Recently, Hefei Zhongke Keluo New Materials Co., Ltd. successfully launched its independently developed vinyl polyolefin elastomer particles at its production base in Heze, Shandong Province. Dr. Zhu Ningning, the company’s technical director, expressed excitement about the material’s potential, noting that it is primarily used in high-end photovoltaic encapsulation films to enhance weather resistance and power generation efficiency. It also holds promise for the lightweighting of new energy vehicles and electronic packaging.
Breaking Foreign Technological Monopoly
Zhongke Keluo’s nickel-based catalyst, which has independent intellectual property rights, can efficiently produce polyolefin elastomers using ethylene as the sole raw material. This breakthrough has successfully disrupted the foreign monopoly in high-end polyolefin elastomers, according to Huang Yukun, the company’s executive vice president. He highlighted that as a rapidly growing tech start-up, Zhongke Keluo initially relied on self-raised funds and small-scale government grants. However, the chemical industry’s high capital demands, particularly for production line construction, core equipment procurement, and technology verification, necessitated additional investment.
Financial Support from Government and Private Sectors
From its inception, Zhongke Keluo attracted attention from the Science and Technology University Silicon Valley Guidance Fund, managed by Anhui Provincial State-owned Financial Capital Investment Management Co., Ltd. Lei Ting, General Manager of Fund Management Department II at Hefei Innovation Technology Venture Capital Co., Ltd., explained that the company’s independent R&D capabilities, broad product applications, and experienced team were key factors in their investment decision. Between late 2023 and early 2024, the fund contributed 10 million yuan to Zhongke Keluo’s Pre-A financing round, with further funding currently in progress.
Investment-Loan Linkage Model
In addition to government and private equity funding, commercial banks have also recognized Zhongke Keluo’s potential. Liu He, General Manager of the Technology Finance Center at China CITIC Bank Hefei Branch, noted that traditional bank credit models often fail to support tech companies with high R&D costs and no stable revenue. To address this, CITIC Bank introduced an innovative investment-loan linkage “Points Card approval” model, which places greater emphasis on R&D capabilities, technological advantages, team background, and equity financing. As a result, CITIC Bank granted Zhongke Keluo a 160 million yuan fixed asset loan credit line and 15 million yuan in working capital loans to support production and daily operations.
Accelerating Development and Market Expansion
With financial support secured, Zhongke Keluo is rapidly advancing its R&D efforts. The company’s high-end catalyst production base in Anqing has completed its main construction and is operating smoothly. The vinyl polyolefin elastomer production line in Heze is expected to achieve stable product delivery this year, propelling the company’s development into a fast lane, according to Huang Yukun.
Comprehensive Financial Services for Tech Enterprises
Pan Youhua, Party Secretary and Chairman of Anhui State-owned Financial Capital Investment Management Co., Ltd., emphasized the importance of the investment-loan linkage model in serving technology-based enterprises. The company’s parent-subsidiary fund system has invested in 588 high-quality projects, with a cumulative investment scale exceeding 26.2 billion yuan. Recognizing the funding challenges faced by early-stage enterprises, Anhui Guojin Company launched the Guojin Fund Jungle Loan product in April, offering a “equity + debt” combination model. This product has provided over 5 billion yuan in credit lines to more than 60 enterprises.
Creating a Virtuous Cycle of Innovation and Support
The investment-loan linkage model not only offers full life-cycle services for small and medium-sized tech enterprises but also reduces their debt ratios through equity financing while providing liquidity support via bank loans. By collaborating with investment institutions and sharing due diligence data, banks can better assess the long-term growth potential of enterprises. For government investment funds, promoting investment-loan linkage and sharing resources helps enterprises gain further recognition from banks, achieving precise targeted support and service upgrades. This approach fosters a virtuous cycle of “early investment, small investment, long-term investment, and hard technology investment,” driving sustainable development in the tech sector.
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