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].

Core Viewpoint - The chairman of Kingdawei, Jiang Bin, emphasizes that effective market value management is achieved through solid business practices, good products, and returning profits to shareholders, society, and employees [5]. Financial Performance - In 2024 and Q1 of this year, Kingdawei achieved a net profit attributable to shareholders of approximately 340 million yuan and 120 million yuan, representing a year-on-year growth of about 23.6% and 72% respectively [5]. - The overall sales gross margin for Kingdawei in Q1 2025 was approximately 41.7% [7]. Product Margins and Competitive Advantage - The gross margins for Kingdawei's Vitamin A, Coenzyme Q10, and nutritional supplements in 2024 were 32.8%, 48.2%, and 35.2% respectively [7]. - Kingdawei leads its competitors in Coenzyme Q10 by 30 to 40 percentage points in gross margin, making it difficult for rivals to catch up in the next three to five years [7]. - The company aims to reduce costs for astaxanthin production using synthetic biology to one-fifth of traditional methods [8]. Synthetic Biology and Innovation - Jiang Bin highlights that the innovation in synthetic biology will usher in a new era of biological manufacturing, which is a disruptive innovation compared to traditional methods [8]. - The production of astaxanthin through synthetic biology allows for controlled quality and reduced costs, making it feasible to enter the high-end aquaculture feed market [8]. Expansion and Production Capacity - Kingdawei is the largest global producer of Coenzyme Q10, with an expanded production capacity of 920 tons per year after completing a 1.5 times expansion project [13]. - The company plans to further increase its production capacity to 1,200 tons and eventually to 1,500 tons, focusing on maintaining a competitive edge through capacity expansion rather than price increases [14]. Global Market Strategy - Kingdawei's overseas sales revenue in 2024 was approximately 2.57 billion yuan, accounting for nearly 80% of total revenue [14]. - The company is expanding its presence in the U.S. market through its subsidiary VitaBest, which is expected to enhance supply chain responsiveness and operational efficiency [17]. Brand Development and Market Penetration - Kingdawei owns several brands in the U.S., including Doctor's Best and Zipfizz, and aims to increase SKU offerings to penetrate major retail channels like Costco [18]. - The acquisition of Viactiv, a well-known calcium supplement brand, further enriches Kingdawei's product matrix targeting women [18].