IDG Capital and the state-linked CNBM New Materials Fund have co-led a strategic investment of nearly 1 billion yuan ($141.4 million) in China’s Xingi Technology, as state investors join hands with private capital in supporting domestic new material innovations.
A manufacturing industry-focused fund affiliated with the state-owned China Reform Holdings Corporation (CRHC) also participated in the deal.
This investment is said to be one of the biggest venture investments in China’s new materials sector, according to the latest WeChat post by Taihecap, which served as the financial adviser.
Headquartered in eastern China’s Nantong City, Jiangsu Province, Xingi specialises in the R&D and production of ultra-high molecular weight polyethylene (UHMWPE) fibres and composite materials, which are exceptionally strong, lightweight polymer threads known for high impact and good abrasion resistance. They are often used in composites for ballistic vests, aerospace, marine engineering, and medical devices, creating materials with superior strength-to-weight ratios.
This billion-yuan strategic investment will see Xingi work closely with its investors, including CNBM New Materials Fund, in tech R&D and business expansion to explore the innovative applications of UHMWPE fibres across national defence and embodied intelligence, and as a special building material, said a spokesperson from CNBM New Materials Fund. The fund is a 20-billion-yuan ($2.8 billion) fund launched in 2021 with the backing of the state-owned China National Building Material.
Xingi was created in June 2022 as a new materials spinoff from the previously Shenzhen-listed Bicon Pharmaceutical. It became an independently operating company in November 2022 through a 2.1-billion-yuan ($297 million) carve-out deal sponsored by multiple state capital investors in Nanjing, Jiangsu.
Since the start of its first production line as early as 2013, Xingi has grown into one of the biggest manufacturers in China with an annual production capacity of 30,000 tonnes of UHMWPE fibres and 6,000 tonnes of UHMWPE unidirectional fabric sheets.
Its product portfolio ranges from 10D to 1600D fibres, covering a spectrum from ultra-fine threads to standard and heavy-duty industrial yarns. The company ships products to over 50 countries and regions globally.
