"Zhongke Guosheng" Secures 200 Million Yuan in Series A+ Financing to Advance the Construction of a 10,000-Ton Production Capacity in Taixing | Exclusive Report by 36Kr
36Kr learned that "Zhongke Guosheng" recently received 200 million yuan in Series A+ financing, led by CITIC Jingshi and Puhua Capital, followed by Yunhui Capital and Hangzhou Capital. Existing shareholders Legend Capital, Wuyuan Capital, and Yuhang State Investment continued to increase their investment. According to the company, this round of financing will be used for the construction of a 10,000-ton production capacity facility in Taixing, Jiangsu, to accelerate capacity expansion and further reduce costs.
Zhongke Guosheng was established in July 2021 and has developed a continuous production process for HMF (5-hydroxymethylfurfural) and FDCA (2,5-furandicarboxylic acid). In terms of downstream derivative development, it has completed the development and verification of high-value-added furan bio-based monomers such as tetrahydrofuran dimethanol (THFDM) and 2,5-bis(aminomethyl)furan (BAMF).
Currently, it has achieved a supply capacity of 100 tons of FDCA. Due to its unique furan ring structure, FDCA has potential in improving material properties (such as better gas barrier performance, excellent mechanical strength and toughness, etc.). However, the high production cost has restricted its commercial application. Problems such as the complex raw material pretreatment process for extracting FDCA from biomass raw materials and the poor stability of catalysts have remained unsolved for a long time.
Based on years of technological accumulation, Zhongke Guosheng has developed a continuous flow production process for HMF and a process for mass-producing FDCA from crude HMF, achieving cost reduction throughout the FDCA production process. For example, in the FDCA oxidation process, many catalysts cannot tolerate impurities, and using crude HMF in the past would lead to incomplete reactions. Zhongke Guosheng has overcome this bottleneck through its self-developed catalytic system, enabling the efficient mass production of FDCA from crude HMF and significantly reducing costs.
In 2024, Zhongke Guosheng's high-purity FDCA products were mass-produced, and it delivered ton-level orders to leading overseas polyester companies. The color, purity, and trace element control of the products received positive feedback from customers, accelerating the market introduction of the products. Currently, FDCA has been commercially applied in fields such as high-end functional polyester packaging, polyester fibers, and special functional fibers.
Examples of some end applications of FDCA
With its excellent barrier performance and good mechanical properties, FDCA materials have great application potential in fields such as food and drug packaging and textiles. In food packaging, food packaging bags, boxes, and beverage bottles made of PET can effectively extend the shelf life of food and maintain its freshness and taste. In drug packaging, the high barrier performance of FDCA materials can prevent drugs from being damp, oxidized, and deteriorated, ensuring the quality and safety of drugs. In the textile field, polyester fibers synthesized from FDCA have good strength, wear resistance, and dyeing performance. Especially in sports and outdoor clothing, they can provide better breathability and moisture-wicking performance.
Currently, Zhongke Guosheng is developing various application scenarios. To quickly respond to market demand, it has established a "flexible R & D and production system" to shorten the cycle from laboratory development to commercialization of furan bio-based materials.
In recent years, the state has introduced a series of policies to support the development of bio-based materials. Compared with traditional petroleum-based materials, bio-based materials mostly use renewable resources as raw materials, which reduces the risk of resource depletion to a certain extent. Moreover, many bio-based materials are more biodegradable in the natural environment, which can reduce the environmental pressure caused by waste disposal and promote the achievement of carbon peak and carbon neutrality goals.
Investors' views:
Yan Shihang, Senior Vice President of Jingshi Investment, said, "Bio-based new materials have been a key investment area for Jingshi Investment in recent years. Zhongke Guosheng is a quasi-unicorn enterprise in this field. The management team of Zhongke Guosheng has impressed us deeply. It is one of the most capable teams we have contacted in recent years. The team is young but rich in industry experience, highly educated but good at tackling tough problems, each member performs their duties while working together in unity, and they have strong market promotion capabilities despite their technical backgrounds. As a startup, it is remarkable that it has achieved its medium-term business goals. Jingshi Investment will continue to support the company's development and hopes that the company will go further and reach new heights."
Wang Hongwen, Partner of Puhua Capital, said, "We are very optimistic about the excellent performance of furan bio-based materials and the market potential brought by the ESG concept. Zhongke Guosheng is at the forefront of the global commercialization process in this field. The core team has a deep professional background and rich experience in the bio-based materials field. The company's self-developed catalysts and short-process technologies have the advantages of low cost and large-scale production. We look forward to Zhongke Guosheng leading the industry development."
Fan Qihui, Managing Director of Legend Capital, said, "As an investor who has continuously invested in Zhongke Guosheng for four rounds, we have always been confident in the prospects of the bio-based materials track. Zhongke Guosheng has taken a leading position in the industry with its breakthrough technologies in the field of furan bio-based materials. Through the accelerated layout of 10,000-ton production capacity, it has further strengthened its technological moat and commercialization barriers. The successful completion of this round of financing not only shows the high recognition of Zhongke Guosheng's technical strength and team by investors but also demonstrates the capital market's firm confidence in the explosive potential of the bio-based materials industry. In the future, Zhongke Guosheng is expected to continue to lead the large-scale application of bio-based materials under the dual opportunities of green and low-carbon transformation and the upgrade of 'Made in China'."
Jing Xutian, Managing Director of Wuyuan Capital, said, "FDCA, with its characteristics of high performance and high environmental friendliness, has always been a new material that has attracted much attention in the international market, and its potential application market size is immeasurable. However, for a long time, the high cost has restricted the development of the industry. We are very excited to see that the Zhongke Guosheng team has achieved a significant and continuous reduction in the cost of FDCA in the past few years, which has led to a qualitative change from the laboratory to large-scale commercialization. Especially in the past year, the company has continuously received recognition from overseas benchmark customers in multiple industries and actively carried out cooperation. We believe that with its unique technological advantages and China's industrial advantages, and driven by leading domestic and overseas customers, Zhongke Guosheng can become a global leader in FDCA."