REJOIN Medical Completes Hundreds of Millions RMB Series B Financing, Emerges as a Leader in Sports Medicine with Comprehensive Product Portfolio

Recently, Rejoin Medical, a leading enterprise in the sports medicine sector, announced the completion of a Series B funding round worth hundreds of millions of RMB. The round was led by Vertex Ventures, with Addor Capital participating as a co-investor, and existing shareholder Simiao Capital making additional investments, underscoring strong confidence from the capital market in both Rejoin Medical and the sports medicine industry. It is reported that the proceeds will be allocated to new product development, R&D of basic materials, the establishment of domestic and international sales teams, and professional marketing campaigns.

Rejoin Medical is a minimally invasive orthopedic company focused on sports medicine, ranking among the first tier in China's sports medicine sector, with over 50 proprietary patents,Dedicated to providing simpler, more reliable comprehensive solutions for physicians and patients in the fields of sports medicine and minimally invasive orthopedics.Currently, the company has successfully established an ecosystem encompassing in-house basic material R&D, product development, and industrial-scale production, whileObtained 6 NMPA Class III registration certificates, 5 Class II registration certificates, and CE certificates for 18 products,Products are distributed to dozens of countries worldwide, covering nearly 1,000 hospitals.

Xu Shengjun, founder of Rejoin Medical, has over 20 years of experience in the orthopedics field. He founded Rejoin Medical in 2010 and has collaborated with internationally renowned orthopedic device manufacturers such as Zimmer Biomet. During this period, he has accumulated extensive experience in orthopedic product manufacturing and gained profound insights into the global sports medicine sector.

The United States is currently the world's largest sports medicine market. According to data from Global Market Insights, the global sports medicine market was valued at over US$5.9 billion in 2018, with the United States accounting for a 30% share of the global market.

Xu Shengjun stated that, given China's large population base and the widespread adoption of minimally invasive techniques, along with the steady annual increase in both sports injuries and the aging population, China is poised to become the fastest-growing region in the sports medicine market. Consequently, in 2014, Rejoin Medical began independently developing sports medicine products.

Following several years of rapid development, sports medicine has emerged as a popular and rapidly growing field in orthopedics in China. According to statistics, the sports medicine market in China is projected to achieve a compound annual growth rate (CAGR) of 23.4% from 2015 to 2021, with the market size expected to reach RMB 3.9 billion by 2021. Capitalizing on the rapid expansion of the sports medicine sector, Rejoin Medical has secured a position in the first tier of the sports medicine industry in China through its comprehensive product portfolio, sustained R&D investment, superior manufacturing capabilities, and well-structured team and asset allocation.

China's sports medicine industry is currently in its early stage of development, with foreign enterprises holding a first-mover advantage in market introduction. The three international giants collectively account for over 85% of the market share. The industry still faces numerous pain points, primarily reflected in two aspects: first, insufficient innovation capabilities, and second, a low level of internationalization.

Pain points also signify opportunities. Confronted by a market crowded with foreign enterprises, Rejoin Medical rose to the challenge by focusing on two strategic directions: driving product innovation to deliver an exceptional customer experience, and advancing global expansion, thereby forging a differentiated competitive advantage.

Regarding product innovation, Xu Shengjun stated: "The essence of business lies in continuous innovation and the courage to take risks, which enables an enterprise to maintain a leading position. We must not only dare to be number one in China, but also dare to be disruptors, and at all times dare to lead and surpass."Rejoin Medical does not merely offer standalone products, but rather a comprehensive suite of solutions encompassing instruments, consumables, and implants. Through exceptional product performance and integrated solutions, it delivers an optimal surgical experience for physicians, helping to flatten the learning curve and reduce operative time.”

Guided by the principles of global integration, localized R&D, and continuous self-disruption through innovation, Rejoin Medical, combined withSurgical Characteristics and Practices of Chinese DoctorsIntegrating the product advantages of global brands to develop solutions better optimized for clinical applications, while maintaining product iteration and R&D synchronized with Europe and the United States. Substantial investment in innovation has ensured that the company's core products have achieved...One generation commercialized, one in the pipeline, and one in development.Among the products currently successfully developed by Rejoin Medical, over 40 have no competitors or only very few competitors in China. In the future, more new products and surgical procedures will be introduced to the global market.

The correct path to delivering an exceptional product experience for customers lies in possessing high-quality capabilities that meet international standards.

Rejoin Medical's precision machining capabilities date back to 2010. Through partnerships with internationally renowned brands such as Zimmer Biomet, and by operating under an OEM model that strictly complies with FDA standards, the company has cultivated a substantial team of technical engineers, quality engineers, and skilled technicians. While the application of hybrid bioabsorbable materials in sports medicine has long remained at the laboratory stage in China, Rejoin Medical chose to engage in direct, in-depth collaboration with seasoned scientists across Europe and the United States to achieve industry leadership and surpass global benchmarks. In terms of braiding capabilities, Rejoin Medical has assembled an R&D team with extensive research experience from internationally prominent companies, ensuring product quality that aligns with the standards of top-tier global brands.

The creation of every premium product is rooted in an exceptional team. Meticulously refined through the collaboration of China’s leading physician advisory team, Europe’s premier industrial design firms, and seasoned engineers, our products deliver a simpler, more reliable intraoperative experience for physicians. The seamless integration of ergonomics and aesthetics embodies the core philosophy of the Rejoin brand: high quality, reliability, modernity, youthfulness, and vitality.

“Sustained investment in R&D and academic research is a prerequisite for achieving world-class, high-quality capabilities!”Xu Shengjun thus defines Rejoin Medical's philosophy on R&D and academic research.

Over the next three years, Rejoin Medical will further upgrade its training center.REJOIN Academy. The mission of REJOIN Academy is: to provide a personalized academic platform for Chinese and international sports medicine physicians,Establish progressive training programs tailored to clinicians at different career stages. Guided by an academic commitment firmly rooted in China, we will accelerate the clinical application of new products, innovative surgical techniques, and novel concepts nationwide. Through exemplary industry-academia-research collaboration, we will drive the advancement of sports medicine both domestically and internationally. With a profound sense of mission, we are dedicated to elevating the international academic influence of Chinese sports medicine. Looking ahead, Rejoin Medical plans to establish a foundation to actively promote international visiting scholar programs for young and mid-career Chinese sports medicine physicians, alongside domestic visiting scholar initiatives targeting practitioners in economically underdeveloped regions of China.

In terms of international expansion, due to the high entry barriers in international markets, enterprises must possess awareness of global patent protection, as well as capabilities in distributor management, global R&D, global supply chain management, and academic promotion in local markets. Therefore, international expansion is a gradual process. Currently, Rejoin Medical has advanced from the initial stage of international trade to...Overseas Localization Marketing PhaseThe company has secured effective global patent protection, established localized marketing strategies for overseas markets, and its products have entered dozens of countries worldwide.

The Chinese orthopedic market is currently in`Technology Iteration Phase`，It is foreseeable that in the coming decades, orthopedics will transition from highly invasive, high-risk treatment modalities to minimally invasive arthroscopic surgery characterized by smaller incisions, lower risks, and shorter operative times. Alongside the increased utilization of biomaterials, the market prospects for sports medicine in China are highly promising.

Although the United States is currently the largest market in sports medicine, China's massive population base and robust industrial foundation position it to achieve a leapfrog breakthrough in this sector in the future. Therefore, Xu Shengjun predicts: "Domestic enterprises are facing tremendous development opportunities. In the future, Chinese sports medicine companies will secure considerable brand influence and market share globally, creating a competitive landscape where Chinese firms, represented by Rejoin Medical, will compete head-to-head with two or three leading enterprises from Europe and the United States."

Rejoin Medical is rapidly advancing along the promising track of sports medicine and minimally invasive orthopedics. Capitalizing on the development opportunities within the sports medicine sector, Rejoin Medical will continue to deepen its market presence, continuously optimize its product portfolio, and launch more innovative products. It is reported that in 2021, the company will secure Class III or Class II registration certificates for multiple product series, including all-suture anchors. Meanwhile, Rejoin Medical will further accelerate its expansion into overseas markets, progressively establish a global R&D network and supply chain, and remain firmly committed to building a sustainable, sports-medicine-focused minimally invasive orthopedic enterprise.

Regarding this funding round, Zheng Juncong, Managing Partner at Vertex Ventures, stated: One of Vertex Ventures’ core investment philosophies in the medical device sector is to align with major market trends by investing in high-quality companies that combine innovation with platform potential. Driven by rising per capita disposable income and an aging population in China, the sports medicine market presents vast opportunities. Although foreign brands have long dominated the sector and surgical volumes have grown rapidly in recent years, sports medicine has remained a key investment track we closely monitor. Through comprehensive research and evaluation, we have found that Rejoin Medical ranks among the top domestic brands in brand recognition, product quality, portfolio depth, and market share. Founder Mr. Xu Shengjun possesses a highly distinctive strategic vision. Under his leadership, the outstanding team has demonstrated a rare spirit of craftsmanship in brand building, product layout, and corporate capacity development, achieving remarkably solid results. Notably, the company proactively established a robust international market presence early on, with its product quality earning global recognition. We regard Rejoin Medical as a leading platform company in China’s sports medicine sector, holding strong potential for import substitution. Vertex Ventures is committed to empowering such enterprises with a service-oriented mindset.

Mr. Xue Yi, Senior Partner at Addor Capital, stated that orthopedics is a key focus area for the firm. Sports medicine, as the most promising sub-sector within orthopedics, represents a crucial strategic investment layout for Addor Capital through its funding of Rejoin Medical. Globally, the sports medicine market in developed regions such as Europe and the United States is relatively mature in terms of market cultivation and penetration rates, whereas the industry in developing countries, represented by China, remains in its nascent stage. Driven by the public's growing emphasis on sports and health, sports medicine has developed rapidly in China in recent years. However, the proportion of related equipment and consumables produced in China remains low. Consequently, the sports medicine sector possesses the dual attributes of consumption upgrade and import substitution, presenting enormous potential for future growth. As an emerging sports medicine medical device company, Rejoin Medical boasts a team with deep industry expertise, outstanding capabilities, and a well-balanced structure; its products deliver excellent performance and reliable quality; and it features a robust product pipeline alongside strong independent R&D capabilities. We believe that as the company's strategic initiatives are progressively executed, Rejoin Medical holds great promise to emerge as a leading enterprise in China's sports medicine sector.

Chai Zhiying, Partner at Simiao Capital, stated: "Sports medicine represents the largest market segment following traditional orthopedic trauma, spine, and joint. The sports medicine sector as a whole is characterized by high technical barriers and a limited number of competing manufacturers. Currently, over 90% of the Chinese market remains dominated by imported brands, which are highly concentrated. Through years of sustained R&D investment, Rejoin Medical has achieved breakthroughs in numerous core technologies, and the performance of its mass-produced products is on par with top-tier imported brands. Meanwhile, founder Mr. Xu Shengjun is driven by exceptional professional aspirations; he has not only supplied a wide range of high-quality, innovative products to advance the domestic sports medicine industry, but has also devoted tremendous effort to professional education and talent development in this field. We are honored to partner with such an outstanding entrepreneur in our shared endeavor to build the premier Chinese-made sports medicine brand."

Established in 1988, Vertex Ventures is one of the earliest venture capital firms in Asia and a member institution of Singapore's Temasek Holdings. The Vertex Ventures China Fund commenced operations in China in 2008, with assets under management exceeding RMB 10 billion. Vertex China is dedicated to investing in high-growth innovative enterprises, strategically focusing on three key sectors: innovative technology, the new digital economy, and healthcare. Its healthcare investment portfolio includes Chipscreen Biosciences [688321.SH], Harbour BioMed [02142.HK], Phoenix Healthcare Group [01515.HK] (now CR Medical), Xingkangyuan, Jingfeng Medical, Binhui Biotech, Regor Pharmaceuticals, Chuangxiang Biotech, Reco Biotech, Jiuno Medical, and BioAurum Pharmaceuticals.

Addor Capital was established through an internal mixed-ownership reform of a long-established and renowned venture capital institution—Jiangsu High-Tech Investment Group. It consistently ranks among the top in the industry in terms of industry research capabilities, assets under management, and investment specialization, making it one of the most influential venture capital institutions in China.

Pursuing long-term value, investing in cutting-edge technologies. Leveraging years of industry expertise, Addor Capital has established a comprehensive equity investment fund system that serves the full lifecycle of innovation and entrepreneurship. Its investment coverage spans multiple strategic emerging sectors, including clean technology, healthcare, new materials, advanced manufacturing, smart transportation, consumer services, cultural industries, and TMT.

As of June 2021, the management team of Addor Capital had cumulative assets under management totaling RMB 114.1 billion, having invested in and supported 1,021 startups, and facilitated the listing of 211 of these enterprises on domestic and overseas capital markets.

Simiao Capital is a venture capital fund dedicated to China's healthcare and medical sector. Guided by the principle of "Passionate about innovation, creating value," the firm has invested in numerous outstanding enterprises, including Venus Medtech, Zhiyun Health, and Xinmai Medical. Moving forward, Simiao Capital will maintain its strategic focus, striving to create value for more companies and grow alongside entrepreneurs.