Songbai Dental and China Merchants Bank Launch 300 Million RMB 'Lingxing Jin' Special Loan to Revitalize the Dental Industry

On May 6, 2020, Songbai Dental, the dental distribution platform under Songbai Investment, announced the joint launch of the “Linghangjin” special loan program for the oral care industry with its strategic partner, China Merchants Bank. The “Linghangjin” loans are supported by interest subsidies from Songbai Dental. The initial tranche, totaling RMB 300 million, will be disbursed to over one hundred dental distribution enterprises. Leveraging their service networks, the program aims to help thousands of dental healthcare institutions across China recover as quickly as possible from the impact of the COVID-19 pandemic, thereby facilitating the resurgence of the oral care industry.

Songbai Dental is an industrial investment and operating entity under Songbai Investment, dedicated to empowering dental distribution enterprises. Deeply aware of the hardships and perseverance of various companies in the oral healthcare industry amid the pandemic, Songbai Dental, as a participant in the sector, shares its fortunes with the entire industry. To contribute to the industry’s recovery, Songbai Dental has partnered with China Merchants Bank to provide interest-subsidized loan assistance. Furthermore, it calls on distribution enterprises across China that have benefited from this “Lingxing Jin” (Leading Gold) program to continue providing stable product supplies and professional services, while also helping oral healthcare institutions alleviate financial pressure through measures such as preferential pricing and extended payment terms. Together, let us contribute to the industry’s recovery and prosperous development.

The COVID-19 pandemic is raging globally, severely impacting the dental industry. From February to April, as most dental medical institutions suspended operations or significantly reduced patient intake, dental distribution companies experienced a sharp decline in revenue and faced cash flow pressures.

Currently, dental healthcare institutions are gradually resuming operations, leading to a particularly high demand for infection control products. In addition, the outbreak of the epidemic in Europe and the United States has necessitated advance orders for imported dental consumables to prevent future shortages. Many dental distributors have been actively stocking up to support dental healthcare institutions through the difficult period brought about by the COVID-19 pandemic, which has further strained their already tight cash flows.

Against this backdrop, Songbai Dental plans to provide interest subsidies for up to six months on a special loan facility of up to RMB 300 million dedicated to the oral care industry. The initiative is expected to benefit nearly 100 domestic dental distributors, with each enterprise eligible for interest-subsidized loans of up to RMB 5 million. This measure aims to alleviate the financial constraints faced by distributors and support them in helping their customers navigate through these challenging times.

Hu Jiezhang, Partner at Songbai Investment and CEO of Songbai Dental, stated: “In response to the impact of the pandemic, collaboration and mutual support between upstream and downstream sectors of the industry have become critically important. As key ‘blood vessels’ that connect upstream suppliers with downstream providers, dental distribution enterprises play a pivotal role in stabilizing the supply of materials and services, thereby ensuring the smooth operation of the industrial chain. Maintaining an unobstructed ‘circulatory system’ is a vital component in supporting the development of the industry.”

“Each dental distributor serves hundreds or even thousands of dental clinics. Songbai Dental aims to support these distributors while also encouraging them to pass on benefits and provide assistance to dental clinics, thereby benefiting tens of thousands of end-user medical institutions. In doing so, we hope to contribute to revitalizing the dental industry and safeguarding public oral health.”

Songbai Dental and its strategic partner, China Merchants Bank Shanghai Branch, have jointly launched the “Linghangjin” special loan program for the oral care industry. This is the first special loan product tailored to the oral care sector across China, representing an innovative financial service developed by China Merchants Bank and Songbai Dental following in-depth research into the industry’s characteristics and pain points.

China Merchants Bank’s Shanghai Branch will establish a “green” approval channel for the dental industry’s “Linghangjin” loan product, enabling online pre-applications, dedicated liaison support, and responses within seven business days. This initiative significantly accelerates loan processing to address enterprises’ urgent financial needs.

At the project launch meeting, Mr. Hu Jiezhang expressed his gratitude to China Merchants Bank (CMB) for supporting the recovery of the dental industry with high-quality financial services: “As an intermediate link in the dental industry, distribution and circulation play a vital role in stabilizing supply and supporting industry development. Our initiative to aid industry recovery through interest-subsidized loans received a positive response from CMB. With the strategic partnership between Songbai Dental and CMB, we look forward to deepening our collaboration, empowering the healthy and rapid development of the dental industry through financial services, and safeguarding the advancement of China’s oral health sector.”

A senior executive from China Merchants Bank’s Shanghai Branch expressed gratitude for the trust placed by Songbai Dental, stating, “Songbai Dental and its controlling shareholder, Songbo Investment, have established deep roots in the dental industry, demonstrating a profound understanding of market demands and growth drivers, while proactively fulfilling corporate social responsibility during critical times. We are honored to serve as a strategic partner to Songbai Dental and look forward to enhancing bank-enterprise synergy, thereby making greater contributions to supporting the real economy of the dental sector through financial services and promoting national oral health.””

The “Linghangjin” Special Guarantee Fund Loan for the Oral Care Industry, jointly launched by Songbai Dental and China Merchants Bank, has commenced its pilot program. For more details, please visit the official websites of Songbai Dental (www.ccdental.com) and CareCapital Partners (www.carecapitalpartners.com), or follow their WeChat Official Accounts: CCDentalGroup and CareCapital.

Songbai Dental is an industrial investment and operating entity under Songbai Investment, specializing in the dental distribution sector, with its headquarters in Shanghai. Songbai Dental is committed to providing high-quality dental medical devices, digital solutions, and professional comprehensive services to dental clinics and hospitals across China.

Songbo Investment is one of the world’s leading investors in the dental industry, with extensive investments and participation across various sectors of the dental industry in China, North America, and Europe. It holds controlling stakes in leading enterprises at different stages of the dental industry chain, including Angelalign, Songbai Dental, and Huizhou Stomatological Hospital. Its investment and business portfolio also includes numerous other leading companies, such as product manufacturers like Carestream Dental, Germany-based OrthoCaps (orthodontics), and Germany-based BEGO (dental implants); dental healthcare brands like Henglun Dental, Tongbu Dental, and More Dental; and the dental distribution enterprise Huaguang Dental Group.