Langer Medical and Vemedim Secure C- and B-Series Funding Totalling Over RMB 500 Million in Medical Imaging Sector, Led by China Renaissance Capital

VCBeat (WeChat ID: vcbeat) has learned, following Sinovision's announcement earlier this year that it had completedRMB 200 million jointly invested by Yili Fuyi Daohe, Huagai Capital, and Qiming Venture PartnersFollowing the financing round, two additional major funding deals were announced in the medical imaging equipment sector, both led by Huagai Capital. The cumulative amount of these three financing rounds exceeds RMB 500 million.

From CT to MRI, and then to DSA, why did Huagai Capital invest heavily in the medical imaging equipment industry within just two months? To find out, reporters interviewedZeng Zhiqiang, Managing Partner of Huagai Capital's Healthcare Division, he stated:

First, during the 13th Five-Year Plan period, the development of high-end manufacturing was a key area of national support. The government encouraged import substitution and fostered the creation of three to five internationally renowned brands in the medical device sector. Domestically produced medical equipment is benefiting significantly from institutional dividends; with further capital support and resource integration, it is poised to enter a fast track of development.

Secondly, compared with giants such as GE, Philips, and Siemens (GPS), domestic medical imaging equipment manufacturers face challenges of small scale and limited product portfolios, and still lag behind imported brands in cutting-edge technologies. However, in recent years, this gap has gradually narrowed. Several leading domestic imaging companies have emerged, and a number of outstanding Chinese manufacturers have appeared in various niche segments of high-end equipment. Meanwhile, domestic equipment makers benefit from rapid feedback from the local market, enabling them to efficiently iterate and upgrade products based on clinicians’ needs. As a result, the domestic medical imaging equipment industry is increasingly favored by capital investors.

So, after Sinovision, why did Huagai Capital choose Langrun Medical and Weimai Medical? Let’s see what investors and companies have to say.

In October 2017, Longru Medical announced the completion of its Series C financing round, led by Huagai Capital.Other investors include Cowin Capital, Yuanhe Origin, Borun Investment, Kaixin Capital, Suzhou Origin, and Peking University 1898 Venture Capital Fund.

Founded in 2007, Landwind Medical is a high-tech enterprise specializing in the R&D, manufacturing, maintenance, and service of medical imaging equipment and software. Integrating over 60 years of magnetic resonance research achievements from Peking University, it represents the highest level of China’s superconducting MRI industry and is the only company in the high-field MRI sector to receive national support under the “12th Five-Year Plan.”

Its 1.5T superconducting MRI product is a top-tier device that has simultaneously obtained certifications from the U.S. FDA, the EU CE, and China’s CFDA, with more than 200 units installed across China. In 2016, Longru Medical’s 1.5T MRI products ranked third in market share among all brands and first among domestic brands, initially breaking the monopoly held by the “GPS” trio (GE, Philips, and Siemens) in the medical imaging equipment industry.

Currently, Longrun Medical’s user base encompasses a wide range of institutions, including large Grade A tertiary hospitals, various primary and secondary general and specialized hospitals, private hospitals, health examination centers, and veterinary hospitals.

For this round of financing,Meng Nan, Investment Director of Huagai Medical Fund“It stated: ‘Longrun Medical is one of the pioneers in domestically produced 1.5T superconducting MRI systems, boasting substantial technological expertise. The company has established a certain level of brand recognition and a strong reputation in the market, with sales channels covering all of China. Meanwhile, after solidifying its market position in MRI products, Longrun has taken steady steps toward horizontal expansion by independently developing DR products and distributing CT and ultrasound systems, thereby enriching its product portfolio. The Longrun Medical team’s technical capabilities in the MRI field and its sales layout were key considerations in our investment decision. We believe that Longrun Medical will become a leading domestic manufacturer of high-end medical equipment.’”

Additionally,Tang Xin, Founder and CEO of Longrun MedicalIt also stated: “Our superconducting MRI products have been refined for a decade and have undergone seven years of market validation. While achieving rapid growth, we have remained steadfast in enhancing product performance and quality. Meanwhile, we are committed to developing products and services that optimize the operational models of traditional imaging departments, providing users at all levels with more comprehensive product offerings and departmental operational solutions.”

“The era when domestic equipment relied on component assembly and low-price competition has passed; breakthroughs in innovative technology R&D have become the core element for competing with foreign giants. As an enterprise mastering core technologies in the production and R&D of imaging equipment, Longray Medical has already secured a favorable position in the key domestic imaging equipment competition.”

In August 2017, Weimai Medical announced the completion of its nearly RMB 100 million Series B financing round, led by Huagai Capital and followed by Yuyin Investment.

Beijing Weimai Medical Equipment Co., Ltd. was established in 2014 and is the only provider in China dedicated to interventional (DSA) imaging equipment. The company boasts the most comprehensive product line of interventional (DSA) imaging equipment in the industry, encompassing the research and development, manufacturing, and sales of products such as digital subtraction angiography (DSA) systems, intraoperative C-arms, high-end orthopedic mini C-arms, and photon-counting DSA systems, committed to “Build the Leading Brand in Interventional Medicine”。

Vimai Medical is a standing director unit of the China Association of Medical Equipment, a strategic partner of the Interventional Physicians Branch of the Chinese Medical Doctor Association, and one of the “Top 100 Enterprises with Best Core Competitiveness in China’s Industries” listed by Zero2IPO in 2017. Since its establishment, the company has accumulated a portfolio of core technology patents, including five granted patents and ten patents pending acceptance or substantive examination, covering core technological areas such as digital subtraction angiography imaging products.

For this round of financing,Meng Nan, Investment Director of Huagai Medical Fundindicates：“Currently, among high-end large medical devices, interventional DSA is one of the few that integrates diagnosis and treatment. The domestic DSA market in China has not yet reached full competition, with foreign brands still dominating, thereby presenting opportunities for import substitution. Weimai Medical stands out as a company with a comprehensive product portfolio and broad coverage in the DSA sector. Its R&D team comprises professionals with many years of experience in developing high-end interventional imaging equipment, recruited from leading industry players. Additionally, the company has successfully invested in a European counterpart, completing its overseas expansion.

“Meanwhile, the Weimai Medical Interventional Physicians Group has introduced the ‘comprehensive service concept,’ engaging in operational consulting and physician training to support discipline development in relevant departments. This aligns perfectly with Huagai Capital’s assessment of the industry trend whereby device manufacturers are extending their roles toward service providers. We highly recognize Weimai Medical’s R&D and sales capabilities, as well as its strategic layout in the DSA field. We believe that Weimai Medical will become a leading one-stop interventional DSA service provider in China.”

Meanwhile,Yang He, CEO of Weimai MedicalHe stated, “With the rapid enhancement of China’s foundational industrial capabilities and support from top-level national policies, the localization of high-end medical equipment is an inevitable trend. As a pioneer in the field of high-end interventional imaging, Weimai Medical’s recognition by Huagai Capital has been deeply encouraging to us entrepreneurs.”

“We have also taken note of Huagai Capital’s recent major moves in the high-end medical equipment sector. Within just over a year, it has successfully invested in and positioned itself among emerging innovative enterprises covering CT, MRI, DSA, ultrasound, and other modalities, all aimed at building a comprehensive imaging platform that is expected to generate synergies and foster greater ‘chemical reactions.’”

“High-end medical equipment is an industry that relies on both innovative technology and capital intensity, with neither being dispensable. We look forward to joining hands with leading domestic institutions represented by Huagai Capital and top-tier investors to deliver impressive results, thereby giving back to society and our investors.”

Huagai Capital was established in 2012 as a private equity investment firm co-founded by professionals from renowned domestic and international investment institutions. With the vision of “becoming a local asset management firm with global influence,” the company focuses on private equity investments in the Chinese market and is committed to fostering the growth of small and medium-sized enterprises (SMEs) into industry leaders. It currently manages multiple equity investment funds, including healthcare, TMT, and cultural sector funds, with assets under management exceeding RMB 10 billion.

Huagai Healthcare FundLed by Huagai Capital, this is an equity investment fund dedicated to the healthcare industry, with a focus on biopharmaceuticals, medical devices, and healthcare services. It prioritizes industry mergers and acquisitions within the healthcare sector, as well as investment opportunities in high-tech enterprises experiencing rapid growth during their early to mid-stages. The fund has accumulated tens of billions of RMB in assets under management and was jointly established by over 30 listed companies in the healthcare sector, numerous large financial and insurance institutions, funds of funds, and government guidance funds.

On this occasion, Huagai Medical Fund took the lead in investing in Syno Vision, Langrun Medical, and Weimai Medical, thereby establishing a strategic presence across the medical imaging sector, including CT, MRI, DSA, and DR. Leveraging its industrial influence, extensive resource network, and status as a common shareholder within China’s healthcare industry, Huagai Medical Fund will actively promote inter-company synergy and business collaboration. This effort aims to accelerate the substitution of imported medical devices with domestically produced alternatives and jointly create a new landscape for China’s healthcare industry.