Focus Fusion Medical Completes Nearly RMB 100 Million Financing to Advance Ultrasound Innovation and Global Expansion

VCBeat (WeChat ID: vcbeat) has recently learned that an ultrasound imaging equipment R&D enterpriseJurong Medical Technology (Hangzhou) Co., Ltd.(abbreviated as Jurong Medical) announced the completion of a new round of financing, reaching cooperation with Chende Capital and Dongzheng Innovation, and securing nearly RMB 100 million in funding. This round of financingLed by Chende Capital, with follow-on investment from Dongzheng InnovationAs a leading domestic company with R&D capabilities for high-end, full-chain medical acoustic systems, Jurong Medical has also successively secured investments from firms such as Fenxiang Investment, Huagai Capital, Peterhai Capital, and Oriental Jiafu.

The new round of financing will be primarily used for the development of the company’s two major technology platforms (the internationally leading Hi Imaging Platform and the industry-leading BTM Single-Crystal Probe Technology Platform), the strategic layout of its three product lines (Diagnostic Ultrasound, Breast Cancer Screening & Diagnostics, and Interventional Surgery), the establishment of select clinical centers, and the expansion into domestic and international markets.

Currently, the global market size for ultrasound imaging products is nearly $60 billion, with imported brands accounting for 90% of the share. In China, imported brands hold more than 70% of the market.

The gradual strengthening of China’s healthcare system has laid a solid foundation for the development of ultrasound imaging products. Over the past two decades, the configuration of ultrasound medical imaging in large hospitals has evolved through several stages: full digital color Doppler ultrasound, multi-function color Doppler ultrasound, high-performance color Doppler ultrasound, and research-oriented color Doppler ultrasound. With the discovery and application of novel ultrasound probe technologies, new imaging principles, new imaging parameters, and new imaging agents (such as targeted contrast agents), the industry continues to advance. Ultrasound systems are progressing toward comprehensive clinical integration, full intelligence, and high-end sophistication. The developmental trajectory that large healthcare institutions have undergone over the past 20 years can be completed by small and medium-sized healthcare institutions within 5–10 years. This acceleration is attributable to technological advancements and their dissemination to lower-tier markets, the widespread adoption of clinical ultrasound, and the inherent advantages of ultrasound equipment, including its non-ionizing nature, real-time imaging capabilities, and accessibility.

As one of the most widely used diagnostic devices, clinical ultrasound is seeing growing demand in the primary healthcare market. The progression of equipment configuration “from absence to presence” and “from availability to excellence” will continue to create market opportunities for device procurement. With technological advancements, ultrasound imaging is evolving from “standard definition” to “high definition,” and basic functionalities are being upgraded to fully automated features. This shift will bring new imaging and functional experiences to small and medium-sized medical institutions, while also creating new opportunities for the segmented and diversified development of the ultrasound imaging product market. Ultrasound products have also evolved from traditional morphological diagnosis to functional diagnosis, such as elastography and contrast-enhanced ultrasound, and are increasingly being widely applied in fields including anesthesiology, surgery, and interventional procedures.

Currently, it is imperative to break the monopoly of imported products and promote domestic substitution through product innovation and the decentralization of technology. Jurong Medical has deployed a full product portfolio in Diagnostic Ultrasound, providing customers and the industry with comprehensive product options.

According to the latest 2020 global cancer burden data released by the World Health Organization’s International Agency for Research on Cancer (IARC), there were over 2.2 million new cases of breast cancer worldwide, officially surpassing lung cancer to become the most common cancer globally and the leading threat to women’s health. In China, approximately 400,000 new cases of breast cancer are diagnosed each year. Early screening can significantly improve survival rates among patients, with the five-year relative survival rate for early-stage breast cancer approaching 100%. Therefore, experts recommend that Chinese women begin annual breast cancer screening at age 35. For women older than 35 with a family history of breast cancer, screening every six months is advised. Women with pathogenic BRCA gene mutations should undergo regular screening starting at age 20.

Ultrasound Technology Offers Greater Potential for Early Breast Cancer Screening. Studies have shown that ultrasound-based breast cancer screening is more effective in detecting small-sized and early-stage breast cancers (Kaplan, 2001; Bae et al., 2011; Scheel et al., 2015). Breast cancers detected by ultrasound are associated with a better prognosis, and early treatment is more effective in preventing lymphatic metastasis (ERG, 2012b).

Jurong Medical’s Cygnus Fully Automated Breast Tomosynthesis Whole-Breast Screening System brings new opportunities for early breast cancer screening. Equipped with a whole-breast screening probe, the system enables operators to easily acquire comprehensive breast data from patients, ensuring precise screening for dense breasts, which account for over 70% of the Asian population. Additionally, the system features computer-aided diagnosis (CAD) based on 3D data, significantly reducing the workload of chief physicians. “Empowering devices with AI, enabling physicians to diagnose with confidence.” The newly designed high-frequency, high-density probe has also been optimized on the Hi platform for breast elastography and contrast-enhanced ultrasound, enhancing diagnostic confidence.

From 2017 to 2018, approximately 250,000 tumor ablation procedures were performed in China, whereas the number exceeded 2 million in the European and American markets during the same period. With the compound annual growth rate (CAGR) of the tumor ablation market in Europe and America approaching 60%, the domestic tumor ablation market in China is also expected to experience rapid growth in the future.

“The normalization of interventional procedures, the miniaturization of surgical techniques, and the surgicalization of internal medicine” have driven rapid development in clinical disciplines and provided patients with better treatment experiences. Ultrasound and intraoperative X-ray are perfect assistants for interventional surgeries, while ultrasound’s radiation-free, real-time imaging capabilities offer unparalleled advantages in procedures involving abdominal organs, blood vessels, the heart, neuromusculoskeletal structures, and natural orifice surgeries.

Jurong Medical’s meticulously developed uRFA feature provides a clear-boundary, controllable real-time intraoperative monitoring experience for radiofrequency ablation, truly achieving “Better Monitoring, Better Outcome.” The intraoperative robotic probe solution features a fully replaceable electromagnetic shielding design, offering superior manipulation and access control during laparoscopic surgery, thereby truly delivering “Better Access, Better Outcome.”

Following this round of financing, Jurong Medical will continue to adhere to innovation-driven development, enrich its independently developed product portfolio, achieve self-reliance and controllability in high-end core technologies, explore segmented and diversified markets in the clinical sector, and accelerate the global expansion of its sales channels.

For this financing,Luo Zhijian, CEO of Jurong Medicalstated: “We extend our gratitude to Chende Capital and Dongzheng Innovation for their trust. As a rising force in China’s domestically produced medical equipment sector, Jurong Medical has always upheld the philosophy of ‘Technology Ignites the Light of Life.’ Rooted in technological innovation, we have been deeply committed to the field of ultrasound medical imaging, continuously increasing R&D investment, concentrating efforts to overcome technical barriers, strengthening our core competitiveness in high-tech areas, enhancing independent innovation capabilities, and achieving self-reliance and controllability in ‘Intelligent Manufacturing in China.’”

Chende Capital“It is stated that: ‘The core team of Jurong Medical possesses extensive industry experience, maintaining high stability and commitment since its inception, while continuously attracting new top-tier talent. Through independent R&D, the company has mastered technologies for high-performance ultrasound imaging systems and single-crystal probe manufacturing, boasting industry-leading, full-stack ultrasound R&D capabilities on a high-end platform. It is actively laying out product lines in general diagnostics, breast tomosynthesis, and interventional and minimally invasive surgery, demonstrating sustained capacity for product breakthroughs and market penetration. Chende Capital is optimistic about the industry opportunities presented by the systematic upgrade of ultrasound technology driven by technological iteration, and even more bullish on the broader market emerging as ultrasound solutions increasingly move directly into clinical departments. We firmly believe in Jurong Medical’s prospects for continuing to serve the development of ultrasound and clinical departments, and we look forward to its product portfolio focused on precise breast cancer screening and interventional minimally invasive procedures.’”

Dongzheng Innovationstated: “Due to its safety, cost-effectiveness, and flexibility, ultrasound is poised to evolve toward greater clinical integration, intelligence, and high-end sophistication against the backdrop of continuous advancements in probe technology and novel imaging principles, thereby delivering greater patient benefits in clinical practice. The Jurong team remains committed to innovation-driven development, sustained investment in foundational technology platforms, and the R&D of products that address critical clinical pain points. We are highly optimistic about this opportunity and are pleased to participate in this financing round. We look forward to seeing Jurong grow into an ultrasound brand that makes China proud.”

Founded in 2014, Jurong Medical is committed to its mission of “Empowering Clinical Practice, Sharing Health.” Focusing on the field of ultrasound medical imaging, the company is dedicated to the research, development, and production of innovative ultrasound imaging solutions, creating comprehensive, future-oriented ultrasound equipment to fully empower clinical advancement. Jurong Medical has established a professional R&D team, built an advanced R&D system, and integrated high-quality channel resources. Leveraging capital strength, the company has significantly increased its investment in product development and marketing. Currently, Jurong Medical has successfully independently developed and manufactured a diverse portfolio of ultrasound products, including the portable ultrasound Finus (Dolphin Star), the cost-effective color Doppler ultrasound Danus (Swordfish Star), the high-end console-based color Doppler ultrasound Cetus (Whale Star), the breast-specific color Doppler ultrasound Cygnus (Swan Star), and the veterinary color Doppler ultrasound Lynus (Tmall Star), thereby achieving a diversified product layout spanning points, lines, and planes.

Chende Capital is an investment firm focused on the life sciences and medical technology sectors. It manages multiple USD and RMB funds, with total assets under management exceeding RMB 5 billion. Chende Capital is managed and operated by a professional team with extensive experience in the healthcare industry. The firm has completed investments in over 60 projects and achieved successful exits from multiple portfolio companies.

Shanghai Orient Securities Innovation Investment Co., Ltd. (“Orient Innovation”) was established in November 2012 with a registered capital of RMB 5.8 billion, ranking among the largest in scale among brokerage-affiliated investment firms. It is a wholly-owned subsidiary of Orient Securities (600958.SH), specializing in alternative investments such as equity investment, strategic co-investment in the STAR Market and ChiNext board, special asset investment, and financial product investment. Orient Innovation’s equity investment activities focus on high-tech industries, strategic emerging industries, and growing innovative and entrepreneurial enterprises, implementing the national strategies of innovation-driven development and building a strong science and technology nation, thereby supporting the growth of technology enterprises.