Core Insights - The recombinant protein industry in China, despite its late start, has rapidly developed due to continuous support from national industrial policies, leading to significant breakthroughs in technology, production processes, and quality control [1][15] - The market for recombinant proteins is expected to grow steadily, driven by increased investment in innovative drug research, rising demand for precision medicine, and the expansion of downstream application scenarios [1][15] Industry Overview - Recombinant proteins are proteins obtained through genetic engineering and cell engineering, essential for the development and production of biopharmaceuticals, cell immunotherapy, and diagnostic reagents [4] - The industry has experienced three stages: the initial stage (1970-1990), rapid development (1990-2000), and transformation and upgrading (2000-present) [8][9] Market Growth - The market size of China's recombinant protein industry is projected to grow from 5.1 billion yuan in 2015 to 27 billion yuan in 2024, with a compound annual growth rate (CAGR) of 20.34% [1][15] - The global recombinant protein market is expected to increase from $7 billion in 2015 to $18.5 billion in 2024, with a CAGR of 11.4% [13][14] Policy Support - The Chinese government has implemented various policies to encourage technological innovation and market expansion in the biopharmaceutical sector, including funding support for research and expedited drug approval processes [9][10] Industry Chain - The upstream of the recombinant protein industry includes raw materials and equipment, while the midstream consists of recombinant protein products, and the downstream includes customers such as research institutions and pharmaceutical companies [10] Competitive Landscape - The recombinant protein market is characterized by a diverse and dynamic competitive landscape, with major multinational pharmaceutical companies like Pfizer, Roche, and Novartis leading the market, while numerous small and medium-sized enterprises focus on innovative technologies [16][17] Development Trends - The industry is moving towards high-end products, focusing on complex structures and high-value proteins, with an emphasis on product activity, purity, and consistency [18] - Intelligent technologies, including AI and machine learning, are expected to enhance research and production processes, improving efficiency and product quality [19][20] - Chinese recombinant protein companies are increasingly participating in global competition, aiming to meet international standards and establish a strong global presence [21]

Core Viewpoint - The report outlines the continuous supervision and compliance of Suzhou Nearshore Protein Technology Co., Ltd. after its IPO on the Sci-Tech Innovation Board, emphasizing the company's adherence to regulations and its operational performance despite financial losses. Continuous Supervision Work - The sponsor has established a robust continuous supervision system and work plan for the company, ensuring compliance with relevant regulations and effective communication [1][2] - The sponsor conducted regular visits, due diligence, and checks to monitor the company's operations and compliance with laws and regulations [1][2] - Throughout the supervision period, the company did not encounter any violations or breaches of commitments that required public disclosure [1][2] Financial Performance - For the first half of 2025, the company reported revenue of approximately 72.09 million, a year-on-year increase of 20.85% [8] - The net loss attributable to shareholders was approximately 24.22 million, with a net profit excluding non-recurring items of about -26.68 million [8] - The company’s cash flow from operating activities was -14.08 million, indicating a significant decline compared to the previous year [8] Core Competitiveness - The company has developed seven comprehensive technology platforms and 23 core technologies, which are crucial for maintaining its market competitiveness [5][9] - The company emphasizes the importance of protecting its core technologies to prevent leakage, which could adversely affect its operations [5][9] - A skilled and stable technical team is essential for sustaining technological leadership and core competitiveness [5][9] Industry Risks - The RNA vaccine and drug industry is still maturing, with uncertainties in demand for mRNA raw materials and reagents in various applications [7][8] - The company faces intense competition from both domestic and international players, which could impact its market position and profitability [6][7] Research and Development - The company invested approximately 26.1 million in R&D in the first half of 2025, accounting for 36.21% of its revenue, reflecting a slight decrease from the previous year [16] - As of June 30, 2025, the company holds 38 invention patents, 22 utility model patents, and 18 software copyrights, indicating a strong focus on innovation [16] Use of Raised Funds - The company raised approximately 186.30 million through its IPO, with 174.22 million remaining after deducting issuance costs, and has complied with regulations regarding the use of these funds [17][18]

Core Viewpoint - The report outlines the ongoing supervision and compliance of Suzhou Nearshore Protein Technology Co., Ltd. following its IPO on the Sci-Tech Innovation Board, highlighting the company's financial performance, governance, and compliance with regulatory requirements [1][2][3]. Continuous Supervision Work - The sponsoring institution has established a robust supervision system and executed a work plan to ensure compliance with relevant regulations [1]. - Regular communication, site visits, and due diligence have been conducted to monitor the company's operations [1][2]. - The company has faced issues related to unauthorized share reductions by shareholders, leading to public apologies and share repurchases [2][3]. Financial Performance - The company reported a significant decline in net profit, with a loss of 54.42 million yuan, a decrease of 523.68% year-on-year, attributed to macroeconomic conditions and increased operational costs [11][12]. - Revenue for the year was 127.56 million yuan, down 16.73% from the previous year, indicating challenges in market demand and operational efficiency [11][12]. Core Competitiveness - The company has developed 23 core technologies and established seven comprehensive technology platforms, which are crucial for maintaining its competitive edge in the recombinant protein industry [12][13]. - The company emphasizes innovation and has a strong focus on R&D, with R&D expenses accounting for 39.14% of revenue, reflecting a commitment to technological advancement [20]. Industry Risks - The recombinant protein industry is characterized by intense competition and rapid technological changes, which may pose risks to the company's market position if it fails to keep pace with innovations [8][9]. - Regulatory changes and market dynamics, particularly in the mRNA vaccine sector, present uncertainties that could impact the company's sales and operational stability [10]. Governance and Compliance - The company has implemented a comprehensive internal control system and governance structure to ensure compliance with legal and regulatory standards [4][5]. - Continuous monitoring of the company's adherence to commitments and regulatory requirements is a priority for the sponsoring institution [5][6]. Talent and R&D Development - The company has a strong technical team and management, which is essential for sustaining its innovation and competitive advantage [19]. - Ongoing investments in R&D are aimed at enhancing product offerings and expanding market reach, with a focus on mRNA and diagnostic products [13][14].