1.1 Background

With the implementation of China's new national standards for infant formula milk powder, the market's requirements for nutritional ratios have become more stringent, and consumer demand for comprehensive nutritional products has risen significantly. Data indicates that 98.6% of parents prioritize the comprehensiveness and scientificity of nutrition when selecting infant nutrition products. However, many milk powders and supplements on the market fall short in key nutrients, particularly lactoferrin and N-acetylneuraminic acid (Neu5Ac), making it difficult to meet infants' immune and brain development needs.

1.2 Product Introduction

The LA&N project leverages genetically engineered brewer's yeast fermentation technology to develop efficient, low-cost infant nutritional supplements, with primary components including lactoferrin and N-acetylneuraminic acid. Traditional formula milk powders contain approximately 0.1-0.3g/L of lactoferrin, far less than the 2-4g/L found in breast milk. Meanwhile, the Neu5Ac content in commercially available milk powders is extremely low, often insufficient to support infant neurological development. Our product significantly enhances the content of these two components through technological means, bridging the nutritional gap. Through experimental iterations, it is estimated that each liter of culture medium can produce 1.2g of lactoferrin and approximately 6g of Neu5Ac.

1.3 Why Choose Us?

• Compliance with New National Standards for Precise Nutritional Supplementation: Our products strictly adhere to the new national standards for infant formula milk powder, providing lactoferrin and N-acetylneuraminic acid to comprehensively address the nutritional deficiencies of existing products, thereby enhancing infants' immunity and brain development.
• Environmentally Friendly and Safe Manufacturing Process: By utilizing brewer's yeast fermentation technology, our production process significantly reduces production costs while being more environmentally friendly, minimizing reliance on animal resources and aligning with sustainable development requirements. Furthermore, the biological fermentation process ensures greater safety, stability, and reliable product quality.
• Strong Market Demand with Affordable Prices: Data shows that 98.6% of consumers seek comprehensively nutritious products, particularly in low- and middle-income families and tier-3 cities and below. Our products cater to this market demand with high cost-effectiveness, offering immense market potential.
  
• Diversified C-end Product Layout: Beyond B2B collaborations, we will introduce a variety of C-end products in the future, covering different infant nutritional needs, satisfying families' diverse demands for convenient, safe, and scientifically formulated nutritional supplements, thereby expanding our market share.
• Wide Range of Application Scenarios: Our products can be used as an enhanced formula for milk powder or sold independently, suitable for families with insufficient or no breastfeeding, assisting parents in providing more scientific nutritional solutions for infants.

2.1 Industry Pain Points

2.1.1 Inadequate Breastfeeding

The World Health Organization recommends exclusive breastfeeding for infants up to six months after birth, but according to a report published by the China Development Research Foundation, China's exclusive breastfeeding rate is only 29%, lower than the global average of 43%. The main reasons include: China's female employment rate stands at 59.84%, with maternity leave generally shorter than six months, and most provinces and cities have yet to meet this standard. Additionally, there is a lack of awareness about breastfeeding, with only 58.3% of the country recognizing the importance of exclusive breastfeeding, and this awareness is particularly low in small and medium-sized cities.

2.1.2 Severe Nutritional Deficiency

The content of lactoferrin and N-acetylneuraminic acid (Neu5Ac) in formula milk powder is generally much lower than that of breast milk, failing to provide sufficient nutrition for infants. Breast milk contains 2.5g/L of lactoferrin, while most commercial formula milk powders contain only 0.05g/L, significantly impacting infants' immune system development. Meanwhile, Neu5Ac, a crucial component for brain development, is present in extremely low levels in most formula milk powders, directly affecting infants' cognitive development and neurological health.

Food	Average Lacoferrin Content	Lacoferrin Content Range
Colostrum (<28 days)	4.9g/L	0.3~17.9g/L
Mature Breast Milk (>28 days)	2.1g/L	0.4~4.4g/L
Fresh Cow's Milk	0.1g/L	0.02~0.2g/L

Data Source: Expert Consensus on the Health Effects of Lactoferrin in Humans (published by the Maternal and Child Nutrition Branch of the Chinese Nutrition Society)

2.1.3 Demand for High-Quality Formula

iiMedia Research data reveals that when selecting infant formula, consumers prioritize the scientific nutritional ratio (75.1%) and comprehensive high-level nutrition (52.9%). Market expectations for infant milk powder have surpassed basic nutritional provision, shifting towards deeper scientific ratios and nutritional balance. Furthermore, our questionnaire survey indicates that 66.74% of consumers believe formula milk powder is inferior to breast milk in nutrition, further driving the demand for cost-effective nutritional supplements.

2.1.4 Economic Burden of High-Cost Products on Families

High-end infant nutritional products are expensive, imposing significant financial pressure on families. 46.3% of consumers consider price a crucial factor. For low- and middle-income households, price becomes a pivotal factor in purchasing decisions. The market urgently needs cost-effective alternatives.

2.2 Market Opportunity Analysis

2.2.1 Policy-Driven Market Growth

According to Euromonitor data, the infant formula market size reached 157.2 billion yuan in 2023. With the implementation of China's two-child and three-child policies, the demand for infant products has surged significantly, stimulating an increase in the number of newborns and driving the expansion of the infant nutrition product market.

2.2.2 Rapid Global Market Growth

The global infant formula sales are projected to have substantial growth, increasing from USD 50,126 million in 2024 to USD 1,15,326 million by 2034. The market is expected to surge at a CAGR of 8.7% during the forecast period.

2.2.3 Tremendous Potential in Tier-3 and Below Markets

According to iMedia Research survey data, 72.6% of infant formula consumers are female, with over 70% of these consumers concentrated in tier-3 cities and below. With economic development and rising incomes in these regions, more than 40% of households have a monthly income ranging from 5001 to 10,000 yuan, leading to a notable increase in the demand for quality and safety in infant formula. This indicates that the tier-3 and below markets hold immense growth potential, particularly in the realm of cost-effective and comprehensive infant nutrition supplements, which will become crucial target markets in the future.

2.2.4 Consumers' Focus on Comprehensive Nutrition

iiMedia Research survey data reveals that 76.1% of consumers expect infant formula to provide not only basic nutrients but also additional premium nutrients to ensure a more comprehensive nutritional supplement. Beyond concerns about nutrition and safety, consumers also prioritize reasonable pricing and convenience of use.

2.2.5 Economic Factors Influencing Purchase Decisions

As residents' income levels increase, consumers are paying closer attention to cost-effective infant nutrition products. According to iiMedia Research, 45.3% of consumers consider price to be a crucial factor in their purchase decisions. Especially in the tier-3 and below markets, offering nutritional supplements with high cost-effectiveness and compliance with new national standards is expected to gain widespread market acceptance.

Factor	Analysis
Political	- Government policy support: China has implemented the two-child and three-child policies to encourage childbirth, which will increase the number of infants and toddlers and promote the growth of the infant nutrition market. Meanwhile, the government has introduced a series of policies to encourage the development of the mother and baby industry, further boosting the demand for related products. - Laws, regulations, and safety standards: The government has strengthened the supervision of safety standards for products such as infant formula milk powder. After the implementation of the new national standard, the nutrition industry has entered a more stringent regulatory era to ensure the safety and quality of infant nutritional supplements. - Industrial support: The national support for the biotechnology industry helps reduce production costs, especially the application of genetic engineering and fermentation technology in infant nutrition products, which has been encouraged by government policies.
Economic	- Rising Parenting Costs: Despite the decline in birth rates, the demand for high-quality infant nutrition products remains robust among Chinese families. Market research indicates that the market size of infant nutrition products in China is projected to reach USD 1.38 billion by 2030. Parenting costs have become a crucial factor influencing consumer choices, with middle- and low-income families exhibiting a strong demand for cost-effective products. - Income Growth and Consumption Upgrading: From 1980 to 2023, China's per capita disposable income has continued to grow, reaching 39,218 yuan in 2023. With the increase in income, families are more inclined to choose high-quality and comprehensively nutritious products for infants and toddlers, particularly in the lower-tier markets where consumption potential is significant. - Price Sensitivity: Data suggests that over 60% of middle- and low-income households prioritize price factors when purchasing infant nutrition products, driving market opportunities for cost-effective nutritional supplement products.
Social	- Increasing Pressure on Working Women: With the rise in female employment rates (reaching 59.84% in 2020), more and more mothers face the challenge of balancing work and parenting. This has led to an increased demand for convenient and efficient infant nutrition supplements, particularly those that cater to immune system and brain development needs. - Enhanced Health Awareness: Parents are paying increasing attention to the health of their infants and toddlers, with a particular focus on nutritional needs for boosting immunity and promoting brain development. Growing awareness among parents about ingredients such as lactoferrin and N-acetylneuraminic acid (Neu5Ac) has fueled the demand for functional nutrition products in the market.
Technological	- Biotechnology Breakthroughs: Advances in genetic engineering and fermentation technology have significantly reduced the production costs of high-value nutrients such as lactoferrin and Neu5Ac. Compared to traditional extraction processes, fermentation technology enables large-scale production of these ingredients, greatly enhancing production efficiency and substantially lowering costs. - Digital Transformation: The development of e-commerce platforms and the prevalence of digital marketing strategies have made it more convenient for consumers to access information and purchase infant nutrition products. In particular, the rise of e-commerce channels in lower-tier markets has further boosted product sales and consumer education.

3.1 Product Overview

Our product is an infant nutrition supplement that primarily utilizes Saccharomyces cerevisiae (brewer's yeast) to produce Lactoferrin and N-acetylneuraminic acid (N-acetylneuraminic acid, Neu5Ac). These two components are abundant in breast milk but are often present in insufficient quantities in formula milk to meet the needs of infants and toddlers. Our goal is to leverage low-cost biotechnology to produce these vital nutrients as supplements to existing infant formula, thereby enhancing infant health and development.

3.2 Technical Solutions

Brewer's Yeast Production Platform: We have selected the widely used BY4741 strain of Saccharomyces cerevisiae, renowned for its high safety profile and ease of genetic manipulation, as our production platform. Through genetic engineering, we have successfully introduced the synthetic genes for human lactoferrin and N-acetylneuraminic acid into yeast cells, enabling the biosynthesis of these target products.

Plasmid Vector Design and Gene Introduction: We employ the pESC-URA vector, a commonly used protein expression plasmid in Saccharomyces cerevisiae, which utilizes galactose induction for gene expression, eliminating the need for toxic inducers. This plasmid system ensures the safe and efficient production of human lactoferrin and Neu5Ac by our engineered strains.

3.3 Experimental Validation

Lactoferrin Synthesis and Validation: We have amplified the human lactoferrin gene via PCR and successfully expressed it in Saccharomyces cerevisiae. Using various techniques, including fluorescent labeling, we have verified the synthesis of lactoferrin. Moving forward, we plan to adopt a fed-batch fermentation approach based on the culture medium, anticipating a yield of 1200 mg·L^-1.

N-Acetylneuraminic Acid Synthesis and Validation: By introducing two key synthetic genes (age and neuB), we have successfully achieved the biosynthesis of N-acetylneuraminic acid and quantified its yield through colorimetric assays. Our next step involves optimizing the Neu5Ac production process in Saccharomyces cerevisiae through high-density fermentation and metabolic engineering techniques, aiming to enhance the expression of key enzymes and block competing metabolic pathways. This is expected to increase the Neu5Ac yield to 6 grams per liter, significantly improving production efficiency and reducing costs.

3.4 Product Advantages

Cost-Effectiveness: Traditional methods require 14 kilograms of milk to extract just 1 gram of lactoferrin, making it highly expensive. In contrast, our Saccharomyces cerevisiae fermentation method offers significant cost advantages. By employing appropriate density enhancement and fed-batch fermentation techniques within the same batch of culture medium, we can significantly reduce production costs and achieve large-scale production. This makes our product more affordable, particularly for middle- and low-income families.

Better Absorption and Safety: The lactoferrin synthesized using human genes is structurally and functionally identical to that naturally produced by the human body, resulting in higher absorption efficiency and bioavailability. This also minimizes the risk of allergic reactions associated with lactoferrin.

Scientific Basis and Technological Innovation: Our product represents the first successful attempt by an iGEM team to produce human lactoferrin in Saccharomyces cerevisiae, and there is no precedent in the literature for Neu5Ac production in this yeast strain. This innovation provides a solid foundation for subsequent large-scale production and further technical optimization.

3.5 Product Applications

Breast Milk Substitutes and Supplements: Our product is suitable for mothers who cannot breastfeed or families seeking to provide additional nutrition to their infants. The supplementation of lactoferrin and Neu5Ac helps boost infants' immunity and promote brain development, which is crucial during the early stages of life when the immune system is still developing. In the future, we plan to use direct yeast inactivation to create chewable tablets, further reducing costs.

4.1 Business Model

4.1.1 Revenue Streams

- B2B Model: Collaborate with midstream maternity and infant product companies and milk powder manufacturers to incorporate our lactoferrin and N-acetylneuraminic acid (Neu5Ac) as fortifying ingredients, directly supplying to enterprises to promote the market upgrade of existing formula milk powder in the form of functional nutritional products. Maternity and infant brands can enhance their product competitiveness by using our ingredients, driving our sales revenue simultaneously.
- B2C Model: Sell our independent nutritional supplement products directly to end consumers through online e-commerce platforms (such as Tmall, JD.com, Douyin, etc.) and offline maternity and infant retail stores, catering to families who cannot breastfeed or require nutritional supplements.
- Brand Partnerships & Licensing: Collaborate with well-known maternity and infant brands to promote our products under their names, generating brand partnership fees or licensing income.

4.1.2 Customer Segments

User Characteristics	Description
Demographics	Primarily females, especially of childbearing age, who dominate household purchasing decisions.
Geographic Distribution	Consumers from tier-3 cities and below constitute the majority, with significant market growth potential in these regions.
Income Level	Middle-to-low-income households with monthly incomes ranging from 5,000 to 10,000 yuan, price-sensitive, and focused on product cost-effectiveness.
Age Range	Primarily young and middle-aged parents aged 25-39, actively parenting and highly demanding of infant products.
Purchase Channels	Tier-1 cities favor offline channels, while tier-3 and below cities rely heavily on online shopping.
Needs	Emphasize comprehensive nutrition and safety, preferring cost-effective and reliable branded products.
Consumption Trends	Favor products with clear brand backgrounds, rich nutritional content, efficient and convenient purchasing channels, and excellent after-sales services.

4.1.3 Channels

- Corporate Partnership Channels: Collaborate with milk powder manufacturers and maternity companies to integrate lactoferrin and Neu5Ac into their formula milk powders, directly entering the end market.
- E-commerce Platforms: Utilize platforms like Tmall, JD.com, Douyin, etc., to directly sell our branded nutritional supplements.
- Offline Maternity Stores: Partner with large chain maternity retail stores (e.g., Kidswant) to ensure product visibility and sales opportunities, particularly in tier-3 and below cities.

4.1.4 Cost Structure

- R&D Costs: Continuous investment in R&D to optimize brewing yeast fermentation processes, enhance lactoferrin and Neu5Ac production efficiency, reduce costs, and ensure high-quality production capabilities.
- Production & Manufacturing Costs: Involving raw material costs, upgrades in fermentation and purification technologies, and subcontracting fees.
- Marketing & Promotion Expenses: Including online advertising, KOL collaborations, participation in maternity and infant industry exhibitions, with a focus on e-commerce channel promotions and sales promotions.
- Distribution Costs: Sales commissions incurred through online platforms and offline retail store collaborations.
- Raw Material Costs
- Logistics & Warehousing Fees

4.2 Business Model Canvas

Factor	Description
Key Partners	Maternity and infant product companies, milk powder manufacturers, offline maternity retailers, and e-commerce platforms (Tmall, JD.com, Douyin, etc.). Collaborate with these partners to promote lactoferrin and Neu5Ac products.
Core Business	Leverage genetic engineering and fermentation technology to produce lactoferrin and Neu5Ac at low costs, we provide efficient nutritional supplements for infants and young children, thereby fulfilling the market's demand for comprehensive nutrition.
Value Proposition	Offer cost-effective, lactoferrin and Neu5Ac-rich infant nutritional supplements, enhancing maternity brand competitiveness and meeting the high-quality nutrition demands of middle-to-low-income families.
Customer Relationships	Establish long-term cooperation with maternity product companies, enhancing brand awareness through partnerships, providing online and offline support, and fostering consumer loyalty.
Channels	Sales through maternity product companies, milk powder manufacturers, online e-commerce platforms (Tmall, JD.com, etc.), and offline maternity stores.
Customer Segments	Maternity product companies and milk powder manufacturers (B2B); middle-to-low-income families, non-breastfeeding households, particularly in tier-3 and below cities (B2C).
Key Activities	Product R&D, production, and supply chain management; collaborate with maternity brands for marketing and branding; continuous process optimization and technological R&D.
Key Resources	Fermentation technology platform, R&D team, subcontractors, partner networks, and marketing resources.
Revenue Streams	B2B ingredient sales, B2C direct product sales, and licensing fees from brand partnerships.
Cost Structure	R&D costs, production costs, marketing expenses, distribution costs, packaging, and transportation/storage costs.

Taking the first year's production plan as an example, it is projected to produce 100kg of Neu5Ac and 20kg of lactoferrin in the first year, requiring approximately 25,000L of culture medium.

Anticipated mass production process parameters for the future:
- Neu5Ac yield: 6g/L
- Lactoferrin yield: 1.2g/L
- Glucose concentration in culture medium: 25g/L
- Reuse of culture medium: 3 times (initial fermentation once, reuse twice)
- Quantity of each feed: 25% of the culture medium

Culture Medium Usage:
- Initial culture medium volume: 1L
- Volume of culture medium added each time: 25% × 1L = 0.25L
- Total volume of culture medium in 3 cycles: 1 + (0.25×2) = 1.5 L

Antifoam Demand:
- Total glucose required in 1.5 liters of culture medium: 1.5 L × 25 g/L = 37.5 g
- Buffer Demand: 1.5L × 0.5g = 0.75g
- Antifoam Demand: 1.5L × 0.25g = 0.375g

5.1 Raw Material Costs

Consumable	Unit Price	Quantity Required	Total Cost
YPD Culture Medium	1.6＄/L	25000L	40000＄
Glucose	2＄/kg	625kg	1250＄
Buffer	1.3＄/kg	12.5kg	16.25＄
Antifoam	4.8＄/kg	6.3kg	30.24＄
Total Cost			41296.49＄

5.2 Production Costs

For the first phase, we have outsourced production to a factory in China. Based on the first year's production volume, the quoted price from the contract manufacturer is $5,000.

5.3 Marketing Costs

- Registration Fees: Joining platforms like JD.com and Taobao requires approximately $708.80 in registration fees, laying the groundwork for future consumer-facing products.
- Content Creation: The primary marketing strategy for the first year involves self-produced content through in-house teams. The budget for registering domains and setting up accounts is $1,000.

5.4 Distribution Costs

Given the low production volume in the first year, we plan to primarily sell products directly. However, we have allocated a 15% commission for distributors, anticipating sales of 100,000 worth of products to distributors, resulting in distribution costs of 15,000.

5.5 Shipping Costs

- B2B Shipments: Initially, all shipments will be made to B2B customers using truck transportation. For the first year's trial production of 120kg, the transportation cost via postal services is estimated to be less than $200.
- C2C Shipments (Future): For future consumer-facing products, we anticipate using SF Express for nationwide delivery.

5.6 R&D Costs

The founding team members will receive a basic salary of 8,500 per person per year, resulting in a total annual cost of 144,500 for the first year. This covers the salaries of the team members dedicated to research and development activities.

Item	Cost
Laboratory Fixed Assets	$42,000
Enzymes	$15,000
Chemical Consumables	$4,200
Disposable Laboratory Equipment	$4,200
Other Expenses	$4,200
Total Cost	$69,600

5.7 Cost Summary

Project Component	Cost (USD)
Material Costs	$41,296.49
Production Costs	$5,000
Marketing Costs	$1,708.80
Distribution Costs	$15,000
Shipping & Packaging Costs	$200
Labor Costs	$144,500
Research & Development Equipment Costs	$69,600
Office Costs	$15,000
Total Cost	$292,305.29

6.1 SWOT Analysis

	Strengths	Weaknesses
Internal Factors	Technical Superiority: Through genetic engineering and fermentation technology, we have significantly reduced the production costs of lactoferrin and Neu5Ac. Cost Advantage: Compared with traditional bovine milk extraction methods, the newly developed fermentation production costs are significantly lower, making it suitable for large-scale production. High Nutritional Value: Lactoferrin and Neu5Ac can enhance immunity and promote brain development, compensating for the deficiencies in existing formula milk powders. Market Flexibility: Can be sold as an enhanced ingredient for formula milk powder or as an independent supplement.	Technical Complexity: The production process is complex, which may lead to extended research and development cycles or technical malfunctions. Low Brand Recognition: As an emerging brand, market awareness is relatively low. Dependence on Partners for Promotion: Product promotion relies on collaboration with maternal and infant brands and milk powder manufacturers.
	Opportunities	Threats
External Factors	Market Demand Growth: The global infant nutrition market is experiencing rapid growth, especially in the Asia-Pacific region. Policy Support: Governments encourage childbirth and the development of infant nutrition products, providing policy benefits for these products. Health Consumption Trend: There is an increasing demand for functional nutritional products among consumers, creating market opportunities. E-commerce Channel Expansion: The development of e-commerce offers new opportunities for direct sales to consumers.	Market Competition: Major brands have strong market influence and may launch similar products. Regulatory Complexity: Infant nutrition products are subject to strict regulations, which can pose compliance challenges for market entry. Supply Chain Risks: Global supply chain issues could impact production and delivery. Consumer Trust Issues: Some consumers have low acceptance of genetic engineering technology.

	SO	WO
Strategies	Technology and Market Integration: Utilizing leading technology and cost advantages to meet the rapidly growing demand in the global infant nutrition market. Product Differentiation: Launching products rich in lactoferrin and Neu5Ac to cater to health consumption trends and enhance the competitiveness of formula milk powders. E-commerce Expansion: Rapidly penetrating the market through e-commerce channels, covering middle- and low-income families, and increasing market share. Policy Support: Leveraging government support for fertility policies to quickly expand the infant nutrition product market.	Brand Enhancement: Collaborate with well-known maternal and infant brands to increase product trust and market awareness. Technical Optimization: Continuously optimize production processes to shorten research and development cycles and improve production efficiency. Cooperative Promotion: Rely on policy support and partnerships with major brands to reduce promotion difficulties and quickly enter the market. Channel Expansion: Increase brand exposure and consumer acceptance through both e-commerce and offline channels.

	ST	WT
Strategies	Technical Advantage to Compete: Leverage our leading genetic engineering and fermentation technologies to maintain cost advantages, launch more competitive products, and withstand market competition from major brands. High Nutritional Value Enhances Consumer Trust: Emphasize the scientific value of lactoferrin and Neu5Ac, enhancing the product's positive impact on infant health and increasing consumer trust in products using genetic engineering technology. Multi-channel Distribution Reduces Supply Chain Risks: Through online and offline multi-channel distribution, reduce the risks associated with supply chain disruptions to ensure stable product supply.	Accelerate Brand Promotion to Resist Market Competition: Enhance brand awareness through targeted marketing and cooperative promotion, reducing the competitive pressure due to low brand recognition. Strengthen Regulatory Compliance Management: Establish a dedicated compliance team to ensure products meet the regulatory requirements of different countries, minimizing delays in product launches and compliance risks. Strengthen Supply Chain Management: Optimize the supply chain system to ensure the stability of raw material supplies, reduce the impact of global supply chain uncertainties, and ensure smooth production and delivery.

Through SWOT analysis, we have significant technological advantages, including low-cost production of lactoferrin and Neu5Ac through genetic engineering and fermentation technology, providing strong competitiveness for our products in the rapidly growing infant nutrition market. We can leverage technological innovation to address market demand growth while quickly enhancing market awareness through collaboration with well-known brands and expansion of e-commerce channels.

In terms of addressing weaknesses and threats, we will optimize research and development processes, strengthen brand promotion, and manage supply chains effectively to ensure smooth market entry and stable supply of our products. Our overall strategy will fully leverage our technological and cost advantages, seize market opportunities, and effectively respond to intense market competition and regulatory challenges.

6.2 Competitive Product Analysis

7.1 Year 1: Product Development and Initial Market Promotion

7.1.1 Production Volume and Revenue

Initial small-scale production: targeting 20kg of lactoferrin and 100kg of N-Acetylneuraminic Acid (Neu5Ac). This phase focuses on small-scale testing and promotion within the Chinese domestic market.

Ingredient	Market Price (USD/kg)	LA&N Unit Price	Production (kg)	Revenue (USD)
Lactoferrin	1500	800	20	16,000
Neu5Ac	6000	3500	100	350,000
Total Revenue	-	-	-	366,000

Based on cost estimates, the first-year total expenses are expected to be close to USD 300,000, resulting in a profit of approximately USD 70,000.

7.1.2 R&D Plan

• First Half: Optimize the production of lactoferrin and Neu5Ac to ensure process stability and achieve targeted yields (lactoferrin: 1.2g/L, Neu5Ac: 6g/L). Ensure compliance with infant nutrition standards.
• Second Half: Conduct small-scale clinical trials to ensure product safety and obtain relevant market certifications. Prepare for mass production and scale-up.
• C-end Product Preparation: Initiate research on C-end consumer needs, laying the foundation for C-end product development and marketing strategies in Year 2.

7.1.3 Sales Channel Expansion

- B2B Collaboration: Partner with major milk powder manufacturers in China and Southeast Asia to promote lactoferrin and Neu5Ac as functional additives for enhanced formula milk powder.

7.2 Year 2: Market Expansion and Technology Enhancement

7.2.1 Production Volume and Revenue

Increased Production: Aim for 100kg of lactoferrin and 500kg of Neu5Ac products.

Ingredient	LA&N Unit Price	Production (kg)	Revenue (USD)
Lactoferrin	780	100	78,000
Neu5Ac	3300	500	1,650,000
Total Revenue	-	-	1,728,000

7.2.2 R&D Plan

• First Half: Optimize product formulations, introduce second-generation products to reduce production costs and enhance market competitiveness. Develop new nutritional supplements tailored for Southeast Asia and the Middle East markets.
• Second Half: Initiate international market certifications to comply with standards in the US, Europe, and other international markets, preparing for global entry.
• C-end Product Development Commence C-end product development, determining product forms based on market research, planning for standalone nutritional supplements and ready-to-drink nutritional beverages.

7.2.3 Sales Channel Expansion

• Market Expansion Expand into Southeast Asia, Japan, and Korea, increase presence in offline maternal and child retailers, and strengthen layouts on cross-border e-commerce platforms (e.g., Amazon, Lazada).
• C-end Product Preparation Leverage TikTok, Xiaohongshu, maternal and child KOLs for brand promotion, building anticipation for C-end product launches.

7.3 Year 3: Market Boom and C-end Product Launch

7.3.1 Production Volume and Revenue

• Anticipate large-scale production and launch of C-end products, initially introducing a small-scale nutritional supplement:

Ingredient	LA&N Unit Price	Production (kg)	Revenue (USD)
Lactoferrin	700	200	140,000
Neu5Ac	3000	1000	3,000,000
Standalone Nutritional Supplements	10	500 cans	5,000
Total Revenue	-	-	3,145,000

7.3.2 R&D Plan

• First Half Complete R&D for high-end customized infant nutrition product lines, such as for premature babies and infants with allergies. Develop nutritional products for pregnant women, mothers, and children to expand the market.
• Second Half Implement fully automated production lines to further enhance efficiency and reduce costs.

7.3.3 Sales Channel Expansion

• Global Expansion Intensify global promotion, fully covering North America, Europe, and the Middle East, becoming a significant player in the global nutrition sector.
• Diversified Sales Strategies Officially launch C-end products, introducing a subscription-based nutritional supplement service for regular delivery and personalized recommendations.

7.4 Future C-end Product Launch Plan

7.4.1 Product Forms

• Standalone Nutritional Supplements Series Capsules or powders of lactoferrin and Neu5Ac, convenient for parents to provide immune and brain development support for infants in daily life.
• Portable Ready-to-Drink Nutritional Beverages For busy families, offering instant nutritional replenishment.
• Supplementary Food Additives Facilitating parents to easily add key nutrients to daily complementary foods, providing healthy and nutritious meal options.
• Dry Chewable Tablets Cost-effective products produced through direct inactivated yeast, providing nutritional supplements for infants from low-income families.

7.4.2 Marketing and Promotion

• Brand Building: Boost brand awareness through KOLs and maternal and child communities, cultivating a scientific and trustworthy image. Emphasize the nutritional value of lactoferrin and Neu5Ac and their crucial roles in immunity and brain development.
• Channel Expansion: Sell directly to consumers through e-commerce platforms, combined with offline maternal and child stores. Offer subscription services to enhance customer loyalty.

8.1 Financing Sought

5 million RMB (approximately USD 750,000)

8.2 Fund Utilization Plan

8.2.1 Product R&D and Technological Optimization (40% - 2 million RMB)

• Technological Optimization: To further optimize the fermentation production processes for lactoferrin and N-Acetylneuraminic Acid (Neu5Ac), ensuring increased yield and cost control.
• Product Development: To develop an initial small-scale line of nutritional supplements, such as individually packaged lactoferrin and Neu5Ac powders or capsules.
• Product Testing and Certification: To ensure compliance with relevant regulations in China and target markets, conduct preliminary clinical safety tests, and obtain approvals from regulatory agencies.

8.2.2 Small-Scale Trial Production (30% - 1.5 million RMB)

• Trial Production Equipment Procurement and Deployment: To purchase trial production equipment and raw materials, supporting the first phase of small-scale production with a target monthly output of approximately 5 tons.
• Production Line Setup and Optimization: To set up and optimize the small-scale production line, ensuring process stability, particularly the continuity and stability of the fermentation process.

8.2.3 Market Research and Brand Building (20% - 1 million RMB)

• Market Research: To conduct a thorough analysis of infant nutrition demands in target markets (China and Southeast Asia), understand consumer preferences and potential buying behaviors towards lactoferrin and Neu5Ac products, providing data support for subsequent marketing efforts.
• Initial Brand Building: To collaborate with key opinion leaders (KOLs) in the parenting space and leverage social media platforms to initially promote the brand, particularly enhancing brand awareness on e-commerce platforms like Tmall and JD.com, as well as offline parenting communities.

8.2.4 Initial Sales and Channel Expansion (10% - 0.5 million RMB)

• E-commerce Platform Launch: To launch initial products on mainstream e-commerce platforms such as Tmall and JD.com, conducting online promotions and test sales to gauge market response.
• B2B Partnership Promotion: To negotiate partnerships with domestic parenting brands and milk powder manufacturers, promoting functional nutritional additives into the market to enhance milk powder formulations.

8.3 Goals of the Financing Plan

• Short-Term Goals: Through the angel round of funding, optimize technology and production processes, complete small-scale trial production, and preliminarily introduce products in China and Southeast Asian markets.
• Long-Term Goals: After completing product testing and market research, successfully enter the A-round of funding to expand production capacity and market coverage, achieving large-scale sales of products within the domestic market.

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