Zhongji's Greater Health Sector Layout: Following Industry Development Trends, Investment Driven by Research
China Zhongji Investment was established in August 2016. Supported by the CPC Hebei Provincial Committee and the Provincial Government, and guided by the Hebei Provincial Federation of Industry and Commerce, it is a comprehensive investment platform jointly invested and established by well-known private enterprises in Hebei Province and managed and operated by seasoned investors and industry experts.
At the end of 2017, considering the domestic and international development situation, the global industrial development cycle, and the advantages of the company's management team, China Zhongji Investment established a strategic development approach focusing on in-depth research and dedicated to investing in three "long-slope, thick-snow" industries: semiconductors, high-end manufacturing, and the greater health sector. After 3-4 years of investment layout, the investment in the greater health sector is in the harvest period. The company has successively invested in high-quality projects such as Daying Technology, United Imaging Intelligence, Ji Heng Pharmaceutical, Pua Medical, Jianyi Bao, Lewi Pharmaceutical, Kikai Life, and Xuanzhu Bio. From the investment project stage, China Zhongji Investment focuses more on extending to both ends, early-stage projects and mature-stage projects. Early-stage projects aim for high returns, while later-stage projects ensure stable returns and exit rates. Overall, the invested projects balance investment risk and return. For example, Daying Technology is an angel round project of China Zhongji Investment. China Zhongji Investment has accompanied the company's growth and provided additional investment to support its development. In terms of returns, China Zhongji Investment has obtained multiple times the increase in valuation from the project; while Pua Medical, United Imaging Intelligence, Ji Heng Pharmaceutical, and Xuanzhu Bio are later-stage projects, all with clear listing plans and relatively stable investment returns. Pua Medical has already submitted an IPO application to the Growth Enterprise Market, and United Imaging Intelligence, Ji Heng Pharmaceutical, and Xuanzhu Bio are undergoing IPO guidance and are expected to submit listing applications in 2022. In addition, to further cultivate the medical and health sector, China Zhongji Investment has joined hands with strategic partners Tongrentang Group and Huayi Capital, and has respectively established and set up specialized medical industry investment funds to more deeply and accurately deploy the greater health industry. Through industrial fund empowerment of upstream and downstream enterprises, it enhances the industry's voice and strengthens its core competitiveness. Zhongji hopes to continue to cultivate the industry and achieve win-win cooperation with more like-minded institutions and a wider range of social forces.
There are many sub-sectors in the primary market medical industry, requiring professional judgment. To this end, China Zhongji Investment has specifically established a medical and health industry research group to conduct in-depth research on multiple sub-sectors such as pharmaceuticals and medical devices, sort out the industry map, and explore potential high-quality projects. Based on the logic of import substitution and upgrading of domestic medical devices, China Zhongji Investment has successively invested in Daying Technology (3D mammography machine), United Imaging Intelligence (high-end imaging equipment), and Pua Medical (high-end small C). These projects have all achieved rapid development, and their market share has increased year by year. Since the launch of the STAR Market and the implementation of the Hong Kong Stock Exchange's 18A system, a number of unprofitable innovative pharmaceutical and innovative medical device companies have entered the capital market. Based on policy support and favorable capital market conditions, Zhongji has successively invested in Ji Heng Pharmaceutical (small molecule raw material medicine company), Lewi Pharmaceutical (small molecule CDMO company), Xuanzhu Bio (small molecule innovative pharmaceutical company), and Kikai Life (mitral valve repair system medical device R&D company), focusing on the industrial chain sectors of upstream raw materials for innovative drugs, CDMO sector, innovative drug companies, and innovative medical devices. Thanks to the rapid development of the industry and policy support from the capital market, these invested projects are expected to accelerate their listing progress. China Zhongji Investment is optimistic about and supports the continued development of these innovative pharmaceutical and innovative medical device companies.
With the increasing aging of the population, continuous iteration of medical innovation technologies, and growing domestic medical and health needs, China's biopharmaceutical industry has considerable development space. China Zhongji Investment is optimistic about the future development of the greater health sector. In addition to investing in the primary market medical industry, China Zhongji Investment is gradually extending from the primary market to the primary and a half market, including follow-on investments and cornerstone/anchor investments in Hong Kong stocks. In the future, China Zhongji Investment will continue to focus on the high-quality "long-slope, thick-snow" track of the greater health sector, research-driven investment, continue to cultivate the greater health field, contribute to pharmaceutical R&D companies, and create good returns for investors.
