It was learned from Vcbeat on an exclusive basis that Jinghong Medical Technology Group, a flagship enterprise in the domestic medical sterilization and supply field, officially announced the successful completion of its Series A strategic financing recently. The financing round was jointly led by Wuxi Innovation Investment Group Co., Ltd. and Binhu Industrial Group, with follow-on investments from prestigious institutions such as Shanghai Digital Industry Group and Xiaoyar Capital. FTEC Capital acted as the sole financial advisor for this financing event. This milestone funding round not only embodies the capital market’s unwavering confidence in the medical sterilization and supply industry, but also indicates that Jinghong Medical has stepped into a new stage of accelerated development in its national chain deployment, technological upgrading and service scale expansion.
Strong Rigid Demand in Sterilization & Supply Market, a Hundred-Billion-Yuan Sector
According to the 2022-2028 Research and Development Prospect Report on China's Third-party Sterilization Industry released by Zhiyan Consulting, the market scale of China's third-party medical sterilization supply centers (including regional sterilization supply centers established by benchmark hospitals to serve themselves and affiliated medical institutions, as well as medically supervised sterilization centers (MSSC) operated by social capital) had reached RMB 56.28 billion in 2021. It is projected that this scale will surge to RMB 125.24 billion by 2028.
Third-party sterilization and supply services have become a shared choice for a growing number of hospitals. The reasons are twofold: on the one hand, with increasingly stringent regulatory oversight, nosocomial infection control has become a critical indicator for hospital accreditation, compelling more hospitals to attach great importance to sterilization and supply services. On the other hand, constrained by limited space and capital, coupled with the higher priority given to the upgrading of clinical medical equipment, many hospitals are unable to establish their own sterilization supply centers despite their willingness to do so. Therefore, third-party sterilization and supply services have emerged as the optimal option for hospitals, as they not only ensure thorough sterilization and disinfection and mitigate nosocomial infection risks, but also improve hospital operational efficiency and ease their financial burdens.
Against the industry backdrop of increasingly stringent medical quality control and the ever-growing demand for nosocomial infection prevention and control, Jinghong Medical’s innovative business model is poised to embrace a vast market potential. Reports indicate that the market scale of sterilization and supply services for reusable medical devices in China’s medical institutions has maintained a double-digit compound annual growth rate (CAGR). Meanwhile, the penetration rate of professional and large-scale third-party sterilization and supply services is rising rapidly, thanks to their ability to help hospitals cut operational costs and improve quality control efficiency. Leveraging its integrated three-in-one service system (sterilization and disinfection + equipment leasing services + nosocomial infection support) and the nationwide chain layout strategy, Jinghong Medical has successfully built differentiated competitive advantages, and its services have been widely recognized by partner medical institutions.
A Star-Studded Team with Proven Track Record of Successful IPOs for Multi-Chain Healthcare Enterprises
As an innovative enterprise rooted in the core segment of medical safety, Jinghong Medical adheres to the development philosophy of Branding, Chain Operation, Standardization and Groupization, and is dedicated to providing professional and efficient one-stop sterilization and supply services for medical institutions. The company’s business scope covers diverse scenarios including sterilization and disinfection of rigid and flexible medical instruments, cleaning and disinfection of medical textiles, leasing of medical instruments and linen, as well as nosocomial infection prevention products and services. Through the application of internal standardized management, digital monitoring and automated equipment, Jinghong Medical has built a full-process quality control system, which effectively helps medical institutions mitigate cross-infection risks and fortify the defense line of medical safety. At present, Jinghong Medical has established 15 chain sterilization and supply centers in Shanghai, Beijing, Zhejiang, Sichuan, Hunan, Jiangsu, Guangdong, Shandong and other provinces and municipalities, serving thousands of medical institutions nationwide.
Mr. Xu Ke, Founder and Chairman of Jinghong Medical, has been deeply engaged in the healthcare industry for two decades, with his professional experience spanning two core sectors: third-party medical laboratory testing and preventive medicine. As a Co-founder and former President of Meinian Health, Mr. Xu led the enterprise from scratch to establish over 700 physical examination branches across more than 300 cities, successfully listed the company on the Shenzhen Stock Exchange, and introduced Alibaba and Yunfeng Fund as strategic shareholders. During his tenure at Adicon, a leading third-party medical testing enterprise, he spearheaded the IPO preparation work, oversaw the critical phases including business structure consolidation and compliance system construction, and drove Adicon to a successful listing on the Hong Kong Stock Exchange.
Commenting on the use of proceeds from this financing round, Mr. Xu Ke, Founder of Jinghong Medical, stated: "We would like to express our sincere gratitude for the trust and support from all investors. The proceeds of this financing round will be mainly allocated to three strategic priorities: first, accelerating the nationwide layout of chain sterilization and supply centers, with a focus on expanding in medical resource-intensive regions such as East China and South China; second, increasing investment in digital and intelligent technologies, upgrading the full-process traceability system and automated sterilization equipment to further improve service efficiency and quality control precision; third, expanding the core team and nosocomial infection service capabilities, and improving the full-chain service network from sterilization to distribution. Going forward, the company will continue to deepen its roots in the medical sterilization and supply sector, empower more medical institutions with standardized services, and safeguard the last line of defense for medical safety."
Ms. Zhao Wen, Deputy General Manager of Binhu Industrial Group, commented: "As the core bearing area of Wuxi’s biopharmaceutical industry and a highland for high-end medical device industry, Binhu District is building a complete industrial chain ecosystem covering new drug R&D, medical device innovation and professional supporting services under the model of 'industrial cluster + characteristic park'. It has agglomerated more than 300 life and health enterprises, with the annual output value of the biopharmaceutical industry in the whole district exceeding RMB 20 billion. Rooted in this fertile ground for innovation, Jinghong Medical has precisely addressed the core demands of medical institutions for cost reduction and efficiency improvement through its chain development model empowered by refined operation and digitalization, its 'three-in-one' center model, and professional cleaning, disinfection and supply services centered on quality. The company has achieved rapid performance growth, demonstrating a clear profit growth trajectory and vast market potential. The core founding team boasts profound industry experience, proven entrepreneurial track record and sophisticated capital market operation capabilities, which provide a solid guarantee for the enterprise’s large-scale expansion and standardized operation. We firmly believe that with its differentiated competitive advantages and sustainable development momentum, Jinghong Medical is poised to grow into an industry benchmark and a leading enterprise."
Dr. Wu Zhengxi, Executive Vice President of Wuxi Innovation Investment Group, said: "The penetration rate of China’s third-party sterilization services is less than 10%, far lower than that of mature European and American markets, with clear clinical demand and a market scale exceeding 10 billion RMB. Founder Mr. Xu Ke, together with the core team from Meinian Health and Adicon, has built competitive barriers through the 'three-in-one' center model, strong operational capabilities and digital empowerment. We firmly believe that this most combat-effective team in the market will ultimately achieve large-scale development and commercial success."
Co-investors including Shanghai Digital Industry Group and Xiaoyar Capital all commented: "The track where Jinghong Medical operates has significant scarcity. With a clear business model, solid operational foundation and broad market prospects, the company has become a benchmark enterprise in the field of third-party medical sterilization and supply. We will continue to follow the company’s development closely, and support the enterprise to achieve high-quality growth through industrial resource synergy and capital backing."
FTEC Capital, acting as the exclusive financial advisor for this financing round, deeply participated in the entire transaction process, from strategic sorting-out in the early stage to agreement negotiation in the later stage. Mr. Wang Hongye, Partner of FTEC Capital, stated: "It is our great honor to assist the company in completing this financing round. Going forward, we will continue to leverage our professional strengths to provide comprehensive capital services for the enterprise, and support Jinghong Medical to become a world-leading medical sterilization and supply service platform."
Jinghong Medical has successfully integrated high-quality resources nationwide, including over 40 quality control experts in sterilization from Grade A tertiary hospitals, more than 15 core technology R&D teams, and 80 channel partners, serving thousands of medical institutions across hundreds of cities in 14 provinces. The completion of this strategic financing round will inject strong impetus into Jinghong Medical’s nationwide layout and technological upgrading. In the future, the company will continue to uphold its original aspiration of "Professionally Guarding Medical Safety", forge ahead with the development direction of standardization, chain operation and intellectualization, continuously expand its service network and optimize its product system, and contribute to promoting the standardized and high-quality development of China’s medical sterilization and supply industry.

About Wuxi Innovation Investment Group

Wuxi Innovation Investment Group Co., Ltd. is a state-owned venture capital institution integrating seed investment, angel investment, venture capital, equity investment, merger and acquisition (M&A) investment, and S-fund. With a total managed fund scale exceeding RMB 280 billion, the company has deeply cultivated the life and health industry, established a fund system covering the entire life cycle of enterprises in the biopharmaceutical and health field, including seed funds, angel funds, VC (Venture Capital), and PE (Private Equity). It brings capital support and industrial resource synergy value to the invested enterprises.
Currently, the company's biopharmaceutical investment covers fields such as innovative drugs, biotechnology, and medical devices. Its invested enterprises, including Jianshi Medical, Zhikang Hongyi, Xiantong Pharmaceutical, Shining 3D, Weimai Medical, and Ruiyue Pharmaceutical, all possess internationally leading technological advantages in their respective segments.

About Binhu Industrial Group

Wuxi Binhu Industrial Investment and Development (Group) Co., Ltd. was founded in November 2023 with a registered capital of RMB 1 billion. As a directly-administered state-owned enterprise of Binhu District, Wuxi City, it mainly focuses on industrial investment, park development, investment promotion and operation, equity investment, financial services and other sectors. The Group manages a number of subsidiaries including Binhu Science and Technology Innovation, Wujia Anju and Industrial Operation, and is committed to becoming a leading service provider of industrial investment and development.
Embarking on a new starting point and a new journey, Binhu Industrial Group will take the initiative to integrate into the construction of the functional zones of the "Five Bays and Five Cities". It will fully build a modern corporate governance system, strive for rapid breakthroughs centering on the "Five Major Economies" and the development of the "543" industrial clusters, accelerate the integrated upgrading of "Technology + Finance + Industry", boost industrial development, empower financial venture capital and build a full-chain synergy, so as to contribute to Binhu's accelerated efforts to build a "Beautiful Taihu Bay, Dynamic Sci-tech Innovation Belt".
About FTEC Capital
FTEC Capital is a boutique investment bank focusing on the healthcare new economy sector. Composed of professionals with diversified backgrounds in renowned investment banks, funds and industrial sectors, it is committed to identifying industrial upgrading opportunities in the healthcare new economy industry, and provides financing, M&A and project transaction services for enterprises in the fields of biopharmaceuticals, bio-manufacturing, high-end medical devices and innovative services, accompanying outstanding founders in the industry to grow together.