2.1 Vision

NAIS Biotechnology Company, established on February 1, 2024, has embarked on a journey of exploration in the field of food health with a firm stride. Led by the legal representative, Si Xiang, the company has brought together a group of passionate and dream-driven explorers. We share a grand vision—to significantly improve people's quality of life through our efforts. Our core mission is focused on enhancing public understanding and widespread support for anti-glycation diets. In this process, we are committed to raising awareness and concern for anti-glycation populations, including diabetics and fitness enthusiasts, aiming to provide them with more scientific and healthy dietary solutions.

NAIS Biotechnology Company is not content with the status quo; we aspire to be pioneers driving industry progress. By continuously developing innovative products, we aim to directly benefit the vast number of diabetics, making their lives better through our efforts. We believe that through the power of science and relentless pursuit, NAIS Biotechnology Company can lead a revolution in healthy eating, contributing to the overall well-being of society.

2.2 Team

Our startup team consists of 20 people, led by Thinker Si, and the Research&Develop team is led by Xiaoxi Wang. The team members include:Botao Wang,Yuliang Wang,Zixuan Qu,Zien Wang,Kexin Chen,Pinan Chen,Xiaoran Hu,Xinjia Shen,Mingkai Zhu.Responsible for our product development and technical support. The Ministry of Commerce is led by Zhuojing Mao and is divided into the Marketing Department and the Publicity Department.

The marketing department is mainly led by Xinyi Wu, and the team members include:Yuliang Zhong,Cheng Xu,Jingyu Shan The publicity department is led by Zihan Chen, and the team members are:Yujia Li,Ke Zhang,Ziqing Ye.

Financial management is handled by Ziqing Ye.

3.1 Industry Overview

In recent years, the global rise in health awareness, particularly the deepening understanding and widespread attention to anti-glycation diets, has injected unprecedented vitality and opportunities into the anti-glycation food market. This market primarily serves individuals who need to strictly control their sugar intake for health reasons or lifestyle choices, including but not limited to diabetics, those aiming for a healthy physique through weight loss or fitness, and a broad range of health-conscious consumers. With the continuous advancement of scientific research and the popularization of consumer health knowledge, the market potential and development prospects of anti-glycation foods are becoming increasingly apparent.

From a global market perspective, the demand for anti-glycation foods is growing rapidly. Data from the International Diabetes Federation reveals a staggering fact: the global diabetes drug market reached $65.6 billion in 2022, a year-on-year increase of 16%. This figure reflects the urgent need of billions of diabetics to effectively control their blood sugar levels and indicates the enormous potential of the anti-glycation food market. Particularly in Asia, especially in China, with the rapid economic development, significant improvement in living standards, and profound changes in health concepts, the demand for anti-glycation foods is growing at an astonishing rate. The vast population base and increasing health consumption awareness in Asia provide a broad development space for anti-glycation foods.

In the Chinese market, the development of anti-glycation foods is equally unstoppable. According to the Southern Daily, the market size of low-GI (Glycemic Index) healthy foods in China reached 176.2 billion yuan in 2021, with an annual growth rate exceeding 10%, far surpassing many traditional food industries. The rise of new e-commerce platforms has provided new sales channels and growth momentum for anti-glycation foods. For example, in 2022, the transaction volume of low-GI foods on JD.com increased by a staggering 10 times year-on-year, and the number of consumers purchasing low-GI foods increased by 8 times, fully demonstrating the rapidly increasing awareness and acceptance of anti-glycation foods among domestic consumers, with market demand continuing to expand.

The anti-glycation food market offers a wide variety of products, ranging from primary agricultural products such as specific varieties of fruits and vegetables to processed foods such as low-sugar beverages and sugar-free snacks. Among these, sweet potatoes, widely cultivated worldwide, have become a standout in the anti-glycation food category due to their rich dietary fiber, low GI value, and abundant vitamins and minerals. Through modern technological means, such as gene editing, the varieties of sweet potatoes can be further optimized to enhance their anti-glycation effects and product value, meeting consumers' diverse needs for high-quality, healthy foods.

Currently, the Chinese anti-glycation food market is transitioning from its infancy to a growth stage. The market structure is not yet fully formed, and there is no dominant industry leader. This situation provides valuable market entry opportunities and development space for emerging enterprises. However, as the market matures and competition intensifies, companies must continuously innovate, improve product quality and service levels, and strengthen brand building to enhance consumer trust and loyalty to stand out in the market.

Looking ahead, with the continuous increase in global consumer attention to healthy diets and the advancement of technology, the anti-glycation food market is poised for broader development prospects. On one hand, the demand for healthy, nutritious, and low-sugar foods will continue to grow, driving the expansion of the market size. On the other hand, technological innovations will provide more possibilities for the research and development and production of anti-glycation foods, such as breeding more effective anti-glycation crops through gene editing or improving product quality and production efficiency through intelligent manufacturing. Additionally, as market competition intensifies, enterprises will pay more attention to brand building and market marketing to enhance their competitiveness.

In summary, the anti-glycation food industry is in a stage of rapid development, with continuous market demand growth and an undetermined competitive landscape. In the future, driven by consumer health awareness and technological innovation, this industry is expected to enter a more prosperous development period.

3.2 Target Market

Our target market is mainly focused on the broad consumer group with the need for anti-glycation food. Specific target markets are as follows:

3.2.1 Diabetic Patient Market

1) Demand Analysis

Diabetic patients, due to the constraints of their condition, are highly sensitive to sugar intake in their diet. They require foods that not only meet their taste preferences but also effectively control their blood sugar levels. Our anti-glycation products, particularly those based on high-amylose starch from sweet potatoes, can effectively reduce postprandial blood sugar responses, meeting the urgent needs of this group.

2) Market Trend

According to the International Diabetes Federation, the global diabetes drug market will reach $65.6 billion (about 451.3 billion yuan) in 2022, an increase of 16% year-on-year. Drugs that directly participate in the course of treatment and have a very high consumption threshold can achieve a scale of 100 billion. Correspondingly, the future market size of functional foods with a wider range of customers and relatively lower prices will also grow. It provides a stable market demand base for our products. With advancements in medical technology and increased public health awareness, diabetic patients are placing greater emphasis on dietary management, indicating enormous future market potential.

3.2.2 Fitness Market

1) Demand Analysis

Individuals aiming for weight loss and fitness need to strictly control their sugar intake to avoid affecting their training results and overall health. Our low-sugar, high-fiber products not only meet their dietary requirements but also provide a lasting feeling of fullness, supporting their fitness goals.

2) Market Trend

With the rise of healthy awareness, more people turn to be fitness enthusiasts, leading to the continuous expansion of this market. We will penetrate this market through sponsoring fitness events and collaborating with fitness coaches for promotions.

3.2.3 Health Enthusiast Market

1) Demand Analysis

Health enthusiasts pursue a natural and healthy lifestyle, valuing the original taste and nutritional content of ingredients. Our products, made from natural sweet potatoes, are free from additives and minimally processed, perfectly aligning with their health philosophies.

2) Market Trend

The health enthusiast market can be further segmented into middle-aged and elderly health groups and younger health groups. The middle-aged and elderly groups place more emphasis on the health benefits of products, while the younger groups value convenience and fashion.

3.2.4. Geographic Segmentation

To effectively target our anti-glycation food products, it is crucial to understand the geographic distribution of our target markets. The following segments represent key regions where our products are likely to find significant demand:

1) Urban Market

Urban residents generally have higher health awareness and are more likely to adopt healthier diets. Better access to health information and medical resources makes urban dwellers more conscious of the importance of managing sugar intake. Thus, urban professionals often have busy lifestyles and seek convenient, healthy food options that fit their schedules.

Consumers in urban areas typically have higher disposable incomes, making residents more willing to spend on premium, health-focused products. Therefore, urban markets offer a wide range of food options, including specialized health food stores and online retail platforms. There are robust marketing channels in this area, such as social media, health blogs, and fitness centers, which can be leveraged for product promotion.

2) Suburban Market

Suburban residents, influenced by urban trends, are increasingly adopting healthier lifestyles and placing a high value on the health and well-being of their family members. The abundance of green spaces and recreational facilities in suburban areas encourages an active lifestyle.

In terms of market characteristics, suburban households have moderate disposable incomes and are willing to invest in healthier food options. Due to the strong social networks in suburban communities, community-based marketing can be particularly effective. Furthermore, suburban areas offer local retail channels, including supermarkets and health food stores, which can be targeted for product distribution. These factors combined make suburban markets a promising opportunity for health-focused products.

3.2.4. Geographic Segmentation

1) Urban Market

Urban residents generally have higher health awareness and are more likely to adopt healthier diets. Better access to health information and medical resources makes urban dwellers more conscious of the importance of managing sugar intake. Thus, urban professionals often have busy lifestyles and seek convenient, healthy food options that fit their schedules.

Consumers in urban areas typically have higher disposable incomes, making residents more willing to spend on premium, health-focused products. Therefore, urban markets offer a wide range of food options, including specialized health food stores and online retail platforms. There are robust marketing channels in this area, such as social media, health blogs, and fitness centers, which can be leveraged for product promotion.

2) Suburban Market

Suburban residents, influenced by urban trends, are increasingly adopting healthier lifestyles and placing a high value on the health and well-being of their family members. The abundance of green spaces and recreational facilities in suburban areas encourages an active lifestyle.

In terms of market characteristics, suburban households have moderate disposable incomes and are willing to invest in healthier food options. Due to the strong social networks in suburban communities, community-based marketing can be particularly effective. Furthermore, suburban areas offer local retail channels, including supermarkets and health food stores, which can be targeted for product distribution. These factors combined make suburban markets a promising opportunity for health-focused products.

3) Rural Market

Rural residents, who often adhere to traditional diets that can be rich in carbohydrates and sugars, are increasingly recognizing the need for healthier alternatives. This shift is partly due to the expansion of health education programs in rural areas, which are raising awareness about the importance of managing sugar intake. Additionally, rural regions tend to have a higher proportion of elderly residents, who are more prone to health issues such as diabetes.

In terms of market characteristics, rural consumers generally have lower disposable incomes, making affordability a crucial factor. Furthermore, limited access to specialized health food stores in rural areas makes online retail and direct-to-consumer models more practical options. Partnering with local health initiatives and community organizations can serve as an effective means of reaching rural consumers and promoting healthier food choices.

4) International Market

The global trend towards healthier lifestyles is fueling demand for anti-glycation products across numerous countries. To effectively tap into international markets, understanding cultural differences in dietary preferences and health awareness is paramount, alongside ensuring compliance with varying food regulations. International markets present diverse opportunities, spanning from developed economies with heightened health consciousness to emerging markets where health awareness is steadily growing.

Successfully entering these markets requires establishing robust export channels and partnering with international distributors. Additionally, tailored marketing strategies, including localized advertising campaigns and collaborations with local health organizations, can significantly enhance market penetration. These strategies are crucial for reaching consumers who, influenced by global health trends, are increasingly seeking healthier food options.

3.3. Market Size

The global market for anti-glycation products, especially in the food industry, has been witnessing significant growth in recent years due to rising health consciousness and the increasing prevalence of lifestyle diseases such as diabetes. According to the International Diabetes Federation (IDF), the global diabetes market reached a value of $656 billion in 2022, marking a year-on-year growth of 16%. This robust growth underscores the immense potential of functional foods, including anti-glycation products, that cater to the health needs of diabetics and health-conscious individuals.

Moreover, the low glycemic index (GI) health food market in China demonstrates a similar upward trajectory. In 2021, the low GI health food market in China amounted to 176.2 billion yuan, with an annual growth rate exceeding 10%. This trend is further reinforced by the explosive growth in online sales of low GI products, as evidenced by the 10-fold increase in sales and an 8-fold jump in consumer numbers on JingDong (JD.com) in 2022.

These market dynamics suggest that the anti-glycation food segment is poised for substantial expansion, fueled by the growing demand from diabetics, fitness enthusiasts, and health-conscious consumers. Moreover, the Chinese market from the beginning to the growth stage, there are ample opportunities for innovative companies like us at NAIS to take advantage of emerging trends and address the unmet needs of this diverse customer base.

3.4. Industry Life Cycle Analysis

Given the significant differences between the domestic and international markets for anti-glycation foods, we will apply the industry life cycle to analyze each market separately.

3.4.1. International Market Analysis

In the international market, the anti-glycation food industry is approaching maturity. This conclusion is based on the following:

• High Market Acceptance: The concept of anti-glycation has been promoted globally for nearly two decades, originating in Japan and gradually expanding to multiple markets worldwide. In the international market, consumer awareness and acceptance of anti-glycation foods are generally high, leading to stable market demand.
• Diversification: As the market has developed, international anti-glycation foods now encompass a wide range of products, including health supplements, pharmaceuticals, and personal care items. This diversification and segmentation meet the needs of various consumer groups.
• Stable Competitive Environment: The international market has seen the emergence of several competitive anti-glycation food brands and companies, resulting in a relatively stable competitive environment. New entrants face high market barriers, including brand influence, channel development, and technological research and development.
• Continuous Technology Innovation: Despite the market's maturity, international brands and companies continue to invest in research and development, launching new products and technologies to maintain market competitiveness and meet evolving consumer demands.

3.4.2. Domestic Market Analysis

In the domestic market, the anti-glycation food industry is transitioning from the introductory phase to the growth phase.

1) Increasing Market Size

In recent years, as domestic consumers' health awareness has risen, the concept of anti-glycation has gradually gained attention. However, compared to the international market, domestic market awareness still needs improvement, and consumer education remains crucial. China has a large population base, including a significant number of diabetic patients and other groups with anti-glycation needs. As the concept of anti-glycation becomes more widespread and consumer health awareness increases, the domestic market for anti-glycation foods has tremendous potential.

2) Competitive Market

The domestic anti-glycation food market is still in its early stages, with no dominant industry leaders. The market is filled with numerous small-scale enterprises and startups, forming a competitive market that offers opportunities for new entrants.

3) Primary Products

Currently, the domestic market for anti-glycation foods is dominated by primary agricultural products, such as sweet potato starch and low-sugar biscuits. As the market develops, more diverse product forms are expected to emerge to meet the needs of different consumers.

4) Insufficient Technology Innovation

Compared to the international market, the domestic anti-glycation food industry still lags in technological research and development and innovation capabilities. New entrants need to increase research and development investments to improve product quality and value to stand out in the competition.

3.4.3. Future Predictions and Analysis

1) Domestic Market

Rapidly Increasing Market Size:

As domestic consumers become more aware of the anti-glycation concept, market awareness of anti-glycation foods will rapidly increase. Media promotion, social media marketing, and consumer word-of-mouth will collectively drive this increase in awareness.

Product Diversification and Branding:

Domestic anti-glycation foods will gradually evolve from primary agricultural products to more diverse and branded offerings. Companies will innovate and upgrade products to meet consumer needs and establish influential brand images.

Intensifying Competition:

As the market develops, the competitive landscape of the domestic anti-glycation food market will gradually take shape. Some competitive brands and companies will emerge as market leaders, while new entrants will face higher market barriers and challenges.

Policy and Regulatory Support:

Government support for the health industry will continue to grow, providing a strong foundation for the development of the anti-glycation food market. Relevant policies and regulations will promote market standardization and healthy growth.

More Consumer Education:

Consumer education will be a key factor in driving domestic market development. Companies need to strengthen consumer understanding and awareness of the anti-glycation concept through various channels and methods, increasing consumer acceptance and purchasing intent.

2) International Market

Continuous Growth in Market Demand:

As global consumers increasingly focus on healthy diets, the demand for anti-glycation foods will continue to grow. This growth will come not only from existing diabetic patients and fitness enthusiasts but also from a broader range of health-conscious consumers.

Product Innovation and Differentiation:

To meet evolving market demands, international anti-glycation food brands will continue to invest in research and development, launching more innovative products. These products may feature differentiated designs in ingredients, taste, and packaging to attract specific consumer groups.

Competitive Market:

Although the international market already has several well-known brands, future competition will become more intense. New entrants must continuously enhance their competitiveness in brand influence, channel expansion, and technological research and development to secure a market position.

Cross-Industry Collaboration:

As the market develops, companies from different sectors may engage in cross-industry collaboration, leveraging integrated resources and technological advantages to jointly expand the anti-glycation food market. This collaboration will help drive further market growth and development.

3.4. Competitive Analysis

3.4.1. Major Competitors

In the anti-glycation food market, although there is no absolute market leader as of yet, several companies have emerged as key players leveraging their expertise in the health food sector. The following is an analysis of these major competitors:

1) COFCO Group

Market Share: As a goliath in China's food industry, COFCO boasts a diverse product portfolio, including low Glycemic Index (GI) foods. With its strong brand influence and extensive sales channels, COFCO commands a significant portion of the anti-glycation food market.

Product or Service Features: COFCO's low GI offerings emphasise naturalness and health, focusing on nutritional value and taste. Its range spans from staples to snacks.

Pricing Strategy: Adopting a mid-to-high-end pricing model, COFCO targets health-conscious consumers who prioritise quality of life.

2) Nestlé Health Science

Market Share: Renowned in the international health supplements market, Nestlé Health Science has ventured into anti-glycation foods, tapping into the Chinese market via cross-border e-commerce.

Product or Service Features: Characterised by high technological content and efficacy, the brand invests heavily in research and innovation. Its comprehensive after-sales service enhances customer experience.

Pricing Strategy: Employing a premium pricing approach, Nestlé Health Science caters to high-income, high-spending clientele.

3) Emerging Health Food Startups (e.g., Wonderlab)

Market Share: These smaller companies often distinguish themselves through unique product positioning and innovative marketing tactics, securing a niche within specific market segments.

Product or Service Features: Offering personalised products and services, these startups prioritise customer interaction and feedback, iterating swiftly.

Pricing Strategy: Flexible and diverse pricing models cater to both high-end and cost-effective introductory products, aligning with product characteristics and target markets.

3.4.2. Market Segmentation

The anti-glycation food market can be segmented into premium, mid-range, and economy tiers based on price points, quality, and target consumer demographics.

Premium Market:

Serving high-income, health-conscious individuals, this segment values quality, technological sophistication, and brand prestige, commanding premium prices. COFCO and international brands dominate this space.

Mid-Range Market:

Aimed at middle-income consumers, this segment emphasises value for money and practicality. Emerging startups and traditional food enterprises transitioning into health foods often operate here.

Economy Market:

Catering to price-sensitive buyers, products focus on basic functionality at affordable prices. While competitive, this segment offers ample growth potential.

3.4.3. Competitive Advantages

NAIS has some unique competitive advantages compared to the major competitors mentioned above.

Product Advantage:

NAIS's sweet potato product line stands out in the market due to its unique leveraging of high-amylose starch technology. This innovative approach provides consumers with distinct anti-glycation benefits, making it an attractive option for those seeking healthier food choices. As a globally recognized and widely consumed crop, sweet potatoes inherently possess a strong consumer base and high demand. NAIS capitalizes on this by offering a product that not only satisfies traditional taste preferences but also aligns with modern health-conscious trends.

Technological Advantage:

Backed by a solid foundation in genetic engineering, NAIS is committed to continuous innovation and enhancement of its product offerings. This technological prowess allows the company to stay ahead of the curve, constantly improving its products to meet evolving consumer needs and preferences. By investing in research and development, NAIS ensures that its sweet potato products remain competitive and cutting-edge. Moreover, our sweet potato-derived starch product showcases distinct technical advantages over competitor cornstarch products. Despite a lower starch conversion rate of 25% compared to cornstarch's 70%, sweet potatoes boast a yield up to ten times higher (8000 pounds per acre vs. corn's 800 pounds), thereby compensating for the extraction ratio and ensuring a substantially greater starch output.

Furthermore, while cornstarch dominates the market, its production has significantly declined due to industry challenges in 2022, resulting in a 4.07 million-ton market shortfall. Amidst this backdrop, our sweet potato starch market has distinguished itself, demonstrating resilience with a 10.19% capacity increase in 2020 despite the pandemic.

Lastly, our sweet potato starch processing stands out due to its simplicity and health benefits. It requires only 11 steps and is entirely chemical-free, preserving the natural flavors and nutritional value of sweet potatoes, unlike cornstarch processing which involves dozens of chemicals that diminish corn's nutrients.

Brand Advantage:

NAIS is deeply committed to promoting food health and wellness. This clear mission and vision resonate with consumers who prioritize healthy eating and lifestyle choices. By aligning its brand with these values, NAIS attracts a loyal customer base that shares its dedication to nutrition and well-being. This strong brand identity further enhances the company's market position and reputation.

Distribution Advantage:

NAIS employs an omnichannel strategy that seamlessly integrates online and offline sales. This approach ensures that consumers have multiple avenues to access and purchase NAIS's sweet potato products, thereby broadening the company's reach and enhancing its market visibility. By leveraging both traditional and digital sales channels, NAIS is able to tap into a wider consumer base and maximize its market potential.

Pricing Advantage:

NAIS optimizes its supply chain management and production processes to lower costs and increase efficiency. This strategic approach enables the company to implement competitive pricing strategies, making its sweet potato products more accessible and affordable for consumers. By offering high-quality products at competitive prices, NAIS further strengthens its market position and appeals to a broader range of customers.

3.5.4. Bargaining Power of Suppliers

1) Current Situation

NAIS's primary raw material is sweet potato, sourced from large farms and agricultural cooperatives. The quality and stability of raw materials directly impact product quality.

2) Analysis

NAIS must establish stable supply chain relationships to ensure raw material quality and supply reliability. Diversifying supplier base and forging long-term partnerships can mitigate supply risks and reduce suppliers' bargaining power.

3.5.5. Bargaining Power of Buyers

1) Current Situation

The target consumer groups for anti-glycation foods, including diabetics, fitness enthusiasts, and health-conscious individuals, are highly price and quality-sensitive. With increasing competition, consumers have more options, enhancing their bargaining power.

2) Analysis

NAIS must elevate brand image and customer loyalty through high-quality, differentiated products and excellent customer service to mitigate buyers' bargaining power. Flexible pricing strategies and promotional activities can attract and retain consumers.