Guoke Hengtai Secures Over RMB 1.1 Billion in Series C Funding to Accelerate Digital Medical Device Supply Chain Services

As an innovative integrated service provider for the digital supply chain of Chinese medical devices, Guoke Hengtai’s every move always draws particular attention from the industry.

VCBeat (WeChat ID: vcbeat) has learned that on the afternoon of September 6, Guoke Hengtai (Beijing) Medical Technology Co., Ltd. (“Guoke Hengtai”) held a roundtable forum on development opportunities and the future in the medical device distribution sector in Beijing, alongside a press conference announcing the successful completion of its Series C financing. At the event, Guoke Hengtai officially announced the completion of its Series C funding round, with total proceeds exceeding RMB 1.1 billion, marking one of the largest financing deals in China’s medical device distribution sector since 2019.

Distinguished guests, including leaders from the Beijing Economic-Technological Development Area, representatives of industry associations, investment shareholders, financial institutions, and the Chairman and CEO of Guoke Hengtai, attended the press conference and engaged in in-depth discussions on the current state of industry development and future opportunities.

This financing round was led by Taikang Life Insurance, with follow-on investments from Tonghe Yucheng Fund, China Merchants Capital, Yongliu Capital, Legend Capital, Sherpa Partners, funds affiliated with CAS Star Harmony, and funds affiliated with Shanghai Langwen. All institutions participating in this round are leading players in China’s healthcare investment sector, fully recognizing Guoke Hengtai’s investment value and future growth potential.

Guoke Hengtai stated that the proceeds from this round of financing will be used to construct the Tianjin “Integrated Digital Supply Chain Service Platform” and to build the “Digital Ecosystem Platform for the Medical Device Industry,” thereby further enhancing supply chain service capabilities and strengthening information system capabilities. This will solidify the company’s first-mover advantage in the industry and lay a solid foundation for sustained high-speed growth.

In 2019, amidst the financing winter in the capital market, Guoke Hengtai still won the recognition of many leading industry investors with its strong performance, clear development plan, and top-notch management team. The participation of national teams, funds, and top venture capital institutions has become the biggest highlight of Guoke Hengtai's C-round financing.

Successful Completion of Series C Financing: Guoke Hengtai to Embark on a New Chapter in Its Development Amidst Transformational Opportunities in the Medical Device Distribution Sector

Guoke Hengtai, committed to becoming “China’s leading integrated digital supply chain service provider for medical devices,” provides comprehensive “digital supply chain ecosystem platform services” to medical device manufacturers, distributors, end-user hospitals, government regulatory authorities, and other stakeholders.

Wang Ge, Chairman of Guoke Hengtai, stated at the Series C financing launch event: “As a leading integrated digital supply chain service provider for medical devices in China, Guoke Hengtai has consistently remained at the forefront of the industry, continuously innovating and expanding its business models. We are committed to becoming China’s premier integrated digital supply chain service provider for medical devices.”

Guoke Hengtai was established in 2013 and is a subsidiary of Orient Scientific Instrument Holding Group Co., Ltd., which is under the umbrella of CAS Holdings Limited. Over the six years since its inception, Guoke Hengtai has completed two rounds of investment (Series A and Series B), achieving sustained rapid growth with a compound annual growth rate exceeding 80%. As an industry leader and innovation pioneer, the company has focused on high-value medical consumables as its entry point since its establishment, through“Integrated One-Stop Supply Chain Management and Service Platform”...innovative model, partnering with over 60 top-tier global suppliers to rapidly establish a nationwide market presence in China. With a forward-looking perspective, it has continuously iterated and upgraded its informatization management capabilities, building a supply chain service information system that spans from original manufacturers to hospital departments. This has achieved end-to-end visibility and traceability of business operations, establishing a robust competitive moat.

The Company has established strategic partnerships with over 60 global top-tier suppliers and leading domestic brands, including Medtronic, Boston Scientific, Stryker, Zimmer Biomet, and B. Braun. Its business portfolio encompasses more than 90 product lines across vascular intervention, orthopedic implants, dentistry, ophthalmology, and medical equipment. With over 80 subsidiaries established nationwide, the Company’s operations cover 26 provinces, municipalities, and autonomous regions across China, serving more than 2,500 distributors and 3,600 hospitals.

“As an investor, I congratulate the Guoke Hengtai team on achieving such remarkable results in such a short period. Taikang is honored to participate in this financing round. Against the backdrop of increasing consolidation in the medical device distribution sector, Taikang fully recognizes Guoke Hengtai’s operational capabilities and has strong confidence in its sustained and rapid growth. We hope that this financing will help the company further strengthen its capabilities, improve its layout across the entire industry chain, and actively expand into innovative business areas.” Duan Guosheng, Executive Vice President and Chief Investment Officer of Taikang Insurance Group, extended his congratulations to Guoke Hengtai at the financing press conference while expressing these hopes.

He stated, “Leveraging Taikang’s comprehensive health industry ecosystem, both parties will take this financing round as an opportunity to further explore deep strategic cooperation, strengthening alignment in areas such as medical service systems and innovative insurance products. For Guoke Hengtai, what we value most is its ‘digitalization,’ given that many industries in China, particularly the medical device sector, remain relatively traditional. We look forward to Guoke Hengtai truly transforming the distribution landscape of the medical device industry in the future.”

Currently, in China, the sales of medical devices mainly adopt a multi-level distributor model, presenting“Numerous, Small, Scattered, and Chaotic” Landscape, with low circulation efficiency and high costs in distribution channels. As a professional supply chain service provider for medical devices, Guoke Hengtai leverages its specialized services to integrate upstream and downstream industry resources, creating an innovative platform model within the sector. This approach enhances the scale, transparency, and professionalism of medical device distribution, thereby effectively improving the overall efficiency of the entire distribution process.

Guoke Hengtai’s primary competitive advantage lies in its innovative “one-stop distribution + services” business model. This model innovatively adopts the form of a one-stop distribution platform, integrating logistics, capital flow, and information flow services throughout the medical device circulation process. By optimizing various transaction stages, it helps improve industry transaction efficiency and offers promising development prospects.

It is worth mentioning that Guoke Hengtai took the lead in the industryEstablishing a Cloud-Based Online Information and Business Platform—An E-Commerce Platform—Through Digital Thinking, integrating information across all segments of the supply chain to efficiently serve upstream and downstream partners, and providing comprehensive channel support to manufacturers and distributors through standardized business services and long/short-term consignment models.

At the press conference, leaders from the industry association and Guoke Hengtai also discussed the impact of healthcare reforms on the medical device industry chain.

With the continuous advancement of China’s healthcare system reform,Policies on Price and Quality Management of Medical Devices Are Being Successively Introduced and Increasingly TightenedGuoke Hengtai leverages its state-owned enterprise background, standardized innovative business model, and extensive industry management expertise to promote the company's rapid and healthy development.

Meanwhile,Two-Invoice System, Centralized Procurement, and Volume-Based Procurement of High-Value ConsumablesThe successive introduction of policies has intensified market competition and led to adjustments in industry laws and regulations, thereby promoting concentration and large-scale development in the distribution sector. Leveraging its financial and service advantages, Guoke Hengtai is committed to enhancing industry standardization and achieving scaled, specialized, and informatized operations.