Target Information

On April 16, Shenzhen Shanhai Innovation Technology Co., Ltd. (hereafter referred to as "Shanhai Innovation"), a member company of Chuangweiye, announced the completion of a nearly 100 million RMB Series C financing round, led by Yuan Sheng Venture Capital.

This funding will significantly enhance the company's expansion in the field of supramolecular new materials. The capital will primarily be allocated to upgrading the AI research and development platform for supramolecular new materials and facilitating the industrial application of these materials across diverse sectors, including health foods, pharmaceuticals, agriculture, and environmental protection. The company will also actively explore new energy operations, encompassing the development of safe electrolytes, recycling of used batteries, and recovery of silver powder from photovoltaic silicon wafers to drive technological accessibility and industry innovation.

Industry Overview

Shanhai Innovation, founded in 2017 by Professor Zhang Jiaheng, a doctoral supervisor at Harbin Institute of Technology (Shenzhen), is the first company to systematically apply supramolecular technology in both health and industrial sectors on a global scale. Its business encompasses personal care and cosmetic raw materials, biomedicine, functional foods and ingredients, medical devices, and agricultural additives within the broader health industry, along with investments in new energy, photovoltaics, and precious metal extraction.

In recent years, the health and wellness industry in China has experienced substantial growth, prompted by an increasing consumer focus on health and sustainability. This trend has led to heightened demand for innovative materials that can enhance product efficacy. Shanhai Innovation’s applications of supramolecular technology are well-positioned to meet this increasing need, addressing issues such as solubility, stability, and compatibility of active ingredients.

The company has successfully attracted strategic investments from notable players, including Huaxi Biotechnology and L’Oréal, marking L’Oréal's first open innovation investment project in China. These partnerships signal strong confidence in Shanhai Innovation's unique technology and market potential, suggesting a positive outlook for the supramolecular materials industry in the region.

Furthermore, with the increasing focus on environmental sustainability, the applications of Shanhai Innovation's technology in environmental protection, agriculture processing, and sustainable practices are timely and relevant, positioning the company favorably within China's evolving market landscape.

Rationale Behind the Deal

Yuan Sheng Venture Capital's decision to lead this financing round reflects a strategic move to invest in cutting-edge technology that aligns with emerging market trends. The substantial influx of capital will not only facilitate Shanhai Innovation's R&D capabilities but also enhance the scale and quality of its product offerings. By focusing on materials that address health-related needs while also turning attention towards environmental sustainability, the deal promises to support both economic growth and societal well-being.

Moreover, the collaboration with leading investors and strategic partners ensures robust backing, lending credibility to the company's vision of integrating AI with advanced material science to deliver innovative solutions across multiple sectors.

Information About the Investor

Yuan Sheng Venture Capital is known for its focus on investing in high-potential startups that leverage innovative technologies to address diverse market challenges. With a portfolio that includes companies at the forefront of tech advancements, Yuan Sheng is committed to fostering growth in sectors such as healthcare, environmental sustainability, and consumer goods.

By leading the Series C financing for Shanhai Innovation, Yuan Sheng Venture Capital positions itself to benefit from the anticipated growth in the supramolecular materials space, aligning its investment strategy with broader trends in health and wellness while capitalizing on the company's unique market position.

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From an expert perspective, this investment appears to be a sound opportunity due to Shanhai Innovation's pioneering role in the supramolecular materials sector and their strategic approach to product development. The ability of the company to combine advanced materials technology with AI enhances its potential for innovative breakthroughs, particularly in high-demand industries such as health and environmental applications.

The comprehensive R&D initiatives aimed at overcoming current material limitations further underscore the company’s commitment to creating effective, versatile products tailored to market needs. This not only captures consumer interest but also aligns with the increasing regulatory focus on sustainability in product development.

Moreover, the involvement of reputable players such as L'Oréal highlights the trust in Shanhai Innovation's operational capabilities and their competitive edge in the market. As such, the combination of strong strategic partnerships, a clear vision for future growth, and the expanding opportunities within the Chinese market bolster the outlook for this investment, suggesting it may yield substantial returns.

In conclusion, the investment led by Yuan Sheng Venture Capital not only supports Shanhai Innovation's ambitious goals but also reflects a broader confidence in the potential of supramolecular technologies to drive innovation and foster sustainable development across various industries.

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