Kanghua Bio Announces $360M Commitment to New Biopharma Industry Fund Amid Strategic Transformation

　　【Pharmaceutical Network Corporate News] Recently, the 16th Meeting of the Third Board of Directors of Kangh was successfully held. At the meeting, the Board formally appointed Mr. Fan Changyong as President and Mr. Chai Yunfei as Vice President of Strategic Investment.
 

Public information indicates that Mr. Fan Changyong has dedicated nearly 20 years to investment banking and the management of biopharmaceutical enterprises, accumulating extensive experience in the management and operation of biological products as well as in capitalization practices. He previously held positions at CITIC Securities and Jiangsu Jinyike, among other companies. In November 2025, Mr. Fan joined Kangh as Executive Vice President in his capacity as Managing Director of the Shanghai Biopharmaceutical M&A Fund, and assumed the acting role of President in January 2026. Mr. Chai Yunfei possesses extensive experience in industrial investment and the fundraising, investment, management, and exit strategies of biopharmaceutical funds. He formerly served as a Partner at Qiji Investment and as General Manager of the Investment Management Department at Langrun Investment, among other roles.
 

It is worth noting that the meeting also reviewed and approved the proposal for the Company to jointly establish the Sichuan Revitalization Biopharmaceutical Industry Investment Fund in partnership with Sichuan Advanced Manufacturing Investment Guidance Fund, Sichuan Industrial Revitalization Fund Investment Group Co., Ltd., Sichuan Innovation Development Investment Management Co., Ltd., and Shanghai Shangshi Biopharmaceutical Management Consulting Co., Ltd., among others.
 

The announcement indicates that the fund has a target size of RMB 2 billion, with RMB 1.2 billion in committed capital at the first closing. Of this, Kangh contributed RMB 360 million, accounting for 30%; the Sichuan Advanced Manufacturing Investment Guidance Fund, Sichuan Industry Fund, Sichuan Venture Capital, and Shanghai Industrial Management Consulting Co., Ltd. collectively contributed RMB 840 million, accounting for 70%. In terms of investment direction and scope, the fund will focus on an investment strategy oriented toward strengthening industrial clusters and supply chains, fostering synergistic empowerment, and driving innovation-driven quality improvement, primarily targeting innovative enterprises that offer strategic synergies to local and industry investors.
 

It is understood that Kanghua Biological’s move is not an isolated case; in recent years, many pharmaceutical companies have been pursuing strategic layouts through the “listed company + industrial fund” model. For instance, on June 20, 2025, Fosun Pharmaceutical announced that the Henan Zhongyuan Medical Science City Star Future Equity Investment Fund Partnership (Limited Partnership), in which the company participated in establishing, had completed its registration as a private investment fund. The fund was jointly established by the company’s controlled subsidiary, Suzhou Junming Zhiyuan Venture Capital Partnership (Limited Partnership), and three other investors, with the aim of promoting development in the biopharmaceutical sector.
 

On July 25, 2025, Guangzhou Baiyunshan Pharmaceutical Holdings Company announced that it had entered into a partnership agreement with Guangyao Capital. Pursuant to the agreement, the Company and Guangyao Capital contributed RMB 1.4985 billion and RMB 1.5 million, respectively, to establish the Guangyao Fund Phase II. This participation in the establishment of the Guangyao Fund Phase II aims to seize industry development opportunities, accelerate the Company’s industrial layout in the biopharmaceutical and healthcare sectors, and strengthen its efforts in incubation and investment within the pharmaceutical and health industries.
 

On October 29, 2025, CR PHARMA COMM announced that CR Pharma (Shantou), CR Double-Crane, and CR Pharma Investment, together with other partners, had entered into a limited partnership agreement to establish a fund with a proposed size of RMB 500 million. The fund will primarily engage in investments in high-growth enterprises in the fields of synthetic biology, innovative drugs, and biotechnology.
 

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Overall, Kangh’s establishment of an industrial investment fund is primarily aimed at achieving a strategic transformation, evolving from a vaccine company reliant on a single product into a biopharmaceutical innovation platform equipped with cutting-edge technology platforms. Meanwhile, this move aligns with the current industry trend among pharmaceutical enterprises to “leverage capital and integrate innovation.”
 

　　Disclaimer: Under no circumstances shall the information contained herein or the opinions expressed constitute investment advice to any person.