Jinghong Medical Completes Series A Strategic Financing Led by Wuxi Innovation Investment Group and Binhu Industrial Group, with FTEC Danyan Capital as Exclusive Financial Advisor

VCBeat has learned that JINGHONG MEDICAL, a benchmark enterprise in China’s medical sterilization and supply sector, recently announced the completion of its Series A strategic financing round. The round was co-led by Wuxi Capital Group Co., Ltd. (“Wuxi Capital Group”) and Wuxi Binhu Industrial Investment and Development (Group) Co., Ltd., with participation from renowned institutions such as Shanghai Digital Industry Group and Xiaoya Capital. FTE Capital served as the exclusive financial advisor. This milestone financing not only demonstrates the capital market’s strong confidence in the medical sterilization and supply sector but also marks an accelerated phase for JINGHONG MEDICAL in advancing its nationwide chain layout, technological upgrades, and service expansion.

According to the "Research and Development Prospects Report on China's Third-Party Sterilization Industry, 2022–2028" by Zhiyan Consulting, the market size of China’s third-party sterile supply centers (covering regional sterile supply centers established by benchmark hospitals to serve themselves and their affiliated medical institutions, as well as medically outsourced sterile processing centers [MSSC] operated by social capital) reached RMB 56.28 billion in 2021, and is expected to grow to RMB 125.24 billion by 2028.

Adopting third-party sterile supply services is becoming an increasingly common choice among hospitals. This trend is driven by two main factors: on one hand, stricter regulations have made hospital-acquired infection (HAI) control a key metric in hospital accreditation, prompting greater emphasis on sterile supply management; on the other hand, many hospitals lack the space and financial resources to build their own sterile supply centers, especially given that upgrading clinical medical equipment takes higher priority. As a result, third-party sterile supply services—which ensure effective sterilization, reduce HAI risks, improve operational efficiency, and alleviate financial burdens—have emerged as the optimal solution for hospitals.

Amid an industry landscape characterized by increasingly stringent medical quality control and continuously escalating requirements for healthcare-associated infection (HAI) prevention and control, JINGHONG MEDICAL’s innovative model is unlocking significant market opportunities. Reports indicate that the market for sterile supply services for reusable medical devices in China’s healthcare institutions is maintaining a double-digit compound annual growth rate. Meanwhile, the penetration rate of specialized, large-scale third-party sterile supply services is rising rapidly, as they help hospitals reduce operational costs and enhance quality control efficiency. By leveraging its “triune” service system—comprising sterilization and disinfection, leasing services, and HAI support—along with a nationwide chain expansion strategy, JINGHONG MEDICAL has successfully established differentiated competitive advantages, earning widespread recognition from partner healthcare institutions.

As an innovative enterprise rooted in the core aspects of medical safety, JINGHONG MEDICAL adheres to the development philosophy of “branding, chain operation, standardization, and group management,” focusing on providing professional and efficient one-stop sterilization supply services for healthcare institutions. The company’s business spans diverse scenarios, including sterilization of rigid and flexible instruments, cleaning and disinfection of medical textiles, leasing of instruments and linens, and hospital infection control products and services. By implementing internal standardized management, digital monitoring, and automated equipment, JINGHONG MEDICAL has established a comprehensive quality control system across the entire process, effectively helping healthcare institutions mitigate cross-infection risks and strengthen the defense line of medical safety. Currently, JINGHONG MEDICAL has deployed 15 chain-operated sterilization supply centers across provinces and municipalities such as Shanghai, Beijing, Zhejiang, Sichuan, Hunan, Jiangsu, Guangdong, and Shandong, serving thousands of healthcare institutions.

Xu Ke, Founder and Chairman, has dedicated twenty years to the healthcare industry, with a career spanning two core sectors: third-party medical testing and preventive medicine. As a co-founder and former President of Meinian Onehealth, he led the company from its inception to establishing a network of over 700 health examination branches across more than 300 cities, successfully listing on the Shenzhen Stock Exchange and introducing Alibaba and Yunfeng Capital as strategic shareholders. During his tenure at ICL Lab (Adicon), a third-party testing enterprise, he spearheaded the IPO preparations, oversaw critical initiatives such as business architecture restructuring and compliance system development, and facilitated Adicon’s successful listing on the Hong Kong Stock Exchange.

Regarding the use of proceeds from this round of financing,Xu Ke, Founder of JINGHONG MEDICALThe company stated: “We extend our sincere gratitude to all investors for their trust and support. The funds raised in this round will be primarily allocated to three key areas: first, accelerating the nationwide expansion of our chain of sterile supply centers, with a focus on penetrating medical resource-dense regions such as East and South China; second, increasing investment in digitalization and intelligent technologies by upgrading end-to-end traceability systems and automated sterilization equipment to further enhance service efficiency and quality control precision; and third, expanding our core team and hospital infection prevention and control capabilities to perfect our full-chain service network from sterilization to distribution. Looking ahead, the company will continue to deepen its expertise in the medical sterile supply sector, empowering more healthcare institutions with standardized services and safeguarding the final line of defense for medical safety.”

Zhao Wen, Deputy General Manager of Binhu Industrial GroupAs the core hub for Wuxi’s biopharmaceutical industry and a highland for the high-end medical device sector, Binhu District is building a full-industry-chain ecosystem—from new drug R&D and device innovation to specialized supporting services—under the “industrial cluster + specialized park” model. The district has gathered more than 300 life and health enterprises, with the annual output value of its biopharmaceutical industry exceeding RMB 20 billion. Rooted in this fertile ground for innovation, JINGHONG MEDICAL has achieved rapid performance growth by precisely addressing healthcare institutions’ core demand for cost reduction and efficiency enhancement. Leveraging a chain development model driven by refined operations and digital empowerment, a “trinity” center model, and quality-centric professional cleaning, disinfection, and supply services, the company has demonstrated a clear path to profitable growth and vast market potential. Its core founding team combines deep industry expertise, a proven track record in entrepreneurship, and mature capital market operational capabilities, providing a solid foundation for the company’s scaled expansion and standardized operations. We are confident that JINGHONG MEDICAL will grow into an industry benchmark and leading enterprise, powered by its differentiated competitive advantages and sustainable development momentum.

Dr. Wu Zhengxi, Executive Vice President of Wuxi Capital GroupChina’s third-party disinfection service penetration rate remains below 10%, significantly lower than that of mature markets in Europe and the United States, indicating clear clinical demand and a market opportunity exceeding RMB 10 billion. Founder Xu Ke, together with core teams from Meinian Onehealth Healthcare and Adicon, has built competitive barriers through a “trinity” center model, robust operational capabilities, and digital empowerment. We firmly believe that this most formidable team in the market will ultimately achieve scale and commercial success.

Shanghai Digital Industry Group, Xiaoya Capital, and other co-investors allStatement: JINGHONG MEDICAL operates in a niche sector with significant scarcity. Leveraging its clear business model, solid operational foundation, and broad market prospects, the company has become a benchmark enterprise in the third-party medical sterilization supply field. We will continue to monitor the company’s development and support its high-quality growth through industrial resource synergy and capital assistance.

FTE Capital served as the exclusive financial advisor for this financing round, deeply involved in the entire transaction process, from strategic planning in the early stages to agreement negotiations in the later stages.Wang Hongye, Partner at FTE Capital"It is a great honor to assist the company in completing this round of financing. We will continue to leverage our professional expertise to provide comprehensive capital services and help JINGHONG MEDICAL become a globally leading medical sterilization supply service platform."

JINGHONG MEDICAL has successfully integrated resources from over 40 infection control experts at Grade A tertiary hospitals across China, more than 15 core R&D teams, and over 80 channel partners, covering thousands of medical institutions in hundreds of cities across more than 14 provinces. The completion of this strategic financing round will inject strong momentum into JINGHONG MEDICAL’s national expansion and technological upgrades. In the future, the company will continue to uphold its original mission of “Professionally Safeguarding Medical Safety,” focusing on standardization, chain operations, and intelligent solutions. It will continuously expand its service network and optimize its product portfolio, contributing to the standardized and high-quality development of China’s medical sterilization supply industry.

Wuxi Capital Group Co., Ltd. is a state-owned venture capital firm integrating seed, angel, venture capital, private equity, M&A, and S-fund investments. With total assets under management exceeding RMB 280 billion, the company has deeply cultivated the life and health sector, establishing a comprehensive fund system covering the entire lifecycle of biomedical and healthcare enterprises—from seed and angel stages to VC and PE. This approach delivers both capital and synergistic industrial resources to portfolio companies. Its current biomedical investment portfolio spans innovative drugs, biotechnology, and medical devices. Invested companies such as Jianshi Medical, Zhikang Hongyi, Xiantong Pharmaceutical, Shining 3D, Weimai Medical, and Ruiyue Pharmaceutical are all industry leaders with internationally competitive technological advantages in their respective niches.

Wuxi Binhu Industrial Investment and Development (Group) Co., Ltd. was established in November 2023 with a registered capital of RMB 1 billion. As a state-owned enterprise directly under the administration of Binhu District, Wuxi City, the company primarily focuses on industrial investment, park development, investment promotion and operation, equity investment, and financial services. It manages multiple subsidiaries, including Binhu Sci-Tech Innovation, Wujia Anju, and Industrial Operation, striving to become a leading provider of industrial investment and development services.

Standing at a new starting point and embarking on a new journey, Binhu Industrial Group will proactively integrate into the development of the “Five Bays and Five Cities” functional zones, strive to build a modern corporate governance system, focus on achieving rapid breakthroughs in the “Five Major Economies” and advancing the “543” industrial cluster development, accelerate the integrated upgrading of “technology + finance + industry,” promote industrial growth, empower financial venture capital and investment, and establish full-chain synergy, thereby contributing to Binhu’s accelerated efforts to create a “Beautiful Taihu Bay and Vibrant Sci-Tech Innovation Belt.”

FTE Capital is a boutique investment bank focused on the new healthcare economy, composed of professionals with diverse backgrounds in renowned investment banks, funds, and industry sectors. It is dedicated to identifying industrial upgrade opportunities within the new healthcare economy, providing financing, mergers and acquisitions, and project transaction services to enterprises in fields such as biopharmaceuticals, bio-intelligent manufacturing, high-end medical devices, and innovative services, while growing alongside outstanding founders in the industry.