Investment Rating - The industry investment rating is "Overweight" [1] Core Views - The chemical sector's overall performance ranked 11th this week, with a change of +1.77%, outperforming the Shanghai Composite Index by 1.08 percentage points and underperforming the ChiNext Index by 1.40 percentage points [4] - The chemical industry is expected to continue its trend of differentiated performance in 2025, with recommendations to focus on synthetic biology, pesticides, chromatography media, sugar substitutes, vitamins, light hydrocarbon chemicals, COC polymers, and MDI [4] - The supply of third-generation refrigerants is entering a high prosperity cycle due to quota policies, with demand remaining stable amid market expansion [5] - The electronic specialty gases market presents significant domestic substitution opportunities due to high technical barriers and increasing demand from semiconductor, display, and photovoltaic sectors [6][8] - The trend of light hydrocarbon chemicals is becoming global, with a shift towards lighter raw materials for olefin production, which is expected to lead to a revaluation of leading companies in this sector [8] - The MDI market is characterized by oligopoly, with a favorable supply structure expected as demand gradually recovers [12] Summary by Sections Industry Review - The chemical sector's performance for the week of July 14-18, 2025, showed a rise of 1.77%, ranking 11th among sectors [22] - The top three performing sub-sectors were synthetic resins, membrane materials, and polyurethanes, while the bottom three were oil product trading, compound fertilizers, and organic silicon [24] Supply Side Tracking - A total of 155 companies in the chemical industry had their production capacities affected this week, with 1 new shutdown and 7 restarts reported [14] Key Industry Dynamics - A fire at Covestro's plant in Germany led to supply disruptions for key products, including TDI, due to a chlorine supply interruption [35] - The Ministry of Industry and Information Technology announced upcoming growth stabilization plans for ten key industries, including petrochemicals [35]

Core Viewpoint - The article highlights the upcoming SynBioCon 2025 event, focusing on the potential of synthetic biology and biomanufacturing, showcasing innovative research teams, technologies, and products in the field [2][5][14]. Group 1: Event Overview - The SynBioCon 2025 will take place from August 20-22 in Ningbo, Zhejiang, featuring a special session called the "Biomanufacturing Youth Forum" with nearly 30 presentations [2][10]. - The event aims to facilitate the exchange of innovative research outcomes and promote collaboration between researchers and industry stakeholders [2][14]. Group 2: Forum Details - The Youth Forum will include presentations from various universities and research institutions, such as Anhui University of Technology and South China University of Technology [4][5]. - The forum is designed to help attendees understand key scientific issues, solutions, and future development directions in biomanufacturing within a 15-minute format [3][14]. Group 3: Special Activities - A closed-door high-level seminar will discuss the trends and growth points of biomanufacturing as part of the event's agenda [11]. - The event will also feature project roadshows and technology showcases, inviting participation from leading parks and investment institutions [14][20]. Group 4: Thematic Discussions - The conference will cover various topics, including green chemicals, new materials, AI in biomanufacturing, and future food and agriculture [15][17][19]. - Specific focus areas include the development of bio-based materials, non-grain carbon source utilization, and the application of AI in enhancing biomanufacturing processes [18][22].

Investment Rating - The industry investment rating is "Overweight" [1] Core Insights - The report highlights the ongoing global biotechnology revolution, emphasizing its integration into economic and social development, addressing major challenges such as health, climate change, and food security. The National Development and Reform Commission has issued the "14th Five-Year Plan for Bioeconomic Development," indicating a trillion-yuan market potential in the bioeconomy [1] - The Huazhong Securities Synthetic Biology Index, which includes 58 companies involved in synthetic biology and related technologies, decreased by 2.50% to 1484.292 during the week of June 30 to July 4, 2025, underperforming compared to the Shanghai Composite Index and the ChiNext Index [2][14] Summary by Sections 1.1 Secondary Market Performance - The synthetic biology sector experienced a decline of 2.50%, ranking 32nd among various sectors during the week of June 30 to July 4, 2025 [14] 1.2 Company Business Progress - Meihua Biological completed an overseas acquisition for HMO and high-end amino acid production, with a transaction value of approximately 8.33 billion yuan [21] - Weiyuan Biological's alolose sugar received approval as a new food ingredient, becoming the first company in China to produce it through fermentation technology [21] - Jinbo Biological secured a 3.4 billion yuan investment from Yangshengtang and Hangzhou Jiushi, enhancing its R&D capabilities in collagen technology [22] - Avantium signed a supply agreement for fully plant-based PEF packaging materials, emphasizing sustainability [24] - Syzygy Plasmonics announced the launch of a sustainable aviation fuel facility, aiming to produce over 350,000 gallons annually [24] 1.3 Industry Financing Tracking - Synthetic biology companies are accelerating financing, with nearly a hundred firms completing new rounds of funding since the beginning of 2025. Zhejiang Rongrui Technology raised nearly 100 million yuan in a Pre-A round [27][28]

Core Viewpoint - Synthetic biology aims to "synthesize and design life," with significant advancements in genome synthesis and assembly, particularly in higher organisms, despite facing challenges related to repetitive sequences and cross-species DNA transfer [1][2]. Group 1: Technological Breakthroughs - Tianjin University's team achieved the first precise assembly and cross-species delivery of megabase-scale human DNA, marking a significant milestone in synthetic biology [2]. - The newly developed SynNICE technology enables the precise assembly of highly repetitive human genomic sequences in yeast and facilitates the efficient transfer of synthetic DNA into mouse embryos [3][5]. Group 2: Research Findings - The study successfully demonstrated de novo DNA methylation patterns in mouse embryos, indicating that the synthetic genome can be recognized and modified by the host cell environment [5][7]. - A hierarchical assembly strategy was employed to synthesize a 1.14 Mb region of the human Y chromosome, which is crucial for understanding male infertility [3][7]. Group 3: Implications for Disease Treatment - The research opens new avenues for treating chromosomal abnormalities and could lead to innovative therapeutic strategies for related diseases [7][9]. - The potential for using genetically modified pigs as organ donors for humans could be enhanced, addressing the global organ shortage issue by improving the longevity of transplanted organs [9][10]. Group 4: Future Prospects - The SynNICE technology platform is expected to facilitate large-scale genomic modifications, potentially transforming organ transplantation practices and enhancing the understanding of genetic diseases [11][12]. - The advancements in synthetic genome assembly and transfer techniques are anticipated to propel the field of synthetic biology forward, providing new models for studying epigenetic modifications and chromosomal disorders [10][11].

Core Viewpoint - The establishment of Huaxi Tang'an Bio-Tech in Guangming Science City marks a significant strategic deployment for Huaxi Bio, expanding its diversification beyond hyaluronic acid and establishing a global non-animal heparin full industry chain platform in the Guangdong-Hong Kong-Macao Greater Bay Area [1][3]. Group 1: Company Development - Huaxi Bio focuses on synthetic biology, emphasizing glycomics and cell biology, and has developed four major business segments: bioactive raw materials, pharmaceuticals and medical devices, skin science innovation, and nutritional science innovation [1]. - Huaxi Tang'an has achieved multi-dimensional technological breakthroughs in the field of enzyme-synthesized heparin, with applications in cosmetics, pharmaceuticals, and medical devices, particularly in preventing and treating thromboembolic diseases and cardiovascular surgeries [1][3]. Group 2: Industry Collaboration and Ecosystem - The signing ceremony involved partnerships with Guangming District, the National Bio-Manufacturing Industry Innovation Center, and private equity funds, leveraging policy and resource advantages to accelerate project development [3]. - Guangming District has attracted over 130 companies in the synthetic biology sector, with an estimated industry valuation of nearly 40 billion, establishing a comprehensive innovation ecosystem covering research, technology development, and talent support [3][4]. Group 3: Future Prospects - The establishment of Huaxi Tang'an is expected to attract more upstream and downstream enterprises in the medical beauty and cosmetics sectors, contributing to the creation of a distinctive industrial cluster in Guangming [4].

Core Viewpoint - The article highlights the upcoming Synbio China 2025 event, focusing on the integration of scientists, entrepreneurs, and investors in the field of synthetic biology, emphasizing its strategic importance for the development of China's bio-economy [33]. Event Details - The Synbio China 2025 event will take place on August 1-2, 2025, at the Suzhou International Expo Center, alongside the 7th CMC-China Expo [1]. - Confirmed attendees include experts from various universities such as Beijing University of Chemical Technology, Shanghai Jiao Tong University, and East China University of Science and Technology, as well as representatives from companies like Micro Factory and Henan Biological Industry Group [2]. Agenda Highlights - The agenda includes lectures from academicians and experts, covering topics such as the opportunities and challenges in the industrialization of synthetic biology, and innovative pathways for non-grain biomass potential [6][7]. - Specific sessions will focus on enabling technologies, including enzyme engineering and CRISPR/Cas9 applications, as well as the development of bio-based materials and their industrial applications [8][10]. Industry Challenges - The article discusses the rapid dissemination of synthetic biology concepts in China, while also addressing challenges such as achieving scalable production, realizing the value of synthetic biological products, and fostering innovation in core competitiveness [33]. Networking Opportunities - The event aims to facilitate face-to-face interactions among founders, industry experts, investors, and government representatives, providing a platform for project promotion and industry guidance [35]. Participation and Registration - Attendees are encouraged to register for free through a QR code provided in the article, ensuring access to the event and its networking opportunities [4][12]. Additional Information - The 7th CMC-China Expo is expected to attract around 20,000 participants, featuring 450 exhibiting companies and 600 invited guests, with multiple forums dedicated to cutting-edge topics in the industry [79].

Core Viewpoint - Zhejiang Province is accelerating the innovation and development of the synthetic biology industry, aiming for a total industry scale of 150 billion by 2027, with core enterprises achieving a production value of 20 billion [1][2]. Group 1: Industry Development Plan - The "Implementation Plan for Accelerating the Innovation and Development of the Synthetic Biology Industry in Zhejiang Province" outlines six major development directions, eleven regional industrial layouts, key tasks for nine universities and research institutes, and ten core technology breakthroughs [1][2]. - The plan aims to establish an internationally influential synthetic biology industry innovation development hub in Zhejiang [1]. Group 2: Alliance Formation - The Zhejiang Synthetic Biology Industry Technology Alliance, guided by the Zhejiang Provincial Department of Economy and Information Technology, is a non-profit organization initiated by Zhejiang University Hangzhou International Innovation Center, aiming to promote technological innovation and industry cultivation [2]. - The alliance will leverage the advantages of Zhejiang University in talent cultivation, technological innovation, and high-level platforms to support the synthetic biology industry [2]. Group 3: Research and Development Facilities - The Zhejiang University Hangzhou International Innovation Center has established the Bio and Molecular Manufacturing Research Institute and the iBioFoundry, the largest and most integrated automated high-throughput scientific device in the field globally [4]. - This facility enables full-process automation from sample intelligent access to product detection and is now open as a shared research platform for teams and enterprises [4]. Group 4: Upcoming Conference - The 2025 Fourth Synthetic Biology and Green Bio-Manufacturing Conference (SynBioCon 2025) will be held from August 20-22 in Ningbo, Zhejiang, focusing on AI and biological manufacturing, as well as four application areas: green chemicals and new materials, future food, future agriculture, and beauty raw materials [6][8]. - The conference aims to explore the development trends of the bio-manufacturing industry and promote the transfer and transformation of scientific and technological achievements [6].

Investment Rating - The report maintains a "Recommended" rating for the new materials industry [1]. Core Viewpoints - The new materials sector is a crucial direction for the future development of the chemical industry, currently experiencing rapid growth in downstream demand. With policy support and technological breakthroughs, domestic new materials are expected to accelerate their long-term growth. The new materials industry serves as a foundational industry, providing the material basis for other sectors. The report emphasizes the importance of identifying and tracking companies with strong core supply chains, research capabilities, and excellent management in key areas such as electronic information, new energy, biotechnology, and environmental protection [4][16]. Summary by Relevant Sections 1. Electronic Information Sector - Focus areas include semiconductor materials, display materials, and 5G materials [5]. - Recent developments include the lifting of U.S. export restrictions on chip design software to China, allowing companies like Siemens and Synopsys to resume full access for Chinese clients [6][24]. - Samsung Display and LG Display have begun procurement for the iPhone 17 series, with an expected production of approximately 110 million OLED panels [7][25]. 2. Aerospace Sector - Key materials of interest are PI films, precision ceramics, and carbon fiber [9]. - GE Aerospace has been granted permission to export jet engines to COMAC, which will supply engines for the C919 aircraft [10]. 3. New Energy Sector - Focus areas include photovoltaics, lithium-ion batteries, proton exchange membranes, and hydrogen storage materials [11]. - Major photovoltaic glass manufacturers plan to collectively reduce production by 30% starting in July, which is expected to improve the supply-demand balance in the domestic market [11]. 4. Biotechnology Sector - Key areas of focus include synthetic biology and scientific services [12]. - A new synthetic biology research platform has been established to integrate AI with synthetic biology, aiming to enhance innovation and technology development [14]. 5. Energy Conservation and Environmental Protection Sector - Focus areas include adsorption resins, membrane materials, and biodegradable plastics [15]. - The Ministry of Ecology and Environment has initiated inspections in several provinces to enhance environmental protection efforts [16]. Key Companies and Earnings Forecast - The report highlights several key companies with their respective stock prices and earnings per share (EPS) forecasts for 2024 to 2026, indicating a mix of "Buy" and "Hold" ratings based on their projected performance [17].

Group 1 - Industry Investment Rating: Overweight [1] - Core Viewpoint: The chemical sector's overall performance ranked 16th with a fluctuation of 0.80%, underperforming the Shanghai Composite Index by 0.60 percentage points [4][22] - Key Recommendations: Focus on synthetic biology, pesticides, chromatography media, sugar substitutes, vitamins, light hydrocarbon chemicals, COC polymers, and MDI [4] Group 2 - Synthetic Biology: A pivotal moment is approaching, with low-energy products expected to gain a longer growth window due to the energy structure adjustment [4] - Refrigerants: The third-generation refrigerants are entering a high prosperity cycle, with supply constraints and stable demand growth anticipated [5] - Electronic Specialty Gases: The domestic market faces a contradiction between rapid upgrades in wafer manufacturing and insufficient high-end electronic specialty gas capacity, presenting significant domestic substitution opportunities [6][8] - Light Hydrocarbon Chemicals: A global trend towards lighter raw materials in the olefin industry is noted, with a shift from heavy naphtha to lighter ethane and propane [8] - COC Polymers: The domestic industrialization process is accelerating, driven by breakthroughs in local enterprises and a shift in downstream industries to domestic production [9] - Potash Fertilizer: Prices are expected to bottom out and rebound due to supply reductions and increased demand from farmers [10] - MDI Market: The oligopoly structure is expected to improve, with demand steadily increasing and a favorable supply outlook anticipated [12]

Core Viewpoint - Guangdong Zhumei Biotechnology has achieved a significant breakthrough in the industrialization of natural high-intensity sweet protein by completing the first domestic pilot test of recombinant Brazzein using Pichia pastoris as the chassis cell, aiming for ton-level production capacity by 2026, which will greatly increase the yield of Brazzein [1][2]. Group 1: Characteristics of Brazzein - Brazzein is derived from the fruit of a wild plant in West Africa and is known to be 500-2000 times sweeter than sucrose, making it one of the sweetest natural substances known to humans [4]. - It maintains stability across a pH range of 2.5-8 and retains its sweetness even after being heated at 80°C for 4 hours or 98°C for 2 hours [5]. - As a protein, Brazzein is easily digested into amino acids, has no impact on blood sugar, and poses no health risks [6]. - It offers a clean taste similar to sucrose without metallic or bitter aftertastes, making it suitable for widespread application in the food industry [6]. - Research indicates that Brazzein may possess anti-inflammatory and antioxidant properties, with similarities to antimicrobial peptides, providing some antibacterial and antifungal activity [6]. Group 2: Market Potential and Challenges - The global market for Brazzein was valued at $500 million in 2023 and is projected to reach $790 million by 2029 [7]. - Traditional extraction methods yield very low extraction rates (~0.2%), making precision fermentation and genetic engineering the most promising methods for developing Brazzein [7]. - Current microbial expression systems face challenges such as low protein expression levels, incorrect protein folding leading to reduced activity, and complex, costly purification processes, which limit the widespread application of sweet proteins [9]. Group 3: Industry Developments - In May 2023, Sweegen successfully produced Brazzein using precision fermentation and became the first to receive FEMA GRAS certification [11]. - In 2024, Oobli's Brazzein production received FDA GRAS certification for general food applications, and they announced a partnership with Ingredion to advance sweet protein applications [11]. - Ginkgo Bioworks and GreenLab are collaborating to enhance Brazzein expression in corn and scale up production through precision fermentation [11]. - Waterdrop Farm also achieved FDA SELF-GRAS status in March 2025, becoming one of the few companies to commercialize Brazzein [11]. Group 4: Company Overview - Guangdong Zhumei Biotechnology is a high-tech enterprise specializing in the research, production, and sales of synthetic biology products, with a 1000 square meter intelligent research center [12]. - The company utilizes synthetic biology technology to efficiently produce various products, including recombinant human collagen, astaxanthin, beta-carotene, antimicrobial peptides, and lysozyme [12].