New Milestone Capital Launches $3 Billion Health Industry Fund in Strategic Partnership with Shenzhen Qianhai

VCBeat (WeChat ID: vcbeat) has learned that on October 24, in Qianhai, Shenzhen, at the “New Mission, New Journey, New Benchmark—Press Conference on the Achievements of Qianhai’s Promotion of the Construction of the Pilot Demonstration Area for Socialism with Chinese Characteristics” (hereinafter referred to as the “Press Conference”), the Shenzhen Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone Authority (hereinafter referred to as the “Qianhai Authority”) signed a strategic cooperation framework agreement with New Milestone Hospital Group. The two parties will engage in strategic cooperation in the fields of medical services, medical technology, and the financial industry, jointly exploring innovations in the broader health sector.

△At the press conference, the Qianhai Authority signed a strategic cooperation framework agreement with enterprises such as New Milestone Hospital Group

Meanwhile, Lin Yanglin, CEO of New Journey Hospital Group, announced the establishment of New Journey Capital in Qianhai, launching a health industry fund with a total size of RMB 10 billion and an initial closing of RMB 2 billion. The fund is dedicated to investing in high-quality projects within the broader healthcare sector and in scientific research achievements with leading advantages. It aims to fully leverage the collaborative strengths in industry, academia, and research shared by CAS Holdings, the University of Chinese Academy of Sciences, and New Journey Hospital Group. By capitalizing on New Journey Hospital Group’s medical patient flow as a key entry point, the fund will provide extensive application scenarios for high-quality global projects, comprehensively building a globally competitive ecosystem for the big health industry.

On October 24 last year, General Secretary Xi Jinping once again inspected Qianhai and pointed out that practice has proven the path of reform and opening-up to be correct, and it must be pursued consistently, perseveringly, and with renewed efforts. Shenzhen should solidly advance the development of Qianhai, introduce more pragmatic and innovative reform measures, explore more replicable and scalable experiences, deepen cooperation between Shenzhen and Hong Kong for mutual benefit and complementarity, and play a greater role in jointly building the Belt and Road Initiative, advancing the development of the Guangdong-Hong Kong-Macao Greater Bay Area, and participating in international cooperation at a high level. Subsequently, President Xi mentioned “Shenzhen’s Qianhai is vibrant and full of vitality” in his 2019 New Year Address.

Qianhai, officially known as the Qianhai Shenzhen-Hong Kong Modern Services Industry Cooperation Zone in Shenzhen, is positioned as a pilot zone for institutional and mechanistic innovation in modern services, a cluster for the development of modern services, a pioneering area for close cooperation between Hong Kong and the Chinese mainland, and a leading region for industrial upgrading in the Pearl River Delta. It focuses on the development of four key industries: innovative finance, modern logistics, technology and professional services, and information services. The Qianhai Authority is responsible for the zone’s development and construction, operational management, investment promotion, institutional innovation, and comprehensive coordination.

As a national strategic platform for reform and opening-up in the new era, Qianhai’s innovation and development have consistently drawn significant attention. The economic aggregate of the Qianhai area has continued to rise, reaching the hundred-billion-yuan tier. Its institutional innovations lead the country, new city construction is advancing by leaps and bounds, Shenzhen-Hong Kong cooperation has yielded fruitful results, and industrial clustering has achieved leapfrog development.

Du Peng, Director of the Qianhai Authority, stated in his speech: “Under the leadership of the Municipal Party Committee and Municipal Government, Qianhai has seized the major opportunities presented by the ‘Dual-Zone Drive’ strategy, boldly piloting new initiatives, breaking new ground, and pursuing independent reforms. Significant progress has been made in areas such as Shenzhen-Hong Kong cooperation, institutional innovation, technological innovation, joint participation in the Belt and Road Initiative, opening-up, and the development of a new urban center.”

The Qianhai Authority and New Journey Hospital Group will launch a strategic partnership in the fields of medical services, medical technology, and finance, jointly exploring innovations in the broader health sector and driving industrial development within the Qianhai Shenzhen-Hong Kong Modern Services Industry Cooperation Zone.

New Journey Hospital Group, the health care platform under CAS Holdings Co., Ltd. (“CAS Holdings”), is one of China’s largest integrated hospital groups, with controlling interests in more than 10,000 hospital beds and business operations spanning hospitals, elderly care, medical technology, and capital platforms.

△ Wu Lebin, Secretary of the Party Committee of Chinese Academy of Sciences Enterprises, Delivers Remarks at the Press Conference

In his address, Wu Lebin, Secretary of the Party Committee of Chinese Academy of Sciences Enterprise Holdings Co., Ltd., stated: “As the big health industry platform under CAS Holding, New Journey Hospital Group will leverage Qianhai’s strategic positioning to actively implement the integrated concept of ‘Technology + Health + Finance.’ With technology at its core, the Group will drive the synergistic integration of the innovation chain, industrial chain, and capital chain, helping Qianhai become a world-leading hub for technological innovation, financial innovation, and modern service industry innovation.”

As the two parties embark on their strategic cooperation, Lin Yanglin, CEO of New Journey Hospital Group, announced the establishment of New Journey Capital in Qianhai, launching a health industry fund with a total size of RMB 10 billion and an initial closing of RMB 2 billion. The fund is dedicated to investing in high-quality projects within the broader health sector and in research achievements with leading advantages. It aims to fully leverage the combined resource strengths of CAS Holdings, the University of Chinese Academy of Sciences, and New Journey Hospital Group in integrating medical care, education, and research with industry-academia-research collaboration. By capitalizing on New Journey Group’s healthcare patient flow entry points, the fund will provide extensive application scenarios for high-quality global projects, comprehensively building a globally competitive health ecosystem.

The health services sector holds immense market potential. From 2012 to 2016, the total scale of China’s health services industry exhibited a trend of rapid linear growth. According to the “Healthy China 2030” Planning Outline, the total scale of the health services industry is projected to reach RMB 8 trillion in 2020 and RMB 16 trillion in 2030, with a compound annual growth rate (CAGR) of 8.6%. Consequently, the robust and counter-cyclical nature of the big health industry makes it highly attractive to the investment community.

How does New Milestone Capital differ from the numerous financial investment funds and investment funds launched by pharmaceutical and medical device companies in the market?

First, as the big health industry platform under CAS Holdings, New Milestone Hospital Group serves as a practical platform and application base for the commercialization of scientific and technological achievements from CAS Holdings and the University of Chinese Academy of Sciences. It will foster close collaboration in life sciences, health technologies, and innovation incubation to establish a benchmark model for industry-academia-research cooperation in the medical field. Leveraging the strong advantages of CAS Holdings and the University of Chinese Academy of Sciences in life sciences and health technology, New Milestone Capital will possess robust capabilities in industrial chain integration, empowerment, and brand export.

Second, New Milestone possesses a core traffic gateway within the healthcare industry chain—the healthcare service scenario. This scenario serves as the critical link connecting product providers—such as pharmaceutical R&D firms, pharmaceutical manufacturers, and medical device/consumables manufacturers—with patients, the end-users of healthcare services. Over the past three years, New Milestone Hospital Group has emerged as a leading enterprise in the healthcare services sector. Its portfolio includes multiple hospital networks strategically positioned as regional medical centers, online service platforms powered by internet hospitals, and integrated medical-elderly care models featuring inpatient elderly care and community-based elderly care.

Third, New Milestone boasts a robust management team and strong post-investment management capabilities. As one of the largest general hospital groups in China, New Milestone Hospital Group holds controlling interests in hospitals with over 10,000 beds. The group possesses extensive experience in hospital operations management and the ability to integrate upstream and downstream industry chains, demonstrating strong innovative capabilities in discipline development, talent cultivation, brand enhancement, and digital transformation.