Bailian Sheng Secures $72M Strategic Investment from Harbour Capital, Marking Largest Bet in Hair Transplant Sector

VCBeat (WeChat ID: vcbeat) has learned that on January 9, 2018, an investment consortium led by Huagai Medical Health Fund, under Huagai Capital, completed a strategic controlling investment in Biliansheng, the leading hair transplant enterprise in China’s medical aesthetics industry. The total investment amounted to RMB 500 million. This marks Huagai Capital’s largest strategic investment to date in a niche segment of the medical aesthetics sector, underscoring its strong endorsement of the Biliansheng brand and its founding team, as well as its confidence in the rapid growth of China’s hair transplant market.

Following the introduction of Huagai Capital, Biliansheng will further strengthen its brand operations, team building, and business expansion, actively seize market share in the hair transplantation sector, and further consolidate its leading position in this field. Meanwhile, leveraging this strategic investment as an opportunity, Biliansheng will continue to promote the transformation and upgrading of hair transplantation services, and, as an industry leader, further drive the standardized development of the medical aesthetics industry.

According to the 2016 global aesthetic surgery statistics released by ISAPS (International Society of Aesthetic Plastic Surgery), China became the world’s third-largest market for medical aesthetics, with 2.5 million legitimate procedures, and was projected to surpass Brazil (2.52 million procedures in 2016) in 2017 to rank second globally.

With the rapid development of China’s medical aesthetics industry, continuous advancements in medical technologies, and ongoing improvements in service quality, individuals born in the 1980s and 1990s have become the fastest-growing consumer segment. Additionally, as information asymmetry within the medical aesthetics industry gradually diminishes, consumers are placing greater emphasis on and attention to medical aesthetics brands. It is foreseeable that in the coming years, the market space for the medical aesthetics industry will expand further, while industry competition will intensify, thereby further consolidating Biliansheng’s leading position in the sector.

Among hair transplant consumers, males constitute the majority. According to relevant clinical data, the prevalence of alopecia among Chinese men is as high as 21%, meaning that one in every five men suffers from varying degrees of hair loss. Hair transplant procedures, dominated by male consumers, serve as a key lever for driving the male medical aesthetics market.

With the upgrade in consumer spending and growing awareness of medical aesthetics among men, hair transplantation and other “hair-related businesses” are poised to unlock significantly larger market potential, presenting substantial value-investment opportunities for the industry. The domestic hair transplant market in China has reached a tipping point for explosive growth. According to industry consensus, the potential market size for hair transplantation and related industries will reach RMB 50–100 billion in the coming years. Notably, after nearly a decade of extensive surgical practice, Chinese hair transplant surgeons have achieved international leadership in technical proficiency and precision.

Biliansheng is China’s most renowned leading brand specializing in hair transplantation and the pioneer of chain-based medical hair restoration services in the country. Currently, Biliansheng operates hair transplant branches in over 20 key cities across China, covering core first- and second-tier provincial capital cities, with all its branches under direct corporate ownership. The company boasts the industry’s strongest team of full-time licensed physicians, including professors and chief physicians who receive special government allowances from the State Council, as well as numerous senior member physicians of the World Hair Transplant Association.

Led by Ms. You Lina, the founder of Biliansheng, the medical service team has been deeply engaged in the field of hair transplantation for over a decade. Through years of dedicated research and practical experience, the team has successfully secured dozens of patents related to hair transplantation technologies and registered trademarks, boasting internationally leading hair transplantation techniques and a professional team. Biliansheng’s service vision is to provide one-stop solutions for customers’ “top priorities” through its professional, considerate, and excellent hair transplantation services. While maintaining its position as a leader in China’s hair transplantation industry, Biliansheng is committed to building the most competitive and respected professional hair transplantation chain group globally.

Biliansheng represents a key strategic investment by Huagai Healthcare Fund II in the healthcare services sector, marking a significant controlling-stake investment meticulously crafted by the fund. The Huagai Healthcare Fund management team has a proven track record of successful controlling-stake investments both domestically and internationally, generating substantial returns for fund investors while creating greater development opportunities for enterprises and entrepreneurs. Through this strategic investment in Biliansheng, Huagai Healthcare Fund will further leverage its industrial and capital advantages to provide comprehensive value-added services—including strategic support, management enhancement, capital operations, and industry consolidation—thereby continuously elevating enterprise value.

Zeng Zhiqiang, Managing Partner of Huagai Medical Fund, stated, “As an important niche within the medical aesthetics industry, the hair transplant sector has experienced rapid growth in recent years. Hair transplantation combines the essential nature of medical care with the consumption-upgrade characteristics of medical aesthetics, resembling the plastic surgery industry from 5–10 years ago. The entire industry is currently at a tipping point for explosive growth. As the industry leader, Biliansheng has joined forces with Huagai Medical Fund, a professional medical investment fund. This successful partnership is a perfect match that brings out the best in both parties. I believe that this strong alliance will further enhance Biliansheng’s brand value and market position, and will undoubtedly continue to drive the robust development of the hair transplant industry.”

Shi Guomin, Managing Director of Huagai Medical Fund, stated: “Biliansheng is the leading domestic chain enterprise in hair transplantation, with its revenue and profit scale ranking at the forefront of the industry, and it has maintained a rapid growth rate of over 40% in the past few years. Founder Ms. You Lina, who comes from a medical background, has led Biliansheng to drive the standardized development of the hair transplantation industry under the concepts of professionalism, standardization, and service.”

Xing Shuobo, Senior Investment Manager at Huagai Medical Fund and a core execution member of this investment project, has maintained close tracking of Biliansheng’s founding team for four years, possessing a profound understanding of the company’s historical development and the industry. He stated, “Biliansheng’s direct-operated layout across 20 cities in China has earned an excellent reputation for the precision and professionalism of its hair transplant services. In the future, Biliansheng is fully capable and well-positioned to further expand its business into more cities across China and even into international markets.”

Regarding this investment, Liu Zheng, CEO of Biliansheng, stated: “Over the past few years, the Biliansheng team has actively innovated its service concepts and methods. Leveraging our dual DNA of internet technology and real-world operations, we have adopted advanced sales management systems, big data infrastructure, and an integrated online-to-offline (O2O) model to provide targeted, one-on-one professional services to clients—capabilities that traditional private specialized hospitals lack. Through the team’s unremitting efforts over these years, Biliansheng has achieved full-channel service coverage across both online and offline platforms, effectively enabling the company to acquire surgical patients at lower costs and with higher efficiency. The Huagai Medical Fund team possesses strong capabilities in both the healthcare industry and capital operations. Partnering with such a professional medical investment fund not only aligns with our pursuit of excellence in hair transplant surgery but also drives our strategic development, enhances brand value, standardizes industry practices, consolidates and expands market share, and ultimately facilitates our joint entry into the capital markets. I believe that Huagai Capital’s strategic investment in Biliansheng is a significant and auspicious event for the entire Chinese hair transplant industry.”