Zhongsheng Suyuan Completes RMB 150 Million Series B Financing to Accelerate Clinical Development and Commercialization of iPSC-Based Therapies

VCBeat has learned that recently,Anhui Zhongsheng Traceability Biotechnology Co., Ltd. (hereinafter referred to as “Zhongsheng Traceability”) has completed the first closing of its Series B financing round, raising RMB 150 million.This round of financing was led by Guangzhou State-owned Development Holding Co., Ltd., with participation from Zhongyuan Investment, Guangzhou Guoju Venture Capital Co., Ltd., Hefei High Tech Venture Capital Management Partnership (L.P.), and existing shareholder Legend Capital.This round of financing will be primarily used to accelerate the clinical development of multiple pipelines in the iPSC cell therapy field at Anhui Zhongsheng Traceability Biotechnology Co., Ltd., as well as the subsequent commercialization of its products. HAOYUE CAPITAL served as the exclusive financial advisor for this round of financing.

Zhongsheng Traceability, a global pioneer and industry leader in iPSC (induced pluripotent stem cell) technology, was established in 2016. Recognized as a national-level “Little Giant” enterprise specializing in refined, distinctive, and innovative fields, the company is headquartered in Hefei, Anhui Province. It focuses on basic research and clinical translation of iPSCs, committed to developing widely accessible cell therapy products.

Dr. Junying Yu, the company’s founder, is one of the international pioneers of human induced pluripotent stem cell (iPSC) technology and a world-renowned scientist in the field of stem cells. She studied under Dr. James Thomson, known as the “father of human embryonic stem cells,” and in 2007, she was the first to successfully reprogram human skin cells into iPSCs. She reported this breakthrough in *Science* as the first author and co-corresponding author. Subsequently, in 2009, she pioneered the generation of human iPSCs without viral vectors, paving the way for the industrialization of hiPSC-derived cellular products. This groundbreaking achievement was once again published in *Science*.

To date, Zhongsheng Traceability has established a comprehensive product and service system covering the entire iPSC industry chain, including upstream activities (iPSC reprogramming, cell bank establishment, and clinical-grade culture reagent products), midstream activities (iPSC-induced differentiation and derivative products), and downstream activities (development of iPSC-derived cell therapies). The company possesses internationally leading, high-standard R&D and production facilities for research-grade and clinical-grade stem cells, as well as China’s largest iPSC super-donor cell bank specific to the Chinese population. Furthermore, it has systematically built a patent portfolio centered on iPSC technology applications, encompassing areas such as iPSC reprogramming, directed differentiation into various functional cell types, manufacturing processes, and key raw materials.

Centered on its core iPSC technology, Zhongsheng Traceability is continuously advancing the R&D of multiple cell therapy pipelines across three major medical fields: anti-inflammatory repair, tumor immunology, and regenerative medicine. Notably, its induced pluripotent stem cell (iPSC)-derived mesenchymal-like cells (iMSC) and iPSC-derived natural killer cells (iNK) therapeutic products have both received implied approval for clinical trials from the Center for Drug Evaluation (CDE), marking them as the first iMSC and iNK cell drugs in China to gain such regulatory clearance for clinical registration. The company’s subsequent iPSC-derived cell therapies targeting clinical needs in Parkinson’s disease, diabetes, and other indications will also sequentially submit Investigational New Drug (IND) applications to enter the clinical trial registration phase, thereby continuously exploring the clinical value of iPSC-derived cell therapies.

Lin Peng, CFO of Zhongsheng TraceabilityWe express our heartfelt gratitude to all new and existing shareholders for their trust and support. Over the past few years, Anhui Zhongsheng Traceability Biotechnology Co., Ltd. has steadily achieved numerous significant milestones, particularly with a series of products successfully entering registration clinical trials, thereby progressively confirming their therapeutic efficacy. This lays a solid foundation for the eventual commercialization of our products. We will continue to fully advance the clinical trial progress of our pipeline, deliver on corporate development milestones, create value for investors, and provide patients with safe, effective, and highly accessible iPSC cell therapy products!

Head of Investment, Guangzhou State-owned Development Holding Co., Ltd.stated that it hopes Anhui Zhongsheng Traceability Biotechnology Co., Ltd. will leverage this round of financing to achieve deep integration with industrial capital, consolidate its advantages in the iPSC field, and simultaneously promote the cohesion of the industrial cluster and the enhancement of industry standards, thereby accelerating the market launch of high-quality, accessible products.

Jiang Kelan, Partner at Zhongyuan InvestmentWe believe that the team at Zhongsheng Traceability holds a firm conviction in the druggability of iPSCs and has accumulated substantial technical expertise in this field. The company has established an independent, fully proprietary technology platform for iPSC culture, induction, and differentiation, built an iPSC super-donor bank, and developed a diverse pipeline of clinical candidates with the potential to disrupt current therapeutic paradigms. We are optimistic about Zhongsheng Traceability’s prospects of becoming a leading biopharmaceutical enterprise in the iPSC sector, both in China and globally.

Yang Xi, Chairman of Guoju Venture Capitalstated that the iPSC industry holds broad prospects. As one of the leading enterprises in China’s iPSC sector, Anhui Zhongsheng Traceability Biotechnology Co., Ltd. has strategically developed multiple promising pipelines through years of dedicated expertise. We look forward to seeing Zhongsheng Traceability’s products brought to market swiftly, expanding globally, planning for the future, and deepening its presence in the Greater Bay Area, thereby providing patients with more therapeutic options and improving their quality of life.

Hefei High-Tech Investmentstated that Zhongsheng Traceability is an outstanding biopharmaceutical enterprise cultivated by the Hefei High-Tech Zone and a leading company in China’s iPSC industry. The investment in Zhongsheng Traceability embodies our philosophy of prioritizing scientific and technological innovation and industrial development. We hope this investment will accelerate the clinical development and commercialization of Zhongsheng Traceability’s products, thereby benefiting patients and contributing to society at the earliest possible time!

Legend Capital“[We] stated that, as existing shareholders, we are pleased to continue increasing our investment in Zhongsheng Traceability. The company’s development milestones over the past few years have been highly encouraging, and we also see a clear and promising future for the iPSC industry. We will work closely with the Zhongsheng Traceability team to provide long-term support and accelerate the clinical development and commercialization of the company’s products, so that iPSC technology can benefit patients and contribute to society at an earlier date.”

Ding Yameng, Founding Managing Partner of HAOYUE CAPITALHAOYUE CAPITAL is honored to have served as the exclusive financial advisor for Anhui Zhongsheng Traceability Biotechnology Co., Ltd. in this round of financing, assisting the company in successfully closing the deal. As a pioneer in the global field of iPSC-based cell therapy, we firmly believe that the cutting-edge technologies held by the company will rapidly unleash their potential, distinguishing themselves among numerous innovative technologies and accelerating the path toward successful commercialization. On this journey, HAOYUE CAPITAL will remain a long-term partner, growing together with the company!

Anhui Zhongsheng Traceability Biotechnology Co., Ltd., founded in 2016 in Hefei, Anhui Province, is China’s earliest enterprise engaged in the development of iPSC-derived cell therapy products. The company has established a comprehensive full-industry-chain development system covering the upstream (iPSC reprogramming and banking, clinical-grade culture reagents), midstream (iPSC-induced differentiation and derivative products), and downstream (development of iPSC-derived cell drugs) sectors of iPSC technology. Leveraging years of accumulation, Zhongsheng Traceability has advanced multiple cell drug pipelines into regulatory clinical development across three major medical fields: anti-inflammatory repair, tumor immunology, and regenerative medicine. To date, one iMSC pipeline and two iNK pipelines are in Phase I/II clinical trials, with additional product pipelines for Parkinson’s disease, diabetes, and other indications poised to enter regulatory clinical trials sequentially.

Guangzhou State-owned Development Holding Co., Ltd. (hereinafter referred to as “Guangzhou Industry Investment Group”) is the sole municipal state-owned capital investment and operation platform in Guangzhou. Based on its four functional positionings as a strategic investment and development platform, a state-owned equity holding platform, a capital operation and management platform, and a technological innovation service platform, the Company has established a business system encompassing “industrial investment + fund management + capital operation + industrial park operation + sci-tech innovation services + think tank research.” It spearheaded the establishment and operation of the RMB 150 billion Guangzhou Industrial Investment Fund of Funds and the RMB 50 billion Guangzhou Innovation Investment Fund of Funds. The Company owns four fund management companies and has invested in or co-established more than 50 funds with leading institutions, providing full-chain fund investment services. It has formed a business system of “fund management + industrial investment + capital operation + industrial park services + technological services” and an operational architecture comprising “a cluster of listed companies + a cluster of functional platforms + a group of industrial development funds + innovation value industrial parks,” striving to build a first-class, market-oriented, professional, and international state-owned capital investment and operation platform.

Zhongyuan Investment is a private equity investment firm specializing in equity investment and fund management. The firm focuses on high-tech industries such as new energy, biopharmaceuticals/medical devices, and high-end equipment manufacturing, committing to identifying highly innovative and dedicated entrepreneurial teams and investing in ventures capable of navigating economic cycles.

Guangzhou Guoju Venture Capital Co., Ltd. is a wholly-owned private equity fund subsidiary of Guangzhou High-Tech Zone Investment Group Co., Ltd. Established in January 2015 with a registered capital of RMB 1 billion, the company manages and participates in funds totaling over RMB 3 billion. As a key capital operation platform for Guangzhou High-Tech Zone Group to strengthen government-enterprise collaboration, industry-finance integration, and investment across the entire biomedical industry chain, Guoju Venture Capital leverages the group’s strategic layout in the biomedicine and health sectors. Adopting a “fund of funds + direct investment” approach, it actively promotes investment attraction and capital deployment in the biomedical sector of Guangzhou Development District, striving to become a leading state-owned venture capital firm in the biomedical industry within the Guangdong-Hong Kong-Macao Greater Bay Area and a renowned market-oriented fund of funds manager in China.

Hefei Gaotou was established by the Administrative Committee of Hefei High-tech Zone and Hefei High-tech Group. Leveraging the technological resources, entrepreneurial environment, and industrial advantages of Hefei High-tech Zone, it focuses on investing in Anhui Province’s ten emerging industries, including next-generation information technology, high-end equipment manufacturing, artificial intelligence, new materials, life and health, new energy, and energy conservation and environmental protection. The firm adheres to the principles of investing in scientific and technological innovation, value-led guidance, long-termism, and industry-first development.

Established in April 2001, Legend Capital is a fund management company under Legend Holdings, specializing in early-stage venture capital and long-term private equity investment. Over the past two decades, Legend Capital has adhered to international standards and created best practices in fund operation and management. Through its proactive value-added service system, Legend Capital drives innovative growth in portfolio companies, generating consistent strong investment returns across multiple sectors while promoting industrial advancement and social development in China. With the vision of “becoming an internationally influential investment firm,” Legend Capital upholds the core value of “Wealth with Integrity” and actively fulfills its social responsibilities.