Dilo Medical Completes RMB 420 Million Series B Financing with Continued Investment from Boxing Capital

Original Title: DEARER Completes RMB 420 Million Series B Financing, with Continued Investment from Boxing Capital

[Lieyunwang Beijing] May 1st report

Shanghai DEARER Medical Device Co., Ltd. (hereinafter referred to as “DEARER”) announced that it has recently completed a Series B capital increase of RMB 420 million. This round of financing was jointly invested by institutions including Boxing Capital, and the funds will be used for the research and development and production expansion of Class III medical device colored contact lenses (commonly known as “cosmetic contact lenses”), in order to meet the growing market demand.

DEARER serves as the headquarters of the group company, with four wholly-owned subsidiaries and one controlling subsidiary, namely Jilin Realcon Contact Lens Co., Ltd., Suzhou Realcon Technology Co., Ltd., Suzhou Keluodi Trading Co., Ltd., Korea Fukou Co., Ltd., and Xi'an Keshimei Optical Technology Co., Ltd. (collectively referred to as "DEARER Group"). DEARER Group is primarily engaged in the research, development, production, and sales of cosmetic contact lens products.

DEARER Group boasts over a decade of R&D and manufacturing experience in the colored contact lens industry. Holding patented technologies such as inner-surface coating, the Group currently maintains a competitive advantage in the comprehensive capabilities for the design and production of colored contact lenses. DEARER Group remains committed to continuously increasing innovation and investment in R&D, including the development of new materials and mold engineering, thereby achieving numerous research accomplishments.

DEARER currently holds seven Class III medical device registration certificates, covering a full product line of contact lenses including daily, monthly, semi-annual, and annual disposables. This portfolio comprises one certificate for clear lenses and six for colored contact lenses. Furthermore, DEARER possesses exclusive industry registration certificates for seven-color and pearlescent colored lenses, maximizing the company’s design advantages. With the capacity to launch over 1,000 new designs monthly and a design conversion rate as high as 30%, DEARER’s design capabilities are at the forefront of the domestic industry.

DEARER Group currently serves customers across major online and offline new retail channels for colored contact lenses, maintaining strong cooperative relationships with them. At present, the company’s production capacity is insufficient to meet customer order volumes, and it is actively advancing expansion projects. The proceeds from this financing round will be primarily allocated to the research and development of new products and to the company’s capacity expansion initiatives. Upon completion of the expansion projects, a significant leap in sales revenue is expected.

REALKOKO, a brand under the DEARER Group, is also rapidly expanding its store network.

Chen Lei, Partner at Boxing Capital, stated, “Ophthalmology has always been a key sector of focus for Boxing Capital. In recent years, the demand for colored contact lenses has grown rapidly, with substantial unmet market needs in China. Leveraging its strong R&D and design capabilities, the DEARER team has mastered a production technology platform spanning from raw materials to finished products, establishing itself as a leading colored contact lens enterprise in China. Amid the broader trend of consumption upgrading, we remain firmly optimistic about the company’s future growth prospects.”