Zhongke Guosheng Secures RMB 200 Million Series A+ Financing to Accelerate 10,000-Ton FDCA Production Capacity

Zhongke Guosheng (Hangzhou) Technology Co., Ltd. (hereinafter referred to as “Zhongke Guosheng”) has recently successfully completed a RMB 200 million Series A+ financing round. The round was led by CITIC Jinshi and Puhua Capital, with participation from Yunhui Capital and Hangzhou Capital Group. Existing shareholders Legend Capital, Source Code Capital, and Yuhang State-owned Investment continued to increase their investments. The proceeds from this financing will be primarily allocated to the construction of a 10,000-ton annual production facility in Taixing, Jiangsu Province, accelerating capacity expansion to further reduce costs.

In recent years, policy support for bio-based materials has significantly strengthened both domestically and internationally, with policy guidance and financial backing accelerating technological breakthroughs and industrialization in this field. Bio-based materials have already been implemented in applications across packaging, textiles, healthcare, and other sectors, demonstrating substantial market potential. Among these, the furan-based bio-material 2,5-furandicarboxylic acid (FDCA) has emerged as a key platform compound in the bio-based materials sector, owing to its high performance, recyclability, renewability, and multifunctionality.

Zhongke Guosheng, leveraging its robust R&D, manufacturing, and commercialization capabilities, has become the first to achieve global hundred-ton-scale supply of the furan-based bio-material FDCA. With continuously decreasing product costs and steadily improving quality, the commercialization of FDCA is accelerating.

As a key bio-based platform chemical, FDCA can serve as a substitute for petroleum-derived benzene feedstocks due to its unique furan ring structure and demonstrates significant potential in enhancing material performance. However, high production costs have long constrained its commercial application.

Zhongke Guosheng’s independently developed bicontinuous process and short-process production scheme have achieved cost reduction across the entire FDCA production chain from a technological perspective. As production scale continues to expand, FDCA costs are expected to decrease significantly further. This technological breakthrough is attributed to Zhongke Guosheng’s team’s profound expertise and unique insights in catalysts and chemical manufacturing, as well as their bold innovation in challenging conventional industry thinking. Currently, Zhongke Guosheng ranks among the global leaders in controlling FDCA mass production costs.

High-Purity FDCA

Integrating R&D with Production to Enhance Product Quality, Seizing Market Demand to Pioneer Commercialization

To meet the downstream customers' higher requirements for product quality, Zhongke Guosheng successfully launched high-purity FDCA products in 2024 and completed the delivery of ton-level orders to leading overseas polyester enterprises. High-purity FDCA has been further optimized in terms of color, purity, and trace element control, receiving positive feedback from global customers and significantly accelerating the adoption rate among downstream customer groups.

Zhongke Guosheng’s flexible R&D and production system, which rapidly responds to market demands, serves as a critical guarantee for expanding into new markets. The market-oriented R&D model, combined with an integrated flexible management system encompassing R&D, production, and sales, has significantly shortened the cycle for bringing furan-based bio-materials from laboratory development to commercialization.

Currently, FDCA has achieved commercial application in fields such as high-end functional polyester packaging, polyester fibers, and specialty functional fibers. Zhongke Guosheng has already supplied bulk quantities to several leading chemical enterprises both domestically and internationally.

FDCA Partial End-Use Applications

Wang Lei, Chairman of Zhongke Guoshengstated: “The completion of this funding round not only provides Zhongke Guosheng with strong financial support to ensure capacity expansion, but also underscores the capital market’s high level of attention to the bio-based materials sector and its recognition of the Zhongke Guosheng team. Looking ahead, Zhongke Guosheng will leverage continuous technological innovation and industrialization practices to accelerate the large-scale application of furan-based bio-materials, collaborate with partners to build a new global ecosystem for sustainable development, and realize its vision of ‘changing lives with biomass.’”

Yan Shihang, Senior Vice President of Jinshi Investment“Bio-based new materials have been a key focus of Jinshi Investment’s strategic investments in recent years, and Zhongke Guosheng stands out as a leading player and pre-unicorn enterprise in this field. The management team at Zhongke Guosheng has left a deep impression on us; it is one of the most capable teams we have engaged with in recent years. Though young, the team possesses extensive industry experience. Highly educated yet willing to roll up their sleeves to tackle tough challenges, they combine clear division of responsibilities with unity and ambition. With technical backgrounds, they also demonstrate strong market promotion capabilities. For a startup, achieving its mid-term operational goals is truly remarkable. Jinshi Investment will continue to support the company’s growth, hoping that it will go from strength to strength and reach new heights.”

Wang Hongwen, Partner at Puhua Capitalstated: “We are highly optimistic about the superior performance of furan-based bio-materials and the market potential driven by ESG concepts. Zhongke Guosheng is at the global forefront in commercializing this field. Its core team possesses profound professional backgrounds and extensive experience in bio-based materials. The company’s self-developed catalysts and short-process technologies offer advantages for low-cost, large-scale production. We look forward to Zhongke Guosheng leading industry development.”

Jin Biyao, Investment Director at Yunhui Capitalstated: “Bio-based materials represent a key track in the green transition. With the advancement of the ‘dual carbon’ goals and the accelerated substitution of petrochemicals, the industry is witnessing trillion-yuan opportunities. Leveraging its proprietary technologies, Zhongke Guosheng has established significant advantages in mass-production cost control globally and driven commercial breakthroughs in high-end polyesters and other fields. Yunhui Capital looks forward to the realization of Zhongke Guosheng’s 10,000-ton production capacity, which will accelerate the large-scale substitution of bio-based materials and set a benchmark for Chinese intelligent manufacturing empowering low-carbon industrial chains.”

Hangzhou Capital (Guoshun Zhihe Fund)stated: “Zhongke Guosheng has completed a critical piece of the puzzle for China’s bio-based platform chemicals, marking a new milestone in the large-scale production of bio-based new materials in the country. The company has currently achieved continuous, low-cost mass production of FDCA, with its product performance and cost structure holding a leading advantage. Looking ahead, the integrated model of production and R&D will continue to drive the company’s growth. We look forward to Zhongke Guosheng making further strides in the field of bio-based new materials.”

Fan Qihui, Managing Director at Legend Capital“The investor stated: ‘As an investor that has participated in all four funding rounds of Zhongke Guosheng, we remain highly confident in the prospects of the bio-based materials sector. Leveraging its breakthrough technologies in furan-based bio-materials, Zhongke Guosheng has secured a leading position in the industry. Furthermore, its accelerated deployment of 10,000-ton production capacity has further strengthened its technological moat and commercialization barriers. The successful completion of this financing round not only reflects investors’ strong recognition of Zhongke Guosheng’s technical capabilities and team but also underscores the capital market’s firm optimism about the explosive growth potential of the bio-based materials industry. Looking ahead, Zhongke Guosheng is well-positioned to continue leading the large-scale application of bio-based materials, capitalizing on the dual opportunities presented by the green and low-carbon transition and the upgrading of “Made in China.”’”

Jing Xutian, Managing Director at Source Code CapitalHe stated, “Due to its combination of high performance and strong environmental friendliness, FDCA has long been a novel material attracting significant attention in the international market, with an immeasurable potential application market size. However, high costs have long constrained industry development. We are thrilled to observe that the Zhongke Guosheng team has achieved a substantial and sustained reduction in FDCA production costs through their practical efforts over the past few years, thereby triggering a qualitative leap driven by quantitative changes and realizing a breakthrough from laboratory research to large-scale commercialization. Particularly in the past year, the company has continuously gained recognition from overseas benchmark clients across multiple industries and actively pursued collaborations. We believe that, leveraging its unique technological advantages alongside China’s industrial strengths, and driven by leading domestic and international customers, Guosheng can emerge as a global leader in the FDCA sector.”

Yuhang State InvestmentIt stated: “As a high-tech enterprise specializing in the research, development, and production of bio-based materials, Zhongke Guosheng is at the forefront of industrialization within the industry. We have observed significant improvements in both its technological capabilities and sales performance within a short period following the first round of investment. Therefore, Yuhang State-owned Investment has made a follow-up investment in the company, with the aim of jointly promoting the development of the bio-based materials industry in Yuhang District.”