Haihe Pharmaceuticals Completes RMB 1.2 Billion Series B Financing Led by Warburg Pincus, with ECFC as Exclusive Financial Advisor

Shanghai Haihe Biopharma Co., Ltd. (“Haihe Biopharma”), a leading biotechnology company focused on the discovery and development of innovative oncology drugs, announced today that it has completed its RMB 1.2 billion Series B financing round. The round was led by Warburg Pincus, with participation from CMB International, Legend Capital, funds under China International Capital Corporation (CICC) Capital, Shanghai Chaos Investment (Group) Co., Ltd., Langzi Hana, Jiangsu Ruihua Investment Holding Group Co., Limited, and Shanghai Science and Technology Innovation Fund. Existing investors from the Series A round, including Boyuan Capital, Yingke Capital, Liansheng Venture Capital, CSPC Pharmaceutical Group, and their affiliates, also continued to participate. The proceeds will be primarily used to accelerate the global research and development and commercialization of the company’s multiple novel anti-cancer drug candidates.

CEC CAPITAL served as the exclusive financial advisor to Haihe Biopharma in this transaction.

The funds raised will be primarily used to accelerate the global R&D and commercial launch of the company’s multiple novel anti-tumor drugs.

Dr. Dong Ruiping, CEO of Haihe Biopharma, stated: “We are grateful for the continued recognition and support from numerous professional investment institutions in this round of financing. Among Haihe’s current 11 core products, eight are in clinical development, and five have received implicit U.S. IND approvals. The company is comprehensively advancing clinical development and commercialization readiness for its products, while expanding its international footprint. We look forward to working closely with our investors to further accelerate the global R&D and commercialization of our products, bringing safer and more effective innovative medicines to patients as soon as possible.”

Fang Min, Partner and Head of Healthcare Investment at Warburg Pincus, stated, “We are delighted to partner with an outstanding company like Haihe Biopharma. This marks Warburg Pincus China’s first significant investment in the Chinese innovative drug sector, holding substantial significance for us. The Chinese innovative drug landscape, led by oncology therapeutics, offers immense growth potential. Warburg Pincus highly recognizes Haihe Biopharma’s leading advantages in its product pipeline, R&D capabilities, and talent pool. Moving forward, we will fully leverage our resources and experience in the healthcare sector both domestically and internationally to support its development into a world-class innovative pharmaceutical enterprise, thereby better serving patients worldwide.”

Li Gang, Partner at CEC CAPITAL, the investment banking advisor for this transaction, stated, “Thanks to its top-tier founding team and robust product pipeline, Haihe Biopharma has attracted significant attention from the capital market since its inception. This financing round has further gained recognition from globally renowned investment institutions, underscoring Haihe Biopharma’s unique position and strong capabilities in the field of innovative oncology drugs. As the company’s exclusive financial advisor, CEC CAPITAL is committed to growing alongside premier companies. We will continue to provide comprehensive support to help Haihe Biopharma become a leading force in China’s innovative oncology drug sector.”Zhang Xiao, Managing Director at CEC CAPITAL, remarked, “We are honored to have assisted Haihe Biopharma in rapidly closing this substantial financing round. The round was highly sought after by numerous top-tier investment institutions and was oversubscribed by several times, which indirectly reflects Haihe Biopharma’s leadership position in China’s innovative oncology drug landscape. This financing will provide strong support for the development of the company’s rich product pipeline. We believe that the outstanding team led by Academician Ding Jian and Dr. Dong Ruiping will elevate the company to new heights.”

Haihe Biopharma is dedicated to the discovery, development, and commercialization of innovative oncology drugs. Guided by its mission to “embrace diversity, foster harmony and win-win cooperation, prioritize innovation, and benefit humanity,” the company adheres to a path of independent innovation and seeks to advance the international development of original Chinese innovative drugs.

Haihe Biopharma boasts a management team led by an academician of the Chinese Academy of Engineering, with a strong emphasis on innovation and extensive experience. The company has established a “biomarker-guided” precision medicine platform and developed a comprehensive preclinical evaluation and clinical research system for new drugs that features advanced technology, standardized operations, and international alignment. This system encompasses drug development, CMC research, biomarker discovery and validation, medical strategic planning, and clinical studies. Haihe Biopharma has built a highly competitive new drug R&D framework and product pipeline with compounded advantages. The company currently has 8 clinical-stage compounds and 3 preclinical-stage compounds.

Warburg Pincus is a global leading private equity firm focused on growth investing. The firm currently manages over $53 billion in private equity assets and has invested in more than 185 companies across various industries and at different stages of development. Founded in 1966 and headquartered in New York, Warburg Pincus operates 14 offices in 11 countries. Since its inception, the firm has raised 19 private equity funds and has cumulatively invested over $84 billion in more than 900 companies across more than 40 countries worldwide.

Since entering Asia in 1994, Warburg Pincus has become one of the largest and most active international private equity firms investing in China and Southeast Asia, with offices currently located in Beijing, Shanghai, Hong Kong, and Singapore. We have cumulatively invested over $14 billion in more than 135 outstanding enterprises across China and Southeast Asia. As a long-term international investment institution with 26 years of deep roots in China, Warburg Pincus is also one of the most active and seasoned institutional investors in China’s healthcare industry. The firm has cumulatively invested over $1.7 billion in China’s healthcare sector. Warburg Pincus’s healthcare investment portfolio includes Hygeia Medical, Jinxin Fertility, Amcare, Yestar, and Huatang Dachang, covering sub-sectors such as oncology treatment, assisted reproduction, maternal and infant care, medical aesthetics, and pharmaceutical distribution.

CMB International is a wholly-owned subsidiary of China Merchants Bank, tasked with the critical mission of leveraging the vast emerging financial market in China through dual linkages between domestic and overseas operations, as well as between investment banking and commercial banking. CMB International has established a comprehensive business layout across private equity investment, investment fund management, mezzanine fund management, cross-border capital operations, and other innovative financial services. It is committed to building a high-quality integrated investment platform and an alternative asset management platform under the China Merchants Bank umbrella through development, transformation, and innovation. Since its inception, CMB International has accurately grasped industry trends, capitalized on emerging opportunities, and led or participated in numerous prominent investment cases, establishing itself as a leading private equity investment institution in China.

Legend Capital is an independent professional venture capital firm under Legend Holdings, established in April 2001. Its core business focuses on early-stage venture capital and growth-stage expansion investment, with a strategic emphasis on TMT and innovative consumption, professional services and intelligent manufacturing, healthcare, and culture and sports sectors. The total assets under management in USD and RMB funds exceed RMB 50 billion, with a primary focus on innovation and growth opportunities in China.

As of 2020, Legend Capital had invested in nearly 450 companies, among which more than 70 have successfully gone public or been listed domestically or overseas, and over 60 have exited through mergers and acquisitions.

CICC Capital Management Co., Ltd. (“CICC Capital”), as the sole private equity investment business platform of China International Capital Corporation Limited (“CICC”), centrally manages CICC’s onshore and offshore private equity fund businesses. CICC Capital is committed to becoming a private equity fund management platform with strong brand influence, outstanding fundraising and investment capabilities, and comprehensive middle- and back-office management capabilities. Meanwhile, CICC Capital continuously enriches its product offerings and expands its business scope across multiple dimensions, including products, industries, and regions. The funds managed by CICC Capital cover government guidance funds, existing economy reform funds, USD funds of funds, RMB funds of funds, USD equity investment funds, RMB equity investment funds, and merger and acquisition (M&A) funds, among others.

Currently, CICC Capital manages assets exceeding RMB 330 billion and boasts a professional investment management team of approximately 300 members, making it one of China’s leading private equity fund management platforms.

Shanghai Chaos Investment (Group) Co., Ltd. was registered and established in the Pudong New Area in June 2005, with a registered capital of RMB 298 million. As a specialized investment institution, its business activities encompass bulk commodity trading, commodity futures, securities, equity investments, and investment management. Throughout its investment practice, the company has consistently adhered to the principles of “standardized management, professional research, prudent and steady operations, and strict risk control,” achieving outstanding performance continuously since its inception. The company boasts an experienced, dynamic, and enterprising professional team. This team has accumulated mature investment philosophies and comprehensive risk control measures through years of practice, excelling at capturing fleeting investment opportunities and navigating significant turbulence in financial markets with ease. Its investment research covers a wide range of fields, including commodity futures, securities, foreign exchange, financial derivatives, and equity investment projects. This broad research perspective enables the company to diversify risks through multi-asset portfolio strategies, accurately grasp market trends from a macroeconomic standpoint, and ensure long-term, stable development.

Beijing Langzi Hana Asset Management Co., Ltd. (ALAN AMC) was established in 2016 with a paid-in registered capital of RMB 1.713 billion. Its shareholders include the listed company Langzi Shares (002612.SZ), Hana Bank Co., Ltd. of Korea, Hana Financial Investment Co., Ltd., and other strategic institutional investors. ALAN AMC primarily focuses on alternative asset investment opportunities in areas such as equity and industrial investment, mezzanine and credit investment, and real estate investment. By flexibly employing diverse investment strategies and carefully selecting industries and clients, the company aims to achieve stable and robust investment returns. Headquartered in Beijing, ALAN AMC has established branches in Shanghai and Hong Kong, and plans to set up additional branches at appropriate times in the future to realize a comprehensive layout for alternative asset investments across Asia.

Jiangsu Ruihua Investment Holding Group Co., Limited, established in July 2003, is primarily engaged in securities investment and asset management. It is one of the few large-scale private securities fund managers in China with assets under management exceeding RMB 10 billion. The group’s business covers the stock circulation market, direct equity investment and mergers & acquisitions/restructuring, private placements of listed companies, and financial futures and derivatives investment, achieving comprehensive coverage of the industrial chain in China’s capital markets. Focusing on the sectors of healthcare, consumer goods, and TMT (Technology, Media, and Telecom), the company has pioneered a novel investment model: “hedged arbitrage based on value-trend investing.” To date, it has invested in hundreds of listed and non-listed companies across primary, pre-IPO (primary-and-a-half), and secondary markets. In the primary market, it has made direct investments in seven funds and two fund management companies. A significant number of its portfolio companies have been listed on the Main Board, the STAR Market, and the ChiNext Board. As one of the most active institutional investors in the pre-IPO and secondary markets, the company has participated in over one hundred private placements of listed companies, earning it the reputation as the “King of Private Placements.”

Shanghai Science and Technology Innovation Center Equity Investment Fund (hereinafter referred to as “Shanghai Sci-Tech Innovation Fund”) is a market-oriented fund of funds initiated and established in 2017, in accordance with the deployment requirements of the Shanghai Municipal Committee of the Communist Party of China and the Shanghai Municipal People’s Government. Led by Shanghai International Group, it was founded together with cornerstone investors including Guosheng Group, Shanghai International Port Group, Shanghai Trust, Guotai Junan Securities, and Zhangjiang High-Tech Park. The fund manager of Shanghai Sci-Tech Innovation Fund is Shanghai Science and Technology Innovation Center Equity Investment Fund Management Co., Ltd.

Shanghai Science and Technology Innovation Fund adheres to the operational principles of “professionalism, market orientation, and internationalization.” By aggregating financial and industrial capital, it is committed to building a standardized, efficient equity investment and financing platform for scientific and technological innovation, characterized by strong resource integration capabilities and significant radiating and driving effects. The fund supports the development of strategic emerging industries and sci-tech innovation enterprises, effectively serves the national strategy of innovation-driven development, and fully facilitates Shanghai’s acceleration in building a globally influential science and technology innovation center.

The Shanghai Science and Technology Innovation Fund has a target size of RMB 30 billion, with an initial fundraising scale of RMB 6.52 billion. It focuses on renowned fund managers with leading advantages in equity investment in strategic emerging industries. Meanwhile, it has established strategic partnerships with entities such as the National Guide Fund for the Transformation of Scientific and Technological Achievements and CAS Holdings Co., Ltd., to jointly support scientific and technological innovation and industrial development.

CEC Capital is a leading investment bank for China’s new economy, focusing on three major sectors globally: TMT, consumer, and healthcare. In addition to its investment banking services, CEC Capital manages one RMB-denominated fund and one USD-denominated fund. The firm has offices in Beijing, Shanghai, Los Angeles, and San Francisco, and holds licenses to operate in the U.S. securities market.

The healthcare and medical sector is a key focus area where CEC CAPITAL holds significant advantages, having ranked as the new-economy investment bank with the highest number of healthcare industry transactions in China for three consecutive years. Meanwhile, CEC CAPITAL boasts the largest, most professional, and most comprehensively integrated investment banking team covering the entire healthcare industry value chain in China.