Arthrone Secures Over RMB 100 Million in Series B Funding Led by HM Capital

VCBeat (WeChat ID: vcbeat) has learned that Beijing Arthrone Co., Ltd. (hereinafter referred to as “Arthrone”), a leading domestic artificial joint enterprise, recently announced the completion of its Series B financing round, exceeding RMB 100 million. The round was led by Huimei Capital, with participation from Cowin Capital, Saiying Capital, and Decai Investment. WinX Capital served as the exclusive financial advisor.

Arthrone, established in 2017, specializes in the research and development, manufacturing, and sales of orthopedic artificial joints. Boasting China’s premier ceramic materials R&D team, it is the only domestic joint implant company that has mastered the production technologies for both zirconia and alumina ceramics. Its independently developed ceramic hip prostheses have broken the technological monopoly held by foreign manufacturers and filled a gap in the Chinese market.

In recent years, the artificial joint market has experienced rapid growth. According to Orthoworld research, artificial joints accounted for 37% of the orthopedic market in 2018, with revenues reaching $18.9 billion, making it the largest category—indeed, “he who wins the joint market wins the world.” Meanwhile, although the size of China’s joint market has continued to rise year after year, imported devices still dominate the market, and domestically produced joint devices still have a long way to go. In response to the current market situation, Arthrone has clearly defined its development direction since its inception, gradually establishing a comprehensive patent layout and intellectual property protection in the field of joints. Today, it not only offers highly cost-effective products such as zirconia and alumina ceramic hip joints but has also collaborated with the University of Bologna in Italy to develop Hike Knee, an outstanding prosthesis that is the world’s first to align with the knee motion curves of East Asian populations.

Mr. Zhang Jifeng, Chairman of Arthrone, stated: “Arthrone is a technology-driven innovator in the orthopedic device industry. Since our inception, our team has overcome numerous challenges to establish distinct technological advantages and robust technical barriers. Looking ahead, we will remain deeply rooted in the orthopedic field, progressing steadily with an unwavering commitment to improving patients’ quality of life. By leveraging technological innovation, we are dedicated to providing better treatment options for physicians and patients worldwide.”

Mr. Luo Rushu, Founding Partner of Huimei Capital, stated: “Artificial joints account for nearly 40% of the global orthopedic market, making them the largest category. Meanwhile, the joint segment is the fastest-growing niche within the orthopedic implant industry. We value the immense market potential of artificial joints in China, but even more so, we appreciate Arthrone’s outstanding R&D team and its profound technological expertise. I believe that this round of financing completed by Arthrone, along with the consensus reached with the team throughout the process, will help Arthrone achieve more robust and rapid growth, establishing it as a key player in China’s joint sector.”

Dr. Pang Yuxuan, Deputy Director of Investment at Cowin Capital, stated: "Arthrone is a vibrant and highly motivated team that has achieved rapid growth over the past few years. Its independently developed ceramic hip prostheses have broken the technological monopoly held by foreign manufacturers while offering significant cost advantages. Under the national volume-based procurement policy, innovative enterprises will have greater room for development."

HuiMei Capital (HM Capital) is a vertical fund within the Hillhouse Capital Group ecosystem, specializing in healthcare and medical investments. Leveraging the ecosystem advantages of Asia’s private equity giant and top-tier international medical institutions, it invests in the healthcare and medical ecosystem through multi-dimensional and comprehensive approaches. Committed to building an industrial investment platform with global vision and local execution capabilities, HuiMei Capital helps early-stage and growth-stage healthcare and medical enterprises achieve rapid development.

Cowin Capital is one of China’s first professional private equity investment firms. With 20 years of investment management experience, it manages assets exceeding RMB 20 billion, has invested in over 500 companies, and successfully facilitated the public listings of more than 90 portfolio companies. It stands as a leading domestic professional investment institution with a long operational history and consistently outstanding returns.

Saiying Capital is a professional private equity investment management institution focused on investments in the pharmaceutical, healthcare, and life sciences sectors. It was jointly established in 2016 by Saisheng Pharmaceutical (SZ: 300485), Yizhuang State-owned Capital Investment and Operation Co., Ltd., and the Yizhuang Biomedical Industrial Park. Headquartered in the Beijing Economic-Technological Development Area (Yizhuang), Saiying Capital currently serves as a vice-chairman unit of the Biomedical Professional Committee of the Beijing Venture Capital Association and is an observer member of the Asset Management Association of China.

The fund management team of Saiying Capital possesses profound expertise in the pharmaceutical and healthcare industries, along with extensive experience in venture capital. Since registering as a private equity fund manager in 2016, the firm has managed three specialized pharmaceutical venture capital funds: the "Beijing Yizhuang Biopharmaceutical M&A Investment Fund (Phase I)," the "Beijing Yizhuang Biopharmaceutical Industry Investment Fund (Phase II)," and the "Beijing Yizhuang SME Biopharmaceutical Venture Investment Fund (SME Fund)," with total assets under management exceeding RMB 2 billion. To date, Saiying Capital has completed investments in more than twenty healthcare projects, earning consistent recognition from its limited partners and project collaborators.

DeCai Investment is a wholly-owned subsidiary of Dezhou Caijin Group. Leveraging the Group’s AA+ issuer credit rating and diverse financial instruments such as financial leasing and commercial factoring, it adheres to the integration of industry and finance and innovates financial thinking. By adopting business models like “equity + debt,” “fund + base,” and “state-owned capital + social capital,” it has strategically focused on key sectors including new energy, new materials, and pharmaceuticals and healthcare. It has sequentially initiated and established funds such as the Dezhou DeCai Industrial Innovation Fund and the Dezhou Songguo Equity Investment Fund, with a total scale of RMB 705 million, thereby facilitating industrial transformation and upgrading as well as the development of the real economy.