Core Viewpoint - The report highlights the financial performance and operational updates of Cathay Biotech for the first half of 2025, showcasing growth in revenue and net profit, alongside advancements in product development and market expansion in the biomanufacturing sector. Financial Performance - The company's operating revenue for the first half of 2025 reached approximately 1.67 billion RMB, representing a 15.68% increase compared to the same period last year [5] - The total profit amounted to approximately 342 million RMB, reflecting a 21.81% increase year-on-year [5] - The net profit attributable to shareholders was approximately 309 million RMB, marking a 24.74% increase compared to the previous year [5] - The company's total assets increased by 25.23% year-on-year, reaching approximately 23.82 billion RMB [5] Business Overview - Cathay Biotech specializes in the research, production, and sales of new bio-based materials, leveraging synthetic biology and biomanufacturing technologies [6] - The company has an annual production capacity of 115,000 tons for bio-based long-chain dicarboxylic acids, with ongoing projects to expand production capabilities [6] - The bio-based diamine production capacity is 50,000 tons annually, primarily used for producing bio-based polyamides [6] - The company is also developing bio-based nitrogen-containing heterocyclic compounds, which are expected to replace traditional petroleum-based products [6] Industry Context - The biomanufacturing industry is gaining traction due to increasing environmental concerns and the need for sustainable alternatives to fossil fuels [7] - The Chinese government has initiated several policies to promote the development of the bio-economy, including the integration of biotechnology and information technology [8] - The industry is positioned as a strategic emerging sector, with a focus on innovation and sustainability, aiming to achieve competitive parity with fossil-based products by 2025 [8]

Fundraising Overview - The company raised a total of RMB 5,560,621,023.10 from its initial public offering in 2019, after deducting underwriting and advisory fees, resulting in a net amount of RMB 5,279,993,815.60 [1] - In 2023, the company raised RMB 5,918,968,112.35 from a targeted issuance of A-shares, with a net amount of RMB 5,914,724,993.63 after deducting related fees [2] Fund Utilization and Balance - For the 2019 IPO, the net amount raised was RMB 529,407.39 million, with total project investments amounting to RMB 542,500.59 million, resulting in a balance of RMB 15,411.90 million as of the end of the reporting period [3] - In 2023, the net amount raised was RMB 591,750.40 million, with total project investments reaching RMB 592,079.80 million, indicating a balance of RMB 329.40 million [3] Fund Management Practices - The company has established a dedicated management system for the raised funds, adhering to relevant laws and regulations, and has implemented a special account storage system for the funds [6][10] - The company signed multiple tripartite supervision agreements with banks and underwriters to ensure proper management and usage of the raised funds [7][10] Fund Storage Status - As of June 30, 2025, the special accounts for the 2019 IPO have been fully utilized and closed [10] - The special accounts for the 2023 targeted issuance are also set to be closed following the completion of the relevant projects [11] Actual Use of Funds - The company has reported that the funds raised have been utilized in accordance with the planned investment projects, with detailed usage outlined in attached tables [12][15] - Any surplus funds from the projects have been permanently allocated to supplement working capital for daily operations [12][15]

Core Insights - The Ministry of Industry and Information Technology and the National Development and Reform Commission have initiated a program to cultivate over 20 pilot platforms for biomanufacturing by 2027, aiming to facilitate industrial scale-up [1] - Significant technological breakthroughs and industrial layouts are emerging in the biomanufacturing sector, with advancements in areas such as polysulfone plastic recycling and wool sterol synthesis [1] - The synergy between policy support and industrial development is accelerating the transition of biomanufacturing from laboratory research to large-scale industrialization, showcasing a vibrant development chain of "technological breakthroughs - policy support - capital influx" [1] Industry Developments - Synthetic biology is reshaping production models in biomanufacturing, enabling tasks that traditional biotechnologies cannot achieve, while also providing more efficient and environmentally friendly biosynthesis solutions [1] - Companies like Huaxi Biological and Yikole are extending their capabilities in synthetic biology, with Huaxi focusing on the supply chain of hyaluronic acid and Yikole leveraging CRISPR-Cas9 technology for precise gene editing [2][3] - The integration of synthetic biology with traditional industries is seen as a means to enhance productivity and create new growth opportunities, rather than a conflict [4] Technological Innovations - Companies are developing comprehensive systems in synthetic biology, focusing on tool, platform, and product integration, with significant advancements in production efficiency [3] - AI is playing a crucial role in enhancing research efficiency in synthetic biology, with companies establishing AI teams to optimize data collection and algorithm development [7] - The use of AI in the design and testing phases of synthetic biology is expected to significantly reduce research timelines and costs, improving overall productivity [7] Market Trends - The biomanufacturing industry is experiencing a wave of policy support, with various local governments implementing initiatives to promote the industrialization of synthetic biology [8] - The market for biomanufacturing in China is projected to approach 1.8 trillion yuan by 2030, indicating substantial growth potential [8] - Recent financing trends show an acceleration in investments in domestic synthetic biology companies, with nearly a hundred firms securing new funding at the beginning of 2025 [8] Future Outlook - The synthetic biology sector is anticipated to undergo rapid technological iterations and deeper application expansions in the next 3-5 years, driven by AI advancements [9] - Companies are encouraged to focus on quality improvement and original design rather than mere scale expansion, to avoid resource wastage and industry chaos [9] - The industry is expected to face dual challenges in technology transfer and industrialization, particularly in constructing microbial cell factories and overcoming engineering challenges in fermentation and purification [10]

Core Viewpoint - The article discusses the establishment and growth of Hefei Hydrogen He, a joint venture focused on bio-based materials, highlighting its strategic partnerships and financial performance of its parent company, Kaisa Bio [1][5]. Company Overview - Hefei Hydrogen He was registered on April 9, 2025, in the Hefei area of the China (Anhui) Free Trade Pilot Zone, with a registered capital of 20 million RMB, where Kaisa Bio holds a 55% stake [1]. - The legal representative of Kaisa Bio is Zhang Hongguang, who has been the Vice President since August 2019 [2]. Shareholding Structure - Kaisa Bio holds 55% of Hefei Hydrogen He, contributing 11 million RMB, while 3P.COM Corporation from South Korea holds 45%, contributing 9 million RMB [3]. Strategic Partnerships - In January 2024, Kaisa Bio signed an agreement with 3P.COM to establish a joint venture focusing on thermoplastic bio-based polyamide composite materials for hydrogen storage and transportation, urban air mobility, and wind turbine blades [3]. - Kaisa Bio has also established several other companies, including a joint venture with Ningde Times and Calai Composites, focusing on bio-based composite materials for battery casings and automotive parts [4]. Financial Performance - Kaisa Bio reported a total revenue of 2.958 billion RMB for 2024, marking a year-on-year increase of 39.91%, and a net profit of 489 million RMB, up 33.41% from the previous year [5]. Product Capacity and Sales - Kaisa Bio's total production capacity for various bio-based materials reached nearly 300,000 tons by the end of 2024, with specific capacities as follows: - Bio-based long-chain dicarboxylic acid: 115,000 tons [6] - Bio-based pentamethylenediamine: 50,000 tons [7] - Bio-based polyamide: 100,000 tons [8] - Bio-based continuous fiber thermoplastic composite materials [9]. - The main revenue sources for 2024 were long-chain dicarboxylic acid products, generating 2.670 billion RMB, and bio-based polyamide products, generating 144 million RMB [9]. Application Expansion - In March 2024, Kaisa Bio signed a cooperation agreement with China Merchants Highway and China Merchants Jinling to establish a joint laboratory for bio-based new materials, aiming to enhance performance and reduce costs in highway and green energy materials [11]. - Kaisa Bio provided low-carbon, high-performance composite materials for Qingdao Honghu Aviation Technology's RAP-AT1 active temperature-controlled container, which has entered commercial use [12].

③ 生物基聚酰胺 ，年产能10万吨。其中年产2万吨长链聚酰胺项目于2023年11月结项， 太原年产90万吨生物基聚酰胺项目正在建设中。 ④ 生物基连续纤维热塑型复合材料（Bio-PPA CFRT） ， 凯赛生物 生物基耐高温聚酰胺具有高流动性， 极大提高了聚合速度，可大比例复合连续纤维。 细分领域的上市龙头企业往往是市场风向标，作为国内生物基材料龙头企业， 【DT新材料】 获悉，4月22日， 凯赛生物 发布2024年度报告。报告指出， 凯赛生 物2024年度总营收达29.58亿元，同比增长39.91%， 创下历史新高 ； 实现归母净利润4.89亿元，同比增长 33.41%。 凯赛生物主要产品包括 生物法长链二元酸、 生物基戊二胺、 生物基聚酰胺和 生物基连续纤维热塑型复合材料等， 截至2024年底各类生物基材料总产能已达近30 万吨 ，详情如下所示： ① 生物法长链二元酸（DC10-DC18） ，年产能11.5万吨，生产线位于凯赛金乡、乌苏技术 和太原技术。其中 年产4万吨生物法癸二酸建设项目已于2022年投产。 ② 生物基戊二胺 ，年产能5万吨，生产线位于乌苏材料。 ②2025年2月，公司与福建时代泽远股权 ...

Core Viewpoint - Shanghai Cathay Biotech Co., Ltd. is conducting a private placement of A-shares, which will significantly increase the control of its major shareholder, Shanghai Yaoxiu, from 20.00% to 35.29% after the issuance, thereby consolidating the actual control of the company by Xiucai Liu's family [2][20]. Group 1: Issuance Details - The total number of shares to be issued is 137,911,755, which does not exceed 30% of the total share capital before the issuance [12][19]. - The issuance price is set at 42.97 CNY per share, adjusted from an initial price of 43.34 CNY due to previous dividend distributions [14][13]. - The total funds raised from this issuance amount to 5,926,068,112.35 CNY, with a net amount of 5,914,724,993.63 CNY after deducting issuance costs [12][26]. Group 2: Shareholder Structure - Post-issuance, the actual control of the company by Xiucai Liu's family and controlled enterprises will increase to 44.04% [20]. - The major shareholder, Shanghai Yaoxiu, will have its shareholding increased significantly, enhancing its control over the company [2][20]. - The shareholding structure complies with the listing conditions as per the relevant regulations [2][20]. Group 3: Lock-up Period and Trading - The shares issued will be subject to a lock-up period of 60 months, during which they cannot be transferred [15][27]. - After the lock-up period, the shares will be listed and traded on the Shanghai Stock Exchange's Sci-Tech Innovation Board [27]. Group 4: Company Overview - Shanghai Cathay Biotech Co., Ltd. specializes in the research, production, and sales of new bio-based materials, primarily focusing on bio-based long-chain dicarboxylic acids and bio-based polyamide products [6][7]. - The company has established long-term partnerships with international firms such as DuPont and Evonik, leveraging its leading position in the global market for bio-based long-chain dicarboxylic acids [7][20].