Shengtong Medical Nutrition Completes Series B+ Financing of Over RMB 400 Million, Accelerates Expansion into the Blue Ocean Market of FSMPs

VCBeat has learned that,Qingdao Shengtong Nutritional Food Co., Ltd. (hereinafter referred to as “Shengtong Special Medical”), which specializes in the field of foods for special medical purposes, has recently completed a Series B+ financing round exceeding RMB 400 million.This is also the largest financing round in this sector in recent years.This round of financing was co-led by Hengxu Capital, Hillhouse Investment, and Sinovation Ventures, with other investors including Qingchuang Venture Capital and Huiyu Investment.It is reported that this round of financing will be used to optimize the company's equity structure and introduce industrial capital.

Currently, the market for nutritional and health foods continues to expand rapidly. Relevant data show that the terminal market size of this industry reached RMB 588.5 billion in 2022, and is projected to exceed RMB 800 billion by 2027. On one hand, the global prevalence of diseases has heightened public attention to personal physical health, leading to a steady rise in health awareness. On the other hand, the deepening aging population has further spurred growing demand for nutritional and health products. Within this sector, foods for special medical purposes (FSMP) constitute a particularly important segment of the broader nutritional and health field. Characterized by certain market and technological barriers, FSMP represents a high-potential blue-ocean market with substantial unmet demand.

Shengtong Special Medical Nutrition has already established its presence in this sector. As early as 2019, Shengtong Special Medical Nutrition was founded with a focus on the research and development, manufacturing, and sales of foods for special medical purposes (FSMP).

From a product perspective, Shengtong FSMP has currently obtained seven registration certificates for foods for special medical purposes.It focuses on infant formulas for special medical purposes, having obtained registration certificates for various such products, including infant nutritional supplements, formulas for preterm/low-birth-weight infants, partially hydrolyzed whey protein formulas for infants, lactose-free formulas for infants, and formulas for infants with amino acid metabolism disorders. For individuals aged 10 years and above, it has secured a registration certificate for complete nutritional formulas for special medical purposes.

Among domestic manufacturers, Shengtong Special Medical Nutrition ranks among the top tier and is a leading enterprise with one of the largest numbers of approved products and significant revenue scale in the category of foods for special medical purposes (FSMP) for infants. Moreover, its revenue has experienced rapid growth over the past two years. Following this round of financing, Shengtong Special Medical Nutrition will further consolidate its core position in FSMP for infants and young children, and plans to expand its R&D and marketing efforts to develop FSMP products targeting adults and specific patient populations in the future.

From a market perspective, Shengtong Special Medical Nutrition has cultivated deep expertise in the industry. Years of accumulation and development have enabled it to establish highly mature offline sales channels targeting maternal and infant populations, as well as hospital-based distribution channels.Furthermore, Shengtong Special Medical Nutrition is actively addressing consumer awareness issues by collaborating with social media platforms to disseminate medical science education on foods for special medical purposes (FSMP), while continuously expanding its online marketing channels.

Currently, Shengtong Special Medical is continuing to increase its R&D investment, striving to continuously meet the unmet nutritional and health needs of end-users. Leveraging its platform capabilities, the company aims to facilitate better integration of high-quality products and clinical resources, thereby providing users with medically nutritious products that offer superior value. Notably, among the 239 special medical purpose foods currently approved,Only five amino acid metabolism disorder formula foods for rare diseases have been approved, belonging to the foreign company Nutricia and Shengtong Special Medical Food.Shengtong Special Medical’s two amino acid metabolism disorder formula products are designed for infants aged 6–12 months with phenylketonuria and those aged 6–12 months with propionic acidemia/methylmalonic acidemia, respectively.China’s FSMP industry started relatively late, but companies such as Shengtong Special Medical Food have been gradually breaking through technical barriers, demonstrating their R&D capabilities, and competing on a level playing field with overseas enterprises.

For this investment,Lu Yongtao, Chairman of Hengxu CapitalHengxu Capital’s Healthcare Team has long focused on the convergence of medical care and consumer scenarios, with particular attention in recent years to the application potential of high-barrier products in out-of-hospital markets. Foods for Special Medical Purpose (FSMP) represent a development direction in which Hengxu Capital holds strong confidence. During our industry research, we found that Shengtong FSMP has demonstrated outstanding performance in the infant and young child FSMP segment. The company has not only achieved scaled sales and built a diverse product portfolio, but has also made substantial efforts in product pipeline development, showcasing robust momentum for future growth. Over the years, Shengtong FSMP has cultivated various sales channels with precision, gradually establishing a strong brand reputation through high-quality products and services. Therefore, upon learning that the company was offering transaction opportunities, we acted swiftly to initiate contact. After multiple rounds of communication and diligent efforts, we successfully completed the investment—a result that has brought genuine satisfaction to the Hengxu Capital team.

Shengtong Special MedicalStated: “We extend our sincere gratitude to all investor friends for their strong support and high recognition of Shengtong Special Medical. Moving forward, Shengtong Special Medical will further deepen its engagement in the critical field of medical nutrition with greater determination and enthusiasm.”

We will remain unwavering in our commitment to the core philosophy of “Precision Nutrition, Professional Care,” placing the health needs of every consumer at the forefront. Adhering to our service objective of “Being Grounded in Clinical Practice and Giving Back to Society,” we will fully leverage the platform advantages accumulated over many years in the field of medical nutrition. By engaging in deep collaboration with major medical institutions and clinical experts, we aim to build efficient communication bridges that precisely connect abundant, cutting-edge clinical resources with consumers’ actual needs. Through various initiatives, including clinical trials and academic exchanges, we will continuously enhance the scientific rigor and practicality of our medical nutrition products, delivering more professional and personalized nutritional support services.

Currently, the medical nutrition sector boasts broad prospects and immense potential, undoubtedly representing a blue-ocean market with significant development opportunities. Shengtong Special Medical Food will seize this rare historical opportunity, continuously enhancing its comprehensive strength as the sector flourishes. We will implement a holistic strategy—expanding production capacity, improving product quality, diversifying sales channels, and strengthening brand building—to navigate this blue ocean with resilience and achieve sustainable growth. We are confident that through our unwavering efforts, we will make outstanding contributions to the health of the Chinese people, further elevate the nation’s overall health standards, bring the benefits of medical nutrition to every household, and contribute to the implementation of the Healthy China initiative.

Hengxu Capital (AMAC Registration No.: P1070270) was established in 2019. As a private equity investment institution under Shanghai Automotive Group Financial Holdings Management Co., Ltd. (“SAIC Financial Holdings”), the financial platform of Shanghai Automotive Industry Corporation (“SAIC Motor,” 600104.SH), Hengxu Capital leverages SAIC Motor’s comprehensive industrial advantages and the efficient synergistic empowerment of SAIC Financial Holdings. It strives to contribute to the development of SAIC Motor’s innovative industrial chain and the enhancement of its mobility ecosystem. The equity investment division of Hengxu Capital is dedicated to strategically positioning itself in emerging strategic industries such as green mobility, the mobility ecosystem, and the health ecosystem, while its alternative investment division focuses on high-quality assets in the photovoltaic and energy storage sectors. The company’s vision is to deliver strong returns to investors while promoting the coordinated development of environmental, social, and governance (“ESG”) factors, aiming to become a respected premier industrial capital firm and a trusted first-class investment institution.

Hengxu Capital’s cumulative assets under management have exceeded RMB 40 billion. Its investors include industry leaders, financial institutions, government entities, and market-oriented institutions. The core team possesses extensive industrial resources and rich experience in project and fund management, having led investments in dozens of high-quality enterprises such as CATL, Horizon Robotics, Jieqing Technology, Tongxingbao, Qingtao Energy, Xinwang Microelectronics, Yahong Medicine, and Shuaike Pet Care, supporting their growth into market leaders in their respective segments.