Dachao, a Chinese Scientific Reproductive Anti-Aging Brand, Secures Back-to-Back Funding Rounds and Files IPO Prospectus with Swiss Capital Support

Small Products, Big Impact: The Rise of Chinese Brands Going Global. Recently, Hainan Leyun Biotechnology Co., Ltd. (hereinafter referred to as “Hainan Leyun”) secured tens of millions of yuan in Series B financing, with the investment coming from the Swiss global financial group SIDES Group (hereinafter referred to as “SIDES”). The funds raised in this round will be primarily used for the innovative research and development of reproductive health and anti-aging products, as well as for promoting product internationalization, thereby helping domestic nutritional supplement brands establish a foothold in China and expand into the global market.

Cedsi’s investment report, “A Detailed Analysis of China’s Health Food and Medical Food Sectors: The Maternal Health Supplement Market Will Be a Primary Beneficiary of China’s Demographic Transition” (hereinafter referred to as the “Report”), points out that approximately 94.7% of pregnant women in China take nutritional supplements during preconception and pregnancy, with nearly 40% of women in the preconception stage and pregnant women spending more than RMB 2,000 on nutritional health products. In 2020, the market size of nutritional and health products for pregnant women in China exceeded RMB 60 billion, representing a year-on-year growth of 21.8%. In 2021, the market size of health supplements for pregnant women surpassed RMB 70 billion. The compound annual growth rate (CAGR) reached 14.5% over the nine-year period from 2013 to 2021.

Report analysis indicates that such remarkable growth is primarily attributable to heightened health awareness and rising per capita disposable income, particularly driven by the increased health demands of the post-80s and post-90s generations, who constitute the main consumer force. Although maternal nutrition and reproductive health products represent a niche segment within China’s health food market, which is projected to surpass RMB 320 billion this year, the market potential of this subsector should not be underestimated due to the recent implementation of the “three-child policy” and the rising incidence of infertility in China.

While the market for reproductive health and anti-aging supplements is booming, significant pain points remain prominent. A report indicates that 78% of pregnant women in China hope to purchase higher-quality nutritional supplements better suited to their individual needs. However, this sector continues to be dominated by foreign brands with limited product variety. The introduction of the Dachao series of reproductive anti-aging nutrients is poised to break this status quo.

Dachao’s scientific achievements are built upon the long-term, focused academic research of a team of PhDs returned from Stanford University in the United States. Driven by collaborative projects with key national laboratories at Hainan Leyun and clinical observations conducted by expert teams from multiple Grade A tertiary hospitals, five years of research and development have led to the successful market launch of Dachao’s series of reproductive nutritional supplements, including Reco18, Reju28, PCOS, and Dajing No. 1. These products fill a market gap in China for domestically developed, hormone-free nutritional supplements designed to regulate ovarian function, improve testicular function, and alleviate symptoms associated with polycystic ovary syndrome (PCOS) and menopause.

The research findings on Reco18, a core scientifically derived ingredient, have been published in the renowned SCI journal Frontiers in Endocrinology, which has an impact factor of 6.055. This ingredient is a key component of follicular fluid. Experimental evidence demonstrates that it promotes follicular growth and maturation through multiple mechanisms, upregulates the expression of antioxidant factors, downregulates the expression of inflammation-related factors, and reduces age-associated apoptosis in ovarian cells, thereby effectively enhancing fertility.

Currently, multiple products under the Dachao brand have obtained authoritative certifications from the U.S. Food and Drug Administration (FDA), Hazard Analysis and Critical Control Points (HACCP), Good Manufacturing Practice (GMP), and International Organization for Standardization (ISO). Driven by scientific research as its core foundation, Dachao’s product series has become a well-known nutritional supplement brand in China’s field of reproductive anti-aging medical health.

Prior to this financing round, Hainan Leyun’s research team and patent achievements had already gained recognition from state-owned capital in 2021, with the Shandong Science and Technology Innovation Kinetic Energy Fund making its initial investment.

The Shandong Science and Technology Innovation New Momentum Fund is a venture capital fund established with contributions from the Shandong New Momentum Guidance Fund, the Qingdao Guidance Fund, and Qingdao Rongkong Group, among others. Managed by Huayao Capital, the fund has a size of RMB 750 million. Its investment portfolio includes leading enterprises in niche sectors of healthcare and medicine, such as Xintong Pharmaceutical, Mabwell, and Vhanes Bio.

Leveraging its research capabilities focused on reproductive health, the Dachao and Dajing product series have achieved double-digit month-over-month sales growth since their staggered launch in early 2022. Building on rapid profitability, Hainan Leyun has continued to increase its investment in academic research collaborations with renowned domestic and international reproductive hospitals. The team’s solid work ethic once again secured tens of millions of RMB in investment from the Swiss global financial group, Syntegon Group, this June.

Cedars Group is a global boutique investment firm headquartered in Switzerland. Its team comprises seasoned international investment professionals, and it has established a specially appointed expert and advisory board consisting of world-renowned physicians, medical experts, and scientists. This year, the group set up a special-purpose fund with a scale of RMB 1 billion in Chengmai, Hainan. Investment in the life sciences sector has always been Cedars’ strategic focus; with over 15 years of experience in this field, it is a long-term investor in the industry.

Wu Duanyue, head of the research team at Dachao, stated in an interview: “Our product philosophy is rooted in deep scientific research and closely aligned with clinical practice. Currently, we have collaborated on clinical research projects with nine well-known public Grade-A tertiary hospitals in China, including Sun Yat-sen Memorial Hospital of Sun Yat-sen University, Beijing Chaoyang Hospital, and West China Second University Hospital of Sichuan University. These nine institutions collectively perform over 50,000 assisted reproductive technology (ART) transplantation cycles annually, representing a broad sample population from different regions across China. Clinical observations have confirmed the benefits of our products for patients in the field of infertility. Our R&D team continues to focus on translating new scientific findings in the reproductive health sector and has already initiated laboratory studies, including those aimed at improving sperm motility in male mice and investigating novel effects on the endometrium in female mice. By continuously refining our product portfolio, we are building a sustainable competitive advantage that ensures the long-term leadership of the Dachao and Dajing brands in this field.”

It is reported that Dachao’s sales team has established collaborations with maternal and child health hospitals, as well as reproductive medicine clinics, in more than 20 provinces across China. This round of overseas financing primarily aims to leverage European capital to launch a global strategy, advance brand internationalization, and explore opportunities for clinical observations of nutritional supplements in partnership with international reproductive healthcare institutions. Hainan Leyun will initiate product promotion and collaborative efforts in Southeast Asian and European markets by the end of this year.

Liu Liyong, Chairman of Huayao Capital and the fund manager for the lead investor in this round, stated: “As a rising star in China’s health supplement sector, Dachao has achieved rapid growth in recent years. Its launched products have been scientifically validated in terms of efficacy and ingredients, and the company continues to deepen its scientific research efforts. This demonstrates to the market Dachao’s determination and commitment to entering the reproductive anti-aging nutritional supplements segment. Huayao Capital believes that Dachao can break the current monopoly held by international brands in the health supplement industry and build a brand of reproductive anti-aging nutritional supplements truly tailored to the physical constitution of Chinese consumers. This constitutes the fundamental rationale behind Huayao Capital’s decision to partner with Dachao.”

“Dachao is an exciting and dynamic project,” said Mr. Rani Jarkas, Chairman of the Board of Directors at Sidec Group. “Sidec has always been seeking representatives in the health supplement industry who value innovative products and scientific research capabilities. Dachao’s first blockbuster product, Reco18, fully demonstrates the brand’s R&D strength, while its product series reflects Dachao’s commitment to a science-driven brand identity. Since its launch over a year ago, Dachao has achieved outstanding performance in the Chinese market. This partnership marks a significant step forward in Dachao’s international expansion strategy. We believe that, based on its current growth trajectory, Dachao’s valuation will conservatively increase several-fold within three years. Dachao is not only an outstanding domestic nutritional supplements brand in China but is also poised to become a global leader in the nutritional supplements industry.”