Huaxin Medical is an innovative leader in the field of disposable endoscopes. As one of the few companies in the world that possesses both the research and development capabilities of soft and hard endoscopes, it boasts profound technical accumulations. Huaxin Medical has applied for 434 patents both domestically and internationally, with 50 approved and valid invention patents. The company's product pipeline covers multiple departments such as respiratory, gastroenterology, urology, and otolaryngology. Its disposable bronchoscopes, ureteroscopes, cystoscopes, and other products have already obtained domestic registration certificates. Among them, the disposable bronchoscope has also obtained overseas certifications such as FDA and CE, entering developed countries like Europe, the United States, and Japan, and achieving rapid market promotion. Currently, Huaxin Medical's business has covered more than 160 countries and regions worldwide.

Yisi Medical is a leading enterprise in the minimally invasive surgical instruments market, specializing in the research and development and industrialization of high-end minimally invasive surgical medical devices. It has established three major product platforms: surgical anastomosis platform, surgical energy platform, and optical imaging platform. Its product line includes laparoscopic staplers, ultrasonic scalpels, disposable endoscopes, and other innovative products, covering minimally invasive surgical procedures in the fields of the digestive system, respiratory system, and urinary system.

As a national-level "specialized, sophisticated, and innovative" small giant enterprise and a brand cultivation demonstration unit, Yisi Medical has made significant achievements in technological innovation, quality casting, and brand marketing. It has made practical contributions to the localization and import substitution of high-end medical devices and the promotion and popularization of domestic minimally invasive tumor technology. It has consecutively held the leading domestic position in the field of minimally invasive tumor surgery for many years. The company's innovatively developed laparoscopic staplers, ultrasonic scalpels, and other innovative products have entered thousands of hospitals in China, with over 40% of them being tertiary hospitals. Its overseas business covers more than 70 countries and regions worldwide.

The former possesses profound technological innovation and mass production capabilities in disposable endoscopes, while the latter boasts strong brand, channel resources, and platform-based commercial development capabilities. The collaboration between the two is a "powerful alliance." The two parties will jointly accelerate the clinical application, promotion, and popularization of a series of disposable endoscope products with outstanding innovative technologies in the domestic market, eliminate the risk of infection from reusable instruments, help doctors improve diagnosis and treatment efficiency, enhance patient experience, and simultaneously leverage Yisi Medical's mature global marketing network to accelerate the global market coverage of the series of disposable endoscope products.

Due to its advantages of minimal trauma, short surgical time, and fast recovery, minimally invasive surgery is rapidly developing in China. According to Frost Sullivan's statistics, the number of minimally invasive surgeries in China reached 15.7 million in 2021. The huge clinical demand is driving the expansion of the minimally invasive surgical instrument market, with a market size of 22.893 billion yuan (excluding endoscopes) in 2021. At present, the field of minimally invasive surgical instruments in China is still in a leading position in imports, especially in the two popular markets of endoscope and ultrasonic scalpel, which are worth billions of yuan. The localization rate needs to be improved.

But at the same time, import substitution is also accelerating. The national policy vigorously promotes the localization of high-end devices, and with the support of innovative products and complete solution layout, domestic enterprises are rapidly seizing market share and achieving innovation and going global. Yisi Medical's endoscope stapler has taken the lead in increasing the bending angle of the stapler from 45 ° to 60 ° globally, surpassing similar products of international giants and achieving rapid market promotion. Huaxin Medical's disposable bronchoscope achieves smaller bending radius and larger bending angle, and has received explosive orders overseas.

In the field of minimally invasive surgical instruments, which is surrounded by domestic and foreign giants, disposable endoscopes have become a breakthrough point for domestic innovative enterprises to achieve leadership. The domestic endoscope market in China started relatively late, and the degree of import monopoly in the field of reusable endoscopes is high, with high patent barriers. Domestic enterprises still have a long way to go in terms of technology accumulation and market promotion. At the same time, reusable endoscopes pose a certain risk of infection, with high unit prices and high maintenance costs for hospital disinfection, making them difficult to apply at the grassroots level. In contrast, disposable endoscopes have developed rapidly in China in recent years due to their convenient operation, no risk of infection, and low maintenance costs.

The consumerism of endoscopes is a major trend, and giants such as Olympus and Boston Science are expanding into the field of disposable endoscopes. According to Boston Scientific's prediction, the global market size for disposable endoscopes will reach $2 billion by 2024. The global market for disposable endoscopes is highly concentrated, with Ambu and Boston Scientific accounting for over three-quarters of the market (based on 2020 sales revenue). However, the pattern of disposable endoscopes in China is not yet determined, leaving greater development space for domestic innovative enterprises.

2022 is the "explosive period" for one-time endoscopic evidence collection in China, with over 40 domestically produced disposable endoscopes approved by the National Medical Products Administration, mainly focused on urology endoscopes. Due to differences in technical and design requirements for disposable endoscopes among different departments, domestic enterprises are gradually expanding from urology to respiratory, digestive, gynecological and other departments. Enterprises that are the first to layout multiple departments will establish a moat of time and technology.

At the same time, disposable endoscopes pursue high integration and cost-effectiveness to meet the needs of graded diagnosis and treatment. Furthermore, as disposable endoscopes open up grassroots applications, the demand for mass production is higher, and market promotion also relies on the channel resources of enterprises. With the successive approval of disposable endoscope products in China, the competition in the field is becoming increasingly fierce, which increasingly tests the comprehensive strength of domestic enterprises in terms of technological innovation, mass production, and market channels.

In addition, with the development of endoscopic surgery, clinical and market trends are more inclined to choose enterprises that have disposable endoscopic products and supporting surgical instruments. From a clinical perspective, using matching surgical instruments can reduce operational difficulty and risk, which is beneficial for the popularization of endoscopic surgery; From a market perspective, under centralized procurement and DRG charging, a richer product line can reduce the development risk of the enterprise, form a synergistic effect in market promotion, and expand the target market.

This collaboration between Huaxin Medical and Yisi Medical on the research and commercialization of innovative disposable endoscopic products is promoting their global development. It is not only an innovative move in line with the trend of endoscopic consumables, but also a further improvement of both parties' product lines and integration of resources.

As an innovative leader in the global disposable endoscope market, Huaxin Medical's products cover multiple departments such as respiratory, digestive, urology, and otolaryngology. The company has strong research and development capabilities, and the founding team has 16 years of experience in endoscopic technology and 10 years of experience in disposable endoscopic research and development. Its disposable endoscopic products are completely independently developed and committed to global innovation. In 2023, the number of patent applications exceeded 200. At the same time, the company acquired MGB, a century old German rigid endoscope enterprise, in 2021 to further enhance its research and development capabilities in the field of hard endoscopes.

Huaxin Medical's disposable electronic bronchoscope product adopts a riveted snake bone design, which meets a bending angle of 210 degrees and a smaller bending radius. At the same time, the snake bone can be locked with any bending angle with one click after bending, ensuring precise positioning and reducing damage. This product has reached the international leading level and has obtained more than 60 certifications from China's NMPA, the US FDA, the EU CE, Japan, South Korea, and other countries. It has also partnered with the international endoscope giant Olympus as the general agent for this product line in the United States.

In addition, Huaxin Medical has a production workshop and research and development building of 15600 square meters. The company independently develops production processes and equipment, such as jointly developing the world's first automated assembly equipment for endoscopes, which has high production efficiency, high quality, and controllable costs. The company can produce 1200 disposable endoscopes per day, with an annual output of 400000 units.

As a leading enterprise in the field of minimally invasive surgical instruments, Yisi Medical is committed to providing complete solutions for minimally invasive surgical instruments worldwide. The company has outstanding self-developed strength, and its technological innovation strategy starts from meeting the needs of clinical and health economics. It has applied for nearly 270 domestic and foreign patents, including over 50 Chinese invention patents and over 130 international patents from countries such as Europe, America, and Japan.

The core product of the endoscope stapler adopts the technology principle of robot flexible joints and double ligaments, which is the first in the world to increase the bending angle of the stapler to 60 degrees, greatly improving the convenience of doctors in narrow spaces and expanding the clinical indications for surgery. This product has applied for 7 invention patents in China and obtained nearly 20 international patents, of which two core patents have won the first prize of Shanghai Intellectual Property Innovation and the China Patent Excellence Award, and have been selected in the National Ministry of Science and Technology's Innovative Medical Device Product Catalog.

At the same time, Yisi Medical's ultrasound knife products are the first domestically produced ultrasound knives approved for 5mm vascular closure through registered clinical trials in China. The waveguide rod of the ultrasound knife head adopts innovative design and has applied for an invention patent, making the vibration frequency and amplitude of the ultrasound knife head more coordinated. Yisi Medical has also taken the lead in completing the research and registration of reusable ultrasound knife heads in China, which is expected to significantly reduce surgical costs. In addition, when Yisi Medical entered the field of optical imaging, it chose to develop safer and more convenient disposable endoscopes. Its self-developed disposable electronic bladder and renal pelvis endoscope system was approved by the end of 2022.

After years of development, Yisi Medical has established a relatively complete global channel network and marketing team, gained recognition from a large number of leading surgical experts KOLs worldwide, and received a large number of purchase orders from globally renowned hospitals, forming a certain brand reputation, which can quickly promote the commercialization of new products.

The strong collaboration between Huaxin Medical and Yisi Medical will provide strong support for the development of the two companies, accelerating the commercialization and export of Huaxin Medical's innovative disposable endoscope products, expanding Yisi Medical's layout in the field of optical imaging, further enriching the company's minimally invasive surgical instrument solutions, fully mobilizing the resource advantages of both sides, and forming a benign development ecosystem.

At the same time, in terms of clinical application, the innovative technology of domestically produced disposable endoscopes jointly promoted by the two will further improve the instrument solution for minimally invasive surgical procedures, accelerate the sinking and popularization of minimally invasive surgical procedures; At the industry level, the strategic cooperation between innovation leaders and domestic leading enterprises will strengthen their competitive advantages in the field of disposable endoscope technology, accelerate the localization process of series products, and also accelerate the reverse export of domestic innovative technologies to overseas markets, especially developed country markets.