Financial Performance - In the first half of 2025, the company achieved total revenue of 139,923.89 million yuan, a year-on-year increase of 18.02% [3] - The net profit attributable to shareholders, after deducting share-based payment expenses, was 9,532.72 million yuan, with a year-on-year growth of 32.15% [3] - The second quarter of 2025 saw revenue of 71,444.25 million yuan, a year-on-year increase of 12.63% and a quarter-on-quarter growth of 4.33% [3] Product Performance - The three core products (prebiotics, dietary fiber, and sugar-reducing sweeteners) generated revenue of 66,354.78 million yuan, a year-on-year increase of 32.15% [3] - Sugar-reducing sweeteners achieved revenue of 37,152.41 million yuan, growing by 61.22% [3] - Prebiotics generated revenue of 18,867.03 million yuan, with a year-on-year growth of 20.23% [3] - The revenue share of the three core products accounted for 47.42% of total revenue, an increase of 5.07% compared to the previous year [3] Cost Management - The overall gross margin for the first half of 2025 improved to 13.17%, up by 1.36% from the previous year [3] - The gross margin for the three core products was 17.94%, an increase of 1.93% year-on-year [3] - The company implemented cost control measures, including optimizing production processes and enhancing supply chain management to mitigate rising raw material costs [4] Business Development - In 2024, the company established projects for the annual production of 2,000 tons of DHA algae oil and 2,500 tons of HMOs (human milk oligosaccharides), which are expected to commence production in the second half of 2025 [5] - The company received approval for its HMO application as a new food nutrition fortifier in July 2025 [5] - The company is actively pursuing new product development in the field of synthetic biology, with several patents and trademarks registered in the first half of 2025 [6] Market Trends - The company noted that corn prices have been fluctuating, impacting production costs and gross margins [8] - The company’s products are primarily used in beverages, dairy products, functional foods, and health products, which typically do not exhibit significant seasonality [8] Strategic Initiatives - The establishment of a subsidiary in the United States is part of the company's strategy to enhance international business operations [9] - The company is focusing on expanding its market presence and product offerings in the field of synthetic biology and prebiotics [7]

Core Viewpoint - Tianjin Hesheng Biotechnology Co., Ltd. has completed a multi-million Pre-A round financing, which will accelerate its technological innovation in the synthetic biology field and lead new trends in health and nutrition solutions [1][2]. Group 1: Company Overview - Established in August 2023, Hesheng Biotechnology is a key technology transfer enterprise of Nankai University, gathering a leading research team in synthetic biology with nearly 30 years of experience [2]. - The company has developed a "DBTL" (Design-Build-Test-Learn) technical platform, utilizing proprietary gene element databases and self-developed AI algorithms to create high-productivity microbial strains [2]. - Hesheng Biotechnology has a comprehensive technical coverage from product research and development to downstream applications, focusing on probiotics, functional foods, and medical foods [2]. Group 2: Key Product Focus - Human Milk Oligosaccharides (HMOs) - The core technology for Hesheng Biotechnology's HMO products originates from the National Key Basic Research Program (973 Program), with the team first synthesizing HMOs in 2016 and obtaining invention patents for industrial strains [3]. - The company has developed several industrial strain construction technologies for HMOs, including 2'-FL, 3-FL, and others, with a product purity of 98.98%, significantly exceeding domestic and international quality standards [3][4]. Group 3: Research and Application - Hesheng Biotechnology is committed to independent innovation and has initiated research on the functional applications of HMOs, including their role in immune balance and disease intervention [4].