Market Demand

With the breakthrough of underlying enabling technologies and the deepening of basic research, with the assistance of industrial research platforms, synthetic biology is extending to many fields such as medicine, chemical engineering, energy, food, consumption, agriculture, etc. Some domestic and foreign enterprises have initially achieved "from 1 to N", and the overall market size is showing explosive growth. According to CB Insights data, the global synthetic biology market reached $73.693 billion in 2021, an increase of 767.5% compared to 2020.

We have established four subsidiaries located in the fields of beauty, dyes, healthcare, and food. Our physical products and technical service products are divided into four categories, namely PHAs, AADs, Proteins, and Industrial Software.

PHAs

P34HB

- Our PHA adopts OEM production mode, where we produce on behalf of our clients according to their requirements, with a target of achieving a PHA production line of 5,000 tons per year. The industrialization process of PHA has been fraught with difficulties, with 1992 marking the beginning of PHA industrialization, but early industrialization efforts were forced to halt due to high production costs. With the development of synthetic biology technology, the development of high-yield PHA production strains has increased PHA yields and effectively reduced production costs. Currently, there are several companies globally attempting scaled production of PHA, including Kaneka, Danimer Scientific, CJ-Bio, RWDC, and China's Bluephos.

- Market size forecast: We predict that the PHA market demand will be approximately 1.8 million tons in the next 3-5 years, with a market size of 62.9 billion yuan. The medium-term market (the next 5-10 years) is forecast to have a demand of 14.213 million tons, with a market size of 355.3 billion yuan. The long-term market (over 10 years) may see PHA completely replace PP and PE materials as the main packaging material, with a market size of 1,250.74 billion yuan. Currently, the price of PHA is at a high point, and due to limited supply, there is a pronounced supply-demand imbalance in the short term. We expect the price of PHA to decline significantly as commercialization matures and supply increases.

AADs

Tyrian Purple

Tyrian purple has been a valuable royal dye since ancient times. The current bio-fermentation production practices related to royal purple are in the early stages, but it is certain that bio-based dyes can greatly reduce the current cost and environmental pressure through bio-manufacturing.

Proteins

SOD

According to the "Research on the Prospect and Market Prospect Prediction of China's Superoxide Dismutase Industry from 2024 to 2030" released by the Industrial Research Institute of China, the SOD market is growing, but the specific figure is not given. BIS Research's survey shows that the size of China's SOD market reached the billion-yuan level (the specific figure is not given) in 2021, and the global market size was 24.96 billion yuan. It is predicted that the global SOD market size will reach 36.725 billion yuan by 2027, and the compound annual growth rate of the global SOD market during the forecast period from 2021 to 2027 is estimated at 6.65%. SOD has applications in the plant industry, food industry, medical industry and cosmetics industry, of which the medical industry is the largest application market. SOD can be subdivided into different types of products, such as manganese-SOD, CuZn-SOD, etc., with different market sizes and growth rates. The major players in the global SOD market include Worthington Biochemical Corporation, Phyto Biotech, Bionov, and Calzyme.

phaP

PhaP is a relevant protein in the PHA production process. Currently, the PHA industry as a whole is in the early stages of industrialization, with limited supply and relatively high market prices. The Asia-Pacific region is expected to be the fastest-growing market for PhaP-related products, while Europe may have the largest market share, mainly due to the increasing demand for PHA in Germany, France, and the UK.

Industrial Software

Motrol

Scaling up fermentation production is a bottleneck for downstream conversion of synthetic biology, and there is currently no price definition for automated fermentation control systems, but it is clear that the potential market for this achievement is huge. The current fermentation control software has issues such as unfriendly user interface design, insufficient data integration capabilities, low flexibility and intelligence levels, and inadequate security and reliability. Future development trends will focus on advancing towards automation and intelligence, incorporating artificial intelligence and machine learning technologies to achieve adaptive control and enhancing data integration and analysis capabilities. At the same time, there will be an emphasis on optimizing user experience, providing modular and customizable solutions, and strengthening data security to meet the demands of modern production and improve efficiency and product quality.

Policy Support

"As one of the disruptive technologies in the future, synthetic biology is rapidly developing towards practicality and industrialization. It will play a unique role in the fields of 'double carbon', biomaterials, bio information technology and artificial intelligence, which is of great strategic significance for changing China's industrial economic growth mode and achieving green and sustainable industrial development." Gao Fu, academician of the CAS Member and chairman of the Chinese Society of Biotechnology, once publicly stated. The bioeconomy, as a strong driving force for promoting high-quality development, has received high attention from the country. The first five-year plan for China's bioeconomy, the "14th Five Year Plan for the Development of Bioeconomy", was issued in May 2022 and clearly stated that scientifically planning and systematically promoting the development of China's bioeconomy is an important direction to follow the global trend of accelerating the evolution of biotechnology and achieve high-level scientific and technological self-reliance and self strengthening. It is an important measure for forward-looking layout, cultivate and strengthen the bioeconomy industry, promote high-quality economic development, meet the rapid growth of life and health needs, and satisfy people's demand for the United States

The important content of the aspiration for a good life is to strengthen national biosafety risk prevention and control, and promote the modernization of the national governance system and governance capacity.

Product Introduction

The available technical services of Haloworld include four aspects: Polyhydroxyalkanoates (PHAs), amino acid derivatives (AADs), proteins, and industrial software.

PHAs（P34HB）

P34HB, full name poly (3-hydroxybutyrate - co-4-hydroxybutyrate), is a biodegradable polymer material composed of 3-hydroxybutyrate and 4-hydroxybutyrate copolymerization. It has the characteristics of good biocompatibility, high strength and good ductility, and can regulate the mechanical properties of the material by adjusting the proportion of monomers to meet the needs of different application fields. P34HB is the fourth generation of PHA (polyhydroxyalkanoate) products, compared to previous generations of products, it has improved in overall performance, such as in terms of thermal stability and processability. The application of P34HB is very wide, it can be processed into films, fibers, used as modifiers, manufacturing elastomers, etc., in medical, chemical, textile, agriculture, packaging and other industries have applications. Especially in the medical field, P34HB can be used to manufacture implantable medical devices. In addition, P34HB has also been studied for drug release properties of drug-eluting stents (DES), in which two polymer coatings, P34HB-1 (containing 1% 4HB monomer) and P34HB-10 (containing 10% 4HB monomer), have shown good drug release control effects.

In terms of environmental protection, P34HB, as a biodegradable plastic, has greater development prospects than petroleum-based degradable plastics. It can be completely broken down by microorganisms in the natural environment and in living organisms, because this has significant environmental advantages. By 2026, PHA will account for about 12% of the total production capacity of biodegradable plastics in the world, and P34HB will have a broad market prospect as a new generation of PHA products.

In the production and preparation of PHA, we can make the processing performance better, the tensile strength is better, the production cost is lower, and the production process is completely negative carbon.

AADs

Tyrian Purple

Hexabromotryptophan (6BrIG), commonly known as "Tyrian Purple", is a natural pigment derived from Marine organisms such as fucus spirulae. It is known for its unique purple color and high historical value, especially in ancient times was used to dye the clothing of emperors and nobles. Its color is bright and extremely light resistant, not easy to fade. Because of the complexity and high cost of production, this purple dye was considered almost a luxury in ancient times.

Chemical properties Hexabromotryptophan is a halogenated derivative of tryptophan that contains multiple bromine atoms in its structure, giving it unique physicochemical properties. This class of compounds has a strong ability to absorb light, resulting in a deep purple color.

Modern applications With the advancement of synthetic technology, naturally extracted hexabromotryptophan has gradually been replaced by laboratory synthesis. Today, its main applications include: - Textile dye: The deep purple of Royal Purple is still favored by many high-end fashion brands.

- Chemical research: Its molecular structure provides an important model for the study of tryptophan metabolism and bromination reaction.

- Biotechnology: Recently, with the rise of green chemicals, scientists are exploring sustainable ways to synthesize hexabromotryptophan to reduce dependence on marine resources.

Proteins

SOD

SOD (Superoxide Dismutase) is an important antioxidant enzyme that is widely found in a variety of organisms, including animals, plants and bacteria. Its main function is to catalyze the disproportionation of superoxide radicals (O2 ⁻) and convert them into more stable molecules such as oxygen (O2) and hydrogen peroxide (H₂O₂). This response is important for protecting cells from oxidative stress damage.

1. Function

SOD plays its role mainly through the following ways:

Antioxidant: Neutralizes superoxide free radicals and prevents them from attacking biomolecules such as lipids, proteins and DNA, protecting the structural and functional integrity of cells.

Anti-inflammatory: By inhibiting the free radical mediated inflammatory response, SOD plays a role in regulating the immune response and alleviating inflammatory diseases.

2. Classify

SOD is divided into the following categories according to its metal cofactors:

Copper and zinc SOD (CuZn-SOD) : mainly found in the cytoplasm.

Manganese SOD (Mn-SOD) : mainly found in the mitochondria, responsible for the antioxidant effect within the mitochondria.

Iron SOD (Fe-SOD) : mainly found in certain bacteria and plants.

3. Clinical and application

Because of its antioxidant and anti-inflammatory properties, SOD has become a popular ingredient in health care products and cosmetics in recent years. SOD supplements are thought to boost the body's antioxidant capacity, slow aging and improve skin health. In addition, SOD is being studied for the treatment of diseases associated with oxidative stress, such as atherosclerosis, arthritis, and diabetes.

4. Apply challenges

Although SOD has potential health benefits, due to its protein structure being easily broken down in the digestive system, how to effectively improve the stability and bioavailability of SOD is one of the difficulties of current research.

5. Sum up

SOD plays an important role in the antioxidant defense system, and its application prospects are wide, covering the fields of medicine, health care and beauty. However, improving the stability and absorption efficiency of SOD in the human body is still the future research direction.

phaP

PhaP, full name polyhydroxyalkanoate-binding protein, Chinese name polyhydroxyalkanoate-binding protein, is a protein that binds to the surface of polyhydroxyfatty acid ester (PHA) particles in microorganisms. The PhaP protein is amphiphilic in that its hydrophobic end can bind to the surface of the PHA particle, while the hydrophilic end is exposed to the cytoplasm. PhaP protein plays an important regulatory role in the metabolic process of PHA, and due to its special ability to bind to PHA particles, it is also widely used in the field of biotechnology, such as as a fusion tag to promote the purification of proteins.

Industrial Software

We are committed to the development of industrial software based on cell model driven fermentation production control, which can achieve strong scalability and easy to expand the characteristics of application.

Competation

1. BluePha is committed to designing, developing, manufacturing and marketing new bio-based molecules and materials, including biodegradable materials PHA, regenerative medicine materials, new functional ingredients for cosmetics, new food additives, engineering probiotics, etc., so as to help B-end households in many industries such as consumer goods, food, medical, agriculture and industry to carry out differentiated competition in the industry.

2. Beijing Microstructure Workshop Biotechnology Co., LTD. Microstructure Workshop is an enterprise with cutting-edge synthetic biotechnology, focusing on the transformation and engineering application of halophilic microorganisms. Microstructure Works has successfully developed and produced a series of innovative synthetic biology products, including: biodegradable material PHA (polyhydroxyl fatty acid ester), pharmaceutical intermediates tetrahydropyrimidine, nylon 56 precursor pentenediamine and many other high value-added products. Micro Structure Factory is a representative manufacturer of P34HB, with P34HB core patents, and has large-scale production capacity.

3. Shenzhen Zhongke Xinyang Biotechnology Co., Ltd. focuses on the development of bioactive substances that contribute to human life and health, and serves the global pharmaceutical, food and cosmetics manufacturing enterprises. The company's main products include high End high value-added biological products, such as SOD-containing yeast powder, tetrahydromethylpyrimidine carboxylic acid, ergothione, etc. With remarkable achievements in the field of synthetic biology, we are committed to using synthetic biology technology to build microbial cell factories, successfully developed a variety of bioactive raw materials, and provide raw materials and technical solutions for many domestic and foreign enterprises in the field of food, skin care and medical treatment.

4. Zzu focuses on the field of process industry automation, digitalization and intelligence, and provides a new generation of whole-process intelligent operation management and control system (OMC), factory operating system + industrial APP and process industrial process simulation and design platform (APEX) supported by 5T technology to help households achieve development goals such as safe production, energy saving and consumption reduction.

5. In the field of biomedicine, Chengyitong integrates intelligent equipment, intelligent logistics and information management system through digitalization, automation, artificial intelligence and other technologies, to help biopharmaceutical enterprises realize the interconnection of people, equipment, environment and materials and the quality traceability of the whole life cycle, and promote the digital transformation of enterprises.

Team Introduction

Core Team

- Wang Jun, Chief Executive Officer (CEO). Proficient in marketing and sales, responsible for formulating and executing the overall strategic direction of projects and the future development direction of products, providing decision support for project operation, and ensuring the achievement of long-term goals; Lead the operation of the project team, promote coordination and cooperation between teams; Maintain close contact with external institutions, partners, and stakeholders to ensure the smooth operation of the project.

- Peng Jiawen, Chief Technology Officer (CTO). Responsible for the technical research and innovation of the project, providing comprehensive technical support and solutions for the project. Supervise the research and implementation of technical products to ensure the technical quality and safety of projects; Work closely with the business team to track and evaluate emerging technology trends, ensuring that technology solutions meet business needs.

- Li Hao, Head of Research and Development Team (CRO) at a pharmaceutical company. Responsible for leading the R&D team to carry out new drug research and development work, ensuring the smooth progress of R&D work, and providing technical services for the project; Developing and implementing research and development strategies, focusing on project management and resource integration, ensuring that research and development results can be smoothly transformed into practical applications, providing a solid guarantee for the company's new drug research and development work.

Expansion Team

- Fu Haicheng, is responsible for market analysis and business planning. Mainly responsible for collecting and analyzing a large amount of market data to deeply analyze industry trends and consumer behavior; Integrate market demand, technological innovation, and competitive trends to develop competitive business strategies for projects and provide business decision support.

- Wu Gewen, is responsible for market analysis and business planning. Based on market demand and competitive situation, combined with the financial status of the project, establish a unique business model, creatively propose business ideas, and clarify the market positioning and development direction of the project.

- Guo Jing, is responsible for market analysis and business planning. Utilizing advanced analytical tools and models to deeply analyze market conditions, predict future market trends, and provide forward-looking market insights for the project; Conduct in-depth research on the needs and preferences of target users to ensure that the product meets the actual market demand.

- Chen Xuanyu, is responsible for market analysis and business planning. Analyze the risk status of the project and develop corresponding response measures to ensure the project remains stable during operation; Summarizing the overall project and providing a comprehensive review of the entire project execution process.

- Li Jingyi, is responsible for market analysis and business planning. Combining project background and product introduction, and conducting a comprehensive social benefit analysis based on this foundation; Accurately positioning and analyzing products based on market conditions to meet the needs of target users and enhance product competitiveness.

- Zhang Ziyang, is responsible for the biotechnology research of the project. By developing practical and feasible technical solutions and analyzing experimental results, biotechnology has been optimized and improved, enhancing the technical content and competitiveness of the project, providing technical support for its smooth implementation.

- Yang Yujiao, is responsible for the biotechnology research of the project. Pay attention to the latest developments in biotechnology and provide scientific references for the team's research direction; continuously exploring new technological methods and application fields, promoting innovation and application of technology, and transforming cutting-edge scientific research achievements into practical productivity.

- Chang Yixin, is responsible for the biotechnology research of the project. Based on the experimental results, data analysis was conducted, technical exploration and research work were carried out, which promoted the experimental verification and achievement transformation of the project, and provided strong experimental support for the successful implementation of the project.

- Ye Leyi, majoring in product design, is responsible for the overall visual design of the project. Based on the project's positioning and market characteristics, create a distinctive and highly recognizable logo to shape a unique brand image for the project; pay attention to user experience and feedback, and continuously optimize product design.

Consultants Team

- Ye Jianwen, Chief Scientist, Professor at South China University of Technology, National Outstanding Youth. Has profound academic expertise and practical experience in the field of biotechnology, providing academic support for the biotechnology research of projects.

- Huang Lin, Government Relations Guidance, Director of Student Affairs Office at South China University of Technology, provides advice and guidance for team operations.

- Yu Liusong, founder of a domestic startup company in synthetic biology and biomaterials. Having rich entrepreneurial experience and industry resources, providing guidance and support for project business model design, market promotion, and other aspects.

- Wang Hui works at IDG Capital, providing guidance and support for project financing and capital operations, assisting project teams in optimizing funding structures, and promoting the implementation and application of new technologies.

- Fu Ying, currently serving as the Investment Director of Daotong Investment, provides guidance and support for project financing and capital operation, assists the team in industry integration and resource integration, and enhances the market competitiveness of the project.

Corporate Organization Structure

Roles and Responsibilities

Start-up team - angel round financing situation

As the initial stage of equity financing, the total amount of angel round financing is about 15 million yuan. At this stage, the founding team will give up a certain proportion of equity to be held by the financing institution.

Equity Distribution Explanation

The founding team's shareholding is mainly composed of Wang Jun (CEO), Peng Jiawen (CTO), Li Hao (CRO), and other core members. In terms of equity distribution, the proportion of equity not only ensures the CEO's veto power as the founder on major issues, but also safeguards the power of CRO and CTO, avoiding absolute control over internal decision-making within the company.

Considering the scale prediction and financing planning for the team and business development in the future, a 30% equity pool will be set up from the main part in the angel round financing plan. The purpose of establishing a long-term equity pool is to attract senior talents in the early stages of entrepreneurship when high salaries cannot be offered, compensate for the entrepreneurial risks of management and key personnel, give employees a sense of belonging, align the interests of employees and shareholders, and solve long-term incentive problems.

After the establishment of the option pool, it is convenient to have enough shares to attract future employees, enough shares to be used as future rewards for current employees, and to avoid the legal process of issuing additional shares every time stocks are issued to employees.

Under the framework of Chinese company law, equity must correspond to registered capital, so it is not possible to reserve equity. Therefore, here

We adopt a flexible approach:

1. Founder (CEO) Proxy Holding: When establishing a company, the founder holds a portion of the equity (corresponding to an option pool), and the company, founder, and employee sign a contract. When exercising the option, the founder transfers it to the employee at an agreed price.

2. Holding on behalf of the consultant team: for the size of the option pool of Internet start-ups, the industry practice is between 10% and 20%. Due to our high expectations for the development of the project and the expected team size in the later stage, we have set up a 30% long-term equity pool ratio here.

SWOT Analysis

First and foremost, before delving into the mission and vision of HaloFactory, it is important to do a SWOT Analysis of our startup.

1. Strengths

- More Universal Fermentation Process: innovative chassis bacteria Halomonas TD80.

- Environmentally friendly and sustainability: we use carbon dioxide and its derivatives as raw materials.

- Smarter Fermentation Process: innovative mathematical model prediction.

- Multiple Products: PHAs, AADs, Proteins.

2. Weaknesses

- Regulatory Challenges: lengthy and expensive registration.

- Production Scalability: if not correctly planned.

- Patent Registration: lengthy and expensive registration.

- Temporary High Cost: conversion process of carbon dioxide to available carbon sources.

3. Opportunities

- Large and Profitable Market of Degradable Plastics.

- Environmental Concerns: increasing emphasis on sustainable development.

- Collaborations with Chemical Company, Modeling technicians, Degradable Plastics Producers.

- Abundant Patents and Intellectual Property Rights rely on.

4.Threats

- Competition.

- Regulatory Hurdles: barriers to entry.

- Economic Factors: e.g. fluctuations.

- Consumer Perception.

- Resistance to Change.

Financial analysis

Development Timelines, Milestones, and Resource Requirements

1. The First stage:

- obtain angel round investment, build platform, build team, provide technical services and optimize software

- PHAs is put into production in OEM mode with an output of 1000 tons/year

- PhaP entered the pilot stage, and the software was applied in small-scale fermentation engineering 2. The Second stage:

- increase the output of PHAs to 5000 tons/year

- PhaP enters the scale-up stage, Tyrian purple, enters the pilot stage, and software optimization is carried out in combination with strain engineering 3. The Third stage:

- PhaP was put into mass production, tyrian purple, entered the scale-up stage, SOD entered the pilot stage, and the software was put into large-scale fermentation engineering application 4. The Fourth stage:

- SOD entered the amplification stage, Tyrian purple, SOD was put into mass production, and the software was further commercialized

Policy Risk

(1) Measures to deal with the risk of regulatory changes:
Regulatory policies for cosmetics, food additives and pharmaceuticals vary from country to country and may be adjusted as scientific research and public health concerns change. For example, in the amino acid derivatives segment, ectodoine, as a repair factor and inflammatory treatment substance, may face multiple regulations in different areas. As a dye and pharmaceutical ingredient, Tyrian purple needs to meet compliance requirements in different areas.
Countermeasures: 1. Establish a regulation tracking system: set up a dedicated team or use legal advisory services to continuously track settlements

Read the changes in the relevant regulations.

2. Regular training and update system: Regular training of team members to make them aware of the latest regulatory requirements and countermeasures.

3. Policy early warning and emergency mechanism: Establish an early warning system for policy changes, and formulate emergency plans to quickly respond to policy changes. For example, adjusting product formulations, modifying labels and instructions.

(2) Industrial policy risk response measures:

1. Policy docking and support: actively participate in the policy formulation process of relevant government departments, and strive for policy support and preferences.

2. Diversification strategy: Formulate diversified development strategies to reduce dependence on a single policy.

(3) Risks of environmental protection policies

The production process may produce wastewater, exhaust gas and solid waste, which need to comply with local environmental regulations; At the same time, the introduction of new environmental regulations may put new requirements on existing production processes and equipment, resulting in increased production costs.

Countermeasures:

1. Green process: The introduction of green chemistry and green process technology in the product development stage to reduce the use and emission of harmful substances.

2. Investment in environmental protection facilities: invest in the construction of environmental protection facilities to ensure that waste treatment meets local environmental protection standards.

3. Environmental certification: Strive to obtain environmental protection related certification, such as ISO 14001 environmental management system certification, to improve the company's environmental image and market competitiveness.

Financial Risk

(1) Risks of insufficient funds and cost overruns and countermeasures:

Taking collagen products as an example, the development of beauty and health care products for maintaining skin elasticity and moisture requires extensive scientific research and clinical trials to prove their effectiveness and safety. These studies and trials are expensive and time-consuming; Developing an oral collagen supplement requires extensive formulation development and stability testing to ensure that the product does not deteriorate during storage and transportation. In addition, human trials are needed to verify its effects on collagen intake and absorption. Developing collagen medical materials for the treatment of arthritis and fracture healing is more costly and involves a rigorous clinical trial and regulatory batch process.

Countermeasures:

1. Diversified financing: Use a variety of financing channels, including venture capital, government subsidies, bank loans, etc., to ensure diversified funding sources. However, considering that this project is an independent research and development project of our school, we need to raise funds

Focus first on school.

2. Financial budget management: Establish a strict financial budget management system to ensure the rationality and efficiency of the use of funds. At the same time, set up an emergency fund reserve to ensure that there is an adequate buffer in case of a shortage of funds.

3. Cost control mechanism: Although the technology for existing products has been basically formed, there may still be situations in which the research and development time exceeds the expectation in terms of time cost. Therefore, strict cost control and mechanisms should be established to monitor project costs in real time and adjust budget to time. Evaluate project costs in stages to identify and correct overruns in a timely manner.

4. Supply chain management: Optimize supply chain management, reduce procurement costs, and improve resource utilization efficiency. On the one hand, diversified supply chain channels should be established to ensure the stable and reliable supply of raw materials. On the other hand, we should focus on establishing long-term cooperation with suppliers, signing long-term procurement contracts, locking raw material prices, and reducing the risk of price fluctuations. At the same time, the stability and risk of the supply chain are assessed regularly, and the procurement strategy is adjusted timely to ensure the continuity and stability of production.

(2) Countermeasures for market demand fluctuation risk:

The market risk mainly comes from the change of consumer preference, the impact of economic environment and product substitution risk. The beauty and health products market is greatly influenced by consumer preferences. First of all, consumers pay more attention to product ingredients, safety, efficacy and other aspects, and there are many kinds of beauty products in the market, and the competition is fierce. Secondly, economic fluctuations have a direct impact on the market demand for beauty and health products. When the economy is booming, consumers are more willing to spend on beauty and health care products. In a downturn, demand may fall; Finally, there are a variety of beauty products on the market, such as other skin care products, anti-aging products, etc., which may replace the demand for collagen beauty and health products. Coping measures

1. Market research and prediction: Considering the limited technological updating ability and the emergence of new products, this product may be at risk of being replaced by new products of emerging technologies. Therefore, regular market research should be conducted to grasp the market demand and changing trends, and develop flexible market strategies.

2. Consumer education: Enhance consumers' awareness and acceptance of collagen supplements through popular science communication and brand promotion. Use scientific research and clinical trials to prove product efficacy and increase consumer trust.

4.3 Legal Risk

Legal Risks (Intellectual property issues)

(1) Property rights risk countermeasures: There may be risks in the following aspects in terms of property rights. Including patent infringement: when developing Ecdoin, Tyrian Purple and SOD products, it may inadvertently use the patented technology registered by other companies, resulting in infringement litigation; Trademark infringement: the name, logo and packaging of the new product may conflict with the existing trademark, resulting in trademark infringement disputes; Copyright infringement: Product related instructions, materials, etc., may involve others' existing copyright works, resulting in copyright disputes.

Coping measures

1. Patent application and protection: apply for core technology patents in a timely manner, and develop a comprehensive patent strategy, including patent layout and defense measures, to enhance market competitiveness and ensure that intellectual property rights are protected by law

Protect.

2. Patent search and monitoring: Conduct a comprehensive patent search at the early stage of research and development to ensure that the research and development plan does not infringe the patent rights of others. Patent analysis can be carried out with the help of a professional intellectual property agency. At the same time, a patent monitoring system is established to regularly check the patent applications of competitors to avoid infringement.

3. Trademark search and copyright protection: For trademarks, in the later stage of product naming and design, trademark search and search should be carried out to ensure that the new trademark will not conflict with the existing trademark. If the brand is further created, it should apply for trademark registration in time to protect the brand. For copyright, in the production of product manuals and materials, ensure that the content is original, and obtain relevant authorization if necessary to avoid copyright infringement.

(2) Technical protection risk response measures:

In biotechnology, there may be risks of disclosure of technical secrets, unclear ownership of technology, and technology transfer and licensing. In cooperative research and development projects, the ownership of technological achievements may be unclear, leading to property rights disputes; In the process of technology transfer or licensing, unclear or poorly implemented contract terms may lead to the loss of technology or loss of interests.

Countermeasures:

1. Confidentiality agreement and internal control: In external cooperation, strict confidentiality agreements should be signed with team partners to prevent technology disclosure. Within the team, a sound internal control system should be established to limit access to core technologies and protect technical secrets. At the same time, regular security training to improve the awareness and ability of Cheng Yuan to protect technical secrets

2. Clear ownership of property rights: In the early stage of cooperative research and development, the ownership and use rights of technical achievements are clearly defined through contracts to avoid future disputes. This can take the form of joint ownership of patents or the division of use rights in different areas.

3. Strict technology transfer contract: When technology transfer or license is carried out, detailed contract terms shall be formulated, including technology scope, use mode, profit distribution and liability for breach of contract, etc., to ensure the rights and interests of all parties.

(3) Countermeasures for cooperation agreements and contract risks:

In terms of contracts, if the contract terms signed with suppliers, partners, and customers are unclear, it may lead to performance disputes and legal disputes. However, if there is a lack of effective management and execution supervision after the contract is signed, it may lead to contract breach or loss of interests.

Countermeasures:

1. Contract verification: Hire professional legal advisers, timely obtain the latest legal and regulatory information and suggestions, check and develop cooperation agreements and contracts to ensure that the terms are legal and reasonable. Focus on the responsibilities and obligations of the parties in the contract to prevent disputes caused by unclear contracts. Contracts and agreements should be periodically reproduced to ensure their continued validity and compliance.

2. Internal compliance check: prevent and control compliance risks, establish an internal compliance check mechanism, and regularly check the compliance of the company's business and products.

Industry value

(1) The development of this product will promote the technological upgrading and transformation of related industries, improve the added value and competitiveness of the industry, and promote the large-scale development of related industries. The application of the product will promote the development of cosmetics industry, food industry, medical care and other related industries, form a new economic growth point, and provide a broader market space for related industries. The application of the product will promote cross-border integration and innovative development, give play to the advantages of different fields, and realize the optimal allocation of resources. With the continuous breakthrough of biotechnology and the continuous expansion of application fields, the international competitiveness of relevant industries in China is also increasing, which helps to enhance China's discourse power and influence in the global biological field.

(2) With the promotion of the concept of healthy living, consumers began to pay more attention to green and healthy food. The product can be widely used in the food industry, not only to enhance the flavor and taste of the product, enrich the diversity of food, but also to meet the consumer's pursuit of healthy food. The product also helps to promote the practical application of microbial fermentation technology and contributes to the integration of high-tech into the food industry.

(3) The application of this product in the medical field, such as multi-amino acid derivatives for inhibiting neurodegenerative diseases, protecting the skin, and collagen for treating arthritis, fracture healing and skin transplantation, reflects the great potential of biotechnology in the medical field, helping to prevent and treat the occurrence of related diseases. The development and application of this product has promoted the continuous progress of medical science and technology, provided more innovative and efficient solutions for clinical medicine, and also helped to promote the development of personalized medicine and precision medicine, making medical treatment more in line with the individual needs and physiological characteristics of patients. At the same time, the application of products in medicine and health products also provides more effective means of health protection for the public, which is conducive to maintaining the life safety and physical health of the public.

(4) According to the Research Report on the Efficacy of China's Cosmetics Market in 2024, the annual retail sales of cosmetics in 2023 reached 414.2 billion yuan, an increase of 5.1%. Among them, skin care products, as the largest segment in the cosmetics industry, has a huge market scale and continues to grow. With the development of the cosmetics industry, consumers' demand for skin care products has changed from simple moisturizing and cleaning to more personalized, specialized and technological direction. More and more consumers are paying attention to the ingredients, efficacy verification and safety of products. The product has the functions of enhancing skin immunity, whitening and moisturizing, anti-inflammatory and soothing, sunscreen repair, etc., which is conducive to solving the skin problems of consumers in a long term, meeting the diversified needs of consumers, providing consumers with more healthy, safe and effective skin care choices, and helping to improve the health level and quality of life of consumers. At the same time, natural flavor dyes meet consumers' pursuit of natural products, and promote the development of cosmetics and personal care products in a more natural and environmentally friendly direction. The application of this product has promoted technological innovation and product upgrading of cosmetics and beauty and health products, and can help enterprises continue to develop new formulas and processes, develop more high-quality products with efficient, safe and natural characteristics, and promote the continuous development of the cosmetics industry.

Social value

(1) The product has less impact on the environment during production and use. Compared with traditional skin care products, this product is more in line with the requirements of environmental protection and sustainable development. Promote sustainable development and reduce environmental pollution and resources

Waste promotes the improvement of the ecological environment. It is helpful to promote the construction of ecological civilization, in line with the development concept of "green mountains are gold mountains and silver mountains" put forward by our country. The innovative application of this product can demonstrate the great potential of science and technology in the field of environmental protection, improve the public's awareness of environmental protection technology, enhance the public's awareness of environmental protection, so that more people realize the importance of environmental protection and participate in environmental protection actions. Through the promotion and application of this product, it will help promote the development of society in a more environmentally friendly and sustainable direction, and help the construction of an environmentally friendly society and a beautiful China.

(2) The product of facial beauty, food health, medical care and other aspects to meet people's growing needs for a better life. This not only helps promote consumers to form healthy eating habits, reduce the incidence of chronic diseases, improve the national health level, but also effectively alleviate the disease, improve the quality of life of patients, and promote the realization of the "healthy China" strategy.

(3) The research and development and application of this biological material, the research and development of this product will drive employment and economic growth in related fields and the development of related industrial chains, thereby creating more employment opportunities and promoting social harmony and stability. At the same time, with the expansion of market size and the improvement of market share, it will bring greater economic benefits to enterprises, increase the tax contribution of enterprises, and promote the growth and development of the local economy.

(4) The development of biotechnology will attract more young scholars and scientific research talents to devote themselves to the research and innovation in the field of biomaterials, cultivate a group of outstanding talents with innovative spirit and international vision, and provide strong intellectual support and talent guarantee for the development of China's biomaterials industry.

The project combines cutting-edge synthetic biology technologies with market trends to translate scientific innovations into commercial products with broad market application prospects. In the rapid expansion of the global synthetic biology market, this project relies on the innovation breakthrough of the underlying technology, combined with the in-depth analysis of the market demand, and has been strongly supported by the Chinese government in achieving the "dual carbon" goal and the "14th Five-Year Plan" bioeconomy development Plan and other policy levels, demonstrating its significant advantages and far-reaching significance in green development and strategic layout. In the core projects, our team, relying on the cutting-edge technology of synthetic biology, is committed to the innovative transformation of microbial strains, the construction of intelligent production processes, and the breakthrough of biocatalysis technology. Through precise gene editing and metabolic engineering strategies, we target microorganisms to enhance their ability to produce target compounds, while significantly reducing by-product production, improving feedstock conversion and product purity.

The project explores the principles of synthetic biology in depth, including the synthesis and cloning of genomes, the careful selection and adjustment of expression systems, and the innovative restructuring of metabolic pathways. At the level of product development, core technology

The use of the application across a number of key areas. In the case of polyhydroxy-fatty acid (PHA) production, we reduce the synthesis of non-target compounds by knocking out metabolic bypasses, improve the efficiency of key reactions through enzyme engineering, and introduce advanced regulatory mechanisms to optimize the entire production process. In the field of biomedicine, the project team used genetic engineering technology to achieve efficient expression and purification of human recombinant proteins, meeting the market demand for high-purity proteins. In addition, the project has developed advanced industrial software to assist in strain modification and intelligent management of production processes, which not only greatly improves production efficiency, but also ensures the consistency and reliability of product quality. Through the integrated application of these technologies, this project can not only provide high-quality bio-based materials and protein drugs, but also provide customized technical services and solutions for related industries, promote the technological innovation and industrial upgrading of the industry, and realize the efficient transformation of scientific research results into practical applications.

In terms of team formation and business model, the project team brings together the best in multiple disciplines, including key positions such as Chief Executive Officer (CEO), Chief Technology Officer (CTO), Chief Operating Officer (COO) and Chief Financial Officer (CFO), ensuring that every step from concept concept to product realization is carried out efficiently and in an orderly manner. As for the business model, we have chosen a unique development path based on the product line. us

The product line covers polyhydroxyfatty acid ester (PHA), protein drugs and industrial software, which uses microbial fermentation and genetic engineering technology to produce bio-based materials and recombinant proteins with wide application prospects, serving many industries such as medical, chemical, energy and food. Therefore, we have adopted a diversified marketing strategy and established partnerships with bio-manufacturing institutions, biodegradable plastics producers, energy companies and others. By participating in international seminars, forums and media, we plan to continuously expand the international influence and market competitiveness of the brand.

In terms of finance, the project has obtained initial financial support in the angel round financing stage, and a strict financial budget management system and risk control measures have been formulated to ensure the rationality and efficiency of the use of funds. At the same time, the project team also fully identified potential risks such as policy risks, financial risks, market demand fluctuation risks, and legal risks, and formulated corresponding countermeasures. Including the establishment of regulation tracking system, policy early warning and emergency mechanism, diversified financing, financial budget management, cost control mechanism, supply chain management, market research and forecasting, consumer education, etc., to ensure the steady operation of the project.

In addition to the pursuit of economic benefits, the project also focuses on social benefits by promoting industrial integration and upgrading, innovating the food industry, assisting the development of medical science and technology, developing biological science, and promoting the cosmetics industry to natural and environmental

The development of protection and effective direction has brought positive impact to society. The project aims to build an ecological civilization, promote sustainable development, meet people's needs for a better life, improve people's living standards, promote employment, promote economic growth, and provide intellectual support for the field of biotechnology.

To sum up, this project has cutting-edge scientific research technology, and with the support and guidance of powerful policies, we can identify the market demand. Through a professional team operation, sound financial planning and an emphasis on social benefits, we are able to translate scientific research and technology results to demonstrate great commercial potential and social value.