Guanzhan, a Nourishment Tech Brand, Secures Series B Funding to Strengthen Industrial Foundations and Navigate Market Cycles

Recently, Guan Zhan, a nutritional wellness technology brand, announced the completion of its Series B financing round. The round was co-led by Hongzhang Capital and Guangzhou Financial Holdings Group, with participation from GF Qianhe and Huakai Capital. Existing investor Binfu Capital made additional investments for the second consecutive round, while Lighthouse Capital continued to serve as the exclusive financial advisor. The proceeds will be primarily allocated to industrial projects such as R&D of core functional ingredients, supply chain development, cross-category product expansion, and the construction of Phase II of its manufacturing facility.

Guanzhan is a wellness technology company that provides next-generation health supplements, adhering to the principles of traditional nourishment and scientific evidence. It focuses on leveraging technological means to address efficacy verification and usage pain points associated with Traditional Chinese Medicine (TCM) supplements, aiming to alleviate sub-health issues among contemporary consumers. According to public information, Guanzhan completed its Pre-B financing round in September 2021 and maintained rapid growth throughout the uncertainty of 2022. To date, Guanzhan has ranked first in China’s ready-to-eat fish maw sales for two consecutive years, accumulating 1.25 million users and selling over 15 million bottles of fish maw products. Over the past year, Guanzhan not only achieved doubled growth but also captured more than 60% of the fish maw market share across core channels such as Tmall, Douyin, and JD.com, with this figure continuing to rise steadily.

Amid the ebb and flow of market conditions, Guan Zhan has behaved like an “outlier,” not only maintaining healthy growth but also continuously channeling core resources into “fundamentals” such as basic research, upstream and downstream supply chains, and new product development, seemingly unaffected by external environments. As Zhang Yu, founder of Guan Zhan, stated, “We aim to achieve forward-looking strategic investments and a virtuous operational cycle, avoiding being trapped in unfavorable decision-making scenarios. To accomplish this, we must allocate every bit of our resources to the user value chain.”

Health consumption has become a new “essential need” for young people today. According to the “New Food Fashionism” report jointly released by CBNData, Ali Health, and Tmall Home Appliances, post-90s generations have taken the lead in purchasing traditional tonic and nutritional products online over the past three years, driving the growth rate of ready-to-eat health products to exceed 20% for two consecutive years. Among these, ready-to-eat fish maw products, which offer both functional benefits and an enjoyable consumer experience, are particularly popular among younger demographics.

Fish maw, a nourishing tonic with a 2,000-year history, boasts exceptional nutritional properties. Dried fish maw contains up to 84% natural collagen, along with 5% elastin and hyaluronic acid, resulting in an extremely high nutrient density. However, as a traditional dietary supplement, fish maw has historically lacked scientific testing methods and clinical data, making it vulnerable to challenges regarding efficacy verification. Without conclusive evidence of its benefits, the value proposition for consumers and their usage scenarios remain ambiguous. “We must clarify whether fish maw provides value to users, the extent of that value, and its absorption and mechanism of action, no matter how difficult it may be. Moreover, we are prepared to accept the results, whether positive or negative,” said Zhang Yu. Adhering to “seeking truth from facts” appears to be the steadfast commitment of the Guan Zhan team.

For several years, Guanzhan has consistently conducted fundamental research focusing on traceability studies, nutritional composition, component characteristics, absorption mechanisms, and comprehensive efficacy, achieving a series of significant results. To address the complexity of raw fish species, Guanzhan has established a genetic database. Regarding the natural collagen found in fish maw, Guanzhan has verified its absorption efficacy. Breakthroughs have been made in understanding how the complex natural components of fish maw contribute to wound repair and anti-aging. Furthermore, through 31 months of commercial clinical trials, Guanzhan has validated the moisturizing and anti-wrinkle effects of fish maw. Based on these studies, Guanzhan has published five peer-reviewed journal articles and collaborated with multiple testing institutions to conduct detection and certification of the core nutrients in fish maw.

Over the past year, Guan Zhan has also increased its investment in basic research in collaboration with scientific research institutions and universities. Guan Zhan partnered with the Intelligence Information Research Center of the Sixth Academy of China Aerospace Science and Industry Corporation to establish the Guan Zhan Aerospace Technology Nutrition Laboratory, deepening research on nutrient absorption mechanisms and ingredient efficacy; collaborated with South China Agricultural University to establish the Fish Maw Nutrition and Safety Research Center, conducting studies on nutritional composition and anti-aging mechanisms; and worked with Jiangnan University to carry out clinical validation of fish maw efficacy, among other initiatives.

Through sustained foundational research and breakthroughs in industrial technology, Guanzhan has gradually established a R&D system centered on core efficacy, sensory evaluation, and industrial applications. This framework has not only advanced the fish maw category but also triggered efficacy research and technological applications for similar nutrient categories, such as sea cucumber.

A consumer goods brand must not only thoroughly understand the core value proposition for its users but also consistently introduce high-quality products into their daily life scenarios to meet their needs, thereby enabling users to tangibly perceive its value.

“Guanzhan takes users’ genuine needs as its starting point, supported by product R&D and quality control assurance, to gradually deepen its coverage of core user scenarios while simultaneously expanding growth opportunities in both breadth and depth,” said Liang Xingmei, Vice President of Lighthouse Capital. “For instance, ready-to-eat fish maw is more suitable for trial consumption and daily wellness maintenance, whereas freshly stewed fish maw focuses on intensive nourishment, targeting different consumer segments. Additionally, the company has introduced light-meal fish maw and golden-soup fish maw with chicken to penetrate high-frequency usage scenarios and reach broader audiences, while extending freshly stewed sea cucumber to male household consumers, thereby progressively fulfilling the demand for traditional Chinese tonics within family settings.”

To achieve this, it is necessary to translate laboratory research achievements into industrial applications, thereby completing the breakthrough in the "last mile." Due to its high collagen content, fish maw naturally suffers from pain points such as weak structural stability of nutrients and a strong fishy odor. To address these issues, Guan Zhan intervenes from the stage of catching and slaughtering, continuously improving industrial technologies. The company has pioneered core technologies including rapid-freezing shock deodorization, graded stewing, band-variable-frequency fresh stewing, and steam-blanching enzyme inactivation and sterilization. By adopting physical processing methods, Guan Zhan preserves the nutritional components of its products while resolving user experience pain points. Currently, Guan Zhan has obtained 8 patents in technological R&D and industrial application.

To meet users’ nuanced needs, a robust digital insight system is essential. It is reported that Guanzhan has established a digital insight system built on two core capabilities: precise measurement and elastic testing. This system incorporates both current and future user needs into a value model, with parameters including pain points, needs, scenario prioritization, and weighting. Based on this model, simulated value propositions are deployed to a targeted user segment for elastic testing. User feedback is then leveraged to continuously refine products and drive ongoing innovation.

"This approach to continuous innovation requires user support and co-creation. For one of Guan Zhan’s new products, it took 6–12 months and more than 30 iterations—from initial physical prototyping to meeting the internal satisfaction benchmark of over 95%—with thousands of users participating in the co-creation process during the early stages," said Zhang Yu, founder of Guan Zhan. "Taking fresh-stewed sea cucumber as an example, Guan Zhan collected over 7,000 pieces of user feedback, underwent six months of product adjustments and seven iterations, ultimately achieving a user satisfaction rate of 98% and a repurchase rate of 40%."

Over the past year, Guan Zhan has launched several new products, including the Freshly Stewed Fish Maw Plus series, the Light Meal Fish Maw series, and the Freshly Stewed Sea Cucumber series. To date, cumulative sales of these three new product lines have exceeded RMB 250 million, with each ranking first in its respective niche category—a commendable achievement.

For a long time, due to the scarcity of raw materials and their fragmented geographical origins, dried fish maw has been produced and distributed primarily as a basic agricultural commodity. The lack of industry standards and deep supply chain management has led to significant instability in raw material quality, while limitations in production environments and processing technologies have further heightened the risk of quality issues.

To ensure the safety and stability of raw materials, and recognizing that pre-processing stages such as catching and slaughtering play a critical role in addressing key product pain points, Guanzhan invested resources in deep, end-to-end supply chain management upon entering the fish maw market. It has continuously promoted the development of a supply chain ecosystem covering raw materials, pre-processing, and deep processing. In 2021, despite limited financial resources, Guanzhan persevered and built a new comprehensive production facility in Guangzhou, with a plant area of 8,000 square meters and an annual production capacity valued at RMB 300 million. Through sustained efforts in industrial standardization, Guanzhan has achieved standardized quality control across 34 parameters for its fish maw products, spanning processes from catching, slaughtering, and stabilization to physical deodorization and deep processing. The company has not only established a full-chain traceability system but also led the development of group standards for freshly stewed fish maw.

The benefits of deepening supply chain integration include enhanced risk resilience and improved operational efficiency. In response to the numerous uncertainties posed by the pandemic environment, Guan Zhan proactively developed supply chain contingency plans and strategic layouts two years ago. The company adopted a dual-factory production model for its single product line and established five regional distribution centers across East, South, and Central China. By leveraging digital allocation and a multi-logistics system for load balancing, Guan Zhan reduced the impact of the pandemic on supply chain delivery capacity from 25% to 5%, thereby largely mitigating the adverse effects of the pandemic on its industrial operations.

Zhang Yu, founder of Guanzhan, stated that the fish maw industry has a weak industrial foundation. Building robust capabilities in R&D, standardization, and supply chain systems is indeed a long and arduous endeavor, fraught with uncertainties and challenges. Nevertheless, we firmly believe that users will always guide us toward the right choices. In both favorable and difficult times, rather than looking around hesitantly, we should focus on deeply exploring user value, driving innovation, and optimizing efficiency. As long as we continue to create value for our users, there will always be room for our survival and growth.

Chen Xueqi, Deputy General Manager of Hongzhang CapitalIt stated: “Hongzhang has consistently focused on companies at inflection points and hidden champions across various sectors. Based on deep insights into consumer needs and pain points, Guanzhan has upgraded the forms of traditional nourishing products, provided empirical evidence for their efficacy, and integrated its supply chain. The company’s products, particularly the freshly stewed series, have earned high acclaim and industry-leading repurchase rates, solidifying its position as the leading brand in the fish maw category. Through its success in the fish maw segment, Guanzhan has built and completed its supply chain from scratch, achieving deep control and understanding of raw materials and supply chains for marine animal-based nourishing products. Its robust supply chain infrastructure and industry-leading supply chain middle-office capabilities are closely integrated with its brand positioning in the nourishing sector, collectively constituting the essential elements for expanding into other nourishing categories such as sea cucumber and for building a Chinese-style nourishing brand group.”

Guangzhou Financial Holdings Fund Investment Team“It stated: ‘Guanzhan is not only the leading brand in the fish maw category within the new-style tonic market, but also a pioneer in establishing industry product standards. It fully meets modern young consumers’ demand for convenient and delicious health-promoting products. Furthermore, the investment team believes that the pandemic has reshaped the investment logic for consumer-oriented projects, making investment decisions increasingly rational. In the future, investors will focus more on consumer brands with strong brand equity and supply chain ecosystem barriers, such as Guanzhan.’ As an equity investment platform under the municipal financial holding group, Guangzhou Financial Holdings Fund will collaborate with Guanzhan to explore the food processing industry’s value chain. Leveraging its RMB 10 billion rural revitalization fund under management, the fund aims to nurture the development of Guangzhou’s rural revitalization industries and support Guangzhou’s construction into an international consumption hub city.”

Huang Huang, New Consumer Industry Investment Department, GF QianheIt was stated: “As health awareness undergoes a comprehensive upgrade, health consumption is expanding toward younger demographics, daily routines, and self-care orientation. The younger generation demonstrates high recognition of traditional Chinese nourishment, while New-Style Chinese Nourishment—characterized by ready-to-eat convenience, delicious taste, and targeted efficacy—is poised to become a key development direction for the sector. As the pioneer and leading brand in ready-to-eat fish maw, Guan Zhan has devoted substantial resources and funding to scientific research on nourishing ingredients and supply chain development, starting from user value and needs, to ensure product stability, high quality, and industry leadership. Since its inception, Mr. Zhang and his team have adhered to a long-termist philosophy, accumulating profound insights and solid expertise in consumer understanding, basic research, supply chain management, product R&D, and brand operations. In an era marked by ongoing uncertainty triggered by the pandemic, Guan Zhan remains committed to advancing industry technologies and standards, refining nourishing products that deliver proven efficacy and excellent user experience, sustaining rapid growth, and positioning itself as a leader in the new generation of Chinese nourishment.”

Yin Linyi, Managing Director of Binfu Capitalstating, “Health has always been an enduring pursuit of humanity. We need not only short-term, symptom-specific treatments but also long-term health development. Amidst a volatile market environment, Guanzhan remains committed to investing in core resources. By establishing a raw material gene bank and validating natural ingredients and their efficacy, we collaborate with research institutions such as China Aerospace Science and Industry Corporation, South China Agricultural University, Jiangnan University, and the Institute of Synthetic Biology to conduct foundational research. This effort builds a bridge between traditional nourishment and modern technology. We are implementing standardization reforms across the upstream and downstream segments of the industrial chain, overcoming technical challenges throughout the entire supply chain to enhance efficiency, and creating product value centered on users’ fundamental needs. We firmly believe that Guanzhan can continuously deliver more valuable products to consumers and become a brand that endures through economic cycles.”

Huakai Capital Investment TeamIt stated: “Changes in lifestyle and consumption concepts have imposed new requirements and demands on the Chinese-style healthy diet industry, as existing product forms can no longer effectively address consumer pain points. These emerging needs are driving innovation and iteration on the supply side. Given the nature of consumer goods, companies in this industry must not have significant weaknesses or disadvantages; therefore, enterprises with the capability to transform their entire industrial chain and strong internal methods for replicating innovation will be more competitive. Meanwhile, the Huakai Investment team highly recognizes and looks forward to the Guanzhan team’s continuous provision of high-quality products and experiences to consumers, thereby promoting the sustainable development of the Chinese-style healthy diet industry.”

Li Hao, Managing Director at Source Code Capitalstated: “Over the nearly two years of our collaboration with Guan Zhan, we have witnessed Mr. Zhang and the company’s business team consistently uphold the development philosophy of ‘New Product R&D + Scientific Evidence-Based Practice + New Technologies,’ realizing the vision of technologizing traditional Chinese nourishment and achieving remarkable, widely recognized success. While solidifying its undisputed top-of-mind position in the fish maw category, Guan Zhan has successfully expanded into more scenario-specific single products and launched a new sea cucumber brand. The company continues to establish brand standards and exercise deep control over upstream segments by building its own production lines, while simultaneously driving continuous innovation, product optimization, and iteration through quantifiable user research and evidence-based studies on active ingredients. We believe that, grounded in this team’s conviction and proven capabilities, and aligned with the broader consumer market’s growing pursuit of healthy eating and nutritional wellness, Guan Zhan is poised to become a leading next-generation technology-driven nourishment industry group.”

Currently, the domestic market faces a series of common post-pandemic challenges, yet it is experiencing a moderate recovery. The trend of Chinese consumers’ growing demand for a better life is irreversible. These positive changes signal the imminent onset of a new cycle of innovation and development. Brands that focus on foundational logic will not only secure a more advantageous position during market optimization but also accumulate greater resilience and long-term momentum. With stronger underlying capabilities, they will safeguard innovation and bring greater possibilities and positive value to product delivery, user experience, and beyond.