical, a company that has grown within the Xiuzhou region and possesses rare technology and R&D-driven expertise in the orthopedic field, is gradually showing its leading influence. The participation of Xiuhu Fund in Decans Medical’s Series B+ financing round represents a significant move to support high-quality medical device companies within the region to strengthen and expand, promoting the development of Xiuzhou District's health economy industry. It also lays a solid foundation for establishing Jiaxing City as a highland for the development of high-performance medical device industries in the Yangtze River Delta.

Shi Haibin, General Manager of Lishui State-owned Assets Company, said: China's healthcare industry is entering a golden age of development. With the continuous influx of production factors such as policies, capital, and technology, the localization of medical and health industry sectors will be the main theme for the foreseeable future. Decans Medical, as a rare local innovative orthopedic implant enterprise with multi-sector layout, has withstood market tests and opened a new chapter in localization. Lishui State-owned Capital Company's participation in Decans Medical’s current round of financing not only aligns closely with Zhejiang Province's industrial policy direction but also fits the company's investment strategy of focusing on key industries, critical fields, and competitive enterprises.

Li Jin, Managing Director of VCBeat and Head of Medical Technology and Devices Group, stated：CFA will continue to focus on the orthopedics sector, a traditional and popular track. Decans Medical, as an outstanding representative in this field, has impressed us with its product innovation and in-house R&D capabilities. The company's rapid development over the past few years has proven that as long as the product capability is strong, commercial success can be achieved even under the context of centralized procurement. We are very honored to have provided multi-round services to excellent companies like Decans Medical, accompanying them in their growth journey. We also thank the company’s management team and both new and existing shareholders for their trust in us.

Decans Medical, founded in 2012, focuses on the research, development, manufacturing, and sales service of high-performance orthopedic implants and surgical technology systems. Upholding the philosophy of "medicine as a benevolent art, striving for perfection," its main products include spinal, trauma, sports medicine, and joint implants, as well as data collection, processing, and analysis systems among other high-quality medical devices. The company collaborates with top scientists, clinical experts, engineers, internationally renowned universities, leading orthopedic hospitals in China, and research institutes to apply new materials and advanced technologies to the R&D and manufacturing of orthopedic implants, creating products with superior performance that are more suitable for the Chinese population. Decans Medical is recognized as an innovative entrepreneurial team in Zhejiang Province, a high-tech enterprise and research and development center in Zhejiang Province, a national specialized and new small giant enterprise, a Zhejiang Province overseas high-level talent introduction enterprise, and a Zhejiang Province postdoctoral workstation enterprise.

Zhejiang FuZhe Capital Management Co., Ltd. was established in August 2017 as a wholly-owned subsidiary of Zhejiang Provincial State-owned Capital Operation Co., Ltd., with a registered capital of 2 billion yuan. The company has led the establishment of the Zhejiang State-owned Enterprise Reform and Development Fund, the Zhejiang State-owned Capital Innovation Development ETF Fund, and the Two Mountains Fund. It holds large-scale funds such as the second phase of the National Integrated Circuit Industry Investment Fund, the Guotong Fund, and the Zhejiang Business Industrial Fund. Currently, the company manages a cumulative capital scale of approximately 35 billion yuan. In line with the major strategies of the provincial Party committee and government, the company focuses on investment layouts in strategic and forward-looking industries such as the digital economy, new materials, life sciences and pharmaceuticals, and high-end equipment manufacturing.

Jiaxing Xiuhu Entrepreneurship and Innovation Equity Investment Fund Co., Ltd. was established in May 2016, jointly funded by Jiaxing Jiaxiu Development Investment Holding Group Co., Ltd. and Jiaxing Xiuzhou High-Tech Investment Co., Ltd., with a registered capital of 1 billion yuan. Xiuhu Fund is a government investment fund led by the Xiuzhou District Government and operated in a market-oriented manner. It aims to guide financial capital and social capital to increase investment in the real economy within the region, promote the aggregation of high-quality capital, projects, technology, and talent from home and abroad, fully implement the economic development strategy of the Xiuzhou District Party Committee and Government, achieve an effective combination of government leadership and market-oriented operations, and drive innovation, entrepreneurship, and industrial transformation and upgrading across the district.

The leading enterprise in China's silk industry, established through the overall state-owned reform of Jiaxing Silk Group Company. After nearly 40 years of development, it now owns more than thirty wholly-owned and holding enterprises, with supply chain support extending to inland China and Southeast Asia, and a global market presence. Its business covers six major sectors: international and domestic trade, industrial manufacturing, brand building, supply chain finance, real estate, and education. It is one of the largest silk product research, development, and manufacturing enterprises in China. The company was listed on the Shenzhen Stock Exchange in 2010, adhering to a development strategy of maintaining core businesses while pursuing moderate diversification, investing in multiple emerging industry projects with broad development prospects.

Lishui State-owned Capital Operation Co., Ltd. was established in October 2017. It is a wholly state-owned company funded by the Lishui State-owned Assets Supervision and Administration Commission, with a registered capital of 1.5 billion yuan. As the most important state-owned capital operation entity in Lishui, Lishui State-owned Capital Company has initiated and established investment platforms such as the Common Prosperity Fund, Fuchu Equity, and Zheqi Fuchu. Centering on Lishui's strategic goals of "Two Mountains" development and "Grand Garden" construction, the company focuses on forward-looking industrial layouts in semiconductors, new energy, biomedicine, and advanced manufacturing, supporting advanced productivity and striving for a better life.

Shanghai Yonggui Venture Capital Management Co., Ltd. was established in September 2019. Based on the principles of "state-owned background, team shareholding, market-oriented operation, and professional management," it is a private equity fund management company initiated and invested in by the Shanghai Technology Entrepreneurship Center. Relying on the listing cultivation database for science and technology innovation enterprises, Yonggui Fund focuses on the layout of the six major industry sectors of the STAR Market, and is committed to promoting the construction of the Yangtze River Delta Science and Technology Innovation Community.

CEC Capital is a leader in China's new economy investment banking, focusing on the three major industries of TMT, consumer, and healthcare globally. In addition to its investment banking services, CEC Capital manages both a Renminbi fund and a US Dollar fund. The company has branches in Beijing, Shanghai, Los Angeles, and San Francisco, and holds a US securities market license. The healthcare industry is a key focus for CEC Capital, where it has deep expertise, and it has been the new economy investment bank with the most healthcare industry transaction records in China for five consecutive years. Additionally, CEC Capital boasts the largest, most professional, and comprehensively covered healthcare investment banking team in China.