Suzhou Xueji Biotech Completes First Tranche of Series A1 Financing Led by Zhongbo Julli to Advance Platelet Cell Therapy Pipeline

December 19, 2023,Suzhou HemaCell Therapeutics Co., Ltd. (hereinafter referred to as “HemaCell”) Announces First Closing of Its Series A1 Financing Round, both phases launched simultaneously and are expected to conclude in three months. This round of financing was led byZBJL CAPITAL and Qingdao Guoxin Innovation Equity Investment Management Co., Ltd. co-led the investment, with participation from the Suzhou Industrial Park Science and Technology Innovation Fund and the Qingchuang Fund, while existing shareholder CDH Investments continued to increase its stake.This round of financing will be primarily used to fully advance the Investigational New Drug (IND) applications for HemaCell’s three platelet-related pipelines, support the completion of multiple aspects of preclinical research, and simultaneously drive the industrialization of various sectors, including platelet-based drug delivery and platelet lysate.

HemaCell leverages platelet regeneration technology as its core foundational platform. By achieving breakthroughs in this technology, the company has built multidimensional applications around induced platelets. With unique market insight, HemaCell identifies opportunities within the industry, addresses critical pain points, and strategically enters various market segments.Covering multiple diseases and fields, including blood transfusion, oncology, platelet disorders, sports medicine, medical aesthetics, and anti-aging.. The company adheres to a portfolio of long- and short-term products with a focused technological strategy, emphasizes cost reduction and efficiency improvement, and achieves growth against the trend.

HemaCell has always adhered to the principle of “Ningai Hemostasis, Jilang Health” philosophy, to develop hematopoietic stem cell-derived platelets and iPSC-derived platelets with different market positionings. By employing a system that requires no gene editing, is feeder-cell-free, and serum-free, we aim to create the safest regenerative platelet products with no tumorigenic risk, targeting the transfusion market which has a large patient base and broad market potential. Meanwhile, due to their high capacity for carrying various cytokines, platelets serve as important “nutrient suppliers” and can be applied in sports medicine, medical aesthetics, wound repair, rehabilitation, anti-aging healthcare, and other areas. However, their development has long been constrained by issues such as platelet supply shortages and pathogen transmission. In vitro regenerated platelets provide a stable and clean source for these applications, making large-scale use in these fields possible and covering nearly the entire population. In addition, HemaCell’s platelet lysate product, Peiji^®️Coming soon; its cosmetics line is currently open for testing.Design of Diversified Products, Focus on Core Technologies, and Layout for "Self-Sustaining" Capabilities, once again highlighting HemaCell's strategic alignment.

This Series A1 financing will provide HemaCell with additional financial support. The round will be closed in two tranches, with the second tranche launching immediately upon the completion of the first closing. The second tranche will remain open for three months, with the entire allocation reserved for prospective institutional investors.

HemaCell also announced the completion of a debt financing round amounting to tens of millions, with credit support provided by three banks:China CITIC Bank Suzhou Branch, China Construction Bank Suzhou Branch, and Bank of Ningbo Co., Ltd. Suzhou Branch. This credit facility serves as reserve capital, providing a potential safeguard for HemaCell’s future funding needs.

This round of financing will accelerate the refinement of HemaCell’s multiple production lines and the launch of its diverse portfolio of specialized products, delivering an optimal solution for the in vitro regeneration of platelets in China. It will effectively address the urgent issue of platelet shortage by providing the Chinese blood transfusion system with component blood that is traceable, pure, safe, and stably supplied, thereby truly ushering in a second transfusion revolution in China.。

Regarding this round of financing,Dr. Fangfang Zhu, Founder of HemaCell“Heartfelt thanks to both new and existing shareholders for their support of HemaCell and the platelet initiative. Since its inception, HemaCell has demonstrated a strong sense of responsibility and clear objectives, dedicating focused efforts, achieving foundational technological breakthroughs, leveraging a highly professional team, and maintaining the highest morale to address the industrialization challenges of regenerative platelets through proprietary technologies. HemaCell has consistently adopted a steady and risk-averse approach, establishing a technical system with independent intellectual property rights and building a competitive moat for corporate development by capitalizing on first-mover advantages and technological barriers. Adhering to the principle of maximizing every dollar spent, HemaCell has ensured a robust and healthy financial structure. Over the past two years, the company has utilized less than 30% of the funds raised in the first three financing rounds, ensuring stable growth amidst a dynamic market environment. The continued capital injection will enable HemaCell to secure sufficient funding for mid-to-long-term development. Coupled with the inelastic demand for blood products and the market’s counter-trend growth, this reinforces investors’ confidence in HemaCell’s ability to navigate economic cycles and realize enterprise value.”

Tian Xiaoling, Head of Medical Investment at ZBJL CAPITAL“Platelets are the only cells in the body responsible for blood coagulation and one of only two types of anucleated cells, presenting rigid clinical demands and broad application prospects. Starting from the urgent clinical shortage of platelets, HemaCell has prioritized the ex vivo regeneration of platelets as its lead product, adopting a breakthrough approach to produce platelets from hematopoietic stem cells and induced pluripotent stem cells (iPSCs). These platelets can be used in transfusions, drug delivery, medical aesthetics, anti-aging therapies, and other fields, offering extensive application potential. The company has a clear positioning, distinct characteristics, stable operations, and a pragmatic team. It boasts profound expertise in the developmental biology of platelets and adult stem cells, as well as solid technical capabilities in iPSC reprogramming, gene editing, and directed differentiation. Committed to foundational innovation, HemaCell is dedicated to developing high-yield, low-cost, safe, and effective platelet products. We look forward to the early entry of our products into clinical trials, thereby benefiting patients and society.”

Guoxin Innovation Equity“He stated: ‘Dr. Zhu Fangfang possesses a top-tier comprehensive background in scientific research investment, along with extensive industry and investment experience. Her research achievements in areas such as in vitro stem cell culture and directed differentiation of hematopoietic lineage cells will provide a solid foundation for the company’s product development. HemaCell’s platform for in vitro directed differentiation of stem cells demonstrates strong scalability and development potential. Regarding the urgent clinical need for platelet transfusion, existing blood donation sources cannot sustainably meet medical demand. HemaCell’s in vitro platelet cultivation project is poised to break through the limitations of large-scale platelet production, offering broad market prospects and significant social and economic benefits. We look forward to HemaCell achieving greater breakthroughs in clinical R&D and scaled manufacturing, leveraging innovative technologies to address unmet clinical needs and benefit more patients.’”

Tao Shanshan, Head of Investment Department I at Lingjun Venture CapitalIt stated: “Biopharmaceuticals are a key industry supported and developed by Suzhou Industrial Park, with stem cell technology being a highly promising frontier. Led by Dr. Zhu Fangfang, HemaCell has assembled top-tier talent from relevant fields across China, cultivating deep expertise in this area for many years and mastering the most advanced technologies in stem cell differentiation and cell therapy. By prioritizing ex vivo platelet regeneration, the company aims to address the critical clinical need for transfusion-based hemostasis. We are optimistic about HemaCell’s foundational platform technology for ex vivo regeneration of hematopoietic lineages and believe that, based in the Park, the company will drive the development of stem cell technologies in Suzhou Industrial Park and emerge as a global leader in the stem cell field.”

Zhang Ze, Partner at Qingchuang Fundstated: “Zhu Fangfang, founder of HemaCell, embodies the qualities of a composite leading talent who integrates the roles of scientist, venture capitalist, and entrepreneur. The company has achieved continuous breakthroughs in core foundational technologies for platelet regeneration, keenly captured commercial opportunities, and developed multi-dimensional application products. This strategic approach enables the company to combine long-term and short-term product portfolios, achieving synchronized growth in cash flow efficiency and corporate value.”

Dr. Liu Dan, Senior Partner at CDH Investments VGCstated: “As existing shareholders of the company, we maintain a long-term bullish outlook on its development potential in stem cell-derived platelets. Given the substantial market opportunity and high competitive barriers, along with the efficient execution and industry recognition demonstrated during the startup phase, the company is poised to deliver revolutionary products to the transfusion industry in China and globally.”

ZBJL CAPITAL (Beijing) Investment Management Co., Ltd. (hereinafter referred to as “ZBJL CAPITAL”) was established in 2013, with its primary investment focus on next-generation information technology, biopharmaceuticals, and new energy. Adhering to the investment philosophy of “being rooted in technology and practicing value,” ZBJL CAPITAL emphasizes the scarce value generated by technological innovation. It avoids following trends or blindly conforming, instead continuously identifying potential unicorn enterprises characterized by high technical barriers and strong core competitiveness. By empowering portfolio companies through both capital and resources, ZBJL CAPITAL facilitates the development of China’s technology enterprises, creates value, and benefits humanity and society.

Qingdao Guoxin Innovation Equity Investment Management Co., Ltd. was established in August 2016. Leveraging the shareholder resource advantages of Qingdao Guoxin Development (Group) Co., Ltd., and serving as a key sub-brand within the Guoxin financial sector, the company has always adhered to the mission of “providing high-quality financial services to the real economy.” It upholds the core operational principles of “market-oriented operations, industry-driven development, and forward-looking layout.” Using diversified equity investment funds as its operational platform, the company deepens industry-finance synergy, with a strategic focus on modern marine industries, information technology, urban services, and other advantageous industries aligned with its shareholders and the region. By cultivating deep expertise across upstream and downstream segments of the industrial chain, it proactively invests in high-quality projects that demonstrate industry leadership, innovation, breakthrough potential, and high growth. Covering the entire lifecycle of enterprise development, its project portfolio spans across China. Through financial linkages, the company facilitates industry cultivation, introduction, and value enhancement, thereby empowering the long-term sustainable development of industries with capital, and building an open industry-finance ecosystem characterized by “co-creation, sharing, and win-win cooperation.”

The Suzhou Industrial Park Science and Technology Innovation Fund was jointly established with the Finance and Audit Bureau of Suzhou Industrial Park as the Limited Partner (LP) and Lingjun Venture Capital as the General Partner (GP). The fund’s first phase has a total size of RMB 1.5 billion, focusing on key strategic emerging industries such as biopharmaceuticals, nanotechnology applications, and artificial intelligence. By combining direct investment with grant-linked investment, the fund supports technology-based and innovative enterprises within the park in scaling up, optimizing operations, and strengthening competitiveness. Lingjun Venture Capital, the GP of the Suzhou Industrial Park Science and Technology Innovation Fund, was founded in December 2012 and is wholly owned by the Suzhou Industrial Park Enterprise Development Service Center. It is currently the largest policy-oriented angel investment institution in Suzhou Industrial Park, playing an active role in facilitating the introduction of high-end talent, promoting rapid corporate growth, and fostering a technological innovation ecosystem within the park.

The Youth Innovation Fund is a sci-tech innovation sub-fund of the World Young Scientists Entrepreneurship Fund and a supporting fund of the Wenzhou Youth Innovation and Entrepreneurship Promotion Association (hereinafter referred to as the “Youth Innovation Association”). By leveraging the Association’s robust resources in innovation, industry, and finance, the fund invests in and incubates high-quality projects within the entrepreneurial ecosystem and innovative initiatives across industrial upstream and downstream sectors. It aims to facilitate the commercialization of scientific and technological achievements by young scientists, empower the high-quality development of sci-tech innovation projects, and support enterprises in establishing a second growth curve.