One More IPO of Legend Capital: Medical Device Supply Chain Service Provider GKHT Medical Goes Public Successfully

On July 12, Legend Capital’s portfolio company, GKHT Medical Technology Co., Ltd. (“GKHT Medical”; Stock Code: 301370.SZ), was successfully listed on the ChiNext Market of the Shenzhen Stock Exchange.

GKHT Medical is a leading comprehensive digital supply chain service provider for medical devices in China. Focusing on the field of medical devices, the company specializes in providing customized supply chain solutions to manufacturing enterprises, distributors/dealers, and medical institutions based on its entire supply chain service-covered platform for every medical device product from original manufacturers to operating rooms.

Starting with high-value medical consumables, GKHT Medical has innovatively created a brand-new business model of the "one-stop distribution platform + hospital-end service platform", enabling the company to provide the industry with comprehensive digital supply chain services from original manufacturers to operating rooms through intensively integrating key elements such as funds, warehousing, logistics, and circulation process information.

As one of the company’s earliest investors, Legend Capital participated in GKHT Medical’s fundraising rounds in 2016 and 2019 and has kept helping enhance the company's management and operational capabilities and connect upstream and downstream customer resources since the investments. Over the seven years of investment cooperation, GKHT Medical's revenue has increased by more than 600%, and it has grown into a tier-one company in the field of high-value consumables for medical devices.

Joe ZHOU, Managing Director of Legend Capital, said: "GKHT Medical has an aspiring and dedicated team whose members have extensive experience in business operations and marketing and jointly drive pragmatic progress through the bonding of each other’s talents. The high-value medical consumables market in China is worth over RMB100 billion, but most supply chain links, such as distribution, are still dominated by traditional agency models. The market is still open to be explored by disruptive innovators, and we believe that GKHT Medical will stand out in the future and continue to support innovation in the field of medical devices."

“It is believed that the listing will help GKHT Medical to further strengthen its cooperation with upstream and downstream partners, expand the coverage of its direct sales business to more terminal medical institutions, enhance operational funding, and improve its information systems and logistics warehousing system. With improved comprehensive service support capabilities and risk control capabilities, the company is well prepared to meet the changing needs of customers in different markets. At the same time, by deepening the links between the upstream and downstream of the industrial chain and expanding the supply chain business, GKHT Medical is capable of providing customers with digital supply chain services covering high-value consumables, low-value consumables, IVD, and equipment in the medical devices field. The company has established a channel of “manufacturers-GKHT Medical-hospitals” to continuously strengthen its core competitiveness as a comprehensive digital supply chain service provider for medical devices.” Joe Zhou added.

At present, GKHT Medical has provided professional services for more than 100 leading original manufacturers of medical devices and more than 4,000 hospitals worldwide, and it has achieved high-quality and scale development with the capability of delivering to more than 80% of Chinese tertiary hospitals within 2 hours.

Legend Capital has long been paying attention to the investment in the field of medical devices and diagnostics with a focus on three major themes: first, major diseases, especially the unmet clinical needs of chronic diseases; second, the first and uniqueness in technology, which enables a company to become or have the potential to become a leading player in subdivided industries; the third is the "device +" investment opportunities brought by the integration of medical devices and interdisciplinary technologies such as AI, IoT and Big Data. At present, Legend Capital has invested in numerous leading companies in the subdivided industries, including GKHT Medical (301370.SZ), Careray Digital Medical Technology (688607.SH), Axonics (AXNX), New Horizon Health (06606.HK), Wuhan Easy Diagnosis Biomedicine (002932.SZ), Berry Genomics (000710.SZ), Aohua Photoelectricity Endoscope (688212.SH), Chemclin Diagnostics (688468.SH), Bio-heart Biological (02185.HK), STAR Sports Medicine, ET Healthcare, Hailai Xinchuang Medical Technology, and Dearer Medical.

Legend Capital has been actively investing in the healthcare industry since 2007 and has built a distinctive and valuable healthcare ecosystem. The company has created a powerful investment base on the strength of many pillar enterprises it invested in multiple subdivided healthcare industries. In response to changes in the external environment, Legend Capital has proposed a new "healthcare ecosystem +" strategy aiming at the new development pattern of the healthcare industry. By taking capital as the link and focusing on "innovation" and "ecosystems", Legend Capital intends to build a more extensive ecosystem that connects resources from various sectors, including the industry, academia, and society, to accelerate the transformation of R&D results, promote industrial upgrading, and achieve high-quality development.