Jinjiang Electronics Secures Hundreds of Millions RMB in Series A Funding Led by Hillhouse Ventures to Advance Domestic Magnetic-Positioning 3D PFA Platform

VCBeat learned that Sichuan Jinjiang Electronic Science and Technology Co., Ltd. ("Jinjiang Electronic"), a long-standing leading enterprise and innovative leader in China's electrophysiology industry, has recently completed a financing round of several hundred million RMB in its Series A round. This round of financing was invested by GL Ventures, with Haoyue Capital serving as the exclusive financial advisor.

This round of financing will be used to advance the registration clinical trials of several key electrophysiology products by Jinjiang Electronic, as well as the subsequent research and development of a series of innovative products. It will also continuously improve the company's organizational structure and commercialization system, comprehensively enhancing its comprehensive competitive advantage in the electrophysiology field both in China and globally.

China has a huge patient population with arrhythmia. According to the latest statistics, there are approximately 20 million patients with tachyarrhythmia in China, of which more than 10 million suffer from complex arrhythmias represented by atrial fibrillation. A large number of clinical studies have shown that electrophysiological surgery is more effective than drug therapy for treating such patients. In 2020, the volume of electrophysiological surgeries in China was close to 200,000, with an overall market size of nearly 10 billion yuan. The electrophysiology industry has achieved a compound annual growth rate of about 30% over the past decade and continues to maintain a high growth trend.

A vast patient population has given rise to a huge market space. However, compared with coronary intervention surgeries, the growth of electrophysiology procedures is still constrained by existing technologies. Data shows that the number of atrial fibrillation (AF) patients in China is around 10 million, similar to the number of coronary heart disease patients, but the number of surgeries is far behind. In 2020, the total number of AF surgeries was about 70,000, while the number of coronary intervention surgeries in the same year had already reached over 1 million. The reasons mainly come from the following three aspects:

For this reason, the electrophysiology industry has been exploring truly breakthrough technologies. Looking at the development and current state of China's electrophysiology industry, a notable characteristic is the long-term market monopoly by imported brands. The main reason for this is that in the field of cardiac electrophysiology, especially in the treatment of complex arrhythmias represented by atrial fibrillation, the comprehensive competitive barriers of product portfolios are extremely high. Electrophysiology manufacturers can only possess sufficient product portfolio competitiveness by building a complete solution encompassing "system + equipment + consumables," with the electrophysiology 3D system being the core competitiveness of major manufacturers.

However, the product lines of most domestically produced electrophysiology companies tend to be relatively单一. If they only have ablation equipment and consumables but lack the support of a three-dimensional system, it will greatly限制the development of atrial fibrillation surgeries. In complex arrhythmia surgeries, key surgical steps by electrophysiologists are mostly performed under the guidance of a three-dimensional system. Information used during the surgery, such as heart structure and electrical activity, mapping and ablation catheter data, ablation energy and tissue response information, and surgical process details, are all presented within 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 both 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 these 3D systems, multinational enterprises continuously iterate related products and upgrade technologies: force-irrigated ablation catheters, 3D ultrasound catheters, high-precision mapping catheters, 3D sheaths, quantified ablation index, automatic mapping technology, and more. The emergence of these new technologies, all centered around 3D systems, has continuously improved the efficiency and safety of electrophysiological procedures, further solidifying 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 3D systems, it will be difficult for them to truly compete with multinational companies in the electrophysiology industry.

Pulsed Field Ablation (PFA) is performed through an extremely short duration (10^-9~10^-6seconds) of high-intensity electric field stimulation, utilizing the coupling effect between the electric field and cells to specifically disrupt the cell membrane structure of targeted cells, break the physiological balance of the cells, and thereby achieve 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 atrial fibrillation ablation boasts high success rates (100% immediate pulmonary vein isolation success rate), superior safety (non-thermal ablation and strong tissue selectivity, extremely low complication rates), low surgical difficulty, and a short learning curve, demonstrating significant technical advantages and perfectly addressing obstacles in the current electrophysiology industry’s development.

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, with PFA becoming the largest contributing factor to the growth in surgical volume. 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 countless 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 presents 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 like persistent atrial fibrillation.

Jinjiang Electronic is the first company in China to launch a magnetic and electric positioning 3D PFA solution. The PFA products of Jinjiang Electronic have magnetic and electric positioning functions, which can be seamlessly integrated with the company's own magnetic and electric positioning 3D system. Combined with pressure-sensing catheters, high-precision mapping technology, etc., it forms a complete solution for electrophysiological surgery.

In addition to possessing all the advantages of PFA, compared with 2D PFA technology, this solution has significant advantages such as a wide range of surgical indications (suitable for all arrhythmia surgeries), green electrophysiological surgery (enabling X-ray-free procedures and significantly extending the professional lifespan of surgeons), a short learning curve, and smooth surgical operation. The "LEAD-PFA Pulsed Field Ablation System" registered clinical trial was launched in July 2021 and completed all case enrollments in just over four months. It has now entered the follow-up stage and is expected to become the first pulsed field ablation system approved for marketing by NMPA in China, 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 was founded in Chengdu, Sichuan in 1991. For three decades, it has been dedicated to the cardiac electrophysiology industry, consistently focusing on independent research and development, and striving 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 relevant technologies for equipment and consumables used in electrophysiological surgeries. Its product portfolio covers all related products for electrophysiological procedures, including magnetic and electric 3D systems, electrophysiological multi-channel recorders, radiofrequency ablation generators, PFA ablation systems, radiofrequency ablation catheters, electrophysiological mapping catheters, needle sheaths, and more.

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 has been accumulated through time and experience. Starting simultaneously with China's electrophysiology industry, under the leadership of Mr. Li Chuya, the company's founder and technical director, Jinjiang Electronic's R&D team has been dedicated to the research and development of electrophysiology products and technological breakthroughs for 30 years: In 1991, they developed China's first radiofrequency ablation device (which won the Second Prize of the National Science and Technology Progress Award); in 1995, they developed China's first fully digital multi-channel electrophysiological recorder; in 2009, they developed China's first three-dimensional electric field mapping system; in 2020, they developed China’s first (and currently only) magnetic and electric three-dimensional PFA...

It can be said that the high stability of its technical and R&D team has given Jinjiang Electronic sufficient time to achieve a profound 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 address industry pain points based on 30 years of technical foundation. For the first time, they combined the magnetic and electrical three-dimensional system with PFA, bringing a completely new transformation and breakthrough to atrial fibrillation electrophysiology.

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

(1) In 2004, Jinjiang Electronic developed and produced a multi-pole radiofrequency ablation device for Bard, a company then ranked among the top three in the global electrophysiology sector. Through its cooperation with Bard, Jinjiang Electronic not only broke through the core technology of multi-pole discharge (one of the underlying technologies of PFA), but more importantly, under Bard’s guidance and requirements, Jinjiang Electronic established a comprehensive R&D, production, and quality management framework system in accordance with FDA standards. Since then, the performance of Jinjiang Electronic's equipment has significantly improved.

(2) In 2011, Jinjiang Electronic acquired CARDIMA, a company listed on NASDAQ in the United States, and fully obtained internationally leading R&D and production capabilities for a complete set of consumables. Based on this, it established a comprehensive electrophysiology technology platform encompassing both equipment and consumables, achieving significant breakthroughs in products addressing complex arrhythmias: In 2017, it developed the second-generation magnetic and electrical positioning 3D system; in 2020, it successfully developed a pressure-sensing ablation catheter; by the end of 2020, it successfully developed China's first PFA ablation system based on magnetic and electrical positioning 3D technology, and in April 2021, obtained the first PFA product type inspection report in China.

In November 2021, Jinjiang Electronic successfully completed the 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 the electrophysiology solution centered on the magnetic and electrical positioning 3D system and PFA will allow Chinese electrophysiology companies to lead globally and compete directly with international manufacturers in the core field of the electrophysiology industry.

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

"Believing is persevering, and persevering brings brightness," this phrase perfectly interprets the development philosophy of Jinjiang Electronic. Opportunities are always for those who are prepared. Jinjiang Electronic's 30 years of accumulation in the electrophysiology industry has finally borne fruit, and the partnership with GL Ventures came naturally. Under the leadership of the management team and the hard work of all employees, Jinjiang Electronic is confidently moving towards the next great 30-year goal.

Mr. Chuwen Li, Founder and General Manager of Jinjiang ElectronicIt is stated that the achievements made today are the result of Jinjiang Electronic's entire staff's thirty years of dedication to the field of cardiac electrophysiology, actively following advanced domestic and international technological achievements, as well as the company’s annual R&D investment of no less than 20% of its revenue. Thanks to the recognition and support from GL Ventures and many other institutions! Thanks to the professionalism and dedication of the VCBeat team, which ensured the smooth completion of this financing project. We look forward to welcoming all-around new talents to strive for a brand-new leader in cardiac electrophysiology—Jinjiang Electronic!

Mr. Li Chuya, Founder and R&D Director of Jinjiang ElectronicIt was noted that 1990 was a "revolutionary" year for China's electrophysiology field, as the First Great Wall International Congress of Cardiology (Great Wall Conference) was held in Beijing. Jinjiang Electronic had the honor of witnessing this moment and was also the only domestic and international manufacturer present at the conference with a product (RF Radiofrequency Instrument). Over the past 30 years of rapid development in China's electrophysiology field, Jinjiang Electronic has been a constant companion, unwavering in its commitment to innovation, excellence, and sharing the experience of technological progress with users (doctors and patients). We were the first to arrive, and we will certainly strive to be the best, continuously striving and surpassing ourselves with our original intention, craftsmanship, and determination. Over these 30 years, it is not because we had hope that we persisted, but because of our persistence that hope and brightness emerged. Jinjiang Electronic is ready to redouble its efforts to provide affordable world-class products for the vast number of arrhythmia patients in China. Today, Jinjiang Electronic is recognized, affirmed, and trusted by experts and investors alike, for which we feel genuinely gratified and thankful. With your support, through collective efforts, we believe we will achieve excellence and greatness, and together create an even brighter future for cardiac electrophysiology in China.

Project Director of GL VenturesIt is noted that China's cardiac electrophysiology industry is still in the early stage of development, with significant unmet clinical needs and broad market potential. Pulsed Field Ablation (PFA), as an emerging catheter ablation therapy, has prompted both multinational and domestic electrophysiology companies to increase R&D investment. In the future, PFA is expected to become a primary procedure in electrophysiology, driven by joint efforts from various enterprises. Leveraging 30 years of profound expertise in the electrophysiology field, Jinjiang Electronic has independently developed China’s first comprehensive electrophysiology solution based on magnetic and electrical 3D PFA. This innovative solution offers numerous advantages such as safety, efficiency, convenience, and cost-effectiveness in treating complex arrhythmias like atrial fibrillation. It is expected to significantly lower the clinical application threshold for electrophysiological catheter ablation, thereby accelerating the rapid development of the electrophysiology industry. We support Jinjiang Electronic in continuously developing more globally leading products in the cardiac and electrophysiology fields, bringing more innovative comprehensive solutions from China to doctors and patients both domestically and worldwide.

Mr. Zhu Bi, Vice President of Haoyue CapitalIt is noted that the cardiac electrophysiology track is the one with the highest technical barriers in the field of cardiovascular intervention, and only sufficient technological accumulation can break the industry monopoly held by foreign enterprises. Jinjiang Electronic is the only electrophysiology company that has accompanied the start and development of China's electrophysiology industry. The unique advantages of Chengdu have given the company ample time and space to accumulate and develop. The current Jinjiang Electronic is built on 30 years of technological accumulation from Jinjiang Electronic and 20 years from CARDIMA to achieve its present product accomplishments. China’s electrophysiology industry may not have another 30 years to allow new companies to accumulate from scratch. In a sense, Jinjiang Electronic is the only one in China’s electrophysiology field. Personally, I have been fortunate to have worked in the electrophysiology industry for over 10 years, having known Jinjiang Electronic since 2009, and have witnessed the continuous iteration and development of the company’s products and technology along the way. I am confident in the company’s product advantages and feel honored to help the company complete this round of financing. We at VCBeat Capital firmly believe that with the launch of the company’s magnetic and electrical positioning 3D PFA products and the support of capital, Jinjiang Electronic will become a leading platform enterprise in the electrophysiology field in China and even globally.

GL Ventures, the venture capital platform under Hillhouse, focuses on early-stage innovative companies. It covers key areas such as hard technology, software, biotechnology, new materials, emerging brands, and consumer technology. GL Ventures seeks out all entrepreneurs who are passionate about technology and believe in innovation. We aim to be the FIRST CALL for entrepreneurs seeking funding, and we look forward to accompanying them on their entrepreneurial journey for the long term.

HaoYue Capital was founded in January 2014 and is committed to becoming the bridge connecting China's healthcare industry with capital. HaoYue Capital’s research areas and transaction scope cover multiple sub-sectors, including biopharmaceuticals, innovative medical devices, IVD and precision medicine, medical services, and smart healthcare. The team at HaoYue Capital consists of senior investment bankers with many years of experience in China's healthcare sector. They closely track market dynamics and investment trends in healthcare investments over the long term, issuing weekly healthcare investment reports and thematic research studies, offering insights under the "HaoYue Perspective" on new policies and frontiers.