text/Forbes China
"Revenue of more than 400 million yuan, only a million-level net profit", this is Shanghai Yisi Medical Technology Co., Ltd. (hereinafter referred to as Yisi Medical) founder and chairman Nie Honglin entrepreneurship in the field of high-end medical devices 8 Years later, it is about to sprint the book record of the capital market.
"In China's medical device industry, Yisi Medical may be the only wonderful company that is still struggling on the breakeven line after its sales revenue has reached several hundred million, but this is not only our true portrayal, but also the company's strategic choice. "Nie Honglin said jokingly.
has just finished its start-up stage. Although Yisi Medical's net profit is still very low or even unstable, the rapid growth in performance and technological content are still sufficient to interpret the intrinsic value of the company. Z1z
Yisi Medical founder and chairman Nie Honglin. Image source: DR
Hillhouse Capital Co-Chief Investment Officer and Head of Hillhouse Ventures Biomedicine and Medical Devices, Yi Nuoqing said: “In the field of minimally invasive surgical instruments, which has high R&D and production barriers and large import substitution space, The leading company represented by Yisi has attached great importance to product quality and innovation for many years, and has continuously launched high-quality and innovative product portfolios that address clinical needs, providing clinics and patients with more high-quality integrated minimally invasive surgical solutions. We look forward to meeting Yi Si Medical has been working together for a long time, through continuous strategy and resource support, to help the company continue to reach new heights in the field of minimally invasive surgical instrument innovation and create greater value. "
"It is true. Like Hillhouse Capital in the medical and health field , Institutions that continue to insist on large-scale investment have a long-term strategic vision. In the first communication with them, we can feel that they have very comprehensive and systematic research and research on the entire field of minimally invasive surgery and related industries. Understand." Nie Honglin said. The fruits of
are low. Many people can quickly reap the market and profits by imitating plagiarism. Is it necessary to do original research and development by themselves? In the field of high-end medical devices, this is a common mentality.
For Nie Honglin, who started his own business alone, the greater pressure than investing a huge amount of real money in research and development stems from the value concept or investment concept reflected in the industrial environment. What's more, the risk of innovation in the field of medical devices is ten or even a hundred times higher than that of other industries. The initial investment in innovation is huge, but the return period is long, and it usually takes 3-5 years for products to go on the market; although minimally invasive surgical technology has been developed in European and American countries It is widely popularized, but the promotion and popularization of minimally invasive surgical technology in China is still in the early and mid-stage. Although the market potential of minimally invasive surgical instruments is huge, the core products are still dominated by foreign brands such as Medtronic and Johnson & Johnson. Z1z
Nie Honglin said: "In the early days of 2011, the domestic minimally invasive surgery field was basically monopolized by imported brands, while domestic brands were completely blank. Absolute monopoly inevitably resulted in monopoly prices, so the cost of imported medical devices was very high at that time, leading to high surgical costs. However, this has led to the slow promotion of minimally invasive surgical technology. This import monopoly objectively hinders the further promotion and popularization of minimally invasive surgery. "How to provide higher-quality advanced minimally invasive surgical instruments at a lower cost? , And then radiate international influence? It seems that a multiple choice question has no choice.
Nie Honglin said: “Because only by continuing to invest in R&D and adhering to the strategy of technological innovation, will we have the opportunity to become a leader in China’s medical device industry in the future. And from the perspective of global economic development, the market growth rate and the low-end replication route Space is limited. The solution is to provide high-tech products with lower cost, higher quality and more advanced technology. The development strategy of Yisi Medical is to dig deep in the direction of technological innovation, at no cost. "Z1z
" After eight years, it is indeed a very difficult process to survive the original intention, and we are also very lucky. But I just want to provide higher quality and more advanced technology and products at a lower cost. "Z1z
is destined to be a difficult and steep track. Will there be capital willing to pay?" "I always feel that I should create China's own international high-end medical device brand, and make high-quality minimally invasive surgical products affordable for the majority of patients. Since the establishment, the goal is to build Yisi Medical into a high-end medical device field. "Huawei", to break the monopoly of imported brands."
is a "Huawei" in the field of high-end medical devices. In the capital market, such a development strategy is high and low, and most of the capital does not agree. This also led to the early financing of Easy MedicalA huge test. Nie Honglin recalled the painful experience that he had to mortgage his personal real estate and loan to employees to pay wages when he was seeking financing in the early days, so that the company could continue.
Nie Honglin is very clear-headed. From the perspective of a considerable amount of capital, companies should at least first obtain a portion of their net profits, establish their own blood-making ability, and use their own funds to support the sustainable development of the company. However, this investment philosophy is undoubtedly incompatible with the corporate vision dedicated to the innovation and development of high-end medical devices, and has built a high wall for the financing of enterprises.
However, "in the field of high-end medical devices, we must make innovations with clinical value" is the original intention of Nie Honglin when he founded Yisi Medical. It is precisely because of this original intention that is not understood or optimistic by many people, it consumes a gross profit of more than 100 million yuan that should have become a net profit. It is also based on this that the capital market's valuation of Yisi Medical has been in a very serious state of underestimation.
In fact, judging from the development history of the health and medical industry, the initial stage of Yisi Medical’s entrepreneurship is also the lonely period before the outbreak of industrial capital. Zhang Lei, founder and CEO of Hillhouse Capital, once publicly stated that the four years from 2012 to 2016 should be said to be very lonely, and it has only ushered in an explosion in the past few years. Therefore, we must have a long-term mentality. The most productive thing is that the best scientists do research seriously. Hillhouse is firmly committed to the health and medical industry and has invested 120 billion yuan in this industry. Nie Honglin, who led Yisi Medical through Death Valley, said: “On the road to a great company, we can’t expect to get the approval and support of all capitals. It is enough to get the approval of those capitals with a truly strategic vision and industrial vision. After nearly 9 years of entrepreneurship, in August 2020, after 150 million yuan in B+ round of financing, Yisi Medical completed hundreds of millions of yuan in round C financing. The investor in this round of financing is Hillhouse Capital.
Nie Honglin said: “Originally, after the B+ round of financing was completed, there was no plan to refinance before the company went public. However, according to third-party recommendations, in order to make the company’s financial data meet the listing Step on the brakes on R&D investment. This suggestion makes us very uncomfortable.” Because of a scientist background, Nie Honglin has a heartfelt passion for investing in innovative R&D in the field of high-end medical devices. After communicating with Hillhouse, the two parties' views on continuous heavy investment in innovative research and development are completely consistent. In particular, Hillhouse Capital has made a lot of successful cases in the medical device industry, which provides a very important example of success for Easy Medical’s innovative and entrepreneurial philosophy.
Nie Honglin said: “Then we will firmly return to the path we originally wanted to take, and don’t reduce R&D investment in order to go public. We have already prepared a plan to properly compress R&D investment, but Hillhouse Capital’s The blessing has allowed Yisi Medical to release its research and development vitality as always. After nearly 9 years of entrepreneurship, Yisi Medical has gone from an industrial recruit who knocked on the door of investment institutions with a prototype to four major products with more than 190 patents. It has surpassed its peers in its subdivisions and has become a leader in domestic brands. Yisi Medical has completed the development and production of a variety of high-value consumable products, including easyEndo endoscopic stapler, easyUS ultrasonic cutting hemostatic knife system, etc. The market for surgical instruments where competition is fierce and foreign brands dominate, especially the endoscopic stapler market, has rapidly grown to become the number one domestic brand.
is about to enter its tenth year of entrepreneurship, and Yisi Medical has struggled from zero to The start-up stage of 1 opened the door to the rapid growth stage from 1 to 1000. Nie Honglin hopes to lead Yisi Medical to enter the capital market as soon as possible at the right time.
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