Core Viewpoint - The joint venture between Evonik (China) Investment Co., Ltd. and Shandong Blue Biological Technology Co., Ltd. has decided to dissolve and liquidate their joint venture, Evonik Blue Biotechnology (Shandong) Co., Ltd., due to unmet operational expectations and changing market conditions [2][3]. Summary by Sections Joint Venture Details - The total investment in the joint venture was 80 million RMB, focusing on GHS products, specifically probiotics for animal gut health [3]. - The joint venture was established on October 16, 2023, with the aim of developing solutions for livestock gut health and probiotic products [2]. Recent Developments - Just half a month prior to the dissolution announcement, the joint venture team presented the first registered feed Bacillus subtilis product in China, named Ecobiol® [4][5]. - This product is noted for its unique mechanism in enhancing poultry growth performance and gut health, effectively reducing pathogen infection risks and significantly improving feed conversion rates [5]. Financial Performance - Evonik's adjusted EBITDA for Q2 2025 was reported at 509 million euros, a 12% decrease compared to the same period last year [5]. - The company anticipates that if the global economy does not worsen, the adjusted EBITDA for the entire year of 2025 will reach the lower end of the forecast range (2 billion to 2.3 billion euros) [7]. - The cash conversion rate is expected to remain around 40%, with capital expenditures reduced by 100 million euros to approximately 750 million euros [7]. Upcoming Events - The fourth Synthetic Biology and Green Bio-Manufacturing Conference (SynBioCon 2025) will be held from August 20-22, 2025, in Ningbo, Zhejiang, focusing on AI and bio-manufacturing, green chemicals, new materials, future food, and agriculture [9][11]. - The conference will include various forums and discussions aimed at exploring industrial advancements and opportunities in the bio-manufacturing sector [9][11].

Investment Overview - On October 12, 2023, the company approved the establishment of a joint venture with Evonik (China) Investment Co., Ltd. to form "Evonik Blue Biological Technology (Shandong) Co., Ltd." in Huimin County, Shandong Province [2] - The registered capital of the joint venture is RMB 37.5 million, with the company contributing RMB 16.875 million (45%) and Evonik contributing RMB 20.625 million (55%) [2] Termination of Investment - The joint venture and its Qingdao branch will be dissolved and liquidated as per the reconciliation agreement signed on July 31, 2025, due to operational considerations and future business planning [4][5] - The board of directors approved the termination of the investment with a unanimous vote of 5 in favor [5] Reconciliation Agreement Details - The agreement includes the dissolution and liquidation of the joint venture and its Qingdao branch, with both parties agreeing to return relevant patents, technologies, trademarks, and strains to the company [6][8] - A new processing agreement will be signed for continued cooperation in the GHS product field, allowing both parties to independently conduct related business under applicable antitrust laws starting August 1, 2025 [9] Impact on the Company - The dissolution and liquidation of the joint venture are not expected to have a significant adverse impact on the company's operations or financial status [12] - The new agreement framework is anticipated to maintain cooperation in the GHS product area without major disruptions to existing business activities [12]