Shandong Kangsheng Medical Completes Over RMB 100 Million Series C Financing to Expand Product Lines Including Percutaneous Endoscopic Interlaminar Approach Systems and Orthopedic Consumables

VCBeat (WeChat: vcbeat) has learned that Shandong Kangsheng Medical Device Co., Ltd. (hereinafter referred to as “Kangsheng Medical”) recently announced the completion of its Series C financing round, exceeding RMB 100 million. The round was led by CO-WIN Venture Capital, with participation from Oriental Fortune Capital, Jiequan Development, Shanghai Yuhan Equity Investment Fund Partnership (L.P.), and Suzhou Weikang.

Shandong Kangsheng Medical Device Co., Ltd., located in Tai’an City, Shandong Province, was established in late 2010. After nearly five years of company preparation, product research and development, clinical registration, and manufacturing setup, the company began domestic sales in 2016. As an orthopedic enterprise primarily engaged in the R&D, production, and sales of orthopedic medical devices, its main products include high-value consumables for orthopedic implants (spine, trauma, joint, and sports medicine) and orthopedic surgical instruments. As a new entrant among domestically produced orthopedic manufacturers, Kangsheng Medical has achieved rapid development in recent years. Its products are advanced, of high quality, and produced at a leading scale, demonstrating strong market competitiveness in China’s orthopedic implant medical device sector. By the end of 2019, Kangsheng Medical had achieved annual revenue exceeding RMB 100 million. Its products have been adopted by more than 1,000 general and specialized orthopedic hospitals across China, including West China Hospital of Sichuan University, Qilu Hospital of Shandong University, and Xiangya Hospital of Central South University, with its sales network covering 28 provinces, municipalities, and autonomous regions.

This financing round represents another strategic investment for Kangsheng Medical, following its Series B funding led by Shenzhen Capital Group in January 2020. The funds will be primarily allocated to the research and development, manufacturing, and sales of intervertebral foramen endoscopes, orthopedic consumables such as artificial joints, and sports medicine products.

Cui Shulin, Chairman of Kangsheng Medicalstated: “In 2020, influenced by the pandemic and the nation’s active and steady promotion of volume-based procurement (VBP) for high-value medical consumables, capital markets have become increasingly cautious. Nevertheless, enthusiasm for investing in innovative medical technologies and products remains strong. While actively responding to the national VBP policy for high-value medical consumables, Kangsheng Medical will leverage the strength of professional investors to actively and steadily expand the R&D of innovative orthopedic products. With this round of financing, we will continue to increase investment in the R&D and production of minimally invasive spinal products, such as transforaminal endoscopic systems and ancillary tools, endoscopic consumables, as well as new materials and processes for spinal and trauma applications, including cobalt-chromium-molybdenum alloys and hydroxyapatite-enhanced PEEK. We will remain deeply committed to the orthopedic medical device sector, focusing continuously on technological and product innovation, ensuring ongoing product iteration and upgrades, expanding and optimizing our marketing network and channel development, and enhancing the brand influence of Kangsheng. Our aim is to break the monopoly of multinational corporations in the high-end orthopedic medical market. Furthermore, this round of financing lays a solid foundation for Kangsheng Medical’s upcoming initial public offering (IPO) in the domestic capital market.”

Yi Hongxiang, Partner at SCGC Hongtu Medical FundHe stated that, first and foremost, the company welcomes the addition of new shareholders such as Shenzhen CO-WIN Venture CAPITAL Investmen Limited and Shenzhen Oriental Fortune Capital Co., Ltd., which will bolster Kangsheng Medical’s rapid development. Furthermore, in the face of development opportunities arising from significant shifts in the orthopedics industry, Shenzhen Capital Group has firmly supported Kangsheng Medical. Under the leadership of Chairman Cui Shulin and General Manager Wang Xiaobing, the company is seizing these opportunities to strengthen and expand its presence in the fields of orthopedics and sports medicine, achieving major breakthroughs particularly in new products, new materials, and new applications.

Liu Yimin, Managing Director of CO-WIN Capital, and Jiang Hai, Business DirectorIt was stated that orthopedics and sports medicine are high-quality sectors with broad prospects, and there is still significant room for increased market penetration in China. Led by Chairman Cui Shulin and General Manager Wang Xiaobing, the core team at Kangsheng Medical has accumulated extensive expertise in the orthopedic field and possesses a profound understanding of industry development trends. Shenzhen CO-WIN Venture CAPITAL Investmen Limited firmly supports Kangsheng Medical in strengthening R&D investment and expanding its product portfolio, aiming to establish the company as a leading domestic brand with comprehensive product coverage in orthopedics and sports medicine.