Xiaozeng Tech Files IPO Prospectus Highlighting Its Low-GI Rice Cooker with 99.97% Fast-Digesting Starch Removal and 600,000 Units Sold in Japan

Carbohydrates are one of the body's nutritional sources. Daily human activities primarily rely on the energy generated from carbohydrate oxidation, with approximately 70% of the energy required for bodily functions being supplied by carbohydrates.

However, excessive sugar intake can impair the absorption of proteins, fats, vitamins, and minerals. In particular, children should not consume too many sweets or drink excessive amounts of sugar-sweetened beverages, as this may adversely affect their normal growth and development.

The World Health Organization has now listed sugar, tobacco, and alcohol as the three major risk factors for cancer. Meanwhile, the WHO has also confirmed that excessive sugar consumption increases the risk of developing diabetes, fatty liver disease, heart disease, obesity, and other conditions.

In 2019, the number of people with hyperglycemia in China reached 150 million, while 300 to 500 million were in a prediabetic state. According to the "Healthy China 2030" Planning Outline, the daily sugar intake for the general population should not exceed 25 grams. However, statistics show that the average daily sugar consumption per person has approached 53.7 grams, far exceeding the recommended healthy limit.

Currently, there are two non-pharmacological blood glucose management methods that are relatively well-accepted by individuals with elevated blood sugar levels: one involves dietary control, and the other incorporates moderate physical activity. These two approaches complement each other.

The low-sugar cooking series products developed by Xiaozeng Technology Co., Ltd. (hereinafter referred to as "Xiaozeng Tech") canRemove rapidly digestible starches from rice that promote body fat accumulation and elevate blood glucose levels, thereby lowering the glycemic index (GI)., while also deploying products such as non-invasive blood glucose monitors and online glucose management platforms to enhance the glucose control ecosystem.

Xiaozeng Technology was founded in 2018 by Wu Mingjun, Xu Bin, Hu Xiaojian, and others. Since its inception, the company has been dedicated to the research and development of healthier technology products, striving to build the world’s most professional blood glucose management platform. “Empowering humanity to easily achieve a healthier life” is Xiaozeng Technology’s mission. Its three core business modules are “Intelligent Glucose Reduction,” “Convenient Monitoring,” and “Cloud-Based Glucose Management Platform.”

There are numerous methods for blood glucose management today, with dietary management being just one of them. So what exactly motivated Xiaozhen Technology to start with daily diet to help individuals with hyperglycemia manage their blood glucose levels?

“Ten years ago, my mother was diagnosed with hyperglycemia during a hospital check-up. The endocrinologist in charge advised her to pay special attention to her diet and suggested using a traditional cooking utensil called a ‘zengzi’ (steaming bucket) to prepare rice,” Wu Mingjun, founder and CEO of Xiao Zeng Technology, told VCBeat. It was this medical advice that made him realize the potential of the zengzi in helping to lower blood sugar levels. However, this was not the direct reason that prompted him to establish Xiao Zeng Technology.

After Wu Mingjun’s mother was diagnosed with hyperglycemia, he returned home to visit her and discovered that she had not been following the doctor’s advice to cook rice using a traditional wooden steamer (zengzi). Upon inquiry, Wu learned that his mother found this method too cumbersome, as it involved boiling, draining, and steaming the rice, along with the need to move the heavy steamer. These steps proved inconvenient for an elderly individual managing a chronic condition.

At that time, Wu Mingjun was a mold supplier for top-tier domestic home appliance brands. After hearing his mother’s remarks, he conceived an idea to develop a smart rice cooker capable of filtering sugar with one-touch operation.

Following this, Wu Mingjun shared the idea with his clients and friends, garnering support from many. Subsequently, they formed a team with the goal of developing low-sugar cooking appliances.

Co-founder and CTO Hu Xiaojian graduated from the Department of Automotive Engineering at Tsinghua University. He holds a Ph.D. in Applied Science from the University of Waterloo in Canada and an MBA from Wilfrid Laurier University. He previously served as Project Director at Lear Automotive Systems, Engine Project Director at SAIC-GM-Wuling, and President of Wolf’s China region.

During the product development process, Hu Xiaojian leveraged his expertise in the automotive industry to help Xiao Zhen Technology’s R&D team overcome various challenges, conquering numerous hurdles ranging from system design to mold manufacturing.

The reason rice has such a high glycemic index is that its primary components are carbohydrates, predominantly starch, which accounts for approximately 80%.

Starch in rice is generally classified into amylopectin and amylose. Amylopectin, with a high molecular weight, accounts for approximately 80% of the total starch; it is rapidly digested and absorbed by the human body, resulting in a high glycemic index, and is also referred to as fast-digesting starch. In contrast, amylose has a lower molecular weight and constitutes about 20% of the total starch; it is digested and absorbed more slowly, leading to a low glycemic index, and is also known as slow-digesting starch.

Starch is insoluble in water at room temperature, but its physical properties undergo significant changes when the water temperature reaches a certain level. The characteristic process by which starch swells and disintegrates under high heat to form a uniform paste-like solution is known as starch gelatinization. Xiaozheng Technology leverages this principle as the basis for its low-sugar cooking technology.

When cooking rice, as the amylopectin reaches its gelatinization temperature and completes the gelatinization process, it dissolves into the rice water. The Xiao Zeng low-sugar rice cooker leverages its globally uniqueNegative Pressure Water Circulation Filtration System, the rice undergoes dozens of filtration and sedimentation cycles to remove rapidly digestible starch while continuously generating resistant starch, increasing its content in the rice by up to 30%. The resulting rice has largely eliminated rapidly digestible starch, leading to a lower glycemic index.

As the creator of the world’s first low-sugar rice cooker, XiaoZeng Technology achieved the number-one sales ranking in Japan for six consecutive months. While sugar-reducing rice cookers with similar concepts are now common in the market and all claim to lower the sugar content in rice, how has XiaoZeng Technology managed to stand out from the competition?

Taking “Qiaogu Low-Sugar Cooker,” a brand under Xiao Zeng that has gained widespread popularity in the Japanese market, as an example, Xiao Zeng’s technology team has developed a proprietary negative-pressure water circulation system to maximize blood sugar-lowering effects. This system enables dozens of water circulation cycles with continuous multi-layer filtration, effectively separating rapidly digestible starch from rice and removing up to 99.97% of such starch.

To preserve the texture of rice, the Xiao Zeng low-sugar rice cooker features a pre-set water-rice separation system, effectively addressing the loss of texture and nutrients caused by prolonged soaking of rice grains.

Moreover, unlike ordinary rice cookers, the Qiaofu low-sugar rice cooker retains the rice water during cooking. Rice water is widely regarded as “ginseng soup” for infants and can serve as a supplemental beverage for infants and young children.

Behind high-quality products lie numerous technological barriers that have been overcome. Taking the ding-shaped outer pot of Qiaofu’s low-sugar rice cooker as an example, its most notable feature is the three ding-style legs, which contain water-draining and sugar-filtering pores.The three pot feet and the pot body are integrally die-cast from all-aluminum alloy.This imposes extremely stringent and demanding requirements on mold manufacturing and processing techniques. To overcome this challenge, the Xiao Zeng Technology team spent more than three years leveraging advanced technologies from automotive engine manufacturing to achieve the production of the molds.

Following the successful launch and market triumph of the Qiaofu Low-Sugar Rice Cooker, the Xiaozeng Technology team continued its innovation momentum, subsequently introducing the Xiaozeng Top-Mounted Water Tank Low-Sugar Rice Cooker and the Low-Sugar Cup.

The Low-Sugar Cup emphasizes sugar filtration and speed. The product was developed with considerations for space efficiency, multifunctionality, and the limited spare time of office workers. Its key advantage is the ability to prepare low-sugar rice in just 10 minutes, significantly saving time, while also offering functions such as stewing soups, making de-sugared dried fruits, fermenting yogurt, and brewing coffee. After being showcased at the China Hi-Tech Fair, the product quickly attracted the attention of a domestic fast-food brand, securing an order for 50,000 units and addressing the issues of slow service and insufficient heating in fast food.

To pursue further corporate development and build a professional blood glucose management platform, Xiaozhen Technology has added two major modules—convenient monitoring and a cloud-based glucose control platform—to its intelligent glucose-lowering foundation, enabling individuals with hyperglycemia to monitor their blood glucose at home and achieve effective glycemic management.

Currently, Xiaozhen Technology has developed convenient blood glucose monitoring devices, including non-invasive blood glucose metabolism monitors, wireless glucose meters, and non-invasive blood glucose monitoring wristbands. Additionally, the company offers calorie metabolism monitoring wristbands designed to meet the needs of health-conscious individuals.

Xiaozeng Technology’s Cloud Platform for Blood Glucose Control manages blood glucose primarily through four aspects: health data, a blood-glucose-control community, social sharing, and healthy blood glucose management.

Health Data: Intelligently monitors blood glucose, blood pressure, heart rate, sleep, and stress levels; balances sugar intake and expenditure; and supports 24/7 continuous monitoring and early warning for multiple health metrics;

Blood Sugar Control Community: Supports users in documenting their daily lives through photos and videos, enabling mutual communication and the sharing of blood glucose management experiences within the community. Additionally, the community continuously publishes information on blood glucose control to help users acquire relevant knowledge;

Social Sharing: Users are categorized into different membership tiers based on their spending on the platform’s marketplace, with higher tiers enjoying greater discounts; additionally, users can earn commissions by sharing marketplace products with others.

Healthy Blood Sugar Control: Curating advanced blood sugar control technologies and low-sugar, low-fat eco-friendly food products for users.

Currently, the products sold in the mall of the Tangkong Cloud Platform are mostly independently developed by Xiaozhen Technology. In the future development, competitors will gradually enter the platform.

To safeguard its technological achievements, Xiaozheng Technology has been strategically building its patent portfolio since 2010. To date, the company has filed more than 2,000 patents, including over 200 invention patents, primarily focusing on intelligent blood glucose lowering and convenient monitoring solutions.

At the current stage, Xiaozheng Technology’s product development is primarily guided by a three-step strategy: developing one generation, reserving one generation, and selling one generation. In subsequent phases, the company’s main product development focus will be on intelligent blood glucose reduction and convenient monitoring, while also gaining deeper insights into and further segmenting usage scenarios for its low-glycemic cooking appliance series.

Due to regional differences in dietary habits, Xiaozeng Technology prioritized Southeast Asian countries when expanding into overseas markets. In early 2018, Qiaofu Low-Sugar Rice Cooker was launched in Japan, where it immediately garnered widespread attention from local consumers. Japanese media outlets, including NHK, extensively covered this blood-sugar-lowering rice cooking device from Shenzhen. Within its first month on the market, it sold an impressive 20,000 units, achieving remarkable milestones such as selling out 5,000 units within just 30 minutes, ranking number one in sales for six consecutive months, and maintaining a waitlist of three and a half months for reservations.

Xiaozeng Technology is now making significant inroads into the European and American markets. In November 2019, Mr. Thomas, the Mayor of Toronto, Canada, was invited to attend the launch event of Xiaozeng Technology’s Blood Glucose Control Cloud Platform. During the event, both parties engaged in in-depth dialogue and exchanges in the field of blood glucose management. In accordance with the World Health Organization’s latest guidelines on blood glucose control, the two sides will further strengthen their cooperation and establish a strategic development partnership. Xiaozeng Technology will provide comprehensive blood glucose management products and cloud platform services to all residents of Toronto. Additionally, Xiaozeng’s low-sugar cooking appliances, designed to address the dietary habits of Europeans and Americans who frequently consume high-glycemic-index (GI) foods such as refined flour products and hamburgers, are scheduled for release in the near future.

Overall, Xiaozheng Technology’s overseas development has been quite promising.Last year, sales of the Qiaofu Low-Sugar Rice Cooker alone reached nearly 600,000 units.。

Now, XiaoZhen Technology is gradually turning its attention to the domestic market. In fact, XiaoZhen Technology’s entry into the Chinese market started later than its overseas expansion. How can XiaoZhen Technology quickly stand out in the domestic market and catch up with its performance in overseas markets?

The first aspect is product research and development, backed by robust medical qualifications.. As a staple food in daily life, rice must be evaluated not only for its low-sugar health benefits but also for its texture, which is particularly important. Meanwhile, as a household rice cooker, the Low-Sugar Rice Cooker is also designed with enhanced functionalities. Currently, the Xiao Zeng Low-Sugar Rice Cooker has submitted an application for medical device certification to JAPL in Japan (application title: A Tool and System for Glycemic Load Management).

The second aspect is product marketingXiaozeng Technology plans to promote its products through online channels, such as popular platforms like Weibo, Douyin, and Weishi, while simultaneously promoting a culture of low-sugar, healthy eating. By addressing the specific needs of sugar-conscious consumers, the company aims to create hit products, adopting the marketing philosophy of “treating the launch as the decisive battle.” In the future, it will also place fixed offline advertisements and adjust product pricing in accordance with current conditions in the domestic market.

The third aspect is data management.. In accordance with consumers’ preferences and needs, their health data are collected and profiles are established on the Blood Glucose Control Cloud Platform to help them manage blood glucose and other health metrics, while also capturing changes in various data parameters and user experience after product use.

In terms of domestic sales, Xiaozheng Technology’s low-sugar rice cookers are now available on major online e-commerce platforms such as Taobao, JD.com, and Suning, and the company has established in-depth collaborations with TV shopping platforms including Yihe Shopping, CR Vanguard, and UGO Shopping. During the upcoming Double 11 Shopping Festival, Xiaozheng Technology will present enhanced products to consumers and partners alike.

Rice cookers have always been the most important and largest category in kitchen and bathroom appliances. The emergence of IH heating technology in recent years has ushered in a “second spring” for the rice cooker market, rapidly driving its transformation toward the mid-to-high-end segment.

Nowadays, as the penetration rate of IH rice cookers slows down, low-sugar rice cookers, as a latecomer, have gradually become a market hit. According to relevant data, by the end of 2019, the offline penetration rate of low-sugar rice cookers rapidly reached 3.1%.

The surging popularity of low-sugar rice cookers is driven by consumption upgrading, which has shifted domestic rice cooker demand from the low-end to the mid-to-high-end segment, as well as consumers’ urgent need for healthy blood sugar management.

Currently, Xiaozheng Technology is conducting its Pre-A round of financing, aiming to raise RMB 30–50 million. The funds will be primarily used to expand sales channels, increase R&D investment, and accelerate the development of new products.