Financial Performance - The company reported an increase in mid-year performance compared to last year, but remains in a loss state [2] - Future strategies will focus on improving net profit through various products and avenues [2] Pharmaceutical Manufacturing - The decline in raw material prices for 6-APA and the recovery in prices for the key intermediate 4-AA will enhance the gross margin of the pharmaceutical business [3] - Successful completion of supplier qualification for the new process product, Tazobactam, is expected to reduce production costs and improve market competitiveness [3] - Expansion of Piperacillin production capacity is underway, with significant market demand for combination formulations [3] - New compound formulations are being launched, which will drive demand for related products [3] New Energy Business - The company leads in the industry for lithium battery electrolyte additives in terms of shipment volume and cost control [3] - Current prices for these additives are at historical lows, with limited room for further decline; a price rebound could significantly enhance profits [3] Synthetic Biology - The company is a pioneer in microbial protein production, with significant advancements in core strains, production technology, and market access [4][5] - The registration application for the new protein as a food ingredient has been accepted, with expectations for approval in the second half of the year [4][9] - The company is constructing a project with an annual capacity of 200,000 tons of microbial protein, aiming for a production scale of 20,000 tons of microbial protein and 50,000 tons of amino acid water-soluble fertilizer [5][15] Quality and Certification - The new protein has received multiple international certifications, including HALAL and KOSHER, and has passed various food safety management system certifications [6] - The company has developed proprietary strains and achieved international advanced levels in production technology [5][6] Market Expansion and Collaboration - Strategic partnerships have been established with various companies in the microbial protein sector, enhancing market penetration [11] - The company plans to build an open commercial transformation platform to accelerate product commercialization and brand development [10] Product Development - The new protein can be applied in various sectors, including plant-based meat alternatives, protein drinks, and health products [12] - The company is actively developing new applications and has created several product samples for market introduction [12] Environmental and Regulatory Compliance - The company’s production processes aim for zero emissions and align with national agricultural reduction goals [7][14] - The amino acid water-soluble fertilizer is positioned to meet growing market demands due to regulatory support for green products [15]

Core Viewpoint - Fuxiang Pharmaceutical plans to develop multiple plant-based meat products that closely mimic the texture and taste of real meat, leveraging new protein technology [1] Company Developments - The company aims to create over 10 consumer-oriented products through independent research and external collaborations [1] - Fuxiang has established the first domestic production line for microbial new protein with a capacity of 1,000 tons and is currently constructing a new line with an annual capacity of 20,000 tons [1] Industry Insights - According to Chen Jian, an academician from the Chinese Academy of Engineering, the production efficiency of new protein is 1,000 times higher than traditional livestock and fishery farming methods, with over 90% water savings and no need for pesticides or fertilizers [1] - The development of new protein can address key supply chain challenges in the meat, egg, and dairy industries, enhancing cost-effectiveness and sustainability, while also meeting national strategic needs for food security [1] - The industry has significant potential and market space for growth [1]

Core Viewpoint - The biomanufacturing industry is emerging as a new engine for economic growth, with a significant focus on the new protein sector as a key area for development [1][2]. Group 1: New Protein Manufacturing Center - The National Investment Group and Wuxi City have established the National Investment New Protein Biomanufacturing Innovation Center to address bottlenecks in new protein research and industrialization [2][4]. - The center aims to accelerate the development and cost optimization of various new protein products, covering fields such as food, nutrition, healthcare, and materials [2][4]. Group 2: Challenges and Opportunities - New protein is defined as edible protein not reliant on traditional livestock or fishery methods, utilizing innovative technologies like microbial fermentation and synthetic biology [4]. - China faces a significant protein gap, with 2024 grain imports projected to exceed 158 million tons, including 105 million tons of soybeans, which are primarily used for animal feed [5]. - The shortage of edible protein has become a safety issue, prompting the government to promote comprehensive food resource development [5]. Group 3: Investment and Development Strategy - Since 2020, the new protein industry in China has shown strong growth, although the capital market's downturn in 2023 has posed challenges [5][6]. - The National Investment Group has established the National Investment Biomanufacturing Innovation Research Institute with a registered capital of 6 billion yuan, marking a significant step in supporting the biomanufacturing industry [5][6]. - The group aims to achieve a total output value of 60 billion yuan in the biomanufacturing sector by the end of the 14th Five-Year Plan [6]. Group 4: Financial Support and Collaboration - The National Investment Group manages funds exceeding 270 billion yuan, having invested over 4 billion yuan in 25 biomanufacturing companies [6][7]. - The group has partnered with various local governments to establish industry guidance funds, including a 2 billion yuan biomanufacturing venture capital fund in Tianjin [6][7]. - Future plans include collaborating with private capital to explore differentiated management of mixed-ownership enterprises, enhancing the vitality and competitiveness of the industry [7].

Core Insights - The National Investment Group (国投) is establishing a dedicated CVC fund for the biomanufacturing industry, focusing on early-stage, small investments in hard technology to support strategic emerging industries and core technology breakthroughs [1][3] - The biomanufacturing industry is recognized as a new engine for economic growth, with the establishment of the National Investment Group's new protein biomanufacturing innovation center aimed at addressing bottlenecks in new protein research and industrialization [1][2] Group 1: Industry Development - The new protein, which does not rely on traditional livestock or fishery methods, is synthesized using innovative technologies like microbial fermentation, addressing the significant protein gap in China, where over 66% of grain imports are soybeans [2] - The shortage of edible protein has become a safety issue, prompting the government to promote a comprehensive approach to food resource development [2] Group 2: Investment and Funding - The National Investment Group has invested in 25 biomanufacturing companies, totaling over 4 billion yuan, and has established various government-guided funds to support the industry [4] - The National Investment Group's funds exceed 270 billion yuan, with investments in 424 specialized enterprises, supporting 120 companies to go public, which constitutes 10% of the total on the Science and Technology Innovation Board [3][4] Group 3: Strategic Initiatives - The establishment of the National Investment Group's Biomanufacturing Innovation Research Institute, with a registered capital of 6 billion yuan, marks a strategic initiative to cultivate the biomanufacturing industry [3] - The National Investment Group aims to achieve a total output value of 60 billion yuan in the biomanufacturing sector by the end of the 14th Five-Year Plan, focusing on various sub-sectors such as industrial strains and food additives [3]