Medong HC Files IPO Prospectus: Expanding from Minimally Invasive Surgery and Life Science Tools into Home Healthcare

VCBeat recently learned that,A Leading Domestic CDMO for Minimally Invasive Surgery and a Large-Scale Intelligent Manufacturing Platform for Life Science Laboratory Equipment and Consumables——Meidong Huicheng, inCompleted hundreds of millions in financing in December 2022. This round of financing was led byLuxin Venture Capital Group Co.,Ltd. Leads the Investment，Hefei Ruicheng Fund and Shanshi Capital participated as co-investors，Yuan Yi Capital & Multi-Dimensional CapitalServing as financial advisor and will continue to be responsible for subsequent financing rounds.. The funds raised from this financing will be used for the research and development of new products, marketing and operations in global markets, and supplementing working capital.

This financing round marks the third completed by Meidong Huicheng within the past two years. The company has previously attracted investment from prominent firms including Sequoia Capital, Defu Capital, Yida Capital, Zhuopu Capital, Yongxin Fangzhou, and Anjie Technology.To date, it has cumulatively secured hundreds of millions of yuan in financing.。

"Capital’s Darling" Meidong Huicheng: How Did It Capture China’s Medical Device and Life Science Tools Market After Securing Hundreds of Millions in Funding Within Two Years?

On the one hand, it is about strategic positioning within the sector; on the other, it lies in core competencies in R&D capabilities and manufacturing processes.

Meidong Huicheng has always adhered to the “Suitable for China's Intelligent Manufacturing” principle,Full industrial chain layout covering design, R&D, materials, molds, and manufacturing。“Minimally Invasive Surgical Medical Devices”、“Life Science Laboratory Reagents, Equipment, and Consumables", and "Home Medical Devices”, recognized by Meidong Huicheng as a typical representative suitable for achieving large-scale intelligent manufacturing in China.

According to data provided by Meidong Huicheng, the market size of minimally invasive surgical instruments reached RMB 22.9 billion in 2021 and is projected to expand to approximately RMB 43 billion by 2025. However, this market is currently still dominated by imported brands. The domestic substitution rate for endoscopic staplers, considered an “essential access point for minimally invasive surgery,” stands at approximately 32%, while the substitution rate for ultrasonic scalpel products remains below 10%.

Seizing the opportunity for domestic substitution of minimally invasive surgical instruments under China’s centralized procurement trend, Meidong Huicheng achieves cost reduction and efficiency improvement across the entire industry chain—from R&D to application—through its CDMO business model. The company’s comprehensive solutions for minimally invasive surgery cover six major product series: endoscopic products, energy-based devices, open surgery products, hemostasis products, access products, and colorectal products. Among these,“Manual and电动 laparoscopic staplers and their配套 components” are the core products of Meidong Huicheng, ranking at the top domestic level in both R&D capability and production capacity.

In the field of minimally invasive surgery, Meidong HuichengNearly 80% of commercial revenue is generated by flagship products, primarily manual endoscopic staplers, electric endoscopic staplers, and their full range of components., the company's standardized components are currently alsoHas entered overseas markets, a wider variety of overseas business models will also gradually emerge.

In the life sciences sector, Meidong Huicheng is among the first companies in China to integrate the R&D, manufacturing, and sales of laboratory equipment, reagents, and consumables.Amidst the formidable challenge of industry giants like Thermo Fisher Scientific capturing over 90% of the commercial market, Meidong Huicheng has nonethelessAchieved end-to-end cost reduction and efficiency improvement from source to application., intelligently manufacture cost-effective products.

Meidong HuichengLeveraging Automated Liquid Handling Workstations as the Entry Point in the Equipment Sector, with future plans to gradually expand to manual pipettes, centrifuges, and more. Not only that, Meidong HuichengAlso offers a comprehensive portfolio of life science consumables., capable of meeting the consumable needs for experimental operations such as pipetting, PCR, nucleic acid extraction, centrifugation, cryopreservation, and cell culture.

Following steady growth in both the minimally invasive surgical instruments and life sciences tools businesses,Meidong Huicheng Begins to Focus on the “Home Healthcare” Sector. Against the backdrop of the COVID-19 pandemic, residents’ demand for and awareness of “home healthcare” have reached unprecedented levels; however, China’s home medical device market remains constrained by the “shortcoming” of “core components.”

Meidong Huicheng’s Imminent Mass Production LaunchPortable Oxygen Concentrator, and is poised to overturn the stereotypical perception of “Chinese-made home medical devices” from multiple dimensions, including technology, cost, and innovation. This portable oxygen concentrator was designed by a winner of the German Red Dot Design Award and measures approximately 30 cm in size.³, featuring a more ergonomic and user-friendly design that delivers oxygen with a concentration of over 90% for approximately 12 hours, marking a breakthrough in user experience. The company will subsequently expand its product portfolio to include traditional oxygen concentrators, pulse oximeters, and anti-snoring respiratory therapy devices, thereby empowering the home healthcare sector.

Meidong Huicheng has achieved numerous breakthroughs, from technology to products, across various sectors with low domestic substitution rates. Meanwhile, the company has successfully commercialized this diverse and extensive product portfolio.

Currently,The company’s CDMO business in minimally invasive surgery has covered more than 200 clients across China, with a market coverage rate exceeding 90%.. On the other hand,Life science total solution products have achieved nearly 80% coverage among frontline third-party laboratory brands., the coverage rate of IVD companies has also exceeded 50%, and a distributor model has been deployed in research institutes and hospitals to achieve commercial coverage.

The implementation of the Marketing Authorization Holder (MAH) system and centralized procurement policies has driven the gradual separation of license holding from manufacturing, leading to a division of labor characterized by “complementary advantages” among industry players. This trend not only promotes the overall development of the industry but also presents significant market expansion opportunities for CDMOs like Meidong Huicheng, which possess integrated capabilities spanning R&D, materials, process development, and large-scale production.

Over the next year, Meidong Huicheng will prioritize the home healthcare market as a key strategic focus, while continuing to expand its life sciences product pipeline and enriching its portfolio of life sciences reagents.

Building on its continuous accumulation of expertise in advanced manufacturing processes, novel materials, innovative product structures, and leading mold technologies, Meidong Huicheng will steadily strengthen its R&D and production capabilities across the entire industry chain. By enhancing its ability to deliver high-cost-performance products, the company aims to reduce the financial burden of disease for the general public, from “beginning (R&D)” to “end (product).”

Du Lin, Partner at Huaxin Capital, a subsidiary of Luxin Venture Capital GroupIt stated: “Meidong Huicheng is committed to building a ‘smart manufacturing’ platform for the healthcare industry, featuring an efficient product design and development system, as well as mature technological platforms for mold development, precision metal machining, and precision injection molding. Lean smart manufacturing capability is a weakness among many domestic niche medical products. Meidong Huicheng offers a comprehensive solution for low-cost, high-quality products, spanning from product design and development to lean smart manufacturing completion, with capabilities on par with imported brands. We are optimistic about the Meidong Huicheng team’s abilities in product pipeline planning, R&D, organized production, and efficient execution. In niche medical sectors where imported brands hold absolute advantages, we hope Meidong Huicheng can become a game-changer, accelerating the process of import substitution in the healthcare industry through high product quality and competitively priced offerings suited to local conditions, while bringing Chinese brands onto the global stage.”

Wang Guangyu, Hefei Ruicheng FundIt stated: “As China’s leading high-end integrated platform for healthcare and intelligent manufacturing, Meidong Huicheng currently ranks first nationwide in market share for laparoscopic staplers within the minimally invasive surgical consumables segment, while its trocars are steadily gaining traction in the domestic market. In the life sciences consumables sector, its cryovials rank first nationwide in performance, and its pipette tips lead the country in production capacity. In the ventilator segment, portable oxygen concentrators will be ready for mass production and sales once product certification is obtained. Looking ahead, against the backdrop of rapid growth in China’s aging population and the number of patients with chronic obstructive pulmonary disease (COPD), the medical device market offers broad prospects. Through this investment by Ruicheng Fund, capital will serve as a strategic link to support Meidong Huicheng in establishing a wholly-owned subsidiary in Wuhu for production expansion. The company plans to locate its software R&D operations and next-generation portable oxygen concentrator business in Wuhu, aiming to build an industrial scale with an annual output value exceeding RMB 1 billion. This initiative will further drive the development of Wuhu’s health and medical industry, contributing to local industrial growth through fund-led investment attraction.”

Cao Yuzhe, Founding Partner of Shanshi CapitalStated: “The healthcare and wellness industry is a key focus area for Shanshi Capital. We are constantly on the lookout for future Fortune 500 companies. In recent years, as the economic environment has deteriorated and centralized procurement policies have been implemented, competition within the industry has intensified, significantly widening the gap between winners and losers. From China to the rest of the world, there is a growing demand for high-performance, low-cost products from outstanding suppliers and brands. Companies with differentiated product advantages and economies of scale will ultimately prevail in this fierce competition. Driven by the founder’s strong vision and robust execution capabilities, Meidong Huicheng has assembled a powerful team and carved out a unique development path, rapidly realizing its goal of ‘Made in China, World-Class Quality.’ The company demonstrates a pragmatic and meticulous understanding of differentiated needs in all types of product design; its impressive investment and pursuit of excellence in production equipment, processes, and management have truly resulted in products that are more applicable and affordable. The cost-performance advantage of its products has been widely recognized by a large customer base. We are fortunate to have identified such a platform company achieving rapid counter-trend growth during this critical turning point in competitive dynamics. We extend our best wishes and support to Meidong, bringing together great products and great people to set a new benchmark for Chinese intelligent manufacturing in the medical field!”

Yuan Yi Capitalstated: “We have long focused on opportunities in the deep-water zone of innovative medical device technologies and supply chain transformation. Seizing the momentum of the ‘domestic substitution wave’ and grounded in a spirit of craftsmanship, Meidong Huicheng has developed comprehensive, replicable, and implementable expertise centered on the R&D and manufacturing characteristics of factory operations. This includes supply chain integration, process path optimization, selection and commissioning of equipment and molds, and production quality control. The company has now become a leader in the fields of minimally invasive surgical instruments, life science consumables, and small-scale automation equipment, while further expanding into the home-use medical device sector. We look forward to Meidong Huicheng accelerating its product expansion with capital support, leading the entire industry to break free from the constraints of low-quality and inefficient factory-side R&D and manufacturing, reaching new heights in intelligent manufacturing in China, and becoming an industry benchmark enterprise.”

Luxin Venture Capital Group Co., Ltd. (abbreviated as “Luxin VC”, SH.600783) is an A-share listed company with venture capital as its core business. Controlled by Shandong Luxin Investment Holding Group Co., Ltd., it is a professional venture capital institution with significant influence in China. The life and health industry sector represents a key focus of Luxin VC’s strategic layout and investment activities, with projects spanning China, the United States, the European Union, Israel, and other countries and regions. Notable healthcare companies in which the company has invested include 3D Medicines, 3D Medicines Diagnostics, RemeGen, ABclonal, Zhongke New Life, Silicon-based Bionics, Baize Medical, Mona Biologics, Boying Medical, RayBiotech, and Weimai Medical.

Hefei Ruicheng Private Equity Fund Management Co., Ltd. (hereinafter referred to as “Ruicheng Fund,” registration number: P1073404) serves as a vital instrument for local governments to integrate industrial resources and promote economic development, a strategic tool for industry leaders to expand their financial ecosystems and support high-quality development, and a core platform for the fund management team to fulfill its mission and build a strong track record of branded performance.

Shanshi Capital is an investment team composed of senior investors who were among the earliest in China to engage in private equity fund-of-funds management. With 12 years of deep expertise in equity investment and S-fund management, we have witnessed the rapid development of China’s private equity industry. We have successfully navigated multiple development cycles across five high-growth sectors: intelligent manufacturing, high technology, mobile internet, healthcare, and mass consumption. Our portfolio includes many of the industry’s leading companies, such as Beike, Li Auto, Zhuhai CosMX, JD Finance, Hefu Noodle, and Rongtong Hi-Tech.Guided by the core values of “Goodness and Pragmatism,” Shanshi Capital adheres to an investment philosophy that prioritizes business models creating positive social value. We are committed to partnering with teams that possess a grand vision and strong execution capabilities, aiming to build outstanding, industry-leading enterprises. By empowering like-minded entrepreneurs with capital, we strive to generate superior financial returns while creating positive social impact, fostering a sustainable ecosystem of balanced, win-win outcomes for our teams, shareholders, and society at large.

Yuan Yi Capital was established in June 2021, focusing on providing comprehensive capital market solutions for enterprises in the health and wellness sector. With an international perspective and rich local resources and insights, the firm boasts a team with diverse backgrounds, bringing together talent and experience from investment banking, industry corporations, private equity, and strategic and management consulting. Dedicated to delivering high-caliber services and endorsements, Yuan Yi Capital aims to enhance its clients’ capabilities and efficiency in the capital markets. The firm looks forward to growing alongside its clients, portfolio companies, and industry partners, striving to become the most trusted companion for all stakeholders.