Songbai Investment, Sinocera Materials, and Hillhouse YiCheng Announce Strategic Collaboration to Advance Dental Restoration Platform Aikang

On June 18, 2020, Shuangbai Investment Management (Hong Kong) Co., Ltd. (hereinafter referred to as “Shuangbai Investment”), Shandong Sinocera Functional Material Co., Ltd. (hereinafter referred to as “Sinocera”), and Zhuhai Hillhouse Yicheng Equity Investment Partnership (Limited Partnership) (hereinafter referred to as “Hillhouse Yicheng”) announced a strategic partnership, expressing their intention to collaborate closely in the field of dental restoration. As part of the tripartite strategic cooperation agreement, Shuangbai Investment or its affiliates intends to invest in Ai Er Chuang, a subsidiary of Sinocera, with an investment amount of no less than RMB 200 million. Shuangbai Investment will also leverage its global dental business network and supply chain synergy capabilities to promote Ai Er Chuang’s development into a comprehensive platform in the dental restoration sector.

The signing of this strategic cooperation agreement was based on the announcement made by Sinocera on June 18, 2020, in which the company released a plan for the non-public issuance of A-shares and introduced Hillhouse Yicheng as a strategic investor, with the latter participating in the subscription of Sinocera’s private placement fundraising. According to the plan for this non-public share issuance, Sinocera entered into a conditional effective strategic cooperation agreement with Hillhouse Yicheng and its strategic partner, Shuangbai Investment.

Swallow Investment is one of the leading industrial investors in the global dental industry, fostering synergistic development of dental industry resources across all segments of the value chain. Rooted in oral healthcare, Swallow Investment expands its business and integrates the industry through a model combining investment with operational management, supporting and cultivating industry leaders while addressing the practical needs of dentists and patients. Swallow Investment’s philosophy is to fully leverage the brand strength and team capabilities of its portfolio companies, drive medical innovation, and build international dental brands.

Songbo Investment’s investment and business network spans upstream key categories—including orthodontics, dental implants, imaging equipment, chairside digital solutions, and management software—midstream comprehensive dental distribution services, and downstream specialized dental hospitals and dental clinic chains. Songbo is also committed to identifying the best clinical practices and industrial technological innovations worldwide, with extensive investment and business development networks in the dental communities of China, the United States, and Europe.

Sinocera is a high-tech enterprise and a company listed on the ChiNext board, primarily engaged in various types of advanced new materials. It focuses on the research and development, production, and sales of high-end functional ceramic materials such as multilayer ceramic capacitors (MLCCs). Its main products are widely used in consumer electronics, the 5G industry, automotive electronics, dental healthcare, and other fields. Upcera is a leading domestic enterprise in advanced zirconia dental ceramic materials. In 2018, Sinocera completed the acquisition of 100% equity interest in Upcera, thereby achieving vertical integration and extension of its industrial chain and mastering the production chain from zirconia powder to denture materials.

In this collaboration, Songbo will leverage its global dental business network and supply chain synergy capabilities to assist Aidite in evolving into a comprehensive platform in the field of dental restoration. Songbo will also share its industry research and information networks to help Aidite refine its strategic planning, provide resource support in expanding product line breadth, initiating R&D and clinical collaborations, and extending its international business network, as well as identify and recommend potential M&A targets and assist Sinocera Materials in conducting value assessments.

Songbai is one of the global leaders in the dental industry, guiding industrial development trends through a combination of investment and operation. Songbai has extensively invested in and participated in various sectors of the dental industry across China, North America, and Europe. It holds controlling stakes in leading enterprises along the upstream, midstream, and downstream of the dental supply chain, including Angelalign, Songbai Dental, and Huizhou Stomatological Hospital. Its investment and business portfolio also includes numerous other leading companies, such as product-focused firms like Carestream Dental, Germany-based OrthoCaps orthodontics, and Germany-based BEGO implants; dental healthcare brands like Henglun Dental, Tongbu Dental, and More Dental; and the dental distribution enterprise Huaguang Dental Group.