Zhongke Kele Secures Over 300 Million Yuan Series A Financing! E-POE Market Potential Is Huge

Recently, Renjun Capital and IDG Capital jointly invested in the project Zhongke Kole, announcing the completion of over 300 million RMB in Series A financing. This round of financing was co-led by CMB International Capital and TCL Capital, with participation from Conch Private Equity, Hefei Innovation Investment, Hefei State-owned Capital, Junshan Capital, and Ruixing. Existing shareholders Bridge Capital and Dongfang Jiafu continued to increase their investment. The funds from this round of financing will primarily be used for the large-scale promotion of EPOE technology, the construction of the second phase of catalysts, and the research and industrial implementation of new high-end polyolefin technologies.

Zhongke Kele is mainly engaged in the research and development, production, sales, and service of polyolefin catalysts and high-end polyolefin technologies and products. In the field of high-end new materials, polyolefin elastomer (POE) is known as the "gold in plastics," and for a long time, its core technology and high-end market have been monopolized by foreign giants. Zhongke Kele's breakthrough point is a self-developed "Ethylene-Based Polyolefin Elastomer (E-POE) particle." The Ethylene-Based Polyolefin Elastomer (EPOE) independently created by Zhongke Kele uses nickel-based catalysts and can be prepared using only ethylene monomers, without the need for α-olefins.

Source: Zhongke Kele

Recently, the Office of the Leading Group for the Construction of a Strong Manufacturing Province in Anhui Province officially issued two important documents: the "Investment Guidelines for Key Areas of New Technology Renovation in the Manufacturing Industry" and "Typical Application Scenarios of Artificial Intelligence Empowering the Manufacturing Industry." Among them, it is clearly stated that efforts will be intensified to attract and cultivate key supporting links for the polyolefin elastomer (EPOE) under Zhongke Kele, and it will be included as a key direction for structural optimization in advanced photovoltaics and new energy storage fields, injecting new momentum into the transformation and upgrading of Anhui's manufacturing industry and strengthening the supply chain of the new energy industry.

On August 21st, it was announced that Zhongke Kele had completed a new round of equity financing. This round of financing was jointly invested by nine institutions, including Mingzhe Assets, TCL Ventures, Huajian Function Investment, Guoyao Capital, China Merchants Venture Capital, Ruixing Investment, Jiaqiao Capital, Conch Fund, and Hefei Guojing Venture Capital Partnership (Limited Partnership). The funds from this financing will mainly be used for the large-scale promotion of EPOE technology, the construction of the second phase of the catalyst project, and the research and industrialization of new high-end polyolefin technologies.

China Science KeLe was established in 2022, at a time when the domestic high-end polyolefin elastomer market was long dominated by foreign giants. The company is entrusted with the mission of "breaking the monopoly" and is firmly focused on the EPOE track.

Unlike traditional synthesis routes that rely on α-olefins, the Zhongke Kele team has developed an original nickel-based catalyst technology. This technology enables the production of high-performance EPOE using only ethylene as the sole raw material, fundamentally addressing the dual challenges of raw material dependence and process complexity.

Based on completely independent and original nickel-based catalyst technology, Zhongke Kele has pioneered the groundbreaking E-POE process. This process utilizes domestic additives and can achieve the preparation of POE using conventional polymerization equipment and processes, significantly reducing production costs and operational risks of the equipment.

In November 2024, Zhongke Kele's 5,000-ton/year ethylene-propylene-olefin elastomer pilot plant was successfully handed over, marking the successful transition of EPOE technology from "laboratory trials" to "scaled mass production."

In just six months, the team efficiently completed the entire process of equipment commissioning, trial production, and customer sampling. On June 19, 2025, the first batch of EPOE products labeled "domestically produced" was shipped from the Heze production base, marking a breakthrough in the localization of China's high-end polyolefin materials from "technology research and development" to "market application."

Currently, the products under Zhongke Kele include a variety of categories such as polyolefin elastomers, cyclic olefin copolymers, and ultra-high molecular weight polyethylene, demonstrating strong technical capabilities and product layout.

As the 11th empowerment project of the University of Science and Technology of China, Zhongke Kele, through three years of effort, has completed the entire process from pilot testing, intermediate testing, to a 10,000-ton industrial demonstration plant for the original EPOE technology and achieved product sales. It has initially explored a path of breaking through with "hard technology" by promoting industrial innovation through scientific and technological innovation.

Chen Changle, the founder of the company, is a doctoral advisor at the School of Chemistry and Materials Science, University of Science and Technology of China. He has long been focused on the fields of catalytic reactions and olefin polymerization research and has been selected for the "National Distinguished Talent Program".

With technological breakthroughs by companies such as Zhongke Kele, China's high-end polyolefin material market is gradually reducing its dependence on foreign sources.

Shandong Dongming Petrochemical Group has started the construction of the world's first 300,000 tons/year ethylene-based polyolefin elastomer (EPOE) project, with a total investment of approximately 4 billion yuan.

From laboratory innovation to industrialization, and from technological research and development to market application, Zhongke Kele has completed a path that traditional enterprises typically take years to finish in just three years.

China's manufacturing is transitioning to China's innovation, and the breakthroughs of Zhongke Kele are just a reflection of this era.

E-POE is typically considered a type of POE (Polyolefin Elastomer), with the full name Ethylene-based Polyolefin Elastomer. It emphasizes polymerization with ethylene as the main monomer, combining the processing convenience of polyolefins with the elastic properties of rubber. Traditional polyolefin elastomers are often produced by random copolymerization of ethylene and α-olefins, while the production of E-POE does not require α-olefin monomers, theoretically significantly reducing production costs. However, the economic viability in actual industrial production still needs to be validated by operational data from the facilities.

In terms of performance, E-POE performs exceptionally well.

Taking toughened polypropylene as an example, only one-third of the current market usage of polyolefin elastomers is needed to achieve the same toughening effect, making it far more cost-effective than existing polyolefin elastomers. Moreover, its various indicators have been validated through numerous tests by photovoltaic film manufacturers, automotive modified material manufacturers, and others, showing performance comparable to or even superior to mainstream imported products. Its molecular structure contains only ethylene units, which typically provide better processing performance and higher transparency. The narrow molecular weight distribution helps to improve physical properties such as impact resistance and elasticity.

The broad application prospects of E-POE may have a significant impact on the POE industry.

It can be used to produce polyolefin elastomers suitable for polypropylene toughening, photovoltaic encapsulation films, and mixed plastic recycling enhancement, with applications in automotive parts, photovoltaic films, seals, and other fields. Particularly in the photovoltaic industry, with the increasing market share of N-type batteries, the demand for POE particles as an important alternative material for photovoltaic encapsulation films is becoming increasingly clear. E-POE, with its own advantages, is expected to occupy a certain market position in this context. E-POE also has application potential in aerospace, wire and cable, and construction engineering. If E-POE achieves large-scale production in the future, reduces costs further, continuously optimizes product performance, and gains wider recognition, it could change the competitive landscape of the POE industry, drive technological upgrades in the industry, and prompt traditional POE manufacturers to adjust their production strategies and increase R&D investment to cope with the challenges posed by E-POE.

Development prospects: Domestic substitution accelerates, and market potential is.

In recent years, China's ethylene production capacity has continuously increased, providing a solid raw material foundation for the development of the E-POE industry. Compared to alpha olefins, ethylene has a significant price advantage, further enhancing the market competitiveness of E-POE. In the international market, the production of polyolefin elastomers has long been dominated by companies such as DuPont and Dow Chemical from the United States, Mitsui Chemicals from Japan, and LG Chem from South Korea. In 2024, the demand for polyolefin elastomers in China is expected to be around 1 million tons, but due to the late start of the industry, it currently relies heavily on imports.

It is worth noting that our country has mastered the independent intellectual property rights for the production process of vinyl polyolefin elastomers. Through various verification tests, the product performance has reached the standards of mainstream imported products internationally. The development of E-POE helps to improve the self-sufficiency rate of high-end polyolefin elastomers in our country and accelerates the process of domestic substitution.

Mass Production Breakthrough: Industrialization Process Accelerates

In terms of promoting industrialization, E-POE has made several key advancements.