Lidakang Completes RMB 110 Million Series A Funding Round Led by Shenzhen Capital Group and Hetang Ventures, with Qiangyun Capital as Exclusive Financial Advisor

VCBeat (WeChat ID: vcbeat) has learned that artificial joint manufacturer Lidakang has completed an RMB 110 million Series A financing round. This round was jointly invested by Shenzhen Capital Group and Hetang Venture Capital, with Qiangyun Capital serving as the exclusive financial advisor.

Beijing Lidakang Technology Co., Ltd., established in 1998, has become a leading enterprise and high-tech company integrating research and development, manufacturing, sales, and services in the field of artificial joints after nearly two decades of continuous innovation and development. Its main products include titanium alloy porous hip joint systems, high-flexion posterior-stabilized knee joint systems, modular tumor prosthetic joint systems, and a series of 3D-printed products.

Lidakang Shunyi Production Base

It can be said that Lidakang is a leader in the field of oncological orthopedics, with its products widely used in top-tier hospitals such as Jishuitan Hospital, the 301 Hospital (PLA General Hospital), and Peking University People’s Hospital. In 2018, Lidakang relocated its production facility from Tongzhou to Shunyi and passed Good Manufacturing Practice (GMP) certification in October. Currently, the company has an annual production capacity of 50,000 joint prostheses and corresponding instrumental sets. In terms of scale and profitability, Lidakang is the highest-quality unlisted company in China’s artificial joint sector.

Over the two decades since its establishment in 1998, the team at Lidakang has remained committed to striving hard and pioneering innovation. From the launch of its first-generation biologically fixed hip joint products, which filled the gap in domestically produced joint implants, to the development of its exclusively patented 3D-printed trabecular bone acetabular cups and the new JXII™ Generation 2 “Jixiang” series, as well as China’s first Ta-coated biological femoral stem, and the introduction of the Alpha femoral stem product line holding two domestic and six PCT international patents, Lidakang has consistently adhered to technological innovation and achieved numerous significant breakthroughs.

The company’s independently developed “bone tumor joint” products—modular tumor prostheses and customized tumor prostheses—have preserved limbs for thousands of bone tumor patients annually, earning high recognition from orthopedic experts and scholars. Meanwhile, the continuous launch of new products such as the Jixiang™ Generation II JXII™ series, along with hip and knee product lines and instruments for revision arthroplasty, has injected new vitality into the application of Lidakang products in the field of hip and knee joint replacement and revision surgery. The introduction of the Ta-coated biological femoral stem has filled a gap in China’s orthopedic sector regarding the application of novel bioactive antibacterial coating materials.

Lidakang GMP Workshop

Lidakang places great emphasis on the close integration of research and development with clinical practice. In collaboration with Lidakang, a clinical team led by Director Wang Yan of the 301 Hospital creatively invented the "Alpha" one-piece biological femoral stem through medical-engineering cooperation. This innovation has secured two domestic patents and six PCT patents and has been successfully applied in clinical settings. Owing to its unique design philosophy and morphological features tailored to Asian skeletal anatomy, the product has garnered significant attention in the field of developmental dysplasia of the hip (DDH). It has received high recognition from orthopedic experts across China and has been rapidly adopted for clinical use in major hospitals nationwide. Clinical follow-up of nearly 100 cases over 18 months reported zero instances of dislocation.

As digital medical technology continues to deepen and expand in the field of clinical medicine, traditional medicine is evolving towards modern medicine characterized by precision, personalization, and minimally invasive techniques. As a leader in customized tumor prostheses in China, Leadcom adapts to the needs of modern healthcare by actively exploring new design and manufacturing methods. By applying digital orthopedic design techniques, Leadcom designs precisely matched, patient-specific trabecular 3D-printed tumor prostheses and 3D-printed pelvic implants based on patients’ CT data. The company has pioneered clinical trials at Beijing Jishuitan Hospital, Peking University People’s Hospital, PLA General Hospital (301 Hospital), and Qilu Hospital, earning high recognition from orthopedic experts and clients at major hospitals across the country.

Mr. Xu Ning, Chairman of Lidakang

Following the completion of this financing round, Mr. Xu Ning, Chairman of Lidakang, stated: “At Lidakang, guided by our motto ‘Aspiring to High-Tech Excellence, Promoting Health for the Benefit of the People,’ we have remained true to our original aspiration throughout our journey, committed to realizing the ambition of Chinese manufacturing in the field of artificial joints. Over the past two decades, Lidakang has upheld craftsmanship and diligence, adhering to its corporate mission of developing products that meet patient needs and physician requirements. By staying humble and pragmatic, progressing steadily, and maintaining product quality as our core competitive advantage, we have gradually expanded our presence in hospitals and captured market share, achieving steady growth in revenue and profitability. This has fostered a favorable outcome characterized by customer satisfaction, shareholder confidence, and team assurance.”

Chairman Xu Ning further stated, “This marks the company’s first round of financing, in which we have secured over RMB 100 million from Shenzhen Capital Group (SCGC) and Hetang Venture Capital. On behalf of the company, I extend a warm welcome to SCGC and Hetang Venture Capital as partners of Lidakang. As one of China’s first-generation domestic investment institutions, SCGC has been established for 20 years—the same age as Lidakang—and possesses extensive practical experience in post-investment management, mergers and acquisitions, and IPO advisory. The team at Hetang Venture Capital demonstrates profound industry insight into orthopedics; its partners come directly from the orthopedic industry or have clinical backgrounds. We have developed excellent synergy in our communications regarding the industry, products, and corporate operations. Following this collaboration with SCGC and Hetang Venture Capital, I am highly optimistic about the company’s rapid growth. Additionally, I would like to express my sincere gratitude to Qiangyun Capital for providing in-depth and professional financial advisory services. Our engagements with the Qiangyun team have been thorough and have extended far beyond the scope of financing itself.”

Mr. Yi Hongxiang, Partner at Shenzhen Capital Group’s Healthcare Industry Fund, stated, “We are delighted to invest in Beijing Lidakang. Artificial joints in the orthopedics sector represent a key area of sustained focus for SCG within the healthcare industry, and Lidakang marks our inaugural strategic entry into this orthopedic subsector. Amid the overarching trends of population aging, import substitution, and healthcare cost containment under medical insurance programs, Lidakang is poised to establish a stronger brand presence among domestic joint manufacturers in China. This potential is underpinned by its two decades of technical expertise in artificial joint products, the implementation of a professional management system introduced over the past two years, a passionate and proactive team, and robust product R&D capabilities.”

Ms. Liu Huiqin, Partner at Hetang Venture Capital, stated, “We are delighted to have completed the Series A investment in Beijing Lidakang together with Shenzhen Capital Group. Orthopedics is one of the largest subsectors within the medical device industry, and artificial joints represent the segment with the highest technical barriers among orthopedic implants. Current policies promoting import substitution are driving rapid growth for domestic joint manufacturers. As one of the earliest artificial joint companies in China, Lidakang holds the largest market share in tumor prostheses and has assembled a highly executable team under the leadership of Mr. Xu. I believe that this round of financing, along with the consensus we reached with the team throughout the process, will help Lidakang achieve more robust and higher-quality development over the next five to ten years, truly establishing it as both a seasoned leader and an innovative force in the domestic joint sector.”

As the exclusive financial advisor for this financing round, Bai Lu, Vice President of Qiangyun Capital, stated: “We primarily assess Lidakang’s value from four perspectives. First, under the broader context of medical insurance cost containment, the domestic substitution of high-value consumables is an inevitable trend. Furthermore, due to the unique nature of joint implants, there is no risk of overuse—it is physically impossible to install two knee joints in a single leg. Second, Lidakang maintains a highly prudent operational style. The management team is grounded, avoiding conceptual hype or gimmicks, and remains steadfastly focused on product R&D, market expansion, and sales growth, resulting in substantial asset quality. Third, the team demonstrates exceptional execution capability. When we were preparing the business plan, the Shunyi factory was still a construction site; by the end of the year, it had already obtained GMP certification and commenced production. Fourth, Lidakang boasts a lean and efficient team with an average age of around 35. With approximately ten years of industry experience, they are at a stage characterized by rich expertise, abundant energy, and strong drive. Based on these four factors, we are highly optimistic about Lidakang’s development prospects and its growth potential within both the joint implant industry and the capital markets.”