Zhongke Kangyuan Secures Strategic Investment from Guotou Julli and Wuxi Venture Capital, Pioneering Non-Grain Biomass Manufacturing

VCBeat has learned that Zhongke Kangyuan (Tangshan) Biotechnology Co., Ltd. (“Zhongke Kangyuan”) recently completed its first round of financing, successfully introducing SDIC JULI Investment Management Co., Ltd., under the State Development & Investment Corp. group, and Wuxi Capital Group Co., Ltd. (“Wuxi Capital Group”) as strategic investors. This financing marks a significant milestone for Zhongke Kangyuan since its establishment, signifying dual recognition from central state-owned enterprise industrial capital and leading local venture capital firms for its non-grain biomanufacturing technology pathway using straw as raw material.

China generates over 900 million tons of agricultural and forestry waste annually, including approximately 700 million tons of crop straw, yet the resource utilization rate has remained persistently low. Meanwhile, feed grain supply relies heavily on staple crops such as corn, leading to intense competition for grain between human consumption and livestock feeding, as well as significant dependence on imports, thereby exerting continuous pressure on national food security.

Since its establishment in 2018 by Dr. Zhang Dongyuan, a researcher at the Tianjin Institute of Industrial Biotechnology, Chinese Academy of Sciences, Zhongke Kangyuan has remained focused on the efficient bioconversion of lignocellulosic biomass. Drawing on biomimetic research into the radical oxidation mechanisms in termite guts, the company has independently developed the “Continuously Temperature-Controlled Oxidative Explosion Pretreatment Process.” This technology integrates strain breeding, induced fermentation processes, and enhancer screening to effectively disrupt the recalcitrant barrier formed by cellulose, hemicellulose, and lignin in straw.

This technology offers significant advantages:

● Green and non-toxic: Does not produce fermentation inhibitors commonly associated with traditional acid-alkali methods, such as furfural;

● High conversion efficiency: The saccharification rate of straw consistently exceeds 95%;

● Low energy consumption and low cost: Steam consumption is reduced by nearly 50%, and the cost per ton of sugar decreases by approximately 50%.

Leveraging this core technology, Zhongke Kangyuan has established a 10,000-ton pilot-scale platform and a 200,000-ton production line, and independently developed a 10,000-ton “Sitebaste” cellulase enzyme preparation production line (with enzyme activity reaching 200 FPU, achieving an internationally leading level), thereby realizing full-chain independent control from pretreatment and enzymatic hydrolysis to simultaneous saccharification and fermentation.

Zhongke Kangyuan’s “Xinnengyuan” straw-derived digestible sugar and protein product features a digestible sugar content exceeding 55% and a crude protein content above 8%, with nutritional indicators comparable to those of corn, enabling partial 1:1 substitution of corn in ruminant feed.

Practical feeding trials conducted at a leading domestic dairy farm demonstrated that the average daily dry matter intake per cow increased by 0.19 kg; with milk yield held constant, the average daily feed cost per cow decreased by more than RMB 0.35, while milk fat and milk protein rates improved simultaneously.

Based on a 10,000-head scale ranch, annual feed costs are reduced by over RMB 1 million, with comprehensive efficiency gains nearing RMB 10 million, delivering both economic benefits and sustainable value.

Currently, Zhongke Kangyuan’s 200,000-ton straw bioconversion project located in the Haigang Development Zone of Tangshan City has officially commenced operations. Covering an area of 70 mu with a total investment of RMB 240 million, the project adopts the company’s independently developed complete equipment sets and full-process intelligent control systems, making it one of the leading non-grain biomanufacturing bases in China in terms of single-site scale.

Building on this foundation, Zhongke Kangyuan is accelerating the nationwide replication of its industrial model across China’s major agricultural production regions. The company has already initiated project matchmaking and preparatory work for implementation in Heilongjiang, Jilin, Henan, Anhui, Inner Mongolia, Ningxia, and other areas, establishing a resource utilization network that covers the primary straw-producing regions.

Currently, the nation is accelerating its strategic layout for future industries, with “biomanufacturing” identified as a key direction for developing new quality productive forces. According to publicly available information, in the preliminary research for the upcoming 15th Five-Year Plan, the state will further strengthen strategic deployments in fields such as bio-based materials, non-grain biomass conversion, and synthetic biology, explicitly stating:

● Promote the high-value utilization of agricultural and forestry waste to build a circular economy system;

● Breakthrough key technical bottlenecks such as low-cost saccharification of lignocellulose;

● Develop biomanufacturing pathways that do not compete with humans for food or with food crops for land, thereby supporting food security and the dual carbon goals.

Zhongke Kangyuan’s technological roadmap is highly aligned with this policy direction. Centered on the core strategy of “converting straw into feed and materials,” the company not only alleviates pressure on feed grain supplies but also provides non-grain carbon sources for downstream industries such as bio-based chemicals and biodegradable materials, thereby helping China’s bio-manufacturing sector leap from “following” to “leading.”

The proceeds from this financing round will be primarily allocated to process optimization, product upgrades, capacity expansion, and nationwide market deployment. Adhering to its development philosophy of “technology-driven innovation and industrial implementation,” Zhongke Kangyuan will deepen collaboration with research institutions, local governments, and large-scale agricultural and livestock enterprises. This aims to transform straw—a “misplaced resource”—into a strategic asset that safeguards food security and supports green development. With policy support from the state and capital infusion, a new chapter in non-grain biomanufacturing is unfolding.

Zhongke Kangyuan (Tangshan) Biotechnology Co., Ltd. is a National High-Tech Enterprise and a Hebei Province “Specialized, Refined, Differential, and Innovative” enterprise. Founded by Dr. Zhang Dongyuan, a researcher at the Tianjin Institute of Industrial Biotechnology, Chinese Academy of Sciences, the company focuses on the conversion of non-grain biomass, such as straw, into feed protein, digestible sugars, and bio-based materials. The company has undertaken 14 projects, including those under the National Key R&D Program, and has established two provincial-level R&D platforms, including the Hebei Province Feed Peptide Industry Technology Research Institute. It is committed to becoming a global leading provider of non-grain biomanufacturing technologies and products.

SDIC JULI Investment Management Co., Ltd. (hereinafter referred to as “SDIC JULI”), a subsidiary of State Development & Investment Corp., Ltd. (hereinafter referred to as “SDIC Group”), is a fund management company initiated by the State-Owned Investment Committee of the China Investment Association and jointly established by SDIC Group, state-owned investment companies from various provinces and municipalities, and social capital. The company focuses on industries such as bio-manufacturing, new energy, electronic information, and high-end equipment manufacturing, selecting leading enterprises for strategic investments with the aim of becoming a top-tier private equity fund management institution in China. The fund has a target size of RMB 50 billion, with an initial fundraising target of RMB 10 billion.

Wuxi Capital Group is a state-owned venture capital firm integrating seed, angel, venture, equity, M&A, and S-fund investments. With total assets under management exceeding RMB 280 billion, the company has deeply cultivated the life and health sector, establishing a comprehensive fund system covering the full lifecycle of biopharmaceutical and healthcare enterprises—from seed and angel stages to VC and PE. This approach delivers both capital and synergistic industrial resources to portfolio companies. Its current biomedical investment portfolio spans innovative drugs, biotechnology, and medical devices. Notable investments include Jianshi Medical, Zhikang Hongyi, Xiantong Pharmaceutical, Shining 3D, Weimai Medical, and Ruiyue Pharmaceutical, all of which possess internationally leading technological advantages in their respective niches.