Quanhecheng Completes Nearly RMB 100 Million Series A Financing to Build a Leading Domestic CDMO Platform for Small Molecule Drugs and IVD Raw Materials

VCBeat (WeChat ID: vcbeat) recently learned that Tianjin Quanhecheng Technology Co., Ltd. (hereinafter referred to as “Quanhecheng”) has announced the completion of its Series A financing round, raising nearly RMB 100 million.Led by Tianchuang Capital, with Bozheng Capital as a co-investor, and Xinghan Capital serving as the exclusive financial advisor.This round of financing will be primarily used for the construction of the company’s production base and the research and development of new products. While consolidating its CDMO business for small-molecule innovative drugs, the company will further accelerate the commercialization and production of core raw materials in the IVD sector.

Quanhecheng, established in 2010, is a national-level high-tech enterprise headquartered in the Tianjin Binhai New Area, holding multiple independent intellectual property rights. This financing round marks its first external fundraising; over the past decade of development, Quanhecheng has achieved its output value by relying on its self-sustaining operational capabilities.From 0 to 100 Million Yuantransition, its business has gradually expanded from early-stage CRO services to CDMO operations. In the relatively competitive small-molecule CDMO sector, the company has become a core supplier to several leading pharmaceutical companies, leveraging its years of experience in chemical synthesis and production scale-up, andBegan laying out IVD raw materials in 2013, successfully developing multiple key IVD raw material products such as dNTPs and fluorescent probes, the company will also further deepen the construction of its R&D platform with the support of this financing.

“Over the past decade, the company has established robust technological barriers and built a highly competitive operations management and technical team. With annual order volumes doubling and additional growth driven by innovative IVD businesses, there is an urgent need to expand production capacity. The company will utilize this financing round to construct a new manufacturing base featuring advanced automation and cost efficiency, thereby meeting the demands of its future high-speed business growth.”Song Yanmin, Founder of Quanhechengindicated.

Since its inception in 2010, Quanhecheng has focused on the core business of chemically synthesized new drug intermediates, maintaining this strategic direction for a decade. Leveraging its proprietary chemical synthesis technologies, Quanhecheng enables clients to manufacture diverse categories of pharmaceutical intermediates. By integrating CRO and CDMO models, the company provides customized R&D and manufacturing services.

According to F&S estimates, the market size of China’s small-molecule CDMO industry exceeded RMB 15 billion in 2020, with a compound annual growth rate (CAGR) of 20.7% from 2018 to 2023. Amid the pandemic, overseas CDMO orders have gradually shifted to China, which is increasingly becoming the world’s active pharmaceutical ingredient (API) manufacturing hub, further accelerating the surge in domestic demand.

Unlike traditional small-molecule CDMOs, the company has always centered on customized, innovative products, delivering cost-effective solutions for clients tackling complex synthetic challenges. Leveraging years of technological accumulation and its proprietary separation and purification technologies, the company has achieved industry-leading capabilities across multiple categories, particularly in aliphatic structural intermediates.

Traditional synthetic methods for aliphatic compounds require multiple specialized reaction conditions, such as ultra-low temperatures, anhydrous and anaerobic environments, selective oxidation and reduction, ozonolysis, precious metal catalysis, and chiral induction. Quanhecheng has accumulated experience with thousands of these specialized unit reactions. By forming complexes with metals to create novel chiral resolving agents, the company achieves efficient, low-cost separation and purification, thereby facilitating the scale-up production of aliphatic structural intermediates. Currently, such aliphatic compounds serve as key raw materials for mRNA drugs and lipid nanoparticle (LNP) delivery systems used in vaccines.

In addition to new drug intermediates, Quanhecheng began laying out the IVD raw materials sector as early as 2013. The company’s first product in this field was a series of biofluorescent probes, and it has accumulated experience with over 30 major classes of fluorescent core structures.Over 3,000 fluorescent compound molecules (wavelength range: 300–800 nm) were evaluated, yielding more than 300 high-quality fluorescent products with high purity and high luminescence efficiency., is a supplier of biofluorescent probes to multiple leading IVD companies both in China and abroad.

In the field of IVD raw materials, Quanhecheng also supplies upstream materials such as dNTPs and Tris buffer. Leveraging extensive expertise in chromatography resin selection and chromatographic separation and purification, Quanhecheng provides products with purity meeting HPLC-grade and PCR-grade standards. These products are free from DNase and RNase contamination, exhibit high purity without causing mismatched amplification, and contain no heavy metals, thereby exerting no adverse effect on Taq polymerase activity. The company’s technical capabilities rank among the top tier in the industry.

It is reported that Quanhecheng currently offers as many as 13 core raw material products in the IVD series, with orders converting to tens of millions. The company plans to further optimize its synthesis processes over the next two years and achieve large-scale mass production by next year. Subsequently, the company will begin planning the development of sub-category products under its second-tier portfolio, while simultaneously establishing a production base for IVD raw materials to enhance its competitiveness in the IVD raw material sector.

“In the past, our company primarily focused on technical R&D services, with orders mostly consisting of high-value-added but low-volume customized products. Moving forward, we will concentrate on scaling up production based on key technological achievements to create market-leading products and provide one-stop services from R&D to commercial manufacturing. We aim to build the ‘Quanhecheng’ brand, achieve early involvement and deep integration with innovative pharmaceutical projects, keep core critical technologies in-house, and make continuous efforts to support the rapid and stable development of the biopharmaceutical industry,” said founder Song Yanmin.

Leveraging the company’s years of technical accumulation in chemical synthesis, photochemistry, and biological applications, it is currently making significant strides in expanding its market presence in small nucleic acid drug raw materials and mRNA drug raw materials. The production of small nucleic acid active pharmaceutical ingredients (APIs) utilizes solid-phase synthesis technology, which presents high barriers in process development, scale-up, and quality control. The initial capital investment for supporting equipment for solid-phase synthesis and cleanroom environments is substantial, and production must comply with Good Manufacturing Practice (GMP) requirements. Consequently, there are few domestic enterprises capable of producing small nucleic acid APIs. In the field of key nucleic acid drug raw materials, such as nucleoside monomers, phosphoramidite monomers, and deoxynucleoside triphosphates (dNTPs), only a handful of qualified suppliers exist globally. The company has successfully overcome critical technical challenges in the research and development of multiple small nucleic acid drug raw material products and expects to achieve commercialization within the next year.

Regarding the investment in Quanhecheng,Zhang Jin, Partner at Tianchuang Capitalstated: “Quanhecheng has accumulated over a decade of technical and process expertise in the field of chemical synthesis. Driven by the rapid growth of the small-molecule CDMO industry, the company has achieved doubled business growth. Meanwhile, its nucleic acid testing small-molecule raw material business, characterized by high R&D and production difficulties as well as significant technical barriers, is currently dominated by imported products. Quanhecheng successfully scaled up and optimized the manufacturing process for core raw materials used in nucleic acid testing within six months, moving from pilot scale to mass production, which holds promise for resolving critical technological bottlenecks. We are optimistic about Quanhecheng’s professional team and look forward to seeing more breakthroughs in domestically produced solutions.”

TC CapitalFounded in 2003, Tianchuang Capital has managed a cumulative fund scale exceeding RMB 8 billion. The limited partners of its funds include the Ministry of Science and Technology, the National Development and Reform Commission, the Ministry of Finance, listed companies, and private capital. Based in Tianjin and operating nationwide, Tianchuang Capital is committed to intensive cultivation of the market. Through an independent, objective, and rigorous industry research and evaluation system, it has strategically positioned itself ahead of the curve in high-growth sectors, nurturing a cohort of outstanding high-tech enterprises. In the healthcare sector, its portfolio includes renowned companies such as Xiamen Biotime Biotechnology, Asymchem, Chase Sun Pharmaceutical, Heyuan Biology, Fenghe Medical, Huahao Zhongtian, and Guangzhou Yuanxiang.

Gan Yingjian, Investment Director at Bozheng Capital“The upstream CDMO sector and core raw materials in the life sciences industry have been experiencing explosive growth in recent years. Leveraging its keen market insight and robust foundational technologies, Quanhecheng has expanded its business from small-molecule CDMO to upstream small-molecule raw materials for IVD. The company is poised to rapidly capture market share with its cutting-edge new products, and Bozheng will continue to support its future development.”

Bozheng Capital Investment Co., Ltd., is a specialized subsidiary of Bohai Securities Co., Ltd. engaged in private equity investment fund business. The name “Bozheng” not only homophonically echoes “Bohai Securities” but also embodies the Bohai team’s distinguished qualities of extensive knowledge, friendliness, and integrity. Since its establishment, it has achieved multiple successful investments in strategic emerging industries such as biopharmaceuticals, new materials, new energy, and high-end equipment manufacturing.