Xinguang Bio Secures Tens of Millions in Pre-A++ Round, Advancing Global Disruptive Dialysate Regeneration Technology

VCBeat has learned that Shanghai Xinguang Biopharmaceutical Co., Ltd. (hereinafter referred to as “XBP”), a company dedicated to advancing “dialysate regeneration technology,” recently announced the completion of its Pre-A++ financing round. This round was led by RICHEN CAPITAL, with Yinshi Capital serving as the financial advisor. This marks XBP’s third financing transaction within the past 12 months. The funds raised will be primarily used to accelerate the mass production and regulatory approval of its independently developed portable dialysis machine.

End-stage renal disease (ESRD), as the final stage of chronic kidney disease, requires patients to rely on hemodialysis or peritoneal dialysis for life. It is characterized by uninterrupted treatment needs, complex complication management, and high medical costs. According to data released at the 2024 Annual Academic Conference of the Chinese Society of Nephrology (CSN), the total number of dialysis patients in China exceeded 1.06 million in 2023 (916,000 on hemodialysis and 152,000 on peritoneal dialysis), with 185,000 new patients added annually. The industry’s compound annual growth rate has remained stable at 12%–14%.

Li Xianghai, founder of XBP, stated: "The company is committed to achieving disruptive innovation in the field of dialysis and building China's independent technological barriers. In the current global political and economic context, innovation has become a core issue in China's medical device sector. The process of import substitution in the dialysis industry significantly lags behind the overall development pace of medical devices, primarily due to the robust supply chains established by international giants through early localized production. Although Weigao's recent IPO has boosted confidence in the capital market, centralized procurement policies continue to constrain the industry's profit margins and the development of 'Me-too' products."

The current market landscape exhibits the characteristics of a zero-sum game: leading enterprises are struggling to maintain their gross profit margins by leveraging economies of scale, while small and medium-sized enterprises (SMEs), constrained by the dual pressures of R&D investment and capacity utilization rates, are being forced to accelerate their exit from the market.To break this deadlock, it is essential to move beyond the logic of traditional manufacturing, shift toward a core focus on original technological innovation—even achieving disruptive innovation—and reconstruct clinical value and service models.This represents the most critical strategic breakthrough point for the medical device industry at the current stage, thereby endowing disruptive innovation technologies with significant strategic value in the field of dialysis.

In the medical device industry, many companies excel at precisely identifying clinical pain points and creating “blockbuster products” through differentiated innovation.’, such as hemoperfusion cartridges. However, as competitors rapidly imitate these products and gain regulatory approval for market launch, these companies are prone to falling into a path dependency driven by marketing. This is particularly evident during economic downturns, when patients question whether the clinical value constitutes a "rigid demand"’and cost considerations are more prudent and sensitive.

This phenomenon reveals the dual dilemma facing medical device innovation: the need to break through technical barriers while navigating an economic downturn and undergoing rigorous validation of clinical value. Therefore, only disruptive technological innovation can achieve 'technological depth × commercial fit × payment sustainability'’three-dimensional balance, truly completing the construction of a robust 'moat' for an innovative healthcare enterprise’, ensuring its long-term sustainable development.”

XBP, with its innovative dialysate regeneration technology, is poised to reshape the industry value chain through a triple mechanism:

• Technological Breakthroughs:By enabling the recycling of dialysate, this approach is expected to increase clinical benefits by two- to threefold under cost-control conditions, significantly extend patient survival by 3–5 years, and support safe and efficient home-based treatment under remote monitoring.

• Scenario Innovation:Empowering home-based dialysis and nocturnal treatment regimens to enable patients to better reintegrate into normal life and work, while effectively alleviating pressure on hospital bed turnover.

• Business Model Optimization:The “Center-Based Treatment + Home Extension” model, built upon regenerative systems, can enhance departmental operational efficiency and annual revenue per patient in medical institutions.

According to Frost & Sullivan, the market size of hemodialysis medical devices in China is projected to grow from RMB 11.6 billion in 2019 to RMB 21.1 billion in 2025, and is expected to reach RMB 51.515 billion by 2030, indicating substantial market potential. Home-based, portable, and intelligent dialysis represents a clear demand shared by healthcare providers, patients, and medical insurance payers, and stands as one of the few high-certainty growth directions in the current complex market environment. Leveraging its dialysate regeneration technology, XBP is poised to provide a new impetus for the convenience and widespread adoption of dialysis treatment in China and globally.

For this round of financing,Li Xianghai, Founder of XBPstated: “We extend our heartfelt gratitude to both new and existing shareholders for their unwavering trust and support! Amid the dual challenges of deepening volume-based procurement policies and the localized expansion strategies of international giants, the traditional ‘me-too’ innovation model has reached its ceiling. The XBP team firmly believes that only source innovation grounded in breakthroughs in foundational technologies can open up new blue oceans in China’s medical device sector.”

It is encouraging to note that our core products have recently achieved a milestone breakthrough in large animal model experiments. The clinical value data has garnered high recognition from leading medical experts in China and positive long-term valuation from investment institutions. These breakthroughs not only validate the scientific rigor of our "global first-in-class" technological approach but also demonstrate the capital market’s recognition of the value inherent in truly differentiated innovation.

"We must advance clinical translation with a sense of urgency that seizes every second, while upholding the spirit of craftsmanship to ensure excellence at every stage of industrialization. We look forward to partnering with investors to transform this innovation from China’s medical device sector into medical breakthroughs that benefit patients worldwide!"

(As a recipient of the Qipu Seed Award and a founding member of VCBeat 50, we extend our gratitude to the VCBeat 50 Healthcare Entrepreneurship Elite Club for providing in-depth guidance to XBP during this round of financing)

Regarding this financing round,Ding Yu, Partner at Richen CapitalIndicates:“Issues with home dialysis include either prohibitive costs that are unaffordable for the majority of patients, or inadequate dialysis sufficiency that fails to ensure clinical efficacy. XBP has revolutionized home dialysis by redefining the treatment paradigm. By employing a dialysate regeneration approach, it significantly enhances dialysis adequacy while maintaining cost controllability. Furthermore, it enables the assessment of dialysis effectiveness through quantitative home urea testing. In the future, the system will incorporate remote intelligent monitoring of the entire dialysis process and patient vital signs, thereby establishing a comprehensive solution for full-course treatment and follow-up management of patients with end-stage renal disease (ESRD). This innovation brings new hope to millions of dialysis patients in China.

RICHEN CAPITAL, established in 2015, boasts a management team with extensive backgrounds in private equity, investment banking, and corporate operations. The firm is dedicated to identifying and empowering outstanding enterprises in China’s emerging industries to become “hidden industry champions,” having cultivated robust industry insights and resource integration capabilities in the core and application domains of digitalization and intelligence.

RICHEN CAPITAL has a cumulative assets under management (AUM) exceeding RMB 10 billion. The fund’s primary limited partners include renowned market-oriented funds of funds, insurance companies, listed companies, private entrepreneurs, and family wealth funds. It has invested in more than 90 projects, predominantly as the sole investor or lead investor, targeting “hidden champions” or emerging “hidden champion” candidates in niche sectors.