QinZhi PetLe Fund Seeks IPO: Capitalizing on China's Aging Pet Population and Innovation in Veterinary Pharmaceuticals

China’s Pet Market Is Welcoming Unprecedented Opportunities for Booming Growth!

As pets assume an increasingly important role in households, evolving from mere emotional companions to indispensable family members, the pet market continues to expand, with a pronounced trend toward consumption upgrading. According to the 2023–2024 White Paper on China’s Pet Industry (Consumption Report), the urban pet consumption market size in China reached RMB 279.3 billion in 2023, representing a 3.2% year-on-year increase from 2022. The report also projects that the urban pet consumption market size will reach RMB 361.3 billion by 2026.

Where there are pets, there is consumption; and among the many sectors of the pet industry，Pet pharmaceuticals are regarded as “the key to unlocking the potential of the pet industry” due to their high entry barriers, urgent market demand, and consumer-driven nature.

Overall, China’s pet industry suffers from a severe shortage of veterinary medical resources and pharmaceuticals—characterized by a limited variety of drugs, a scarcity of treatments for major diseases, and an inability to effectively meet clinical medication demands. There are few enterprises in China dedicated to the R&D of pet pharmaceuticals, innovation capabilities need improvement, and product portfolios require further diversification and expansion.

In terms of global pet pharmaceutical market segmentation, antiparasitic drugs account for the largest share at 27.5%, followed by biological products (such as vaccines) at 22.6%, and anti-infective drugs at 17%. With the aging of the domestic pet population in China, there is a significant market opportunity due to the lack of effective therapeutic drugs for conditions such as digestive system diseases, metabolic disorders, cardiovascular and cerebrovascular diseases, endocrine disorders, and neurological diseases.

Drawing on the U.S. pet pharmaceutical market, approximately 400 drugs are available for dogs and cats, including medications specifically developed for pets such as anti-motion sickness agents, antidepressants, weight-loss drugs, and contraceptives. The domestic pet pharmaceutical industry is in the early stages of robust growth.

Against this backdrop,Triwise Capital has established its foothold based on the development trends of China’s domestic pet pharmaceutical industry, taking a pioneering approach to strategic deployment in this sector. Its initiated Triwise Pet Joy Fund, as the Greater Bay Area’s first thematic fund focused on pet healthcare and wellness, embodies the shared expectations of government bodies, industry players, and project stakeholders. Currently, the fund has invested in and deployed capital across multiple high-potential early- to mid-stage projects.

Recently, VCBeat conducted an interview withShi Liming, Partner of Triwise Pet Joy FundConducted an exclusive interview.

Shi Liming, Partner of Triwise Pet Fund

The following is a dialogue between VCBeat and Shi Liming.(Edited)：

VCBeat:On October 26, 2022, marking the seventh anniversary of Triwise Capital, the Dongguan Sci-Tech Innovation Triwise Pet Health Biomedical Fund (hereinafter referred to as “Triwise Pet Health”), initiated by Triwise Capital, officially completed its industrial and commercial registration, with a fund size of nearly RMB 100 million. Why was a pet healthcare and wellness fund established at that time?

Shi Liming:Since its inception, Triwise Capital has remained deeply committed to investing in the healthcare and wellness sector. In 2022, we observed that while the pet economy was experiencing rapid growth, the veterinary medical industry faced significant challenges, including shortages of medical services and pharmaceuticals. Approximately 70% of the market for products such as anthelmintics, treatments for atopic dermatitis, and commonly used vaccines was dominated by leading international animal health companies. Meanwhile, Chinese regulatory authorities have successively introduced relevant regulations to encourage and standardize industry development. Leveraging Triwise Capital’s extensive industry experience and robust industrial resources accumulated in the healthcare sector, we decided at that time to strategically invest in the pet healthcare and wellness space, with a particular focus on innovative drugs within this field.

In fact, prior to the establishment of the Triwise Pet Joy Fund, we had already invested in Hertz Life, a company dedicated to the research and development of pet vaccines. Hertz Life is a platform enterprise specializing in the development of novel vaccines based on VLP (Virus-Like Particle) technology. Initially, during the pandemic, the company sought to enter the human vaccine market. However, after comprehensive evaluation by our incubation team, we found that vaccine technologies employed by both domestic pet vaccine companies and international animal health corporations were relatively outdated. Consequently, we devised a holistic strategy for Hertz Life, encompassing team building, pipeline selection, and financing design. Notably, following our angel investment, we introduced Novellus, a leading domestic CXO enterprise, to Hertz Life to facilitate resource integration, thereby enabling Hertz Life to establish a first-mover advantage in R&D progress and clinical trials.

Currently, Hertz Life’s vaccine pipeline includes castration vaccines, feline combination vaccines, and feline infectious peritonitis (FIP) vaccines. The short-acting feline castration vaccine has completed all clinical trials and is ready for New Drug Application (NDA) submission; additionally, the feline combination vaccine has completed preclinical studies and is prepared to file an Investigational New Drug (IND) application.

Meanwhile, leveraging Dongguan City’s layout for the biopharmaceutical industry and Shilong Town’s industrial foundation and resource advantages, we recommended that they develop the economy around novel veterinary drugs and pet pharmaceuticals. Therefore, capitalizing on these three opportunities, we established Triwise Pet Joy.

VCBeat:Please introduce QinZhi ChongLe.

Shi Liming:Triwise Pet Care Fund was established by Triwise Capital in October 2022, with the aim of becoming a distinctive early-stage fund in China’s pet pharmaceutical sector. The fund was set up through a collaboration between Triwise Capital as the manager, Nuowei Lihua, Shilong Industrial Investment, Dongguan Sci-Tech Innovation Specialized and Sophisticated Enterprises Fund, and multiple other industrial capital partners from Shilong.

As Triwise Capital’s new strategic investment focus within the biopharmaceutical sector—centered on “space, industry, and layout”—Triwise Pet Care aims to address core pain points in pet pharmaceutical R&D. It has successfully incubated and invested in Hertz Life, a leading enterprise in pet vaccines; Nanxing Digital, a domestic digital animal health company; and Yaoyi Life, an R&D-focused enterprise specializing in adjuvants and drug-delivery platforms for animal health vaccines. Furthermore, Triwise Pet Care plans to increase its investments in niche areas such as pet cell therapies, pet ophthalmology, and metabolic diseases.

VCBeat:Beyond the common cats and dogs seen in daily life, “pets” also include exotic species such as lizards, rabbits, hamsters, and spiders. Does Triwise Capital’s investment portfolio also cover pharmaceuticals for exotic pets?

Shi Liming:We have also observed the rapid development of the exotic pet market, evidenced by the increasing number of exotic pet exhibitions in China and the establishment of specialized exotic pet departments by leading veterinary hospitals. However, we have also identified challenges accompanying this swift growth, including a scarcity of specialized veterinarians, a relatively limited market size, and an industry still in its early stages. While we have identified relevant target companies for research, they are not currently a key focus area.

VCBeat:Triwise Capital is involved in investments in biopharmaceuticals, innovative drugs, and medical devices. The pet industry encompasses not only pharmaceuticals and devices but also pet food, supplies, and services. Why has Triwise Pet Care chosen to focus on the niche segment of pet pharmaceuticals?

Shi Liming:We also have investment interest in the pet medical device industry. However, the review regulations and regulatory framework for China’s veterinary device sector remain unclear. The Regulations on the Administration of Veterinary Drugs were promulgated in 2004 and have undergone three revisions since then, yet China has not established a foundational system for the management and regulation of veterinary medical devices.

Although the pet medical device sector is developing rapidly, the lack of regulatory oversight means that investing in this industry may entail significant compliance risks. The industry is actively calling for the prompt introduction of relevant evaluation guidelines, which would enable us to invest with greater confidence and assurance.

VCBeat:Pet health products mainly include prescription pet food, dietary supplements, and veterinary pharmaceuticals. Could you please introduce the characteristics of these three categories?

Shi Liming:We understand pet health supplements as a relatively broad concept, primarily encompassing the following sub-sectors: prescription pet food, dietary supplements, and veterinary pharmaceuticals (including innovative drugs).

Pet Prescription Diets: With the growing popularity of science-based pet care and the increasing trend of pet aging, the prescription diet market has experienced rapid development in recent years. Products targeting common health issues in pets, such as skin, gastrointestinal, and joint problems, have garnered significant attention. In this context, traditional pet food companies are actively expanding their presence, resulting in a diversified competitive landscape with multiple coexisting brands in the domestic market, which has not yet become highly consolidated. Although well-established brands like Royal Canin and Hill’s hold a certain market share due to their industry experience and brand advantages, there remains substantial market space and opportunity windows amid competition from emerging brands and local enterprises. Meanwhile, we must also confront industry challenges: the quality of domestically produced prescription diets varies significantly, and regulatory oversight and enforcement in this sector need strengthening. Furthermore, most pet owners have limited understanding of prescription diets, often mistakenly viewing them as “miracle cures” for diseases, while neglecting daily health management and disease prevention for their pets.

Pet Health Supplements: Demand for pet health supplements continues to rise, with products supporting gastrointestinal health, skin and coat care, and bone strengthening and calcium supplementation currently being hot sellers in the market.

Pet Pharmaceuticals: The growing pet population and aging trends have jointly driven up demand for pet medications. However, the number of domestic companies focused on pet pharmaceutical R&D and the variety of available drugs remain limited. Beyond conventional vaccines, anthelmintics, and dermatological treatments, there is a scarcity of specialized therapeutics for pets suffering from digestive, metabolic, cardiovascular, endocrine, and neurological disorders. Consequently, we prioritize pet pharmaceutical R&D enterprises with strong capabilities in platform technology innovation.

VCBeat:The pet pharmaceutical sector also features numerous specialized niches. For instance, newly adopted cats and dogs require dewormers and vaccines; sick pets may need dermatological medications and anti-inflammatory drugs; and aging pets might require treatments for heart disease and joint conditions. Throughout the various stages of a pet’s life cycle, there are countless medication options available. Which specific niche opportunities within the pet pharmaceutical market does Triwise Capital focus on?

Shi Liming:This is an excellent question. Throughout the entire lifecycle of pets, cats and dogs require substantial medical investment during their juvenile stages, such as vaccinations like Purevax (or Feline Triple Vaccine), feline combination vaccines, and canine combination vaccines, as well as medications for treating skin diseases and parasitic infections. However, we currently pay limited attention to these areas. For instance, the markets for anthelmintics and dermatological drugs are monopolized by foreign animal health companies. Although domestic pet pharmaceutical companies are developing similar products, market competition is fierce. For example, over ten manufacturers have recently received approval for marketing feline triple vaccines in China, intensifying industry competition and sharply compressing manufacturers’ profit margins.

We place greater emphasis on health issues affecting pets in their senior years, such as obesity, tumors, cardiovascular diseases, and other age-related and chronic conditions. The lack of innovative and effective pharmaceuticals in these areas represents a key strategic focus for us.

VCBeat:Will Innovative Pet Drugs Also Be Subject to the “Double Ten Law” Like Human Innovative Drugs?

Shi Liming:The development of new veterinary drugs must account for interbreed differences. For instance, there are over 100 dog breeds alone, which vary in body weight, hepatic function, renal function, and pathogenesis, leading to variations in dosing regimens. Although the R&D cycle for innovative veterinary pharmaceuticals is long and carries high risks, it offers advantages in terms of R&D investment and approval timelines compared to human drugs, as clinical trials in humans are not required. However, it is crucial to note that, in addition to efficacy, cost-effectiveness must also be carefully considered for innovative veterinary drugs.

VCBeat:Based on your observations, what is the biggest challenge currently facing the domestic pet pharmaceutical industry in China?

Shi Liming:The greatest challenge at present is insufficient effective supply, namely a shortage of effective medical resources and effective drugs. Although more than 100 veterinary drugs have been approved for marketing in the domestic market, they fail to effectively address diseases in pets, resulting in insufficient effective supply alongside an oversupply of ineffective options. Innovation is key to driving industry development. Just as the rapid development of innovative drugs has fostered a healthier domestic human pharmaceutical market, the same holds true for the veterinary pharmaceutical industry. Innovation is indispensable for securing a foothold in the global veterinary pharmaceutical market.

VCBeat:Much of the current veterinary healthcare sector is essentially replicating human healthcare market models for pets. Many pharmaceutical companies are extending into the pet care domain by adapting their existing technological products. What is your perspective on this trend, or how would you evaluate such projects?

Shi Liming:This is an objective reality. As previously mentioned, China faces a shortage of medical resources and pharmaceuticals in veterinary care. To meet the actual clinical medication needs of pets, the China Institute of Veterinary Drug Control released the Catalogue of Human Drugs Urgently Needed for Clinical Use in Pets (61 Varieties) at the end of 2023 for reference by pet drug R&D enterprises, aiming to encourage the repurposing of urgently needed human drugs for veterinary use.

However, it is important to note that due to the differences in physiological and metabolic mechanisms between animals and humans, simply repurposing human drugs for veterinary use may fail to achieve the expected therapeutic outcomes. Therefore, more in-depth work is required during the research and development and clinical validation stages of pet pharmaceuticals. Furthermore, the low barrier to entry for such straightforward conversion, which requires minimal R&D investment, leads to a lack of robust competition and genuine innovation in the market. Consequently, we place greater emphasis on projects and teams that demonstrate strong innovative capabilities.

VCBeat:"There are many posts on Xiaohongshu sharing the use of human medications for pets, such as administering montmorillonite powder and Medilac-Vita for feline diarrhea, or lactulose oral solution for feline constipation. What is your perspective on the practice of using human drugs in veterinary care?"

Shi Liming:Strictly speaking, veterinary drugs and human pharmaceuticals must not be used interchangeably. Article 41 of the Regulations on the Administration of Veterinary Drugs, promulgated by the State Council, explicitly prohibits the use of human medicines in animals. Although Article 62 stipulates penalties, it only provides for sanctions against violating entities, without specifying penalties for individuals. The aforementioned List of Human Medicines Urgently Needed for Clinical Use in Pets (61 Items) is actually intended as a reference for pet pharmaceutical companies in their research and development efforts. Its aim is to encourage companies to formally register these medicines as approved veterinary drugs, rather than directly administering human medications to pets.

VCBeat:What do you think are the similarities and differences between human pharmaceuticals and veterinary drugs?

Shi Liming:There are significant differences between human pharmaceuticals and veterinary pharmaceuticals in terms of market size and commercialization requirements. If a human pharmaceutical company develops an innovative drug that meets clinical needs, this single product alone can sustain the company’s commercial operations, generating sales revenues ranging from billions to tens of billions.

In contrast, the pet pharmaceutical market is smaller in scale and places greater emphasis on cost-effectiveness. Pet medications must not only be therapeutically effective but also affordably priced; consequently, both market size and sales revenue lag behind those of human pharmaceuticals. Therefore, innovative pet drug companies must maintain robust product pipelines covering a broad spectrum of disease areas to sustain sales revenue. Furthermore, commercialization capabilities are critical for pet pharmaceutical enterprises. Domestic innovative pet drug companies still have a long way to go before they can emerge as international giants akin to Zoetis.

VCBeat:Mr. Shi, do you have any pets?

Shi Liming:Our family has raised cats and dogs for at least three generations. Back then, pet care was rather rudimentary, with no concept of commercial cat or dog food; we essentially fed them whatever we ate, occasionally preparing more refined meals with chicken or pork. When pets fell ill, there were no dedicated veterinary hospitals, so they had to be taken to local veterinary stations for treatment. Today, the concept of scientific pet care has gained widespread acceptance, and veterinary hospitals are increasingly specializing. Pet medical services have evolved from basic health check-ups, minor illness treatments, and routine care to offering more specialized and professional medical services. With this trend toward specialization, a systematic framework for cultivating domestic veterinary talent is gradually taking shape, exchanges with the international animal health industry are deepening, and demand for advanced therapeutic technologies and pharmaceuticals is correspondingly rising.

VCBeat:As China’s first- and second-generation pets enter old age, “pet elder care” has become a new growth focus for the country’s pet industry. Does Triwise Pet Care have any strategic initiatives in this area?

Shi Liming:The average lifespan of cats and dogs is typically around 12 to 17 years, with them entering their senior stage at 6–7 years of age. According to data from the "2024 Pet Industry Blue Book," the trend of pet aging is on the rise: senior dogs aged 7 and above account for 23% of the total population, representing a 5% year-on-year increase from 2023; the proportion of senior cats saw an even higher year-on-year growth of 6%, indicating that a wave of pet aging is sweeping across China. Common age-related diseases in pets include heart failure, diabetes, cataracts, osteoporosis, arthritis, and urolithiasis.

We focus on two primary areas: first, investing in and supporting the development of therapies to address the clinical need for untreatable conditions in pets; second, addressing aging-related issues, such as by actively supporting startups developing cell-based therapies that meet the demand for anti-aging treatments and management of age-related diseases, including neurological disorders and common ailments in senior pets.

In addition to pharmaceuticals, we also focus on pet health supplements, prescription pet foods, and pet funeral services. However, due to the lack of regulation in the pet funeral sector, we have not yet made any investments in this area. We are open to considering opportunities if a team can address these regulatory challenges.

VCBeat:There are numerous investment institutions in the pet health industry, and many leading pet companies have also entered the investment arena. For instance, China Pet Foods, Biological Co., Ltd., Tianyuan Pet, Yiyi Shares, and Yuanfei Pet have all participated in establishing relevant pet industry funds. How does Triwise Pet Joy differentiate itself from these funds?

Shi Liming:The investment strategy of industrial funds primarily focuses on supporting the development of the enterprises themselves, with investments driven by the goal of strengthening and expanding the industry or facilitating mergers, acquisitions, and restructuring.

Qinzhi Chongle was established in Dongguan, embodying an investment logic that integrates “space, capital, and industry.” On the spatial front, Shilong Town, serving as a coordinated expansion zone for the Songshan Lake Biomedical Industry in Dongguan, has developed an emerging veterinary drug industrial base spanning nearly 40,000 square meters. This base functions as a comprehensive platform for the development and industrialization of new veterinary drugs, integrating new drug development, product design, safety evaluation, pilot-scale production, clinical trials, policy and regulatory consulting, and new product registration filings. It provides full-industry-chain services, including equipment, information, technology (covering veterinary GLP, GCP, GMP, and GSP standards), and talent support.

On the industry front, we can integrate industrial resources to facilitate their adoption by portfolio companies. For instance, our investor, Novellia, a new veterinary drug CRO company, possesses extensive experience in clinical application and registration of new veterinary drugs, as well as an industry-scarce veterinary drug CRO and CDMO platform. This capability supports investee companies in clinical trial design, execution, and regulatory compliance, thereby helping them enhance R&D efficiency and reduce costs.

On the capital side, Qinzhi Chongle was established through a collaboration between Triwise Capital (as the fund manager), Nuoweilihua, Shilong Industrial Investment, Dongguan Sci-Tech Innovation Specialized and Sophisticated SME Fund, and multiple other Shilong industrial capital partners. With support from China Agricultural University and the Shenzhen Zhongnongda Frontier Technology Research Institute, it leverages composite industry resources and academic research advantages to provide multi-dimensional, holistic empowerment to its portfolio companies.

VCBeat:What support can investees receive from Triwise Pet Joy?

Shi Liming:Take Hertz Life and Yaoyi Life as examples. Hertz Life is a platform enterprise specializing in the development of novel vaccines based on VLP (Virus-Like Particle) technology. Initially engaged in the human pharmaceutical sector, it pivoted to pet vaccine development following our incubation team’s product portfolio review and market research guidance. Meanwhile, we introduced CRO resources to accelerate its R&D, clinical trials, and product registration processes. Given that major domestic and international animal health companies prefer collaborating with innovative enterprises, and as Hertz Life’s products approach the NDA stage, we are facilitating connections with leading animal health companies to prepare for commercialization.

Another case is Yaoyi Life, a company specializing in pet vaccine adjuvants. Its team originates from Hefei University of Technology and excels in polymer and nanomaterial technologies. Initially, the company planned to develop hemostatic products for animal health. However, given that human hemostatic products are also applicable to pets and the market is highly competitive, we advised them to leverage their technological strengths to pivot toward vaccine adjuvant development. Adjuvants are critical to vaccine efficacy and are subject to strict regulatory oversight in China. After collaborating with domestic veterinary vaccine manufacturers for validation, Yaoyi Life’s adjuvants demonstrated significant technical advantages and application potential. Based on these results, we guided the team to focus on adjuvant product development and formulated a commercialization strategy.

We will establish a strategic layout centered on innovative small-molecule drugs for pets, an innovative biologics platform, medical diagnostics, and an innovative medical device platform.

VCBeat:What other opportunities do you see in the pet pharmaceutical sector? Which niche segments will Triwise Pet Care focus on next?

Shi Liming:Pet aging brings about conditions including obesity, diabetes, tumors, cardiovascular diseases, hepatic and renal disorders, and urinary system diseases. Our investment strategy is primarily divided into three categories:

First, based on these indications, identify and invest in teams or project companies with the capability to develop corresponding product pipelines;

Second, prioritize new technologies that meet the development needs of these drugs, focusing on advanced vaccine platforms such as virus-like particles (VLPs) and mRNA, as well as small-molecule drugs and biologics with innovative mechanisms of action.

Finally, we focus on companies with first-mover technological advantages across the entire industry chain, such as those in the cell therapy sector. These enterprises are able to address challenges related to cell culture, transportation costs, cryopreservation costs, and expansion costs, thereby gaining a competitive edge in the market.

Overall, we will focus on strategic layouts in areas such as innovative small-molecule drugs for pets, innovative biologics platforms, medical diagnostics, and innovative medical device platforms.

VCBeat:"If we were to evaluate the investment projects you have previously led, which ones delivered the highest absolute return and the highest return multiple, respectively?"

Shi Liming:The highest return has been generated by Hertz Life. We made our angel investment in 2021, and Hertz Life’s feline castration vaccine product has already filed for a New Drug Application (NDA), with expectations to obtain the new veterinary drug certificate within the next one to two years. Meanwhile, international animal health companies are also frequently engaging with Hertz Life, hoping to bring the product to overseas markets.

Another portfolio company, Nanxing Digital, secured follow-on investment from another capital firm less than a month after our initial investment, resulting in a significant increase in its valuation. Nanxing Digital is dedicated to driving digital transformation in the animal health industry. Addressing the current state of lagging GMP management and heavy reliance on manual processes within China’s animal health sector, the company has launched a GMP management system and a QR code traceability system to help enterprises reduce costs and improve efficiency. This past November, Tiankang Pharmaceutical, a leading Chinese veterinary drug manufacturer, entered into a partnership with Nanxing Digital for GMP and digital transformation initiatives.

As angel investors, our investment in these projects is grounded in the urgent industry need for certain pharmaceuticals and fundamental therapeutic approaches; therefore, we remain optimistic about their subsequent progress. Currently, we aim to leverage Triwise Capital’s investment and industrial synergies to help accelerate the companies’ R&D and clinical development.

VCBeat:Are there any particularly regrettable missed opportunities for promising projects?

Shi Liming:We entered the pet health and wellness sector in 2022, initially focusing our efforts on the pet healthcare industry. As a result, we missed early investment opportunities in pet food, pet supplements, and smart pet hardware. During our due diligence, we observed that few companies are capable of developing high-quality pet supplements through core technological R&D, with most still prioritizing brand marketing. In the smart pet hardware segment, leveraging China’s advantages in information technology and mechanical manufacturing, the industry has begun to consolidate around leading players. For a fund like ours that specializes in early-to-growth stage investments, this sector no longer offers attractive valuations or growth potential. Nevertheless, we are genuinely encouraged by the rapid development of China’s pet industry. Our upcoming second pet health and wellness fund will focus closely on these areas.

VCBeat:How has Triwise Pet Joy’s investment strategy at this stage changed from when it was first established?

Shi Liming:Our inaugural pet-focused fund concentrates on the early- to mid-stage segments of the pet healthcare and wellness sector. We plan to launch a second industry-specific fund in this field in the near future. This new fund will not only continue to target early- to mid-stage projects but also expand into mid- to late-stage opportunities, particularly enterprises with mature products that are experiencing rapid commercial growth. Furthermore, our investment scope will be broadened beyond pet pharmaceuticals to include pet health supplements, medical devices, and diagnostics.

VCBeat:Looking back on the two years since the establishment of Triwise Pet Care, are you satisfied with your investment performance in Triwise Pet Care?

Shi Liming:Although we missed the early phase of rapid growth in the pet economy, as our Chairman stated, “We opened a window and discovered a larger world.” We are satisfied with our investments over the past two years; however, as newcomers to the industry, we need to conduct more in-depth research into the sector to identify additional innovative projects and teams.

“Investment returning to the real economy, capital serving industry” is our core value proposition. We aim to provide extensive support to portfolio companies post-investment, whether in R&D, clinical services, product business development (BD), or commercialization. We are committed to co-entrepreneurship and shared growth with the enterprises we invest in.