Jinjiang Electronics Submits IPO Prospectus Following Over RMB 700 Million in Series A+B Funding for Its Disruptive Magnetoelectric 3D PFA Platform

VCBeat learned that Sichuan Jinjiang Electronic Science and Technology Co., Ltd. ("Jinjiang Electronic"), the leading enterprise and innovative leader in China's electrophysiology industry, has recently completed its Series A+ and Series B financing rounds, jointly invested by Cinda Kunpeng, Guanghua Wutong, Yuanheng Lizhen, Weigao Group, Huimei Capital, and others.Prior to this, the company completed its Series A financing, exclusively invested by Hillhouse Capital, in December 2021. Thus far, Jinjiang Electronic has cumulatively raised over 700 million RMB in its Series A and B rounds.

This transaction represents the largest primary market deal in the history of China-produced electrophysiology companies. VCBeat continues to act as the exclusive financial advisor.This round of financing will be used to continue advancing the registration clinical trials of several key electrophysiology products by Jinjiang Electronic and the subsequent development of a series of innovative products. It will also improve the company's organizational structure and commercialization system, comprehensively enhancing the company’s overall competitive advantage in the electrophysiology field both in China and globally.

China has a large population of patients with arrhythmia. The latest data from The Lancet’s subsidiary journal shows that the number of atrial fibrillation patients in China is close to 20 million. A large number of clinical trial studies have shown that electrophysiological surgery is more effective than drug treatment for this group of patients. In 2020, the volume of electrophysiological surgeries in China was nearly 200,000, with an overall market size of nearly 10 billion yuan. Moreover, the electrophysiology industry has maintained a compound annual growth rate of about 30% over the past decade, showing a high-speed growth trend.

A vast patient population has given rise to a huge market space, howeverYesCoronary intervention surgery,The growth of electrophysiology procedures is still constrained by existing technologies. Data shows that the number of patients with atrial fibrillation in China is nearly 20 million, comparable to the number of patients with coronary heart disease, yet the volume of surgeries remains significantly lower.In 2020, the total number of atrial fibrillation surgeries was approximately 80,000 cases, while the number of coronary intervention surgeries in the same year had already reached more than 1 million cases. The main reasons for this come from the following three aspects:

For this reason, the electrophysiology industry has been exploring truly breakthrough technologies.

Overview of the Development and Current Status of China's Electrophysiology IndustryIn the cardiac electrophysiology sector, particularly in the treatment of complex arrhythmias represented by atrial fibrillation, the comprehensive competitive barriers of product portfolios are extremely high. Electrophysiology manufacturers can only achieve sufficient product portfolio competitiveness by building a complete solution that integrates "systems + equipment + consumables." Among these, the electrophysiology 3D system is the core competitiveness of major manufacturers.

However, most of China-produced electrophysiology companies started late and have relatively单一 product lines. If there are only ablation devices and consumables, lacking the support of a three-dimensional system, it will greatly restrict the development of atrial fibrillation surgery. In complex arrhythmia surgeries, the key surgical steps for electrophysiologists are basically performed under the guidance of a three-dimensional system. The information used during the surgery, such as heart structure and electrical activity, mapping and ablation catheter information, ablation energy and tissue response information, and surgical process information, are all presented in the three-dimensional system.

Multinational companies represented by Johnson & Johnson and Abbott have established their dominant positions in the global electrophysiology field precisely due to their overwhelming advantages in 3D systems, a core product. The 3D systems owned by Johnson & Johnson and Abbott have undergone decades of continuous research and development, upgrades, and iterations in both software and hardware, forming the current extremely high technical barriers and clinical recognition. Based on 3D systems, multinational corporations continuously iterate related products and upgrade technologies: force-irrigated ablation catheters, 3D ultrasound catheters, high-precision mapping catheters, 3D steerable sheaths, ablation index quantification, automatic mapping technology, and more. The emergence of these new technologies, centered around 3D systems, continuously improves the efficiency and safety of electrophysiological procedures, thereby reinforcing the market monopoly of imported brands.

The development history of China's electrophysiology industry has proven that if domestic manufacturers cannot reach the comprehensive level of imported brands in three-dimensional systems, it will be difficult for them to truly compete with multinational companies in the electrophysiology industry.

Pulse Field Ablation (PFA) is performed through an extremely short duration (10^-9Seconds~10^-6A high-intensity electric field stimulation (in seconds), utilizing the coupling effect of the electric field and cells, specifically disrupts the cell membrane structure of targeted cells, breaking the physiological balance of the cells, and thereby achieving selective ablation of specific tissues.

In 2019, the HRS conference reported the results of human clinical trials using PFA technology for atrial fibrillation treatment at overseas medical centers:Compared with radiofrequency and cryoablation, PFA for atrial fibrillation ablation has the characteristics of high success rate (100% immediate pulmonary vein isolation success rate), ultra-high safety (non-thermal ablation and strong tissue selectivity, extremely low complications), low surgical difficulty, and short learning curve, demonstrating significant technical advantages and perfectly addressing the obstacles in the development of the current electrophysiology industry.With the continuous upgrading of PFA technology and the promotion of therapies, domestic experts predict that by 2030, the number of atrial fibrillation surgeries in China is expected to reach 1 million cases. Among these, PFA is anticipated to be the largest contributing factor to the growth in surgical volume, and the cardiac electrophysiology sector is also expected to become the largest sub-sector in the field of cardiovascular interventions.

The huge market space and explosive potential have attracted a large number of manufacturers to enter the PFA track. However, most manufacturers' PFA technology is purely two-dimensional PFA technology, without their own three-dimensional system. During surgery, they can only rely on X-rays or other manufacturers' three-dimensional systems, which has multiple limitations such as high X-ray radiation, long total operation time, lack of precise positioning, and the need for frequent system switching. Moreover, these products are only suitable for the treatment of paroxysmal atrial fibrillation and cannot be used to treat complex arrhythmias such as persistent atrial fibrillation.

Jinjiang Electronic is the first company in China to launch a magnetic and electric positioning three-dimensional PFA solution.Jinjiang Electronic's PFA product features magnetic and electric positioning, enabling seamless integration with the company’s proprietary three-dimensional magnetic-electric positioning system. Combined with pressure-sensing catheters, high-precision mapping technology, and more, it provides a complete solution for electrophysiological procedures. In addition to retaining all the advantages of PFA, this solution offers significant benefits over two-dimensional PFA technology, including broad surgical indications (suitable for all arrhythmia surgeries), green electrophysiology procedures (enabling extremely low X-ray operations, significantly extending the professional lifespan of surgeons), a short learning curve, and smooth procedural operation.

Jinjiang Electronic's "LEAD-PFA Pulsed Field Ablation System" registered clinical trial, which was launched in July 2021, completed all case enrollments in just over four months, further demonstrating the technical advantages of 3D PFA. Its clinical trial has now entered the follow-up stage and is expected to become the first Pulsed Field Ablation System in China to receive NMPA approval for marketing, providing a one-stop comprehensive solution for PFA in the electrophysiology industry.

Jinjiang Electronic Magnetic and Electric Positioning 3D System Combined with Pulse Ablation Comprehensive Solution

Jinjiang Electronic, founded in Chengdu, Sichuan, has focused on the cardiac electrophysiology industry for thirty years. It has consistently adhered to independent research and development, aiming to become a leader in China's cardiac electrophysiology sector. The company has established the world’s most comprehensive overall solution for electrophysiology products, possessing all related technologies for equipment and consumables used in electrophysiological surgeries. This includes products covering magnetic and electrical 3D systems, electrophysiological multi-channel recorders, RF ablation generators, PFA ablation systems, RF ablation catheters, electrophysiological mapping catheters, needle sheaths, and all other products related to electrophysiological procedures.

Jinjiang Electronic Electrophysiology Product Overall Solution

The core competitiveness in the field of electrophysiology lies in the leadership of technology and products, and every advancement in technology is undoubtedly the result of the accumulation of time and experience. Starting simultaneously with China's electrophysiology industry, under the leadership of the company's founder and technical director, Mr. Li Chuya,Jinjiang Electronic's R&D team has consistently focused on the development of electrophysiology products and technological breakthroughs: from China's first radiofrequency ablation device to China's first fully digital multi-channel electrophysiology recorder, and then to China's first three-dimensional electric field mapping equipment… In 2020, the company successfully developed China's first (and currently only) magnetoelectric three-dimensional PFA.It can be said that it is precisely due to the high stability of its technical and R&D team that Jinjiang Electronic has had sufficient time to achieve a deep understanding and accumulation of electrophysiological technology and applications. This has also enabled Jinjiang Electronic, on the eve of the global electrophysiology industry entering the PFA era, to firmly grasp the industry's pain points based on decades of technical foundation. For the first time, they combined the magnetic and electrical three-dimensional system with PFA, bringing a brand-new transformation and breakthrough to atrial fibrillation electrophysiology.

In the development history of Jinjiang Electronic, there are two significant events for the company:

In November 2021, the company successfully completed patient enrollment for the LEAD-PFA Pulsed Field Ablation System's registration clinical trial, becoming the first company in the Chinese market to complete patient enrollment for a PFA product registration clinical trial. With a 100% PVI isolation rate, short operation time, high patient comfort, and significant clinical outcomes, the overall results have excited the industry. The full-scale launch of an integrated electrophysiology solution centered on the magnetic and electrical positioning 3D system and PFA will allow Chinese electrophysiology companies to lead globally, competing directly with imported products in the core field of the electrophysiology industry. To date, the six-month follow-up for the company’s LEAD-PFA Pulsed Field Ablation System registration clinical trial has been completed, showing good results and meeting the requirements of the clinical trial design.It is worth mentioning that the "Cardiac Pulsed Field Ablation Device" has been approved by the National Medical Products Administration (NMPA) for special review of innovative medical devices and has entered the "green channel" for special review procedures.

In 2021 and 2022, Jinjiang Electronic's products entered a phase of rapid development, with multiple clinical trials progressing simultaneously, yielding fruitful results. The company’s key products, the pressure perfusion ablation catheter and the magnetic and electric positioning three-dimensional system with pressure display, have entered the clinical trial patient enrollment stage and are advancing efficiently. The innovative pulsed radiofrequency dual-mode pressure catheter has entered the clinical trial approval stage. Additionally, the radiofrequency treatment system for pain management has completed patient enrollment for clinical trials. As these products come to market in the future, Jinjiang Electronic will continue to enhance its comprehensive competitive advantage in the electrophysiology field both in China and globally.

Jinjiang Electronic Magnetic and Electric Positioning 3D System Combined with Pulsed Ablation 3D Mapping

"Believe, therefore persist; persist, and you will see the light," this phrase perfectly encapsulates the development philosophy of Jinjiang Electronic. Opportunities are always for those who are prepared, and Jinjiang Electronic's years of accumulation in the electrophysiology industry have finally borne fruit. Under the leadership of the management team and through the hard work of all employees, Jinjiang Electronic is confidently marching towards its next great goal.

Mr. Li Chuwen, Founder and General Manager of Jinjiang ElectronicAs the saying goes, a journey of a thousand miles begins with a single step. The achievements Jinjiang Electronic has made today are the result of decades of dedication by all members of Jinjiang Electronic, driven by an innovative and exploratory spirit and a pragmatic attitude, deeply cultivating the field of cardiac electrophysiology. We express our gratitude and extend a warm welcome to our new capital partners who have joined Jinjiang Electronic. They have provided tremendous support in terms of marketing strategies and sharing the latest industry information. The recognition and support from various institutions serve as a significant driving force for us. Jinjiang Electronic is an inclusive, united, progressive, and innovative family. We will always maintain an open attitude to welcome more new talents to join us in building a brand-new leader in cardiac electrophysiology!

Mr. Li Chuya, Founder and R&D Director of Jinjiang ElectronicIt is noted that from the first Great Wall International Congress of Cardiology (GW-ICC) in 1990 to the present, the field of electrophysiology in China has developed rapidly over these 30 years. As participants and witnesses, we have been accompanying this journey all along, always adhering to the mission of "nurturing life through technology." We are making every effort to provide affordable world-class products for the vast number of arrhythmia patients in China. The recognition and trust from industry experts and investors make all the hardworking staff of Jinjiang Electronic feel genuinely gratified and thankful. We hope that in the future we can move forward hand in hand and create a shared future. With everyone's support for Jinjiang Electronic, we will surely jointly create an even brighter tomorrow for the field of cardiac electrophysiology in China.

Mr. Zhao Yanchen, Executive Vice General Manager of Xinda KunpengIt is noted that China has a large patient population with arrhythmia, which seriously affects people's health and quality of life. However, traditional treatment methods have many pain points, and China’s cardiac electrophysiology market is mainly dominated by foreign enterprises. Jinjiang Electronic has decades of profound accumulation in active devices and, through continuous research and development as well as integration, has taken a leading position in PFA+ three-dimensional products. It is expected to overtake imported brands in the cardiac electrophysiology field with domestically produced solutions. Xinda Kunpeng highly recognizes Jinjiang Electronic and its founder/management team. Hoping to take this financing round of Jinjiang Electronic as an opportunity, they aim to support the further upgrading of Jinjiang Electronic’s industrial structure and platform-based development to better meet unmet clinical needs.

Mr. Wang Fei, Investment Director of Glight WutongJinjiang Electronic has been focusing on the electrophysiology track for many years, persistently investing in R&D and iterating technology. It is this craftsmanship spirit that has given Jinjiang Electronic an advantage of deep accumulation and gradual release in technology. With the launch of Jinjiang Electronic's globally leading magnetic and electric 3D positioning system and pulsed ablation system, we believe that the long-term monopoly of China’s electrophysiology track by foreign enterprises will surely be broken, truly realizing the domestic production substitution of high-end medical devices. Moreover, we are also highly anticipating Jinjiang Electronic's subsequent technological iterations and expansion into international markets.

Mr. Zhang Xuan, Founding Partner of Yuan Heng Li ZhenPFA's breakthrough application in the field of electrophysiology is like electric vehicles, representing a once-in-a-thousand-years opportunity for China to overtake competitors in the industry. As a leader and pioneer in the PFA field, Jinjiang Electronic is exactly the "panda-level enterprise" we have been looking for—one in a thousand—with technology leading globally, products highly anticipated, and a market value expected to reach tens of billions. We will fully support Jinjiang Electronic in becoming a leader in the international medical device industry! Additionally, we are very grateful for the professional introduction by VCBeat, which allowed us to connect with Jinjiang Electronic.

Mr. Lu Dongren, Partner of Weigao Songyuan FundRepresentatives stated that since Jinjiang Electronic developed the first radiofrequency ablation device in China decades ago, the company has consistently focused on the field of cardiac electrophysiology. It currently possesses all related technologies for electrophysiological surgical equipment and consumables, covering 14 products including cardiac intervention and vascular intervention. The company has established a complete solution encompassing "mapping systems + therapeutic devices + consumables," which is rare in China’s electrophysiology sector. Meanwhile, we are deeply impressed by the unwavering commitment of the company's management team, as well as the efficiency in advancing R&D and market pipelines. As the first company in China to complete patient enrollment for the registration clinical trial of PFA products, we look forward to the launch of several key products from the company, including its magnetic navigation-enabled PFA product, which could bring revolutionary changes to China’s atrial fibrillation electrophysiology industry. These innovations are expected to break foreign monopolies, offering safety and convenience to patients while creating a more user-friendly surgical environment for doctors.

Huimei CapitalJinjiang Electronic's Pulse Field Ablation (PFA) is a disruptive technology that significantly lowers the learning curve for doctors while ensuring ultra-high success rates and strong safety, providing new treatment options for patients with tachyarrhythmia. The research and development barriers for electrophysiology devices and matching consumables are extremely high. As one of the first national high-tech enterprises in China, Jinjiang Electronic has, after decades of technical accumulation, become one of the few domestic manufacturers to possess full independent intellectual property rights and technical capabilities comparable to imported products. Currently, Jinjiang Electronic’s self-developed comprehensive electrophysiology solution based on magnetic-electric 3D PFA has gained sufficient clinical recognition and is expected to become the first domestically produced electrophysiology PFA product to be launched. Huimei Capital continues to have confidence in and support Jinjiang Electronic, looking forward to Jinjiang Electronic offering more internationally competitive innovative solutions for arrhythmia patients in China and even globally.

Mr. Ding Yaming, Founding Managing Partner and Chief Operating Officer of VCBeatIt shows that there is a huge unmet clinical demand in China's cardiac electrophysiology industry, with broad market potential. In 2019, when pulsed field ablation (PFA) catheter ablation therapy was just emerging, electrophysiology companies both domestically and internationally increased their R&D investments. Jinjiang Electronic became the first company in China’s PFA market to complete patient enrollment for the registration clinical trial of its PFA product. Heryue Capital is honored to have continuously supported Jinjiang Electronic through its Series A and B financing rounds, witnessing the historic milestones of the company's growth. We believe that with the launch of the company’s magnetically and electrically navigated 3D PFA product, along with capital support, Jinjiang Electronic will become a leading platform enterprise in the field of electrophysiology in China and even globally.

Xinda Kunpeng, established in April 2019, is an investment management institution focusing on mergers and acquisitions (M&A) in the corporate sector. It emphasizes strategic emerging industries in the Guangdong-Hong Kong-Macao Greater Bay Area, creating value by empowering industries. Xinda Kunpeng has launched a 3 billion RMB M&A fund that primarily engages in M&A activities related to listed companies, providing essential growth capital for businesses and facilitating the acquisition of high-quality assets within the industry. This M&A fund will focus on investing in strategic emerging industries encouraged by the state, mainly including advanced manufacturing, healthcare, and next-generation information technology, with the mission of promoting the transformation and upgrading of the real economy. It aims to assist in the industrial upgrading of the Greater Bay Area, including Shenzhen, to create and enhance investment value. Through collaboration with industry partners, resource integration, and specialized division of labor, it seeks to achieve win-win outcomes for different participants in the industrial chain, building a healthy ecosystem to promote the development of the real economy.

Chengdu Guanghua Wutong Equity Investment Fund Management Co., Ltd. was established in 2015 as a wholly state-owned fund manager in Wenjiang District, Chengdu City. The company focuses on investment in the biopharmaceutical industry and mainly engages in fund investment and direct project investment. Currently, it manages various parent and subsidiary funds with a total scale exceeding 10 billion yuan and has cumulatively invested in 11 subsidiary funds.

Yuan Heng Li Zhen Capital was founded in January 2018 by former members of the Zhejiang Provincial Government and senior partners from investment banks. The founding team started with their own capital, pooling industrial funds and resources, adhering to the principle of precision investment, and establishing multiple dual-currency funds focused on investing in the two major industrial fields of "artificial intelligence" and "healthcare." It has strategically invested in ten technology innovation companies, all of which are unicorns or quasi-unicorns. Among them, Himalaya FM is about to be listed on the Hong Kong Stock Exchange, Jiehua Microelectronics has passed the initial public offering application on the STAR Market, and other projects are in the coaching stage, planning to file for listing one after another in the next two to three years.

Weigao Songyuan Fund was established in December 2020 with a scale of 2 billion RMB, initiated and led by Weigao Group. The fund focuses on innovative medical devices, biopharmaceuticals, medical services, rehabilitation and elderly care-related targets, relying on Weigao Group's extensive experience and industrial advantages in the medical industry to help the invested companies grow rapidly. Meanwhile, Weigao Group will utilize this fund to accelerate the investment in high-quality targets in the upstream and downstream of its own industrial chain as well as new areas in the medical field.

Huimei Capital is a professional fund focused on healthcare investment. Relying on the ecosystem advantages of Huimei Healthcare Group, it invests in the healthcare ecosystem multidimensionally and comprehensively, aiming to build a professional investment platform with international vision and local execution capabilities to help early-stage and growth-stage healthcare companies grow rapidly. Huimei Capital closely collaborates with innovative healthcare companies experiencing high-speed growth, providing comprehensive strategic value-added services and systematic empowerment from a global perspective, while sharing its global business network and resource system with outstanding entrepreneurs.

HaoYue Capital, founded in January 2014, is a leading investment bank in China that focuses on the healthcare industry. The company's headquarters is located in Shanghai, with regional offices in Beijing and Shenzhen. HaoYue Capital is always committed to supporting with capital and being driven by research, helping outstanding enterprises in China's healthcare industry successfully connect with the capital market and create added value for clients. The partner team of HaoYue Capital consists of senior investment bankers who have been deeply involved in China’s healthcare sector for many years, and the professional team has more than 70 members. HaoYue Capital closely tracks the dynamics and investment trends of the healthcare investment market over the long term. Its research areas and transaction scope cover multiple sub-sectors such as biopharmaceuticals, innovative medical devices, IVD and life sciences, health services, and smart healthcare. In 2021, HaoYue Capital completed over 50 private equity financing, M&A integration, and complex spin-off transactions of listed companies, with a total transaction volume of tens of billions of RMB, leading across all sub-sectors of the healthcare industry.