Zhengli Technology Secures Over RMB 100 Million in Pre-C Funding to Advance Digital Invisible Orthodontic Solutions

Shanghai, China, December 29, 2021 – Zhengli Technology, a leading domestic provider of clear aligner solutions, announced the completion of its Pre-C financing round, raising over RMB 100 million. The round was co-led by Haixia Private Equity (HPE), Bencao Capital, Aiboyi Medical (688050.SH), and its partner fund Aibo Qingshi. Bairong Capital served as the exclusive financial advisor for this financing round. To date, Zhengli Technology has secured strategic investments from numerous top-tier investment institutions, including Sequoia China, SAIF Partners, Shenzhen Capital Group, and Tianjin Venture Capital. The proceeds from this round will be used to build a fully digitalized production line, continue upgrading the intelligent case design system OrthroPlus, and sustain the development of new product lines such as pediatric orthodontic series. Additionally, Zhengli Technology will collaborate with Aiboyi Medical, a globally leading listed company in intraocular lenses and orthokeratology lenses, on the research and development of innovative materials for orthodontic appliances.

China’s clear aligner market has undergone more than a decade of inception and development. According to a Frost & Sullivan report, the number of clear aligner treatment cases in China increased from 47,000 in 2015 to nearly 340,000 in 2020, representing a compound annual growth rate (CAGR) of 47.7%. The market is projected to mature into an industry valued at over RMB 70 billion by 2030.

However, due to differences in facial morphology, the prevalence of complex malocclusion (Class II and Class III malocclusion) is higher in China than in the United States. According to a report by Frost & Sullivan, the prevalence of complex malocclusion in China was approximately 49% in 2020, affecting 510 million patients, whereas in the United States, the prevalence was 23%, with only 56 million patients. Consequently, patients with malocclusion in China have higher demands for both the clinical expertise of orthodontists and the product quality of clear aligners.

High-quality providers of clear aligner solutions must possess comprehensive production and supply capabilities, advancing in tandem across five key dimensions: independently developed case design software, a measurement and analysis system coupled with a biomechanical platform featuring comprehensive attachments, an experienced medical design team, premium-grade aligner materials, and highly digitalized automated production lines.

Zhengli Technology is one of the few companies in China currently capable of providing a complete production and supply chain for clear aligners. In terms of its biomechanics platform, extensive research and repeated validation have led to the establishment of full-arch simulation, physical simulation, tracking systems, and attachment systems. A comprehensive measurement and analysis framework has been developed to evaluate the mechanical performance of aligner films and attachments during treatment, focusing on four key aspects: material properties, structure, plasticity, and elasticity. For instance, physical simulation can replicate the real oral environment, allowing for observation of dynamic changes in the aligners, monitoring of treatment outcomes, and collection of data on force distribution, deformation, and durability, thereby continuously optimizing the treatment process. Zhengli Technology has developed a series of innovative aligner and attachment designs with independent intellectual property rights and patents. To date, the company holds multiple invention patents, dozens of utility model patents, and software copyrights.

OrthoPlus, the case design system independently developed by the company, has been highly acclaimed by physicians since its launch and has undergone dozens of system updates and iterations. OrthoPlus features powerful real-time model rendering capabilities. It achieves shorter average processing times for generating incisor models from intraoral scan data and rendering orthodontic models, while delivering higher precision and resolution of dental models, enhanced realism, and more intuitive visualization of orthodontic outcomes, reaching an internationally advanced level. By incorporating hundreds of medical rules and proprietary algorithms, OrthoPlus provides real-time medical design support and intelligently analyzes physicians’ case design preferences to deliver a superior interactive experience. Meanwhile, physicians retain extensive autonomy; OrthoPlus opens up self-design interfaces, allowing clinicians to leverage automated tooth arrangement and incisor design tools, or perform fine-tuning through 3D adjustments based on intuitive data regarding occlusal depth and position, thereby creating personalized treatment plans tailored to individual patients. Within OrthoPlus, the design team can engage in instant communication with both physicians and patients, providing timely feedback and supporting clinical needs to facilitate more precise and efficient treatment planning.

Zhengli Technology’s relentless pursuit of excellence in aligner film materials is evident in multiple aspects. For instance, the films used in MagicFit and RuiSuQi are thinner than those of leading international clear aligners, resulting in reduced foreign-body sensation, enhanced comfort, lower reflectivity, and greater transparency. Leveraging breakthroughs in biomechanics, Zhengli’s aligners achieve slower stress decay and more sustained orthodontic force despite their reduced thickness. While conventional film materials experience a significant decline in orthodontic force within two weeks of wear, MagicFit material maintains its force over this period, enabling continuous tooth movement. Furthermore, in cold northern cities during winter, the rapid temperature changes encountered during insertion and removal—exacerbated by the moist oral environment—increase the risk of aligner fracture. Thanks to the innovative properties of its film materials, both MagicFit and RuiSuQi demonstrate excellent fracture resistance.

Zhengli Technology has established a production base in Tianjin, implementing stringent quality control standards and a highly automated manufacturing system. The company exercises rigorous oversight at every stage of the process, from the automatic layout and labeling of dental models for each treatment phase to the automated heat-pressing, polishing, and sterilization of aligners. Zhengli Technology’s medical design team is led by senior orthodontists with over ten years of clinical experience, bringing extensive practical expertise. From case submission to aligner delivery, Zhengli Technology boasts a shorter average turnaround time, earning recognition from numerous dentists and patients.

Tianjin Zhengli Technology Co., Ltd. operates two product lines: Magicalign and Smyletec, with tens of thousands of cases delivered to date. Magicalign, an invisible orthodontic product, began development in 2014 and was officially launched for sale in 2016. Through continuous technological and process iterations, it has established long-term collaborations with numerous renowned Grade A tertiary hospitals and chain dental clinics across China. Smyletec integrates various advanced technologies and was exclusively launched in China by Tianjin Zhengli Technology Co., Ltd. in partnership with Straumann in 2019 as an invisible orthodontic solution, meeting the performance benchmarks of top-tier international products. At the recently concluded CDS Exhibition, Tianjin Zhengli Technology Co., Ltd. officially introduced its youth-oriented product, Youthmile, aiming to provide high-quality and comprehensive invisible orthodontic services to more adolescents through strategic market positioning.

In 2019, Tianjin Zhengli Technology Co., Ltd. entered into a strategic partnership with the Straumann Group, a global leader in aesthetic dental solutions. The jointly launched brand, Ruisuqi, is the only Sino-foreign joint venture brand of its kind available in the Chinese market. In 2020, Zhengli Technology established strategic collaborations with leading companies and renowned platforms, including Fussen Technology, Baidu’s Lemon Aimei, and Penguin Almond. In 2021, the company forged a strategic partnership with Romu Technology to innovate pediatric orthodontic technologies, and achieved comprehensive cooperation with other industry-leading enterprises such as Dengde Technology.

In 2020, Professor Li Song, Chief Physician at Beijing Stomatological Hospital, Capital Medical University, partnered with Zhengli Technology to jointly dedicate efforts to the innovative R&D of clear aligners and to establish a professional training framework for orthodontic techniques as well as a premier clear aligner training system. In the same year, Professor Xu Baohua, Director of the Center for Stomatology at China-Japan Friendship Hospital, Straumann Group, and Zhengli Technology joined forces to co-create the “Ruisuqi–Professor Xu Baohua Team Clear Aligner Joint Design Kit,” providing more comprehensive and professional solutions for dental practitioners in the field of orthodontics. Many renowned experts and leading industry brands have chosen to collaborate with Zhengli Technology, which is increasingly earning widespread market acclaim for its professionalism.

Mr. Ling Baoguo, Chairman of Zhengli Technology, stated: “Now in its seventh year, Zhengli Technology adheres to a technology-driven development philosophy and emphasizes the science of orthodontics. We are delighted to see that an increasing number of patients have chosen Zhengli’s clear aligner solutions over the past two years. Looking ahead, Zhengli Technology will continue to develop high-quality clear aligners, striving relentlessly to enable hundreds of millions of Chinese patients with malocclusion to access higher-quality clear aligner treatments at affordable prices.”

Mr. Sun Junjie, founder of Haixia Private Equity (HPE), stated that clear aligner orthodontics is a multidisciplinary sector spanning materials science, lean manufacturing, data algorithms, and clinical medicine, with R&D accumulation serving as the foundation for the company’s sustained growth. As China’s clear aligner industry is still in its early stages, it represents both a market with immense potential and a serious medical field. Each set of aligners produced by Zhengli Technology is meticulously customized by the company’s professional team. We firmly believe that under the leadership of Founder Mr. Ling, more patients will be empowered to smile with confidence. HPE Haixia will provide long-term support and actively participate in the company’s innovation and development, growing alongside the enterprise.

Dr. Fang Yu, Partner at Bencao Capital, stated: “The clear aligner market in China is experiencing rapid growth. Tianjin Zhengli Technology Co., Ltd. is currently a domestic enterprise with comprehensive production and supply capabilities for clear aligners. It possesses a series of proprietary intellectual property rights and patents for innovative aligner and attachment designs. Its core team has extensive experience in R&D, supply chain management, and marketing. We look forward to fostering collaboration between Tianjin Zhengli Technology and Aier Eye Hospital Group’s listed portfolio company, Aibo Medical, to develop innovative orthodontic materials, achieve iterative product upgrades, and establish themselves as a leading enterprise in fully digital dental diagnosis and treatment.”

Dr. Xie Jiangbing, Chairman of Aier Medical, stated: “Aier Medical has accumulated extensive technical expertise in the field of high-end ophthalmic materials. This collaboration will provide greater support to the upstream supply chain, bringing enhanced industrial synergy and resources to Tianjin Zhengli Technology Co., Ltd., thereby strengthening the company’s industry chain and core material technologies. We believe that this strategic partnership between two industry leaders will elevate the company’s advanced clear aligner technology to a new level.”

HPE Haixia is a professional private equity fund management firm founded by Mr. Sun Junjie, founding partner of Hillhouse Capital. The fund focuses on venture-stage and growth-stage investments in sectors such as consumer goods, new energy, and life sciences. Adhering to the principles of in-depth research, value investing, and long-term investment, HPE Haixia selects targets with high market ceilings and deep moats, prioritizes companies with high technological barriers, anchors its strategy on leading enterprises in niche segments, and pursues prudent investments aimed at delivering premium-quality outcomes.

Bencao Capital is a specialized fund dedicated to investing in globally leading life sciences and healthcare companies, with a focus on two key investment areas: innovative pharmaceuticals, and cross-disciplinary innovative medical devices and diagnostic technologies. The core founding team consists entirely of PhD holders in biomedical fields from overseas institutions, boasting years of practical experience in the pharmaceutical and biotechnology industries, as well as over a decade of successful investment and entrepreneurial experience both in China and abroad. The team combines professional expertise, industry experience, and a global perspective.

Bencao Capital is a dual-currency fund manager operating in both RMB and USD. It has cumulatively invested in and incubated more than 70 innovative healthcare enterprises in China and abroad, with offices in Beijing, Shanghai, and Silicon Valley. Adhering to its vision of “building great healthcare companies and establishing an internationally recognized professional investment brand,” Bencao Capital empowers outstanding entrepreneurial teams and delivers superior returns to its investors.

Aierbo Medical (Beijing) Technology Co., Ltd., listed on the STAR Market (stock abbreviation: “Aierbo Medical,” stock code: 688050), is located in the Zhongguancun National Independent Innovation Demonstration Zone in Beijing. It is a National High-Tech Enterprise and a national-level specialized, refined, distinctive, and innovative “Little Giant” enterprise. Starting with the R&D and manufacturing of independently innovated intraocular lenses for cataract treatment, the company aims to develop a comprehensive portfolio of ophthalmic medical products, including implantable ophthalmic consumables, surgical instruments, surgical equipment, optometry products, and ophthalmic pharmaceutical preparations. Covering multiple fields such as cataracts, glaucoma, and optometry, the company strives to become an innovation leader in China’s ophthalmic medical sector and represent the new force of “Made in China” among internationally advanced medical enterprises.

Bairong Capital is a research-driven financial advisory firm focused on the healthcare and medical sector. It aims to accelerate the growth of healthcare enterprises through its extensive transaction experience, while providing investment institutions with insights into valuable investment opportunities through rigorous and in-depth research. Bairong Capital’s areas of focus span multiple healthcare sub-sectors, including healthcare services, medical devices and consumables, in vitro diagnostics (IVD) and precision medicine, biopharmaceuticals, and healthcare informatics. The firm’s core team members come from top-tier consulting firms, leading investment banks, and major accounting firms.