Bilinxing Venture Capital and Zhongxin Capital Invest in Chentai Advanced Materials to Propel New Growth; WinX Capital Continues as Exclusive Financial Advisor

Jan 16, 2025 10:24 CST Updated 10:24

TrendTec

Orthopedic Artificial Joint R&D and Manufacturer

WinX Capital

Investment Institutions in the Greater Health Field

Proxima Capital

Investment Institutions in the Medical Technology Field

VCBeat learned that,TrendTec (hereinafter referred to as "TrendTec"), after announcing the completion of over 100 million yuan in financing from Vivo Capital and CICC Capital's funds in December 2024, has continued to gain capital favor. Recently, it has brought in well-known investors Proxima Capital and Zhongxin Capital, with a transaction amount reaching tens of millions of yuan. WinX Capital continues to serve as the exclusive financial advisor.

TrendTec specializes in the research, development, production, and sales of high-performance ceramic materials for medical use, providing high-performance bioceramic materials and components to medical device companies both in China and internationally. The company’s founder, Dr. Zhang Lin, and co-founder, Dr. Cao Xiaogang, both graduated from Tsinghua University with degrees in Materials Science. They are currently members of the Implant Ceramic Materials Standards Working Group (WG3) under the National Technical Committee for Standardization of Surgical Implants and Orthopedic Devices (SAC/TC110), responsible for formulating relevant industry standards. TrendTec's senior management team possesses exceptional R&D capabilities and deep technical expertise, with a strong understanding of the unique characteristics of the medical device industry, as well as profound insights and precise grasp of its development trends and commercial dynamics.

TrendTec owns more than thirty proprietary intellectual property rights, and has been approved for the 2023 MIIT and NMPA "Challenge Leader" project, as well as the 2023 Jiangsu Province Major Achievement Transformation Project. It has been honored with titles and qualifications such as Jiangsu Province Double Innovation Talent, Double Innovation Doctor, Gusu Entrepreneurship Leading Talent, Suzhou New District Entrepreneurship Leading Talent, National Technology-based and Innovative Small and Medium-sized Enterprise.

With the advent of an aging society, the compound annual growth rate of China's joint market has exceeded 20% over the past decade. After the introduction of the national volume-based procurement policy in 2022, the market share of ceramic hip joints rose to approximately 95%, becoming the dominant product in the market. In China, whether imported or domestically produced manufacturers, 100% of the core components of their joints—ceramic femoral heads and liners—are sourced from a foreign company, which holds an absolute monopoly. China’s "ceramic femoral heads" are entirely in a situation of being "strangled" by this company.

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In response to this situation, the 2022 notice issued by the Ministry of Industry and Information Technology (MIIT) and the National Medical Products Administration (NMPA), titled "Announcement on Organizing the 'Biomedical Materials Innovation Task Top-Priority List' (First Batch)," explicitly included "Zirconia-Toughened Alumina (ZTA) Ceramics" as one of China's "Biomedical Materials Innovation Task Top-Priority List" initiatives. TrendTec’s core technology, "Zirconia-Toughened Alumina (ZTA) Ceramic Femoral Heads and Liners," has officially been approved for the MIIT and NMPA "Top-Priority List" project. This project fills a gap in the domestic production of medical ceramics, breaks the monopoly held by foreign companies, and accelerates import substitution.

As of August 2024, TrendTec's flagship product, powder ceramics, has completed the main document registration with the National Medical Products Administration (NMPA). As one of the first material manufacturers in China to complete the main document registration, TrendTec meets the conditions for downstream manufacturers' registration. With its entire production process localized in China, TrendTec offers significant cost advantages compared to similar products from foreign enterprises, providing downstream manufacturers with more cost-effective material solutions.

In addition to fine alumina powder, the company has also developed various innovative ceramic material products, which will provide more manufacturers with high-quality upstream raw materials. TrendTec is committed to becoming an outstanding national enterprise that breaks the monopoly of imported products and contributes to the development of China's high-performance composite ceramic industry.

The introduction of two rounds of well-known investors within a short period of one month reflects the high recognition from the capital market for TrendTec. With the support of several star investment firms, it is hoped that TrendTec's business development will reach new heights.

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Dr. Zhang Lin, Founder of TrendTecExpressed: We are very grateful for the continued recognition from the capital market for TrendTec, and we thank our new and existing shareholders for their strong support. We will continue to work hard, with the mission of "envisioning the future of medical technology and providing quality health support to more people," and the vision of "becoming a leader in the field of bioceramics." We will deepen technological innovation and enhance core competitiveness. We will not辜负the trust placed in us by the country and our shareholders, and we will contribute to the development of China's high-performance composite ceramics industry.

Proxima Capital Project Leader Li QianIn the upstream of the artificial joint industry, the "powdered ceramic" ball head and liner sectors have long been monopolized by imported manufacturers. Relying on the profound technical accumulation of two Tsinghua University materials science Ph.D.s over the past 20-plus years, TrendTec has successfully developed and mass-produced powdered ceramic femoral heads and liners. The performance of their products rivals that of international leading enterprises, while the cost is significantly lower than that of imported manufacturers. We firmly believe that TrendTec, which shoulders the important task of solving the "bottleneck" problem, is expected to break the monopoly of imported joint materials. With its excellent cost performance, TrendTec is poised to become the preferred partner of joint manufacturers, enabling them to continuously provide high-quality products to the market.

Gu Chengyu, Project Manager of Zhongxin CapitalIt is noted that the upstream raw materials of China's artificial joint industry have long been monopolized by imported manufacturers, which has constrained the continuous development of this industry. We are very pleased to note that TrendTec, as a start-up company, has excellently filled this key link in the industrial chain with its products. We believe that in future development, an increasing number of artificial joint companies will use core components supplied by domestic providers, strengthening the entire industry’s self-control capability. We will also join hands with the company to help TrendTec reach new heights.

Dr. Guowen Zou, Founder of WinX CapitalIt is not easy to gain recognition from two well-known investment institutions in such a capital winter. We are honored to have continuously accompanied an excellent enterprise like TrendTec, witnessing such a brilliant moment in the capital market. This fully demonstrates the significant importance of mastering core upstream technologies for China's medical device industry.

About Proxima Capital

Proxima Capital manages multiple RMB funds and USD funds, focusing on discovering, investing in, and developing outstanding medical technology innovation companies with tremendous growth potential. The Proxima Capital team possesses diversified and international expertise, professional backgrounds, and resource networks, along with extensive clinical resources, industrialization experience, and entrepreneurial history. The fund has invested in over 70 companies, among which it has assisted in establishing more than 30 enterprises and supported over 50 globally pioneering products.

About Zhongxin Capital

Suzhou Zhongxin Innovation Private Equity Fund Management Co., Ltd. (Zhongxin Capital) was established in November 2015 and is a rapidly growing professional private equity investment institution. Since its establishment, Zhongxin Capital has focused on regional advantageous industries, consistently targeting investment opportunities in three major areas: healthcare, cutting-edge technologies (semiconductors, new energy, Internet of Things, cloud computing, etc.), and advanced manufacturing, continuously empowering regional industries and innovative enterprises.

About WinX Capital

WinX Capital is a leading investment bank in China's large health industry, with headquarters in Beijing and Shanghai, and offices in Shenzhen and Hangzhou. It has been awarded the "Top 1 Best Financial Advisor in the Healthcare Sector for 2024" by Qmingpian, "Top 1 Financial Advisory Institution in the Healthcare Sector for 2022 and 2023" by First Sounding, and "VB100 Annual Healthcare Financial Advisor for 2022-2024" by VCBeat, among many other honors.