Investors said| Wang Kai, founding partner of Wyeger Capital: Why did I bet on Kefu Medical in the first order?

"Science and Technology Innovation Board Daily" (reporter Li Yongjun, Changsha) news, October 25, personal medical equipment one-stop provider Kefu Medical (301087. SZ) landed on the Growth Enterprise Market.HKQ. As the largest external shareholder, Wyege Capital holds 8.1 million shares of Kefu Medical, accounting for 5.06% of the total shares. This investment in Wyeger Capital has yielded a handsome return. It is worth mentioning that Wage Capital is the first exclusive investment institution of Kefu Medical, and Kefu Medical is also the first investee enterprise of Waige Capital.

On the eve of the listing of Kefu Medical, the venture capital reporter of Science and Technology Innovation Board Daily and Wang Kai, founder and managing partner of Wage Capital, had an in-depth exchange. He explained in detail why Wyeger Capital focused on the medical and health track, the first investment in Kefu Medical and its growth experience, and expressed confidence to continue to accompany it and jointly meet the broader future of the home medical market.

Pre-investment: 18 months of communication and planning

"February 2016, the sixteenth day of the first lunar month", Wang Kai clearly remembers the day when he first met with the founding team of Kefu Medical. On that day, Wang Kai accompanied the chairman of another company he had invested in to Changsha and visited the founding team of Kefu Medical for the first time.

At that time, Wang Kai, who had experienced a number of senior positions in securities investment banking and asset management, had founded an investment management company and was planning to focus the previous "wide net" investment strategy on the professional track of medical health, and conducted preliminary research on it. Kefu Medical is one of Wang Kai's research subjects.

Wang Kai said that although the two sides met for the first time in 2016, the communication and discussion around the market space, competitive landscape and future development positioning of Kefu Medical around domestic medical devices was "frank". "I was deeply impressed by the founding team of Kefu Medical on the deep understanding of the medical device industry, its own marketing genes, innovation genes and strong work energy, and these advantages are the key underlying logic that constitutes the moat of the medical device industry."

After full discussion between the two sides, the parting time left a topic: should Kefu Medical carry out comprehensive strategic sorting and planning, seize the golden period of rapid development of the medical device industry at the business side and capital side, and build a platform listed company for the future?

From February 2016 to August 2017, Wang Kai led the Team of Wyeger Capital and the founding team of Kefu Medical to conduct in-depth discussions on the development plan of Kefu Medical for 18 months.

"How are the three major brands 'Kefu, Keyuan and Good Nurse' positioned? How to plan the products manufactured by independent research and development and OEM manufacturing? How to build cooperation and competition between independent brands and agency brands? How to build a blockbuster R&D pipeline in the field of personal medical devices? In the process of IPO and listing, how can enterprises implement the normative implementation of business, finance, law and other aspects into the specific behavior of operation and management? ”

Wang Kai said that after many studies and discussions, in August 2017, in a conference room by the West Lake in Hangzhou, Wyege Capital and the founding team of Kefu Medical reached an agreement on the development plan for the next three years. In September 2017, Wage Capital completed an investment of RMB80 million in Kefu Medical, which also became the first investment case of Wyege Capital in the field of healthcare.

Empowerment: Accompany the run for 48 months to usher in the listing

"In the next 48 months, we witnessed the tenacious struggle and unremitting spirit of the founding team of Kefu Medical, and also witnessed the 'speed' and 'passion' of kefu medical development." Wang Kai said that in 2020, Kefu Medical achieved operating income of more than 2.3 billion, annual net profit of more than 400 million, and private label sales accounted for more than 80%. As originally planned, Kefu Medical achieved listing on the ChiNext board of the Shenzhen Stock Exchange in 2021 and entered the 3.0 era of platform development.

Wang Kai introduced that in the above process, Wyeger Capital not only accompanied the run for a long time, but also helped Kefu Medical coordinate capital resources, promote supply chain financing, accelerate the cash flow turnover of Kefu Medical and then promote the improvement of business income. At the same time, Wyeger Capital also promoted Kefu Medical to launch the IPO plan and gave professional advice or suggestions on important matters of listing.

In terms of business, Wyeger Capital assists Kefu Medical in connecting with well-known universities in China in the field of high-end digital hearing aids, and helps Kefu Medical to promote symbiotic cooperation with universities and scientific research institutions in medicine, technology, industry and marketing.

"We did a long period of research before we were founded, and from the very beginning we positioned ourselves as a fund that provides 'VC + in-depth investment banking services' in the field of healthcare investment, and we focused on this positioning in team formation and LP selection." Wang Kai said that as the first investment project, the good start with Kefu Medical has gradually strengthened the investment style of Wyegg Capital.

Perhaps because of the above characteristics, for Wyeger Capital and Kefu Medical, although both sides are each other's "first time", they can successfully achieve the goal of listing after four years of cooperation. Wang Kai said that the biggest significance of investing in Kefu Medical for Wyegg Capital is to establish a successful case, and this model provides a reference for other invested projects.

Wang Kai introduced that at present, Kefu Medical has built a full range of personal medical device products from infants to the elderly, including five major areas such as health monitoring, rehabilitation aids, respiratory support, medical care, and traditional Chinese medicine physiotherapy, which can meet the one-stop needs of consumers. Secondly, the IPO opened a new sky for Kefu Medical, and the more than 3.7 billion yuan raised in the initial public offering provided more ample bullets for the company's future research and development innovation, capacity improvement and epitaxial development.

Wang Kai said that he believes that after the listing of Kefu Medical, it will further strengthen the leading position in the field of whole-life cycle health management, "If the potential needs of personal health management, high and low ends can be tapped out and productized, I believe that Kefu Medical will have a broader growth space in the future, and Wage Capital will continue to cooperate with Kefu Medical in depth to contribute to the cause of China's health management." ”