Main points of investment
China's leading minimally invasive surgical instrument platform: Kangji Medical, founded by Mr. Zhong Ming and Ms. Shentu in August 2004, is currently the largest minimally invasive surgical instruments and accessories (MISIA) platform in China. The company has a comprehensive product portfolio covering major minimally invasive surgery, has registered 41 Class I medical devices, 13 Class II medical devices and 8 Class III medical devices in China, and has developed a strong product pipeline. The company's senior management staff are from large medical supplies and equipment companies, with rich R & D and management experience. At present, the company has accepted two rounds of financing, with a total financing of about 1.7 billion yuan (the same below), with a post-investment valuation of more than 5 billion yuan.
China's MISIA market has a broad space, and the market segment is developing rapidly: the size of China's MISIA market is about 18.5 billion yuan in 2019 and is expected to grow to 40.8 billion yuan in 2024, with an annual compound growth rate of 17.2%.
The growth of the MISIA market is mainly driven by (1) the increasing number of surgeries (2) the substitution of minimally invasive surgery for open surgery (3) the increasing feasibility of minimally invasive surgery (4) the increasing use of disposable products (5) the increasing acceptance of domestic products (6) product upgrading and innovation (7) market integration. From the perspective of market segmentation, Kangji Medical ranks first in the market rate of disposable casing puncture device, polymer ligation clamp and disposable electrocoagulation forceps.
The products under development have an orderly relay and are expected to open a broader market: the company currently has 4 candidate products in the registration process and 5 candidate products in the product design and development stage. Among them, ultrasonic cutting hemostatic knife disposable head, ultrasonic cutting hemostatic knife, 4K high-definition endoscope camera system is expected to appear on the market in 2021, 2022, the company is also expected to have a number of products listed one after another. The orderly relay on the market will further enrich the company's product line and help the company enter a broader MISIA market segment.
Risk tips: the risk of failure in new product research and development, intensified market competition, higher-than-expected cost control, and so on.