GenFine Biotech Completes RMB 100 Million Series B Financing to Strengthen Technology Platforms

VCBeat (WeChat ID: vcbeat) recently learned that life sciences tools and services provider CENFINE has completed a B-round financing of over RMB 100 million.Led by China Merchants Zhiyuan Capital and China Merchants Securities Investment, with co-investment from Chang Development, continued support from existing shareholder Legend Capital, and Shana Capital serving as the exclusive financial advisor.。

The proceeds from this round of financing will be primarily used to build CENFINE’s biotechnology platform. While further consolidating the company’s competitive advantages in R&D for nucleic acid extraction and purification, as well as in channel development and overseas market competition, CENFINE is committed to providing integrated solutions encompassing “biological reagents, instruments, and materials” to customers in scientific research, IVD, and biopharmaceutical sectors, based on customer needs and the company’s synergistic industrial layout.

This funding round comes just months after CENFINE’s previous financing. In February 2021, the company completed a RMB 150 million Series A round co-led by Sequoia Capital and Legend Capital. Prior to that, it had received angel investment from the Changzhou Xitaihu Medical Device Industrial Park.

Regarding the consecutive investment recognitions from capital markets, Yang Liang, founder of CENFINE, stated: “We thank our shareholders for their trust. China’s life sciences industry is flourishing, with downstream applications driving demand for upstream tools and services, and the sector will see the emergence of outstanding enterprises. CENFINE will continue to strengthen its technological platform advantages, developing high-quality, diverse, and stable-performance products on this platform to create value for customers in scientific research, IVD, biopharmaceuticals, and other fields, thereby supporting their growth.”

CENFINE, established in 2016, has completed its industrial layout encompassing nucleic acids, proteins, instruments, materials, and consumables, which complement each other. The company owns multiple core technology platforms, including medical sample preservation, column-membrane nucleic acid extraction, high-throughput instrument integration with magnetic bead raw materials, Direct qPCR/qRT-PCR detection technologies, molecular evolution, high-density fermentation, and advanced protein purification. CENFINE is committed to becoming a leading supplier of life science tools and services.

Building on its technological platforms for instruments and materials, the company continuously invests in product R&D to provide downstream customers in scientific research, IVD, and biopharmaceuticals with six major product lines: nucleic acid and preservation solutions, PCR products, NGS products, molecular cloning products, instrument products, and magnetic bead-based purification and separation products. Among these, the company’s PCR and NGS products represent a natural extension of the usage scenarios for nucleic acid extraction users. By developing and manufacturing key instruments and raw materials in-house, CENFINE ensures autonomous control, enhances quality, and reduces costs, thereby delivering integrated “biological reagents + instruments + materials” solutions that meet customer needs and improve their experience.

Regarding the investment in CENFINE, China Merchants Zhiyuan Capital and China Merchants Securities Investment, as lead investors, stated: Against the backdrop of an increasingly mature domestic market for in vitro diagnostic instruments and reagents, the upstream high-end raw materials sector—characterized by higher technical barriers and greater value—will accelerate the substitution of imported products with domestically produced alternatives. We strongly endorse CENFINE’s platform-based development strategy and believe that, supported by its corporate culture of “pursuing efficiency and ultimate transparency,” the company can effectively implement this strategy. CENFINE’s ascent into the first tier of the nucleic acid extraction niche within just five years demonstrates that the management team, represented by Mr. Yang Liang, possesses a deep understanding of the market and exceptional strategic execution capabilities. We closely monitor the development of the life sciences industry, and this investment in CENFINE represents another strategic move in this sector. We look forward to working hand in hand with the company to build a world-leading enterprise in upstream life sciences raw materials.

Regarding the investment in CENFINE, Wang Ying, General Manager of Changfa Zhan, stated: “As a young enterprise with over five years of history, CENFINE has gradually transitioned from a leading supplier of sample pre-processing solutions to a comprehensive provider of life science tools and services. The company has established multiple platforms, including molecular evolution, high-density fermentation, and protein purification, while continuously expanding its product pipeline and service offerings and strengthening its technical team, demonstrating broad prospects in the life sciences sector. Meanwhile, the team is young and talented, with a clear strategic direction and strong execution capabilities. Changfa Zhan will further support the company’s development in areas such as ecosystem enterprise matchmaking, industrialization implementation, and policy-related services.”

Zhou Quan, Managing Director at Legend Capital, also expressed his approval: “We are delighted to see CENFINE secure substantial financing within a short period. Legend Capital remains firmly committed to supporting the company’s growth, and we welcome new shareholders such as CMS Capital, CMS Securities Investment, and Chang Development. In addition to solidifying its leadership position in nucleic acid extraction, CENFINE has begun to establish a presence and achieve breakthroughs in other upstream segments of the IVD industry, offering significant potential for future growth. We look forward to more positive developments in the years ahead.”

China Merchants Zhiyuan Capital is a private equity fund management subsidiary of China Merchants Securities Co., Ltd. It boasts a comprehensive fund spectrum and extensive industrial coverage. With assets under management in private equity funds exceeding RMB 26 billion, it ranks among the top brokerages in the private equity sector. Committed to value investment, China Merchants Zhiyuan Capital focuses on investing in leading enterprises within niche industries and has completed equity investments in over one hundred high-quality companies. Leveraging the resources of China Merchants Securities, along with its professional equity investment team and capabilities in capital operations and industrial integration, China Merchants Zhiyuan Capital is dedicated to providing multi-level financial services and superior investment returns to corporate clients and fund investors.

China Merchants Securities Investment Co., Ltd. is a wholly-owned alternative investment subsidiary of China Merchants Securities, with a registered capital of RMB 7.1 billion. It primarily engages in equity investments and financial product investments. Guided by value investing principles, the company focuses on investment opportunities in sectors such as healthcare, new energy and new materials, intelligent manufacturing, technology, and semiconductors, and is committed to providing comprehensive, full-value-chain financial services to its portfolio companies.

Chang Development is a one-stop industrial ecosystem investment and operation platform established by the Changping District Government, and serves as the operator of the Changping Science and Technology Industry Fund. It oversees three major business systems: asset management, technology finance, and industrial services. By focusing on key supported industries such as healthcare and TMT (Technology, Media, and Telecom), it provides enterprises with comprehensive one-stop solutions that integrate industrial development carriers, industrial promotion services, and industrial investment and financing. The fund-of-funds system under its management has made over 240 investments in healthcare companies, with a total investment exceeding RMB 8 billion. Among these, companies such as Aier Eye Hospital, InnoCare Pharma, and Genetron Health have successfully gone public. Additionally, Chang Development initiated and established the Changke Zhiheng Direct Investment Fund, acting as the fund manager. This fund strategically focuses on disruptive and innovative sectors with cutting-edge technological capabilities and significant social benefits, including innovative drugs, gene technology, medical devices, and CRO/CDMO services.

Legend Capital is an independent professional investment firm under Legend Holdings. Established in April 2001, it focuses on early-stage venture capital and growth-stage expansion investments. The total assets under management in its USD and RMB funds exceed RMB 60 billion, with a strategic emphasis on innovation and growth opportunities in China. As of 2021, Legend Capital had invested in more than 500 companies, among which over 90 have successfully listed or been quoted on domestic or overseas stock exchanges, and more than 60 have exited through mergers and acquisitions.