Leading Investment Firms Including Grand Pharmaceutical, HighTone Capital, Gingko Valley, and Jinding Capital Actively Seeking Innovative Healthcare Projects

This issue's theme is "Investment”. In the first half of 2024, the winter chill sweeping through the global healthcare investment and financing market entered a more profound phase, with limited capital increasingly flowing toward projects with clear market expectations. Nevertheless, innovation remains the core theme in the global healthcare sector, and various related initiatives continue to persuade investors on a large scale to enter the field. Let us examine which types of innovative medical projects are favored by major capital enterprises and institutions. Details are as follows:

● Profile of Target Investment Enterprise/Project:

1. Sector: Focus on medical devices and healthcare services.

2. Stage: Pre-A to Series B; concurrently engaged in M&A transactions for medical companies that are either publicly listed or part of industrial groups, with annual net profits exceeding RMB 20 million.

●InstitutionIntroduction：

After entering the Chinese market, the Zeiss Group has increased its investment in innovation projects. One notable example is the “Fengqi” project in Suzhou Industrial Park, which marks Zeiss’s first land acquisition and self-construction initiative in China, with a total investment of USD 25 million (approximately RMB 181 million). This project will establish a global product center for the Microscopy Division’s Class B and C products, encompassing product management, research and development, production, and global distribution. It will also house part of the global production base for the Industrial Quality Solutions Division, along with its Greater China Customer and Solution Center. In addition, Zeiss’s Medical Technology Division will add production capabilities for Class II medical devices, such as surgical microscopes and ophthalmic diagnostic equipment, while expanding global procurement operations for Zeiss headquarters and various divisions.

● Profile of Target Investment Enterprise/Project：

1. Focus Areas: Prioritize domestic medical devices (ophthalmology and microsurgery, including implants), precision optical instruments, life science tools, industrial AI, and other sectors.

2. Stage: Early-stage innovation project.

●InstitutionIntroduction：

Jinding Capital, established in 2014, is a corporate venture capital (CVC) firm specializing in industrial investment. With cumulative funds under management approaching RMB 10 billion, the firm has long been deeply engaged in three key sectors: technology, healthcare, and consumer goods. Jinding Capital remains committed to cultivating highly specialized teams within niche industries through meticulous and focused efforts. By partnering with outstanding enterprises, it aims to support their sustainable growth and enduring success.

● Profile of Target Investment Enterprises/Projects：

1. Fields: Medical Devices, Medical Materials, Synthetic Biology.

2. Stage: Companies with innovative technologies in the early stage, and companies with a certain revenue scale in the mid-to-late stages.

● InstitutionIntroduction：

Ginkgo Valley focuses on the big data and cloud computing industries. It is China’s first fund built upon data infrastructure and the first industrial capital firm to proclaim and implement the strategy that “investing in the cloud is investing in the future.” With data as a key factor, it has grown into one of the leading early-stage investment firms in China, boasting the most extensive investment portfolio, the most forward-looking strategic layout, the richest ecosystem, and the strongest industrial attributes in the big data and cloud sectors. Over the past decade, the firm has deployed billions of yuan in capital across more than 300 investment projects.

● Profile of Target Investment Enterprises/Projects：

1. Fields: Including the integration of large AI models with healthcare scenarios, healthcare informatization applications, and healthcare big data.

2. Stage: Primarily focused on the early stage, while also taking into account the growth stage.

● InstitutionIntroduction：

Huayi Capital focuses on investments in the healthcare industry. Currently, Huayi manages funds targeting projects at various stages, with a primary focus on global early-stage, growth-stage, and M&A-phase healthcare ventures. While excelling in healthcare investment, Huayi aims to fulfill its social responsibilities and exert industry influence, leveraging capital to drive medical transformation.

● Profile of Target Investment Enterprise/Project：

1. Sector: Focus on scientific research instruments, cell and gene therapy (CGT), and medical aesthetics; maintain a positive outlook on specific disease areas such as Parkinson’s disease.

2. Stage: Primarily focused on healthcare projects in the early and growth stages globally, as well as those involving mergers and acquisitions.

● InstitutionIntroduction：

Huajin Capital is the direct investment platform of Huafa Group, Zhuhai’s largest state-owned enterprise, which reported annual revenue of RMB 180 billion last year. Huajin Capital also serves as a limited partner (LP) in funds such as Honghui, Huagai, IDG, and Chende. In the realm of direct investments, it is a comprehensive investment institution with assets under management at the tens of billions of yuan level, focusing primarily on three key sectors: healthcare, new energy, and semiconductors. To date, it has invested in nearly 50 biopharmaceutical and medical projects, covering various emerging technology areas and cultivating a robust corporate ecosystem. In 2023, Huajin Capital ranked among the top 15 healthcare investment institutions by Zero2IPO Research.

● Profile of Target Investment Enterprise/Project：

1) Revenue-generating medical device companies, without specific niche segments

2) Approximately RMB 30 million per investment

3) Establishing operations in Zhuhai offers more lenient conditions

●InstitutionIntroduction：

Shenzhen Capital Group Co., Ltd. manages assets exceeding RMB 20 billion, with 35 healthcare industry funds. It has invested in over 160 companies (including more than 90 healthcare enterprises) and facilitated the successful listing of 36 portfolio companies. With a China-based, global-oriented investment strategy, GTJA Investment has established operational centers in Shenzhen, Shanghai, Beijing, Hong Kong, and other locations. As a top-tier healthcare investor, it has made successful investments in Mindray Medical and United Imaging Healthcare, among others.

● Profile of Target Investment Enterprises/Projects：

1. Field: Innovative medical devices, etc.

2. Stage: Clinical Translation

●Company Profile：

Grand Pharma is a technology-driven, international pharmaceutical company with core businesses spanning three major sectors: pharmaceutical technology, radiopharmaceuticals for oncology diagnosis and treatment along with precision interventional diagnostics and therapeutics for cardiovascular and cerebrovascular diseases, and biotechnology. Grounded in the pharmaceutical and bio-industries, centered on patient needs, and powered by technological innovation, the company addresses unmet clinical demands by increasing investment in global innovative products and advanced technologies. It enriches and refines its product pipeline, consolidates and strengthens its industrial chain layout, and fully leverages its industrial advantages and R&D capabilities to provide more advanced and diverse treatment solutions for patients worldwide.

● Profile of Target Investment Enterprises/Projects：

1. Field:

1) Manufacturers of amino acids, vitamins, and nucleoside raw materials

2) API Manufacturers

3) Bio-agriculture (pesticides, fertilizers, biostimulants), animal health, plant protection (bio-fertilizers)

4) Generic amino acid drug manufacturers (including approval documents)

5) Leading Enterprises in Fermentation Platforms

6) Northern Fermentation Base (Including MSG)

7) Companies with compounding and premixing technologies

2. Investment Methods

1) Equity + Agency 2) M&A 3) Joint Venture

● InstitutionIntroduction：

Since 2014, the Company’s stock and fund trading volume has ranked first in the industry (based on data from the Shanghai and Shenzhen Stock Exchanges); the monthly active users of its mobile wealth management app, “ZhangLe Fortune Link,” have long led among industry apps, with cumulative downloads exceeding 70 million by the end of 2022; its equity underwriting, bond underwriting, and mergers and acquisitions and restructuring businesses are also at the forefront of the industry.

● Profile of Target Investment Enterprises/Projects：

1. Field: Medical devices and innovative drugs.

2. Stage: Primarily focused on early-stage projects.

● InstitutionIntroduction：

United Future Capital is a China-based industrial investment firm specializing in niche healthcare sectors, with primary investment focuses including innovative drugs, innovative medical devices, high-value consumables, and healthcare services.The LP, backed by industrial capital, empowers its portfolio companies by uncovering investment opportunities in niche sectors. It has already invested in a number of high-quality enterprises, including Baoji Pharmaceutical and Mandala.

● Profile of Target Investment Enterprise/Project：

1. Fields: Innovative medical devices, consumables, medical aesthetics products, innovative drugs, etc.

2. Stage: Late-stage development; medical devices and consumables should have a certain scale, innovative drugs should have entered Phase III clinical trials, and medical aesthetics products should be able to obtain Class III certification within the next one to two years.

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