Zhishan Medical Secures Over RMB 1 Billion in Series B+ Financing to Advance China's First Swallowable, Non-Invasive Intragastric Balloon for Weight Loss

ZhiShan Healthcare Completes Over RMB 100 Million in Series B+ FinancingZhiShan Healthcare, a leading innovative technology company in China focused on weight-loss and metabolic medical products, has recently completed a Series B+ financing round exceeding RMB 100 million. The company’s flagship product, the SpheriaTM Intragastric Balloon, is the first non-invasive, swallowable weight-loss medical device developed in China. The funds will be primarily allocated to multi-center clinical trials, regulatory approval, and commercial promotion of the SpheriaTM Intragastric Weight-Loss Balloon, with a portion dedicated to the research, development, and production of new weight-loss products. This financing round was led by CPE Yuanfeng Fund, with participation from existing investors Shanghai Sunland Investment Management Co., Ltd. (Sunland Capital), Everbright Capital Investment Management Co., Ltd. (Everbright Capital), and YuanBio Venture Capital.

Intragastric BalloonThe intragastric balloon is a medical device designed for weight loss by being placed into the stomach, where it pre-occupies gastric volume, reduces dietary intake, and facilitates health management. It was first used abroad in the 1980s to help obese individuals control their weight. After decades of development, its efficacy and safety have gained widespread recognition. Currently, intragastric balloon therapy for obesity is widely practiced in Europe and the United States. In 2015, the U.S. Food and Drug Administration (FDA) successively approved three intragastric balloon systems: Orbera, Obalon, and ReShape. In February 2018, the American Society for Metabolic and Bariatric Surgery (ASMBS) officially recognized the intragastric balloon as the fifth standard surgical treatment for obesity, establishing it as the “gold standard” for medical device-based weight loss.

However, traditional intragastric balloon placement requires assistance from gastroscopy and anesthesia. Moreover, the balloon must be removed via gastroscopy under anesthesia after treatment is completed. This approach is not truly non-invasive, and patients still endure the discomfort associated with these procedures. The Spheria™ Intragastric Balloon for Weight Loss, developed by ZhiShan Healthcare, is the first completely non-invasive, swallowable weight-loss medical device in China.The Spheria™ Intragastric Balloon is pre-compressed within a capsule connected to an infusion catheter. It is delivered into the stomach by swallowing, while the other end of the catheter remains outside the body. Once the capsule reaches the stomach, it dissolves rapidly. Saline is then injected into the balloon through the external end of the catheter. After full inflation, the catheter detaches from the balloon, and the self-sealing valve on the balloon automatically closes. The inflated balloon occupies space within the stomach.Throughout the treatment period, the inflated balloon enhances satiety, reducing food intake and helping patients establish healthier lifestyles, thereby achieving weight loss. At the end of the treatment, biodegradable materials on the balloon break down, allowing the fluid inside to drain. The soft, deflated balloon is then naturally expelled from the body through the gastrointestinal tract. The entire process requires no surgery, endoscopy, or anesthesia, and can be fully completed on an outpatient basis. It offers advantages such as effective weight loss, safety, simplicity, efficacy, reversibility, and low risk.

Since the reform and opening-up, the prevalence of overweight and obesity in the Chinese population has increased rapidly. Data from the Report on the Nutritional Status and Chronic Diseases of Chinese Residents (2020) show that the prevalence of overweight among Chinese adults (aged ≥18 years) is 34.3%, and the prevalence of obesity is 16.4%. Among children and adolescents aged 6–17 years, the prevalence of overweight is 11.1%, and the prevalence of obesity is 7.9%. Among children under 6 years of age, the prevalence of overweight is 6.8%, and the prevalence of obesity is 3.6%. Based on the corresponding population distribution, the total number of individuals with overweight or obesity exceeds 500 million.

Overweight and obesity not only impair physical appearance but also contribute to the development of various metabolic disorders, such as hyperlipidemia, hyperglycemia, type 2 diabetes, hypertension, hyperinsulinemia, hyperuricemia, fatty liver disease, and coronary artery disease. They also increase the risk of congestive heart failure, stroke, chronic kidney disease, and cancer. Currently, the primary weight-loss methods include dietary restriction, exercise management, pharmacological interventions, and meal replacement therapies. However, the majority of individuals are dissatisfied with these existing approaches, and fewer than 1% of people with obesity ultimately opt for bariatric surgery. Consequently, a significant proportion of individuals with obesity still lack access to effective weight-loss solutions.

Based on estimates of the current obese population and the future penetration rate of intragastric balloons, the potential market size for intragastric balloons in China exceeds RMB 100 billion, with a global potential market size reaching RMB 330 billion. As the gold standard for non-invasive weight-loss devices, intragastric balloons effectively address the respective limitations of pharmacological treatments (which have side effects) and surgical interventions (which are invasive and irreversible). Consequently, they are garnering increasing attention and are poised to become one of the primary methods for weight management, offering broad application prospects.

ZhiShan Healthcare’s SpheriaTM Intragastric Weight Loss Balloon has gained widespread recognition among bariatric specialists and individuals with obesity due to its innovative safety profile, non-invasive nature, and swallowable design. Currently, clinical trials are being conducted at six renowned clinical research centers in China, including Beijing Friendship Hospital affiliated with Capital Medical University, Peking University People’s Hospital, the Third Xiangya Hospital of Central South University, Shanghai Ninth People’s Hospital affiliated with Shanghai Jiao Tong University, Shanghai Tenth People’s Hospital affiliated with Tongji University, and Qilu Hospital of Shandong University. Volunteer enrollment has been enthusiastic. The balloon insertion procedure is straightforward, resulting in high patient acceptance and minimal adverse reactions. It is believed that the official market launch of the SpheriaTM Intragastric Weight Loss Balloon will bring about a revolutionary change in the treatment of obesity, benefiting a broad population of individuals with this condition.

ZhiShan Healthcare, established in May 2017, is a leading innovative enterprise in China engaged in the research and development, manufacturing, and sales of non-invasive weight loss medical devices. It was initiated by Sunland Capital, Legend Capital, and SoftBank China Capital, and co-founded in collaboration with medical experts from the United States and France as well as seasoned professionals in the medical device industry. With the mission of “helping the obese population stay away from chronic diseases and improve their quality of life,” ZhiShan Healthcare is committed to becoming a provider of high-quality, cost-effective non-invasive weight loss devices and a promoter of global technological innovation in non-invasive weight loss. Since its inception, the company has secured investments from Sunland Capital, Legend Capital, SoftBank China Fund, Danlu Capital, Everbright Holdings, YuanBio Venture Capital, and Tongsheng Capital.

ZhiShan Healthcare closely follows international industry trends. Since its inception, the company has immediately dedicated itself to developing cutting-edge products in the weight loss sector, selecting new technologies, and advancing global business and clinical collaborations. To date, it has filed more than 10 invention patent applications. The company has established an international R&D center in Shanghai Zhangjiang Science City, set up representative offices in the United States and France, and located its large-scale production bases in Changzhou and Taicang. The products under development by ZhiShan Healthcare feature revolutionary innovations, with technology that is internationally leading and a domestic first. The company aims to become a leader in China’s diabetes and weight loss sectors and an influential player in the international market. It is committed to making advanced non-invasive weight loss technologies accessible and affordable for the vast population of obese and overweight individuals in China, thereby tangibly alleviating the chronic disease burden and medical costs borne by obesity patients, and promoting the widespread adoption of non-invasive weight loss treatments across the country.

Although intragastric balloon weight-loss therapy is well-established abroad, its application in China remains virtually nonexistent, with the technology predominantly held by companies in Europe and the United States. To benefit the vast population of individuals with obesity and fill this domestic gap, ZhiShan Healthcare dedicated five years to research and development, successfully creating a next-generation swallowable and biodegradable intragastric balloon that has achieved global technological leadership. We believe that ZhiShan Healthcare’s success will drive the robust development of high-end non-invasive weight-loss devices in China, marking another significant breakthrough as Chinese intelligent manufacturing of high-end medical equipment steps onto the international stage.

Dr. Liu Daozhi, Founder and Chairman of ZhiShan Healthcare, stated that,“We extend our gratitude to all new and existing investors for their recognition and support of ZhiShan Healthcare. In recent decades, the global obese population has been growing at an alarming rate, making obesity an urgent public health challenge. As a leader in the weight management sector in China, ZhiShan Healthcare has long adhered to its mission of ‘helping individuals with obesity avoid chronic diseases and improve their quality of life.’ The company has accumulated extensive expertise through years of dedicated focus on weight management devices. Currently, the SpheriaTM intragastric balloon for weight loss has entered multi-center clinical trials. Following this financing round, ZhiShan Healthcare will accelerate the commercialization of innovative products represented by the SpheriaTM intragastric balloon, providing comprehensive solutions for individuals with obesity.”

Chen Chen, Director at CPE Yuanfeng, stated,

In this round, existing shareholder YuanBio Venture Capital continued to increase its investment. Yin Jie, Partner at YuanBio Venture Capital, stated,“As a Series B investor in ZhiShan Healthcare, YuanBio Venture Capital maintains a long-term bullish outlook on intragastric balloon technology for obesity treatment. The ZhiShan team demonstrates exceptional R&D and innovation capabilities, with its domestically pioneering intragastric balloon weight-loss product leading in clinical trial and registration progress. We believe that with new capital support, ZhiShan Healthcare will achieve significant breakthroughs in product registration and new product development, and YuanBio Venture Capital will help propel it to become a highly competitive leader in this field.”

Ms. Zhang Cheng, Managing Director of China Everbright Limited, stated that,“The weight-loss medical aesthetics sector has always been a track we highly favor and strategically prioritize. ZhiShan Healthcare boasts a broad market potential and a distinct first-mover advantage. The company’s team stands out as a leader in this field, demonstrating strong execution capabilities, with product development progressing as expected. We have consistently had confidence in Mr. Shi’s leadership of the team. Building on our participation in the Series A+ financing, China Everbright Limited has further increased its investment in this round, underscoring our confidence in the company, its team, and its products. As a boon for patients with obesity, we look forward to the early market launch of the company’s products.”

CPE Source Peak is an asset management institution with a global perspective and extensive experience in China. It aims to leverage a long-term vision and value investment strategies to provide innovative investment solutions for leading enterprises in four key sectors: healthcare and health, consumer and internet, technology and industry, and software and enterprise services. Currently, the funds under its management have earned the trust and support of more than 200 institutional investors both domestically and internationally, with cumulative assets under management exceeding RMB 100 billion. Over the past decade, the company’s core team has invested in more than 200 companies, accumulating profound industry insights and an extensive resource network. Through a robust investment research framework and professional post-investment management capabilities, the company is committed to building long-term partnerships with its portfolio companies, supporting their sustainable development. While delivering substantial returns to investors, it also drives the overall development of the industries in which these companies operate, creating positive social impact.

Sunland Capital is a specialized fund focused on investing in the early and growth stages of the healthcare industry. With offices in Shanghai and Beijing, it targets high-growth segments such as biopharmaceuticals, medical devices (including in vitro diagnostics and gene technologies, minimally invasive interventional devices, implantable devices, minimally invasive surgical instruments, and medical robots), and healthcare services. The firm has invested in nearly 40 leading healthcare companies, including Guoke Hengtai, Aupu Bio, Deepwise Medical, Shengshi Taike, Baichen Medical, ZhiShan Healthcare, Qianglian Zhichuang, Weike Medical, Ligatai, and Langhe Medical. Sunland Capital’s core team comprises founders of publicly listed healthcare companies, as well as professional financial and strategic investors. It provides portfolio companies with value-added services across strategy formulation, talent acquisition, R&D, marketing, legal and regulatory compliance, M&A, IPOs, and industry association resources. Additionally, the firm assists its portfolio companies in integrating advanced international technologies and establishing global operational concepts and standards, thereby driving continuous innovation and development.

China Everbright Limited (“Everbright Limited”, Stock Code: 165.HK) was established in Hong Kong in 1997. With over 20 years of experience in cross-border asset management and private equity investment, it is a listed company in Hong Kong with alternative asset management as its core business, and its parent company is China Everbright Group. Through multiple private equity funds, venture capital funds, industrial funds, mezzanine funds, funds of funds, fixed-income funds, and equity funds under its management, Everbright Limited has jointly nurtured numerous enterprises with high growth potential alongside investors. Meanwhile, in alignment with the development needs of Chinese enterprises, it integrates overseas technological advantages with the Chinese market, providing diversified financial services to both Chinese and overseas investors.

YuanBio Venture Capital is an investment firm focused on the early and growth stages of the healthcare sector. Headquartered in Suzhou BioBAY, it maintains a global reach. Currently managing approximately RMB 6 billion in assets, YuanBio has invested in over 100 high-quality projects, primarily spanning new drug development, medical devices, in vitro diagnostics (IVD), and healthcare services. The firm has delivered substantial investment returns and has been repeatedly recognized as one of the Top 10 Venture Capital Funds in China’s healthcare sector and as one of the most active healthcare investment institutions in China. YuanBio brings together a team of seasoned professional investors and world-class scientific advisors, possessing extensive experience in entrepreneurship, venture capital, and corporate operations within the biopharmaceutical industry and related fields. Leveraging its focused strategy and rich industry resources, YuanBio is committed to becoming one of the most successful healthcare and pharmaceutical venture capital funds in China.