5Y Capital Portfolio Company Shukun Technology Announces New 700 Million Yuan Funding Round | 5Y News

At the end of July 2021, Shukun Technology announced the completion of a new RMB 700 million funding round. Investors included globally renowned capital firms Goldman Sachs Asset Management, Primavera Venture Partners, HSG, YuanYi Capital, Jane Street Asia, Ruizhi Capital, WT Focus China Fund, and Future Qichuang Fund. This round came just six months after the company's nearly RMB 1 billion raise the previous year. Existing shareholders included Huagai Capital, HSG, 5Y Capital, CCV, Qiming Venture Partners, BOC International, CCB International, China Reinsurance, and CICC Pucheng, among others.

5Y Capital led Shukun Technology's Series A round in July 2018 and has continued to participate in multiple subsequent rounds.

The proceeds will fund R&D investment in the "Digital Human Body" platform, covering major acute and chronic diseases; continued refinement of product matrices including Digital Heart, Brain, Chest, Bone, and Abdomen; accelerated development of other "Digital Organs" AI-assisted diagnosis and treatment product lines; and faster nationwide deployment in hospital intelligentization initiatives.

In 2021, Shukun Technology achieved remarkable results: at the CMEF conference, Shukun Technology unveiled its "Digital Human Body" initiative for the first time. "Digital Heart" was the pioneering product of the "Digital Human Body" platform. Its coronary stenosis AI product, having become the first to obtain NMPA Class III certification, also received the EU MDR CE certificate — making it the only coronary AI with dual NMPA and CE certification. Meanwhile, Shukun's pneumonia AI product also became the first to obtain EU MDR CE certification. Shukun Technology currently holds more than 10 medical device registration certificates, covering critical diseases of the heart, brain, lungs, bones, and abdomen, making it a leading AI enterprise in the medical AI field by number of registrations.

Additionally, in 2021 Shukun Technology received numerous authoritative awards including the "NHC 2020 National Medical AI Innovation Award," "2021 Digital Transformation Innovation Case TOP100," "2021 China AI Medical Imaging TOP10 Enterprises," "2021 CHC·CITIC Securities Most Investment-Worthy Healthcare Enterprise," and "2021 First BPAA Algorithm Practice Exemplary Award."

Currently, products under Shukun's Digital Human Body platform are in high-stickiness use at over 1,000 hospitals nationwide. Top 200 public tertiary hospitals including Peking Union Medical College Hospital, Sichuan West China Hospital, Shanghai Ruijin Hospital, and The First Affiliated Hospital of Sun Yat-sen University in Guangdong have all established deep clinical collaborations with Shukun.

Among current medical testing methods, medical imaging data accounts for 90% of medical information. It is the primary source of information for disease screening and diagnosis, as well as an important aid for clinical disease treatment.

Shukun's Digital Human Body platform applies AI sensory cognition and deep learning technologies to the medical imaging field, penetrating various medical scenarios. The Digital Human Body platform not only improves the accuracy and efficiency of radiologists' diagnoses but also extends the treatment chain, expanding application scenarios from radiology departments to clinical departments, helping doctors enhance their research capabilities and multidisciplinary diagnosis and treatment capabilities. Furthermore, the platform can comprehensively reshape monitoring, prevention, consultation, treatment, medication, rehabilitation, and other diagnosis, treatment, and health management processes.

As a hospital-level intelligent imaging platform entry point, Digital Human Body has captured important entry points for major acute and chronic disease diagnosis. The platform can be applied to multiple clinical scenarios including coronary heart disease, cerebral infarction, tumors, trauma, chest pain centers, stroke centers, and cardiac specialties, forming a multidisciplinary diagnosis and treatment model supported by an imaging platform, ultimately constituting a complete hospital-level comprehensive intelligent imaging solution. In practical application, patients need only undergo a single scan of a specific organ to screen for numerous common conditions, effectively reducing diagnosis and screening costs and using AI to truly achieve "treating pre-disease."

Professor Liu Shiyuan, Director of the Medical Imaging Department at Shanghai Changzheng Hospital and President-elect of the Chinese Medical Association's Radiology Branch, stated that "Shukun has steadily落地 the vision of comprehensive intelligent imaging that is 'Digital Human Body,' from Digital Heart, Digital Brain, Digital Abdomen to Digital Human Body, generating greater clinical value and benefiting more doctors and patients."

As the main entry point for hospital intelligent diagnosis, Shukun's Digital Human Body product family — including Digital Heart, Brain, Chest, Bone, and Abdomen — is playing an indispensable role at major hospitals.

In early 2018, Shukun globally launched Digital Heart, which has now become one of the industry's most mature AI products. Beyond coronary AI products, Shukun's calcium scoring CT intelligent assessment, CT-FFR, FAI, and TAG intelligent assessment products together form the "Digital Heart" family, currently in use at multiple hospitals with related clinical research underway. At Anzhen Hospital, for example, 98% of coronary CTA cases are completed using Shukun products. Xu Lei, Director of Anzhen Hospital's Imaging Department, noted that "Anzhen Hospital handles over 1,000 coronary CTA cases weekly, placing enormous workload on imaging doctors. Shukun AI helps doctors with automatic 3D reconstruction, interpretation, and formatted report output, improving work efficiency."

In July 2020, Shukun globally launched the "Digital Brain" product family. In September 2020, Shukun's multicenter study with Xuanwu Hospital was published in a Nature series journal. Professor Lu Jie, Vice President of Capital Medical University Xuanwu Hospital, stated that the Shukun CerebralDoc head-neck assisted diagnosis system used at Xuanwu Hospital can perform post-processing and assisted diagnosis of head-neck CTA images, aiding doctors in diagnosis and assessment and greatly improving the hospital's diagnostic efficiency.

Shukun Technology's role in stroke diagnosis and treatment has also gained broader recognition from clinical doctors at major tertiary hospitals. At the "2021 China Stroke Conference and 11th National Cardiovascular and Cerebrovascular Disease Forum," top domestic experts including Zhang Dong, Director of the Cerebrovascular Disease Division in Neurosurgery at Beijing Tiantan Hospital; Sun Shengjun, Deputy Director of Radiology at Beijing Tiantan Hospital; Xu Yicheng, Sub-discipline Leader of Cerebrovascular Disease in Neurology at Beijing Aerospace Center Hospital; and Wang Ximing, Deputy Director of Radiology at The First Affiliated Hospital of Soochow University, shared from clinical and imaging perspectives the rapid, efficient, and precise clinical advantages of Shukun stroke AI for stroke diagnosis and treatment, proposing accelerated promotion of new technology deployment in stroke diagnosis and treatment to comprehensively support stroke center construction and disease prevention.

In 2021, Shukun Technology globally launched a liver MR AI product. This product was jointly researched and developed by Professor Yang Zhenghan's team from the Radiology Department of Beijing Friendship Hospital and Shukun Technology, aiming to address complex liver disease diagnosis challenges. Professor Yang Zhenghan pointed out that "globally, from published papers, only a few involve liver MRI AI, and these are all single-task studies. The liver MRI AI system is a comprehensive diagnostic solution, expected to achieve breakthroughs in intelligent diagnosis of liver focal lesions using MRI."

Shukun's Digital Chest product series is also widely used at grassroots hospitals. In March this year, Dechang County People's Hospital in Sichuan introduced Shukun Technology's Digital Chest product for clinical use. Digital Chest can automatically detect various types of pulmonary nodules, assess their benign or malignant nature, and assist doctors in CT imaging diagnosis. Dechang County People's Hospital affectionately calls this diagnostic system "AI Doctor," evaluating that "with 'his' arrival, pulmonary nodules have nowhere to hide."

The ultimate purpose of technological innovation is to ensure that scientific and technological achievements benefit all people more broadly and equitably. As an AI medical enterprise rooted in China, Shukun Technology has been committed since its founding to the vision of "providing ubiquitous intelligent medical health services for patients, enabling every patient to achieve precise diagnosis." Especially in the face of major public health events, Shukun Technology has stepped forward, using technology and professional expertise to safeguard public health.

In February 2020, as COVID-19 spread nationwide, Shukun Technology successfully developed an intelligent COVID-19 imaging analysis system after more than ten days of effort. The system was deployed for free use at multiple hospitals in Hubei, including Wuhan Central Hospital, Hubei Provincial People's Hospital, Wuhan Hospital of Traditional Chinese Medicine, Wuhan Union Hospital, and Wuhan Zhongnan Hospital, assisting doctors in completing thousands of CT examinations daily.

Subsequently, Shukun Technology supported Beijing Ditan Hospital, Beijing You'an Hospital, Beijing Xiaotangshan Hospital, Beijing Friendship Hospital, and Beijing Pinggu District Hospital through public welfare donations, adding "new weapons" to epidemic prevention and control. Shukun Technology's development of COVID-19 AI for full-scale pandemic response received recognition from the Ministry of Industry and Information Technology, and the company was invited to present its technology-driven epidemic response achievements at the Beijing Municipal Government's COVID-19 press conference.

Recently, multiple locations in Henan suffered rare heavy rainfall, causing significant loss of life and property across several cities. Major hospitals safeguarding public health in Henan were also severely affected. Shukun Technology employees closely monitored disaster information. Considering that disinfection and epidemic prevention are the most urgent tasks after flood disasters, Shukun Technology immediately selected suppliers with medical materials supply qualifications, procured large quantities of disinfection products, and urgently shipped them to medical institutions in disaster-affected areas, organizing multiple employees to ensure transportation and distribution of disinfection materials. This initiative addressed urgent needs for medical institutions and health commission departments in multiple Henan locations, timely and effectively supplementing epidemic prevention capacity for local post-disaster reconstruction.

Going forward, Shukun Technology will also leverage the power of AI and internet platforms to play its due role in addressing grassroots medical diagnostic capability gaps, promoting quality medical resource下沉, and alleviating severe grassroots medical talent shortages. The company hopes to use public welfare forces and AI technology to drive early screening, early diagnosis, and early treatment for grassroots patients, continuously improving diagnostic accessibility and ultimately enhancing the nation's overall health and happiness index.

5Y Capital (formerly Morningside Capital) currently manages approximately USD 5 billion in dual-currency USD and RMB funds. We believe that if the world starts to believe in the crazy you that others see, the world will be a better place.

BEIJING·SHANGHAI·SHENZHEN·HONGKONG

WWW.5YCAP.COM