Shende Medical Submits IPO Prospectus Following CNY 100 Million Series C Funding to Advance Global Rollout of Next-Gen MR-Guided Phased-Array Focused Ultrasound ('Magnetic Wave Knife') for Precise, Non-Invasive Therapy

Shende Medical is fully promoting the industrial translation of major scientific research achievements by the team of Academician Chen Yazhu, a Shanghai Science and Technology Hero, pioneering a new era of safer and more precise multimodal non-invasive ultrasound therapy.

VCBeat has learned that Shende Medical Technology Co., Ltd. (“Shende Medical”) recently announced the completion of its C-round financing, amounting to hundreds of millions of yuan, in November 2021.This round of financing was led by CITIC Securities Investment, with follow-on investments from funds including Shanghai Xuhui Capital, Nanjing Fu’an Chuanghe, and Hunan Xingxiang. Existing shareholders Qingdao Wangying, Chunrui Investment, Ningbo Rending, and Anhui Cunmiao made additional investments.

Over the past year, Shende Medical has successfully secured three consecutive rounds of financing, with a cumulative amount exceeding RMB 200 million. The funds from this round will primarily be allocated to its existing three major product lines—covering non-invasive treatment systems for uterine fibroids/adenomyosis, breast tumors, and pain relief in bone tumors—for domestic clinical application approvals, overseas regulatory registrations, and marketing efforts. Additionally, the funding will support the research and development, clinical trials, and IPO advisory services for a new series of non-invasive treatment systems targeting Parkinson’s disease/essential tremor/glioblastoma, renal denervation (RDN) via non-invasive thermal ablation for refractory hypertension, blood-brain barrier (BBB) opening (using focused ultrasound combined with microbubbles to enable targeted delivery of macromolecular drugs for Alzheimer’s disease and other neurological disorders), prostate tumors, and thyroid tumors.

High-Intensity Focused Ultrasound (HIFU) is a novel, non-invasive physical therapy technique that achieves therapeutic outcomes by focusing ultrasound waves within tissues to generate thermal effects, thereby inducing thermal ablation of lesion tissue. As a mature technology with a century-long history, focused ultrasound has been widely applied globally to more than 120 indications, including gynecological tumors, urological tumors, abdominal tumors, cervical tumors, and neurological disorders of the brain. By the end of 2020, nearly 400,000 procedures had been performed worldwide in this therapeutic field.

Superconducting Magnetic Resonance-Guided Phased-Array Focused Ultrasound (MR-PHIFU): A New Multimodal Non-Invasive Therapy Technology, also known as the novel "Magnetic Wave Knife" technology, offers precise treatment and the surprising benefits of being "non-invasive and green." By focusing ultrasound to generate temperatures exceeding 65°C locally within the tumor, it can "ablate" the tumor within seconds. During the procedure, real-time magnetic resonance imaging provides localization and temperature monitoring, ensuring surgical safety and efficacy. This approach not only leaves no incisions but also minimizes adverse reactions, significantly improving patient tolerance.

Previously, this technology was monopolized by foreign companies and teams. Inheriting the significant scientific achievements and innovative spirit in the field of magnetic wave knife over 25 years from the team of Academician Chen Yazhu of the Chinese Academy of Engineering—a pioneer and forerunner in China’s large-scale medical device industry, recipient of the “Shanghai Science and Technology Hero Award,” and inventor of China’s first kidney stone lithotripter—Shende Medical has, after more than two decades of research, systematically addressed key challenges such as early precise tumor diagnosis, non-invasive precision therapy, and real-time treatment efficacy evaluation. The company has achieved multiple core technologies with independent intellectual property rights and breakthrough results at an internationally leading level in critical system components such as phased array and power amplification, electromagnetic compatibility (EMC), and treatment planning. Notably, it has resolved the international challenge of electromagnetic interference between magnetic resonance imaging (MRI) and multi-mode phased focused ultrasound, achieving perfect integration of EMC and these two technologies. This lays the foundation for the domestic production of high-end, non-invasive, precise, and eco-friendly digital diagnostic and therapeutic equipment series guided by superconducting MRI and phased focused ultrasound, which aligns with the objectives of “Made in China 2025” and “Healthy China.”

Shende Medical, established in May 2013, is dedicated to technological breakthroughs and commercialization of magnetic resonance-guided phased-array high-intensity focused ultrasound (MRgPA-HIFU) systems for precise non-invasive therapy. The company focuses on the research, development, and manufacturing of high-end domestic precise non-invasive therapeutic equipment with fully independent intellectual property rights, designed for the non-invasive treatment of major diseases such as tumors and neurological disorders. Covering the entire industry chain—including high-end medical device manufacturing, commercial operations, and after-sales service—Shende Medical drives its national brand through technological innovation, expands into international markets, and strives to become a globally competitive leader in the medical device industry, positioning itself as a new engine for China’s high-end, domestically produced, precise non-invasive therapeutic devices.

Shende Medical’s “Magnetic Wave Knife” technology is an original achievement resulting from 25 years of arduous effort and collaborative innovation by over one hundred master’s and doctoral candidates at the School of Biomedical Engineering, Shanghai Jiao Tong University. A full-time joint innovation and entrepreneurship team, comprising nearly twenty interdisciplinary master’s and doctoral graduates from Shanghai Jiao Tong University affiliated with Shende Medical, has undergone nine years of refinement and solid technical accumulation. This has led to comprehensive breakthroughs in software technologies—including intelligent planning, automated control, 3D modeling, and deep learning; hardware electrical technologies—such as phased arrays, tunneling techniques, MRI compatibility, and quasi-real-time star topology; and hardware mechanical technologies—covering transmission precision, mechanism posture, sealing applications, heat transfer systems, non-magnetic materials, and fatigue strength. These advancements have established robust technical barriers, formed a comprehensive intellectual property protection system, and demonstrated sustained innovative capabilities in the field of “Magnetic Wave Knife” technology.

Shende Medical’s “Magnetic Wave Knife” can be widely applied to a variety of indications. Its products feature differentiated hardware structures tailored to the anatomical locations and treatment complexities associated with different indications. The overall product consists of a foundational software and hardware platform along with functional modules designed for major indications, enabling diversified product combinations and pricing strategies to meet users’ varied needs. Shende Medical is currently advancing R&D collaborations with MRI manufacturers to develop integrated MRI–Magnetic Wave Knife systems. Once realized, these integrated units will allow hospitals to deploy multiple devices across different departments for therapeutic applications.

Shende Medical’s products focus on applying “Magnetic Wave Knife” non-invasive treatment technology to therapeutic areas and multiple indications that can generate significant economic and social value, resulting in a robust product pipeline. Currently, six major products are under development (Uterine Care, Breast Health, Bone Care, Intelligent Transcranial Therapy, Prostate Health, and Neck Tumors), targeting nine indications. Post-launch, the company will develop products across four major fields (Aesthetic Ultrasound, Transcranial Ultrasound, Abdominal Malignant Tumors, and Cardiovascular and Cerebrovascular Diseases) covering ten indication directions. All products are the first domestically produced sets of their kind for the “Magnetic Wave Knife,” with multi-indication, multi-center clinical trials being conducted in parallel, offering strong growth potential.

Shende Medical’s three major production bases in Shanghai, Ningbo, and Nantong have a combined annual capacity of hundreds of units, which can meet the demands for commercial-scale mass production in the first few years following product launch. The company is currently actively planning an industrial park in the Yangtze River Delta region to address the need for large-scale mass production in the future.

Shende Medical has developed diversified commercial application scenarios, pioneering the multi-department co-built “Magnetic Wave Knife Non-Invasive Diagnosis and Treatment Center” within the top three Grade A tertiary hospitals across seven major regional centers in China. Additionally, it is promoting the establishment of non-invasive diagnosis and treatment scenarios integrating “Radiology/Neurosurgery + Magnetic Wave Knife” in the top ten Grade A tertiary hospitals across 49 cities, including first-tier, new first-tier, and second-tier cities.

With comprehensive breakthroughs in MagnetoSonic technology and increasingly mature commercialization strategies, Shende Medical has secured bank credit facilities totaling over RMB 200 million from multiple institutions, as well as firm support from several professional investment funds. Shende Medical places significant emphasis on organizational development and innovation, having established a corporate university to drive organizational transformation and upgrading. The company is committed to cultivating and enhancing technical and managerial competencies across all business units to meet the growing demand for specialized talent driven by its rapid expansion.

Shende Medical demonstrates a robust momentum driven by technology, commerce, capital, and management. Guided by its grand organizational vision and corporate values, the company has established core competencies in operating the “Magnetic Wave Knife” innovation platform, building intellectual property barriers, facilitating product proliferation, and executing commercial operations, thereby possessing the capability to construct a comprehensive industrial and business synergy system.

Shende Medical established the “Academician Chen Yazhu Workstation” in 2020. Within just one year of its establishment, it was honored as one of the “Top 50 Achievements in Intelligence Introduction and Innovation” among Shanghai Academician (Expert) Workstations, and represented the Xuhui District Academician Workstations in Shanghai at the “Intelligence Introduction and Innovation” Achievement Exhibition with its “Magnetic Wave Knife” product.

Shende Medical’s “Magnetic Wave Knife” non-invasive treatment technology represents a disruption and transformation of traditional therapeutic approaches and application scenarios, necessitating the construction of an innovative business model driven by forward-looking strategic thinking to comprehensively advance commercialization. Shende Medical prioritizes the development of channel networks with domestic and international MRI manufacturers, has established strategic partnerships with multiple vendors, is actively building a network of high-end specialized chain hospitals, and has fully established a global organizational framework comprising subsidiaries and representative offices. The company has now fully launched nationwide distributor recruitment efforts.

Shende Medical has established China’s first “Magnetic Wave Knife Science Popularization and Experience Center” at its Shanghai headquarters. By leveraging its WeChat Channels and Official Account, the company is conducting comprehensive public science education campaigns targeting communities and schools in Xuhui District. Once this “Xuhui Model” is refined, it will be rolled out nationwide. Concurrently, Shende Medical is preparing to launch an academic platform and a Magnetic Wave Knife technical training base, and will collaborate with its core team of expert advisors to carry out online and offline academic promotion aimed at B-end clients.

Shende Medical is poised and ready, having established comprehensive strategic safeguards for the 2022 product launch.

Academician Chen Yazhu, Chief Advisor to Shende Medical“He stated, ‘Shende Medical bears the mission of advancing Healthy China, embraces profound industry transformations, and leads new development through forward-looking strategic layouts. Over the past two decades, our team has undergone an arduous journey of research and development and industrial translation, striving with determination and forging ahead courageously. I hope that the dedication we have poured into frontline scientific research will yield substantial benefits for society as a whole. The era of non-invasive therapy is approaching; Shende Medical’s magnetic wave knife non-invasive technology is poised to flourish and enter a season of abundant harvest. This non-invasive, precise, eco-friendly, safe, and intelligent technology is set to be applied to a broad patient population, offering infinitely promising prospects.’”

Professor Shen Guofeng, Founder of Shende Medical“Like stars orbiting the North Star, we safeguard and support Shende. Since its establishment, Shende Medical has received strong support and generous favor from the government, investors, banks, universities, industry sectors, and upstream and downstream enterprises across the industrial chain. We have undergone a nine-year prolonged period of integration and accumulation of sophisticated, multidisciplinary technologies, encountering countless setbacks and hardships along the way. The outbreak of the COVID-19 pandemic in 2020 posed a significant test to Shende Medical. Guided by Academician Chen Yazhu’s resilient spirit of scientific and technological innovation and unwavering determination, and through the concerted efforts of all Shende employees, we achieved growth against the tide. Our Magnetic Wave Knife technology has been rigorously refined, meticulously crafted, and rapidly iterated, demonstrating comprehensive breakthroughs. Clinical certification applications are now being accelerated, commercialization strategies are maturing, and the path to an initial public offering is becoming increasingly clear. The company has entered a phase of rapid development, with Series D financing expected to close shortly. With capital support, Shende Medical is committed to jointly building a national brand of high-end domestic medical devices with fully independent intellectual property rights, and an internationally competitive medical device enterprise, together ushering in the era of non-invasive medicine. Sincere and trustworthy, Shende practices virtue worldwide; the Magical Magnetic Wave Knife brings warmth to the world.”

Cui Lei, Executive Deputy General Manager of Shende MedicalHe stated: “Shen Deren carries forward the spirit of innovation and scientific entrepreneurship exemplified by Academician Chen Yazhu, a Communist Party member and scientist, demonstrating perseverance and dedicating ten years to perfecting his craft. We have inherited naturally superior organizational DNA, backed by substantial historical accumulation, a sacred corporate ethos, and an ambitious organizational vision. We are building an organization that loves the Party and the country, an elite community fostering co-creation and symbiosis, a first-class entity characterized by efficient collaboration, and an outstanding enterprise grounded in technological and cultural confidence. With a profound sense of duty to our nation and its people, we develop national key instruments that benefit millions. We sincerely invite governments at all levels, prominent investors, academic leaders, capable distributors, and social elites to join us in realizing this grand vision, jointly writing a new chapter for Magnetwave Knife as a premium domestic medical device brand representing Chinese innovation.”

Wang Yin, Senior Vice President of Investment at CITIC Securities“It was stated: ‘As an emerging technology representing a new generation of non-invasive surgical treatments, MRI-guided focused ultrasound surgery holds broad prospects for clinical application. It has been approved by major countries, including the United States and China, for the treatment of uterine fibroids and prostate cancer, for pain relief in bone metastases, and for thermal ablation of targets in the thalamus, subthalamic nucleus, and globus pallidus regions (such as in essential tremor and tremor-dominant unilateral idiopathic Parkinson’s disease). As the domestic original and only team in this emerging technology field, we anticipate that, under the leadership of Academician Chen Yazhu and Professor Shen Guofeng, Shende Medical will continue to advance along the path of domesticating high-end medical devices, becoming a leading domestic and world-class pioneer in non-invasive ablation technology.’”

Tang Haofu, Founder of Shanghai Chuangrui Investment; Zhang Minglong, Managing Partner“We firmly believe that Shende Medical will usher in a new era of safer, simpler-to-operate non-invasive treatment with its internationally leading and domestically pioneering Magnetic Wave Knife technology, integrating precise target localization, real-time monitoring, visualized therapy, and real-time efficacy assessment. Building on established indications such as uterine fibroids/adenomyosis, breast adenomas, and pain relief for metastatic bone tumors, we will continuously expand into additional applications including prostate disorders, thyroid conditions, and Parkinson’s disease/essential tremor/glioblastoma, thereby benefiting a broader patient population and enabling patients to live with greater dignity and quality of life. We are confident that, driven by the efforts of Shende Medical’s innovative team, supported by capital investment, and backed by favorable government policies, Shende Medical will become a leader in the new era of non-invasive therapy and a unicorn in the capital markets!”

Sui Liyong, Founder of Shanghai Wangying Investmentstated: “We firmly support and are optimistic about the trend and progress of domesticating medical device manufacturing in China. We have full confidence in Shende Medical’s scientific research capabilities and technological reserves, and we remain highly optimistic about the market commercialization of its products. We hope that Shende Medical will continue to maintain strong momentum in innovative research and emerge as a leader in its industry sector.”

Weng Guolei, Executive Director of Shanghai Xuhui Capital InvestmentIt stated: “The trend of domestic substitution and independent innovation in the current medical device market, particularly for high-end medical equipment, is gaining strong momentum. Rooted in Shanghai Jiao Tong University and nurtured in Xuhui District, Shende Medical, under the leadership of Academician Chen Yazhu and Professor Shen Guofeng, has long been dedicated to the R&D and industrialization of high-end non-invasive medical devices. The company has achieved breakthroughs in ‘Magnetic Wave Knife’ technology and expanded its product pipeline for indications including tumors, cerebrovascular and cardiovascular diseases, and neurological disorders. In the future, it is poised to provide high-quality, cost-effective domestic medical solutions to a broad patient population. Xuhui Capital is committed to collaborating with leading venture capital firms to support the growth of sci-tech innovative enterprises like Shende Medical, thereby fostering the development of the life and health industry in Xuhui District.”

Zhang Shunhu, Deputy General Manager of Investment at Nanjing Fu'an Chuanghe Fund“It is stated that: ‘Currently, China is making gradual international breakthroughs in various critical technologies previously subject to foreign bottlenecks, and has achieved remarkable success in the forefront of healthcare, with many high-end products now being replaced by domestically manufactured alternatives. Through our in-depth understanding of Shende Medical, we are firmly convinced that, under the leadership of Academician Chen and Dr. Shen, the company has successfully achieved perfect substitution for overseas products in the field of precise, non-invasive ultrasound therapy. Furthermore, its product applications have been extended to areas such as adenomyosis, breast tumors, and bone tumors, delivering excellent therapeutic outcomes. The company’s clinical products have already gained high recognition from numerous renowned hospitals across China. We believe that the Shende team will continue to make significant strides in the localization of high-end medical devices, and the company’s overall development will become increasingly robust.’”

Fu Jinyan, Senior Investment Manager at Hunan Xingxiang FundIt stated: “Xingxiang Capital has actively responded to the National 14th Five-Year Plan, placing significant emphasis on investments in equipment and materials sectors with high import dependence. The investment team believes that, with financial and policy support, manufacturers of high-end equipment can conduct forward-looking core technology R&D, thereby achieving leapfrog development for domestic brands. Shende Medical is a project that translates into practical applications decades of major scientific and technological achievements by Academician Chen Yazhu and Professor Shen Guofeng. It has broken the situation where China’s high-end medical devices heavily rely on imports, filled the domestic gap in the field of magnetic wave knives (MRgFUS), and its core technologies have surpassed international leading levels. As another key investment through which Xingxiang Capital fulfills its state-owned capital mission, it helps emerging medical device enterprises concentrate more energy on their specialized work, thereby contributing to the continuous improvement of China’s medical technology standards, enabling them to join the ranks of international pioneers and benefit the cause of human health.”

CITIC Securities Investment Co., Ltd. is a wholly-owned direct investment subsidiary of CITIC Securities Company Limited, with a registered capital of RMB 14 billion. It focuses on industrial investments and cross-border investments in sectors aligned with national strategies, including next-generation information technology, high-end manufacturing, new materials, new energy, environmental protection and logistics, biopharmaceuticals, consumption upgrading, and fintech. Its healthcare investment portfolio includes Oxford Nanopore Technologies (UK), MGI Tech, CanSino Biologics, and Shanghai United Imaging Healthcare.

Shanghai Chuangrui Investment, established in 2009, is an investment firm integrating equity investment with the incubation of advanced medical industries. It is committed to investing in global high-end medical technologies and upholds the core philosophy of leading the upgrade of China’s healthcare industry. Chuangrui has formed partnerships with renowned domestic and international medical institutions, including Cleveland Clinic (USA), Stanford Health Care (USA), Maccabi Healthcare Services (Israel), Chongqing Medical University, and Chengdu University of Traditional Chinese Medicine, jointly establishing official platforms for the commercialization of scientific and technological achievements. The assets under management by Chuangrui Fund exceed RMB 3 billion, and it has invested in nearly 40 companies domestically and internationally. As of June 2021, eight portfolio companies had successfully gone public, while seven others were queued for listing review. Notable successful investments by Chuangrui include Wolwo Bio-Pharmaceutical (listed), Jianan Pharmaceutical Machinery (listed), Rundu Pharmaceutical (listed), Mingfeng Medical (the first manufacturer of 256-slice CT scanners in China), Akeso Inc. (an innovative drug company, listed), Tiansong Medical (a leading endoscopy company), Kehui Medical (an orthopedic consumables company), and Lanji Technology (an IVD company).

Shanghai Wangying Investment is an innovative private equity investment fund with a global perspective. The company adheres to the philosophy of “Investment + Investment Banking,” providing innovative enterprises with comprehensive services on a global scale. These services range from venture capital and intellectual property sharing during the startup incubation phase, to equity investment and strategic positioning consulting in the growth stage, and finally to post-IPO industrial integration, mergers and acquisitions (M&A) restructuring, and market value management as part of its investment banking offerings. The team members possess extensive experience and a strong track record of classic cases in global intellectual property operations, venture capital, private equity, cross-border M&A, domestic listed company M&A, and market value management. In the pharmaceutical sector, the company’s investment portfolio includes, but is not limited to, Haihua Biotech, Zhongyou Likang, and Baicaotang Pharmaceutical.

Shanghai Xuhui Capital Investment, established in April 2021, is a wholly state-owned investment company in Shanghai’s Xuhui District. Adhering to its functional positioning of leveraging regional advantages, aligning with industrial development, following market principles, and supporting the building of an excellent Xuhui, the company operates under the strategy of government-backed investment, market-oriented operations, and high-efficiency management. It focuses on capital investments in outstanding enterprises (and high-quality funds) in sectors such as the digital economy, life and health, cultural creativity, and modern finance. By leveraging its platform advantages, the company strives to support portfolio companies in enhancing their capabilities and creating value, thereby fulfilling its multiple missions of fostering strategic industries and ensuring the preservation and appreciation of state-owned assets.

The Fu’an Chuanghe Fund is a collaborative investment fund jointly established by Chuanghehui Capital, a well-known domestic institution, and Fuanjida Asset Management. Guided by the investment philosophy of “value discovery, investment empowerment, and long-term service,” the fund focuses on high-tech industries such as biomedicine, advanced manufacturing, and next-generation information technology. Chuanghehui Capital is an empowerment-oriented equity investment firm founded upon the high-quality resources of the Chuanghehui platform. Leveraging the robust ecosystem of the Chuanghehui platform, it provides portfolio companies not only with financial support but also with systematic assistance, including expert consulting, talent development, and integration of upstream and downstream industrial resources. Committed to empowering outstanding founders and entrepreneurs to build world-class enterprises, the company was honored as the “Best Ecosystem Service Investment Institution” by Yicai (First Financial) in 2020 and ranked among the “Top 100 Venture Capital Institutions Most Welcomed by Entrepreneurs in China 2021” by 36Kr in 2021. Fuanjida Fund currently manages assets exceeding RMB 53 billion. Relying on Fuanjida Fund, Fuanjida Asset Management leverages its high-quality research platform, substantial capital base, and strong shareholder background to provide comprehensive empowerment to invested enterprises, helping them become first-tier, high-quality companies in China. Notably, in 2020, the Fuanjida Advantage Growth Mixed Fund received the “Top Ten Influential Fund Products” award from Securities Times for the Masses. In December 2019, the “Fuanjida Emerging Growth Mixed Fund” under Fuanjida Fund was honored as the “Most Popular Equity Fund of 2019” at the East Money Wind Cloud List 2019.

Since its establishment, Hunan Xingxiang Capital Management Co., Ltd. has actively served as a key market-oriented instrument for the group’s state-owned capital operation platform. It has focused on cultivating and strengthening strategic emerging industries in Hunan, such as new materials, high-end equipment manufacturing, and biomedicine. The company manages 11 funds with a total scale of nearly RMB 30 billion and has invested in over 40 projects. Among these, seven portfolio companies—Feiwo Technology, Jinfuli, Hualing Cable, Huateng Pharmaceutical, Bonforte, and Aerospace Jiecheng—have been recognized as national “Little Giant” enterprises specializing in refined, specialized, and innovative fields. Additionally, several portfolio companies, including Zhongwei Shares, CRCC Heavy Industry, Hualing Cable, SmartSens, and Mengke Medicine, have successfully gone public. Looking ahead, Xingxiang Capital will further enhance its fund investment capabilities, nurture more national “Little Giant” enterprises, and fulfill its dual mission of fostering strategic emerging industries and ensuring the preservation and appreciation of state-owned capital, thereby contributing to Hunan’s implementation of the “Three Highs and Four News” strategy.