Huiying Medical Secures Hundreds of Millions in C2 Funding Round Led by Shougang Fund and Sinopharm Junbai

VCBeat has learned that on November 16, 2020, HY Medical, a leading enterprise in AI-powered medical imaging, announced the successful completion of its latest round (C2) of financing, amounting to hundreds of millions of RMB. This marks one of the largest financing events in the medical AI industry. The round set a new record for the company’s fundraising, with China Renaissance Capital continuing to serve as the exclusive financial advisor in this transaction.

This round of financing was jointly funded by Shougang Fund, Sinopharm Junbai (a fund under Sinopharm Holding), and Kunjian Xintai, while existing shareholders such as CDH Investments, Data Capital, and BlueRun Ventures continued to increase their investments. The raised funds will be used for the company’s product innovation, business development, sales channel establishment, and team expansion. In 2018, HY Medical also received strategic investments from Intel Capital and Chipone Investment, becoming the first AI healthcare enterprise invested in by these two funds in China. To date, HY Medical is the only medical artificial intelligence company to have received investments from three Fortune Global 500 giants.

Since establishing its headquarters in Beijing Zhongguancun Dongsheng Science Park in 2015, HY Medical initially focused on intelligent medical imaging, undertaking numerous exploratory initiatives centered on AI algorithm models and technological implementation. It has since gradually built an AI-based big data platform, creating a closed-loop system that spans the entire process from scientific research to clinical application. Currently, its products have been deployed in scenario-specific applications across more than 1,000 medical institutions worldwide. Over the past five years, the ecosystem map of HY Medical’s AI medical imaging platform has been steadily unfolding. Leveraging its rapid execution capabilities in application deployment, HY Medical has expanded its business presence to over 50 countries and regions globally, emerging as one of the leading players in the AI medical imaging sector.

Leveraging core technologies in deep learning for medical imaging and multiple patented technologies, and built upon cloud computing, big data, and artificial intelligence, HY Medical currently offers three major product suites: the NovaCloud® Smart Imaging Cloud Platform, the Dr. Turing® AI-Assisted Diagnosis Platform, and the RadCloud® Big Data and AI Research Platform. These solutions enable the digitization, mobilization, and intelligentization of medical imaging, establishing a closed-loop workflow that spans screening, diagnosis, and treatment decision support.

From the perspective of AI product design logic, the focus is primarily on dimensions such as “disease type + disease course.” The company currently offers a range of AI-assisted screening and diagnostic software solutions, including DR for fractures, DR for tuberculosis, CT for pneumonia, CT for pulmonary nodules, CT for liver cancer, CT for aortic dissection, CT for abdominal aortic aneurysm, MRI for prostate cancer, MRI for breast cancer, MRI for brain tumors, and mammography. Additionally, more than twenty other products are in incubation. Among these, the AI solutions for DR-detected fractures, DR-detected tuberculosis, and CT-detected pulmonary nodules are currently applying for Class III medical device registration certificates in China.

In 2020, as the novel coronavirus ravaged the globe, an increasing number of healthcare professionals worldwide chose to partner with HY Medical in the fight against the COVID-19 pandemic, leveraging artificial intelligence (AI) technology to mitigate the severe impact on healthcare systems. HY Medical’s AI-assisted screening system for COVID-19 has been deployed in over 100 leading local hospitals across more than 50 countries and regions. By introducing innovative models such as AI-assisted CT image interpretation and AI-supported clinical decision-making, the system has effectively helped medical institutions in many countries address critical shortages of manpower and expertise through AI technology.

Wang Zhijian, Chief Investment Officer of Shougang Fund, stated: “Healthcare and life sciences have long been a key investment focus for Shougang Fund, with ‘AI + Healthcare’ being a priority sub-sector within this domain. In terms of technological innovation, medical imaging diagnosis represents the most widely applied and mature scenario for AI in medicine. From a practical demand perspective, the new healthcare infrastructure initiative will drive investment in AI technologies, helping to alleviate the challenges of insufficient and unevenly distributed medical resources in China. Furthermore, ‘AI + Healthcare’ aligns with Beijing’s strategic direction of encouraging the development of ten high-end, precision-cutting-edge industries. As a market-oriented investment fund with state-owned enterprise backing, we are highly committed to supporting enterprises with emerging diagnostic and therapeutic technologies through investment. We also aim to achieve strategic synergy with Shougang Fund’s hospital operations management group, thereby providing substantive assistance to the growth of these startups.”

Shen Wenzhu, Deputy General Manager of Sinopharm Junbai Fund, stated, “As one of the leading enterprises in the medical AI sector, HY Medical has achieved outstanding results in various international business competitions and evaluations. Furthermore, we have observed that HY Medical has made significant commercial breakthroughs in overseas markets. During the pandemic, the company rapidly developed an AI-based imaging screening product for COVID-19 and collaborated closely with Huawei to expand into overseas markets, successfully implementing a per-case payment model. In the domestic market, as the company progressively secures NMPA registration certificates, we will support its advancement toward large-scale commercialization. We are committed to researching, developing, and promoting digital imaging and AI products suitable for public health and tiered diagnosis and treatment systems, aiming to create an efficient and user-friendly medical imaging platform. Our goal is to ensure that AI products not only assist in enhancing hospital service and diagnostic efficiency but also deepen clinical integration through continuous data learning and product iteration, thereby fostering a virtuous ecological closed loop for medical AI.”

Chen Lei, head of Kunjian Xintai, stated, “AI-based diagnosis represents a significant application of artificial intelligence in the medical field. Data mining and cloud computing technologies will empower the vertical sector of medical imaging, thereby bringing disruptive changes to the entire healthcare industry. The Kunjian team firmly believes that AI-assisted diagnostic capabilities can both alleviate the workload for physicians at tertiary hospitals and enhance the quality of care provided by doctors at primary-care institutions. As an important supplement to the traditional model of diagnosis and treatment that relies solely on physicians, it addresses a rigid demand, holds enormous market potential, and can provide sustained momentum for the precision and intelligent diagnosis within the medical imaging industry.”

Li Gang, Partner at China Renaissance Capital, the financial advisor for this transaction, stated: “As a core driver of new infrastructure development, AI technology can empower various industries, particularly the healthcare sector, which is closely tied to people’s livelihoods. The recent COVID-19 pandemic has fully demonstrated the advantages of AI in healthcare. The Ministry of Industry and Information Technology also issued the ‘Initiative on Fully Leveraging the Empowering Role of Artificial Intelligence to Jointly Combat the Novel Coronavirus Pneumonia Epidemic,’ calling for the deployment of AI products and solutions where they are most needed, thereby creating new opportunities for the future development of ‘AI + Healthcare.’ China Renaissance Capital remains bullish on HY Medical’s product portfolio in the AI healthcare space and its ability to commercialize globally. With the strong support from state-backed investors in this round, we believe HY Medical will gain a greater competitive edge in the future landscape of the medical imaging AI industry. We are honored to have assisted HY Medical in closing this financing round.”

Shougang Fund is an industrial investment fund capitalized by the Beijing Municipal Government. The Beijing Municipal Finance Bureau, Development and Reform Commission, Bureau of Economy and Information Technology, Financial Regulatory Bureau, and State-owned Assets Supervision and Administration Commission serve as members of the Fund’s Strategic Guidance Committee. Currently, investors in Shougang Fund include major institutions and listed companies such as the National Social Security Fund, China Life Insurance, Agricultural Bank of China, Taikang Insurance Group, Hopu Investment, CIMC Group, ORIX Group (Japan), NWS Holdings (Hong Kong), and RGE Group (Singapore). The company has directly invested in over 70 projects and nearly 30 leading domestic fund managers, with indirect investments covering more than 700 new economy enterprises.

Sinopharm Junbai Fund is a market-oriented, professional private equity investment fund under Sinopharm Group Holding Co., Ltd., a core subsidiary of Sinopharm Group. Established with an investment philosophy centered on enhancing industrial value and grounded in deep, long-term understanding of the healthcare industry, pharmaceutical and medical device distribution, and specialized medical services, the fund serves as a dedicated healthcare industry investment vehicle. Junbai Fund focuses on expanding Sinopharm Holdings’ horizontal coverage across the healthcare sector and strengthening its vertical integration along the industry chain. Leveraging a professional capital operations team, the fund empowers enterprises to achieve sustainable growth and continuous innovation in the healthcare industry through its professional investment perspective, robust capital integration capabilities, and comprehensive industrial support services. By fully mobilizing the market’s role in optimizing industrial resource allocation, the fund drives dual-engine growth powered by both industry development and capital investment.

Zhejiang Kunjian Xintai is an equity investment platform guided by value investing and driven by industry research, dedicated to creating long-term value. Its investment focus centers on healthcare, new materials, and new consumption sectors.

China New Economy Investment Banker of the Year, Focus on Global TMT, Consumer and Health Three Major Industries. In addition to investment banking business, China New Economy Capital is managing a RMB fund and a US dollar fund. The company has branches in Beijing, Shanghai, Los Angeles and San Francisco and holds a license for the US securities market. The healthcare industry is a key focus area with deep advantages for China New Economy Capital, which has been the new economy investment bank with the most health industry transaction records in China for three consecutive years. Meanwhile, China New Economy Capital boasts the largest, most professional and most complete industrial chain coverage health industry investment banking team in China.