Huatai United Securities Co., Ltd

About Nanjing Nuovezan Biotechnology Co., Ltd

2024 Semi-Annual Continuous Supervision Follow-up Report

Name of Sponsor: Huatai United Securities Co., Ltd. Abbreviation of the Sponsored Company: Nuovezan

Name of sponsor representative: Hong Jiechao Contact number: 010-56839300

Name of sponsor representative: Li Hao Tel: 010-56839300

In accordance with the Securities Law, the Administrative Measures for the Sponsorship Business of Securities Issuance and Listing and the Shanghai Stock Exchange

Listing Rules for Stocks on the Science and Technology Innovation Board" and other relevant laws and regulations, Huatai United Securities Co., Ltd. (to

hereinafter referred to as "Huatai United Securities" or the "Sponsor") as Nanjing Nuovezan Biotechnology Co., Ltd. (to

hereinafter referred to as "Novezan", "Company" or "Issuer") is responsible for the sponsor of Novezan after its listing

Ongoing supervision and issuance of the 2024 half-year period (hereinafter referred to as the "reporting period" or "reporting period")

Continuous monitoring and follow-up reports.

1. Continue to supervise the work

Serial No. Project Continuous supervision of the work

Establish, improve and effectively implement the continuous supervision work system, and have established and effectively implemented it for specific continuing sponsors

1. Supervise the work and formulate the corresponding work plan The continuous supervision system has been based on the company's tools

The corresponding work plan has been formulated

The sponsor has signed a sponsorship agreement with the company

According to the relevant regulations of the China Securities Regulatory Commission, before the start of continuous supervision, the agreement with the listing agreement clarifies that both parties are in continuous supervision

2. The company or relevant parties sign a continuous supervision agreement to clarify the rights and obligations of both parties during the continuous supervision period, and has reported to Shanghai

The rights and obligations of the period shall be reported to the Shanghai Stock Exchange for the record. This continuous supervision period

No changes have been made to the content of the agreement

or termination of the agreement

In the first half of 2024, the sponsor passed the daily

3. Carry out communication, regular or irregular return visits, and on-site through daily communication, regular return visits, on-site inspections, etc

Continuous supervision of the work inspection and other ways to carry out continuous supervision of the company

guide work

During the period of continuous supervision, in accordance with the relevant regulations, the violations of laws and regulations of listed companies were disclosed in the first half of 2024, and the company did not need to be publicized

4. If a statement is issued, it shall be reported to the Shanghai Stock Exchange before disclosure, and the violations of laws and regulations declared by the Shanghai Stock Exchange and Development Form

After review, the securities exchange will make an announcement in the designated media

During the period of continuous supervision, the listed company or relevant parties have violated laws and regulations

Commitments and other matters shall be reported to the company and relevant parties in the first half of 2024 within five working days from the date of discovery or should be discovered

5. The report of the Shanghai Stock Exchange includes that the listed company or the relevant parties have not reported any violations of laws and regulations

In the event of violations of laws and regulations, breach of commitments and other matters, and the sponsor's repudiation of commitments

supervisory measures, etc

The sponsor continues to supervise and guide the company and its

Supervise listed companies and their directors, supervisors, and senior management personnel to comply with laws and regulations Directors, supervisors, and senior managers, 202

6 Regulations, departmental rules and business rules and other norms issued by the Shanghai Stock Exchange In the first half of 4 years, the company and its directors and supervisors

and effectively implement the commitments they have made and senior managers can comply with the relevant ones

The requirements of laws and regulations, and earnestly fulfill them

Commitments made

The sponsor verified the establishment of the corporate governance system

Supervise listed companies to establish, improve and effectively implement corporate governance systems, including but not with the implementation of the articles of association, and three meetings

7. The rules of procedure of the general meeting of shareholders, the board of directors and the board of supervisors, as well as the rules of procedure of directors and supervisors are in accordance with relevant laws and regulations

In the first half of 2024, the company will effectively enforce the code of conduct for senior management

The relevant governance system has been implemented

Supervise the listed company to establish, improve and effectively implement the internal control system, including but not limited to the sponsor verifying the establishment of the company's internal control system

8. The financial management system, accounting system and internal audit system, as well as the fund-raising and implementation of the company, are in line with the company's internal control system

Use of gold, related party transactions, external guarantees, foreign investment, derivatives transactions, and relevant regulatory requirements, in the first half of 2024,

Procedures and rules for major business decisions such as the control of subsidiaries The Company has effectively implemented the relevant internal control system

Supervise listed companies to establish, improve and effectively implement the information disclosure system, review the information The company has established an information disclosure system and sponsors

Disclosure documents and other relevant documents, and there are sufficient reasons to believe that the listed company will timely disclose the company's information disclosure documents to the public

9. The documents submitted by the Shanghai Stock Exchange do not contain false records, misleading statements or re-communication and review, and shall be submitted to the Shanghai Stock Exchange

Major omissions There are no false records or errors in the documents submitted

Introductory statements or material omissions

Information disclosure documents for listed companies and transactions with the China Securities Regulatory Commission and Shanghai Securities

Other documents submitted will be reviewed in advance, and problematic information will be disclosed

The listed company should be urged to correct or supplement it in a timely manner, and the listed company will not correct the company's general insurance before the disclosure of important information

10 or supplemental, shall be reported to the Shanghai Stock Exchange in a timely manner; Fully communicate with the sponsors of listed companies and submit announcements

If the information disclosure documents have not been reviewed in advance, the listed company shall perform the information disclosure documents for prior review to ensure that the information is disclosed

Within five trading days after the obligation, the review of the relevant documents shall be completed, and the reasonableness and accuracy of the disclosure shall be completed

The information disclosure documents of the problem should be promptly urged to be corrected or supplemented by the listed company and listed

If the company does not correct or supplement, it shall report to the Shanghai Stock Exchange in a timely manner

Pay attention to the listed company or its controlling shareholder, actual controller, director, supervisor, high In the first half of 2024, the company or its controlling shares

Level 11 management personnel were subject to administrative penalties by the China Securities Regulatory Commission, disciplinary directors of the Shanghai Stock Exchange, actual controllers, directors, supervisors, and senior executives

Punishment or the Shanghai Stock Exchange issued a letter of regulatory concern, and the supervision of senior management personnel have not been subject to the China Securities Regulatory Commission

It has improved its internal control system and taken measures to correct administrative penalties and disciplinary measures imposed by the Shanghai Stock Exchange

or be issued by the Shanghai Stock Exchange

Manage the situation of the letter of concern

Continue to pay attention to the performance of the commitments of listed companies and controlling shareholders and actual controllers In the first half of 2024, the company and its controlling shares

12. In addition, if the listed company and its controlling shareholder and actual controller fail to fulfill its commitments, there shall be no failure to do so by the owner and the actual controller

The sponsor shall report the undertaking to the Shanghai Stock Exchange in a timely manner

Pay attention to the reports of listed companies in the public media, and conduct them in a timely manner in response to market rumors

Check. After verification, it was found that the listed company had material matters that should be disclosed and not disclosed In the first half of 2024, the company did not have such such matters

13 or if the disclosed information is inconsistent with the facts, the sponsor shall promptly supervise the matters of the listed company

truthful disclosure or clarification; If the listed company does not disclose or clarify, it should be timely

Report to the Shanghai Stock Exchange

If any of the following circumstances is discovered, urge the listed company to make an explanation and make corrections within a time limit.

At the same time, it reported to the Shanghai Stock Exchange that: (1) suspected of violating the Listing Rules

and other relevant business rules; (2) Issued by the securities service institution and its signatories

14 Professional opinions may contain false records, misleading statements or material omissions and other violations in the first half of 2024, the company and related entities

non-compliance or other impropriety; (3) The Company did not have such matters as set forth in the Sponsorship Measures

the circumstances provided for in Articles 71 and 72; (4) The company does not cooperate with the continuation

supervising work; (5) The Shanghai Stock Exchange or the sponsor deems it necessary to report

Miscellaneous

Formulate an on-site inspection work plan for listed companies, and clarify the on-site inspection work

to ensure the quality of on-site inspection work. In any of the following circumstances,

The sponsor and sponsor representative shall have 15 days from the date on which they knew or should have known

15. Conduct special on-site inspections: (1) There is a suspicion of major financial fraud; (2) In the first half of 2024, the Company did not have such a situation

Matters that are suspected of requiring on-site inspection by controlling shareholders, actual controllers, directors, supervisors or senior managers

embezzlement of the interests of listed companies; (3) There may be a guarantee of material violations; (iv)

There are major abnormalities in capital transactions or cash flows; (5) Shanghai Stock Exchange

or other matters that the sponsor deems necessary for on-site verification

The sponsor deposits the company's funds in a special account

Continue to pay attention to the establishment of a special account storage system and implementation of raised funds by listed companies, the use of reserves, raised funds and investment items

16. Commitments such as the use of raised funds and the implementation of investment projects. Commitments such as the implementation of the objectives have been continued

Pay attention to and supervise the company to implement the fund-raising special

Account storage system and supervision agreement for raised funds

2. Problems found by the sponsor and the sponsor representative and their rectification

Not.

3. Major risk matters

The main risk factors currently faced by the company are as follows:

(1) Core competitiveness risks

1. Risks of product development and technology iteration

Both the biological reagent industry and the in vitro diagnostic industry are technology-intensive industries. In the follow-up process of new product development, the company may face the risk of product development failure due to the deviation of R&D technology route, high R&D cost investment, and slow R&D process.

Since its establishment, the company has adhered to independent research and development based on the underlying technology, continuously improved and consolidated the core common technology platform, and gradually entered the downstream subdivisions such as in vitro diagnostics, vaccine clinical CRO services, and vaccine raw materials from the field of biological reagents. If the company's prediction of the future technology development trend of the industry is deviated, the R&D investment is insufficient, or the company in the same industry achieves a major breakthrough in key technologies or methodologies, it may lead to the risk of the company's products and technologies being replaced, which will adversely affect the company's core competitiveness.

2. The risk of loss of core technical personnel

Having a stable and high-quality R&D team is an important foundation for the company's continuous innovation and R&D. With the rapid development of China's biological reagent field and in vitro diagnostic field, the competition for talents in the industry is becoming increasingly fierce, if the company can not provide a good incentive mechanism, scientific research environment and development space for core technical personnel, it may lead to the loss of core technical personnel, which will adversely affect the company's production and operation.

3. The risk of core technology being compromised

The company attaches great importance to the protection of core technologies, and ensures the confidentiality of core technologies by formulating a confidentiality system and implementing confidentiality measures such as signing confidentiality agreements and non-compete agreements. If the company cannot continue to effectively manage the relevant proprietary technology and trade secrets, the company's core technology is at risk of being leaked and stolen by others, which will adversely affect the company's production and operation.

1. The risk of intensified market competition

With the continuous and rapid growth of market demand in the field of biological reagents and in vitro diagnostics in China, many domestic and foreign enterprises have joined the competition, and the industry competition has become increasingly fierce. In recent years, in China's molecular biological reagent market, there is still a big gap between the company's market share and the total market share of international advanced companies such as Thermo Fisher, Kaijie and BioRad. In terms of technical level, the company has been established for a relatively short time, and there is still a big gap between the company and international leading enterprises in terms of R&D investment and technology accumulation, technical level and product line richness. At the same time, in recent years, many enterprises in the biological reagent and in vitro diagnostic industry have developed rapidly with the help of policy, market and capital opportunities, and have made breakthroughs in technological innovation, product research and development, market expansion and other breakthroughs in related segments, the industry prosperity has been continuously improved, and the number of market entrants has increased significantly.

2. The risk that market development is less than expected

During the reporting period, the company's revenue mainly comes from biological reagents and in vitro diagnostic products, and the customer groups of biological reagents are mainly scientific research institutions, high-throughput sequencing service enterprises, molecular diagnostic reagent manufacturers, pharmaceutical companies and CRO companies, etc., and the end customer groups of in vitro diagnostic products are mainly hospitals and other medical institutions. The company's business involves many market segments, although a more detailed implementation plan has been formulated, but there is still a risk that the marketing effect is not good, and the market development is not as expected.

3. Human resources-related risks

The life science and in vitro diagnostic reagent industry in which the company is located is a knowledge- and talent-intensive industry, and talent is the key element for the company to maintain continuous innovation, business development and core competitiveness. In addition, with the company's future business development and operation and management needs, there is a continuous demand for high-level talents in the fields of management, R&D and marketing. If the company cannot scientifically and effectively control personnel costs to match the company's business growth in the future, it will affect the company's profitability to a certain extent.

4. The risk of safe production

With the expansion of the company's production sites and production lines, and the increase of production personnel, the company is in safety production management

(including personnel, site, biology, quality and safety, etc.) will face new challenges, or equipment failure, improper operation, improper storage, adverse weather events, etc., resulting in unexpected safety accidents, affecting the company's operating performance and stability.

(3) Financial risks

1. The risk of high R&D expenses, sales expenses, and depreciation of fixed assets affecting the company's profitability

The company adheres to R&D as the core, and attaches great importance to the construction of marketing teams and channels. During the reporting period, the company's R&D expenses and sales expenses accounted for 55.47% of operating income, and the performance improvement effect brought by the above-mentioned capital investment will gradually appear in the company's future continuous operation, which will lead to a mismatch between the growth rate of the company's operating performance and the growth rate of operating income in the short term. At the same time, with the completion of the company's fund-raising projects, the depreciation amount of the company's new fixed assets is relatively high, and the above factors have brought a certain adverse impact on the company's profitability. From January to June 2024, the company's net profit attributable to shareholders of listed companies was 16.1595 million yuan, although it achieved a turnaround compared with the same period last year, the profit scale and profit base are still relatively weak, and higher R&D expenses, sales expenses, and depreciation of fixed assets will still adversely affect the company's profitability in the future.

2. Inventory impairment risk

At the end of the reporting period, the book value of the company's inventory was 361.2662 million yuan, accounting for 10.36% of current assets. Guided by market demand, the company mainly adopts the production mode of sales and production, and formulates floating safety stock of products in combination with market demand. With the expansion of the company's regular business production scale, if the company cannot reasonably control the inventory level, optimize the inventory management ability, and continuously improve the inventory turnover rate in the future, there will be a risk of unsalable inventory and then falling prices. The above factors may adversely affect the company's operating results.

3. Exchange rate fluctuation risk

The company's overseas sales revenue has grown rapidly, and overseas customers are mainly priced and settled in foreign currencies such as US dollars and euros, which may increase the difficulty of exchange rate risk management in the future due to factors such as the international situation and financial policies. Exchange rate changes directly affect the amount of the Company's foreign exchange gains and losses, and if the Company fails to take effective measures to deal with the risk of exchange rate changes, it may adversely affect the operating results.

(4) Industry risks

The company's biological reagent business is faced with molecular diagnosis, gene sequencing services for corporate customers, research and development of reagents and services

Serving the customers of biomedical and vaccine enterprises, as well as hospitals, physical examination institutions and other customers for POCT reagents

households, are subject to national and local drug supervision, health departments and other multi-level, multi-departmental supervision, involved industry policies

The regulations are highly standardized. For example, the company's downstream customers are greatly affected by changes in industry policies and cannot adjust the research in a timely and effective manner

The adaptation of the development and production model to the new regulatory environment will lead to a decrease in its procurement needs, which will indirectly affect the company's operations

Performance Results.

(5) Macro environmental risks

In recent years, the global economic situation has faced force majeure such as slowing growth, de-globalization, and frequent trade frictions

factors, which will adversely affect the company's domestic and overseas business development, especially the international business process.

4. Major violations

Not.

5. Reasons and reasonableness of changes in major financial data and indicators

In the first half of 2024, the company's main financial data and indicators are as follows:

Unit: RMB, %

Key Financial Data January-June 2024 Increment and decrease from January to June 2023

Operating income 649,272,421.00 571,036,914.17 13.70

Net profit attributable to shareholders of the listed company 16,159,452.81 -81,093,535.29 Not applicable

Deductions attributable to shareholders of listed companies are not applicable to -15,294,341.71 -118,318,199.24

Net profit from recurring gains and losses

Net cash flow from operating activities -74,247,723.24 44,771,874.42 -265.84

Key Financial Data End of June 2024 Year-end 2023 Increase/Decrease

Net assets attributable to shareholders of listed companies 3,977,510,588.14 4,029,387,759.53 -1.29

Total assets 4,979,890,963.98 5,746,172,538.46 -13.34

Key Financial Indicators January-June 2024 January-June 2023 Increase/Decrease

Basic earnings per share (RMB/share) 0.04 -0.20 Not applicable

Diluted earnings per share (RMB/share) 0.04 -0.20 Not applicable

Basic per share after non-recurring gains and losses -0.04 -0.30 N/A

Earnings (RMB/share)

The weighted average return on equity (%) 0.40 -1.77 increased by 2.17 percentage points

The weighted average after deducting non-recurring gains and losses was -0.38 -2.60, an increase of 2.22 percentage points

Return on equity (%)

The ratio of R&D investment to operating income was 21.95 30.10, a decrease of 8.15 percentage points

（%）

The reasons for the changes in the above key financial data and indicators are as follows:

During the reporting period, the company's operating income achieved steady growth year-on-year, and the net profit attributable to shareholders of the listed company

The net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was larger than that of the same period last year

The decrease in loss was mainly due to the steady growth of the company's life sciences business and international business, and the company's continuous advancement

The refined management of daily operations led to a year-on-year decrease in the overall expense ratio.

The net assets attributable to shareholders of listed companies remained stable compared with the beginning of the period, and the total assets decreased by 13.34% compared with the beginning of the period.

This is mainly due to the significant reduction in the scale of the company's borrowings during the reporting period.

Net cash flow from operating activities decreased by 265.84% year-on-year, mainly due to the decline in sales collection.

Sixth, the changes in core competitiveness

(1) Business scalability advantages

The establishment of the company's key common technology platform is based on molecular biology, cell biology, immunology, enzymology,

Biochemistry and other interdisciplinary foundations. Due to the wide range of downstream applications, the company can adapt to its own needs

Development situation, customer and market demand for technology and product development, the choice of research and development direction is more abundant,

And for the research and development of different subdivisions, they can promote and iterate with each other.

After years of development, the company is based on key common technology platforms in the fields of enzymes, antigens, antibodies and itself

The efficient R&D system can carry out the research and development of new products quickly, efficiently and on a large scale, and has successfully launched the package

Including PCR series, qPCR series, molecular cloning series, reverse transcription series and other series of biological reagents

and 9 series of POCTs, including cardiovascular and cerebrovascular, inflammatory infection, eugenics, gastric function, nervous system, etc

diagnostic reagents, and has formed a covering scientific research institutions, high-throughput sequencing service enterprises, and molecular diagnostic reagent manufacturers

A portfolio of customers from various customer groups such as industry, pharmaceutical companies, CRO companies, hospitals and other medical institutions. Simultaneous needles

For major public health events such as African swine fever and new crown pneumonia, the company can respond quickly and develop corresponding products and services such as raw materials for detection reagents and terminal detection reagents in a timely manner.

(2) R&D investment and technical advantages

Since its establishment, the company has always adhered to the business philosophy of R&D as the core, relying on the core technology of independent research and development, constantly updating and iterating existing products and developing new business areas. Company 2021, 2022,

The R&D expenses in 2023 will be 230.3215 million yuan, 396.107 million yuan and 338.6159 million yuan respectively, accounting for

The proportions of operating income for the period were 12.33%, 11.10% and 26.33% respectively. The company always attaches great importance to research and development.

Continuously strengthen R&D strength and product development capabilities. As of June 30, 2024, the company's overall R&D personnel

is 636, and 63.99% of the R&D personnel have a graduate degree or above. In terms of intellectual property rights, interception

As of June 30, 2024, the company has obtained a total of 94 invention patents and applied for a total of 219 invention patents

Item.

The company provides sufficient hardware support for R&D work, including the purchase of advanced instruments and equipment, the construction of high-standard R&D laboratories, and the provision of sufficient R&D sites. In terms of technical reserves, the company has multidisciplinary technologies such as molecular biology, enzymology, immunology, bioinformatics, organic chemistry and materials science, and has established a number of common technology platforms, which have been combined to form a number of biological reagent product series and POCT diagnostic reagent product series, and can expand to provide extended services such as vaccine clinical CRO services, antibody screening, and process technology optimization, which can better meet the needs of downstream customers. Relying on advanced technology platform, efficient R&D efficiency and sufficient R&D personnel reserves, the company has launched more than 100 new products every year in recent years, promoting rapid growth in sales revenue. Through continuous product improvement and iteration, the company has achieved the technical level of imported products in multiple segments, gradually promoted import substitution, and consolidated and improved the market of the company's products

Competitiveness.

(3) Professional team and talent advantages

The steady growth and continuous innovation of the company's business is inseparable from professional and technical personnel, since its inception, the company's initial core technical team is relatively stable, while accumulating rich experience in R&D, innovation and management, it has cultivated many new technical backbones internally to meet the needs of the company's sustainable original innovation of underlying technology and the extension of subdivisions. In terms of talent pool, as of the end of the reporting period, the number of R&D personnel accounted for 24.11% of the total number of employees, with interdisciplinary backgrounds such as molecular biology, enzymology, immunology, bioinformatics, organic chemistry and materials science. During the reporting period, the company further obtained technical talents and resources in related professional fields and enriched the talent reserve by increasing R&D investment, improving the quality of R&D team, establishing overseas platforms, optimizing salary and benefits, and assessment and incentive policies.

(4) Advantages of customer group resources

Since its establishment in 2012, the company has been based on the field of biological reagents, and first launched PCR and qPCR lines

Molecular biological research reagents such as columns, molecular cloning series, etc., have successively served more than 1,000 universities and scientific research institutions in China, and more than 10,000 customers. The company has always put customer needs in the first place, through years of cooperation with a large number of scientific research customers across disciplines, species and application fields, from basic scientific research to forward-looking technology exploration, adhere to the business model of "direct sales + R&D support + sales support" to deeply participate in the process of customer R&D and product use, constantly collect customer needs and feedback, improve product performance and service, and capture industry trends and scientific and technological development trends while improving customer stickiness. In the early days of the company's establishment, with the experience of product incubation and sample verification of a large number of scientific research customers, according to the company's R&D and technical advantages and market needs, the company expanded to industrial customers and new business areas in a timely manner, and accumulated a large number of valuable experience in product commercialization, process optimization, R&D support, and capacity expansion in molecular diagnostic raw materials, gene sequencing reagents, in vitro diagnostic terminal reagents and other subdivisions, so that the company can quickly respond to major public health safety events such as African swine fever and new crown pneumonia. Provide customers with raw materials, terminal reagents, clinical CRO services, antibody screening and other services and overall solutions, continuously consolidate and deepen customer relationships, and establish long-term, diversified and in-depth interactive customer relationships. The company's customer groups include universities and research institutes, molecular diagnosis enterprises, gene sequencing service enterprises, animal breeding enterprises, hospitals and physical examination institutions, as well as biomedical and vaccine enterprises, etc., and the rich and stable high-quality customer groups provide a long-term driving force for the continuous growth of the company's business and R&D innovation.

(5) Independent and controllable advantages in R&D and production of core raw materials

The company relies on its self-developed protein directed modification and evolution platform and high performance based on single B cells

The antibody discovery platform realizes the independent R&D and production of the company's biological reagent products and core raw materials for in vitro diagnostic products. The company's ability to independently develop key core raw materials such as genetically engineered recombinant enzymes, high-performance antigens and monoclonal antibodies, chemical raw materials and biochemical materials is an important competitive advantage for the company.

In terms of biological reagent raw materials, the company is based on more than 600 enzymes and tens of thousands of corresponding genetic engineering protrusions

The application of variants has improved the catalytic activity, half-life, stability, heat resistance and anti-interference performance of enzymes, and has developed a number of series of biological reagent products by using the high-performance enzymes independently developed and produced by the above independent research and development as core raw materials, and the performance of some products has caught up with imported brands. During the reporting period, the key raw materials used in all series of biological reagent products produced by the company were 100% self-produced, except for a few series involving the external procurement of key raw materials.

In terms of raw materials for POCT diagnostic reagents, the company relies on its own high-performance antibody discovery capabilities

It has become a technical reserve of more than 2,000 kinds of high-performance antigens, antibodies and other key raw materials, and can develop scarce detection indicators with limited supply of key raw materials, as well as form new products with independent intellectual property rights on the basis of innovation and practicability, such as idiopathic membranous nephropathy indicators (anti-PLA2R, anti-THSD7A), heparin-induced thrombocytopenia antibodies (PF4-H, PF4-H-IgG), Alzheimer's disease diagnostic indicators (NFL, pTau217), etc.; The high-affinity and high-specificity multi-species (rat, rabbit, sheep, etc.) monoclonal antibody technology enables the company to develop hypersensitive detection indicators, which can achieve effective detection in the early stage of the disease, such as hypersensitive cardiac troponin indicators (hs-cTnI, hs-cTnT), Alzheimer's disease diagnostic indicators (Aβ1-40, Aβ1-42, p-Tau181), etc.

The self-production of key raw materials is conducive to the rapid development of relevant raw materials and corresponding products in the face of market demand, grasp market opportunities, and also help to ensure the company's supply chain security, not to rely on suppliers. Since 2020, the company has realized the large-scale production of PCR series and qPCR series biological reagents, providing a large number of key raw materials for new crown nucleic acid detection kits for domestic molecular diagnostic reagent manufacturers.

(6) Advantages of a variety of protein expression systems and large-scale production

In the field of protein preparation, the barriers of industrial scale-up production are much higher than that of laboratory-level expression, and it is necessary to ensure that the original activity and purity of the protein are not lost in the process of industrial preparation. The company has built all aspects of protein design, transformation, recombinant expression, high-density fermentation, separation and purification, and quality control

It has a complete production line, and has a variety of protein expression systems such as Escherichia coli, yeast, insects and mammalian cells, which are used for the recombinant expression preparation of enzymes, antigens and antibodies, and has preserved more than 80 kinds of expression hosts and more than 100 unique plasmids to meet the preparation needs of various products, forming a large-scale and multi-system recombinant protein preparation platform. After years of continuous exploration of technology, the company has realized the large-scale mass production of hundreds of molecular biology enzyme raw materials such as polymerase, reverse transcriptase, and ligase. At the same time, using insect and mammalian expression systems, the company has developed hundreds of categories of antigen and antibody raw materials for in vitro diagnostics. Based on the transformation of vectors and engineered cell lines, the company's unit production efficiency has been improved, and the unit production cost has been reduced. At the same time, sufficient production capacity reserves ensure that the company can quickly respond to all kinds of sudden needs and establish a solid foundation for the company's business expansion.

(7) Advantages of marketing system

The company adopts a sales model combining direct sales and distribution, adopts different marketing strategies for biological reagents and in vitro diagnostic products, forms a systematic marketing system, and establishes a marketing service network covering major regions of the country. For biological reagents, the company has set up direct sales outlets in more than 20 key cities and regions in China to carry out marketing work independently and provide services to customers. The company's biological reagent business relies on the above-mentioned direct sales outlets, and the sales team can solve problems such as product adaptability on the spot, understand the latest needs of customers and the market, which is conducive to accumulating a wide and stable customer base and continuously improving customer stickiness. The customer base of the biopharmaceutical business has expanded rapidly, with a total of more than 1,000 customers. For in vitro diagnostic products, the company's products have been sold in more than 2,800 medical institutions in more than 30 provinces, cities and regions across the country, and are actively expanding overseas. During the reporting period, the company has established a global overseas marketing network, and will continue to promote the internationalization strategy and deliver more domestic high-quality products to the world.

In summary, there will be no adverse changes in the company's core competitiveness in the first half of 2024.

7. Changes in R&D expenditure and R&D progress

(1) R&D expenditure and changes

During the reporting period, according to the strategic planning and actual business development needs, the company focused more on its main business in the investment and management of R&D resources, and was committed to further improving R&D efficiency and resource utilization. In the first half of 2024, the company's R&D investment will be 142 million yuan. As of the end of the reporting period, the overall number of R&D personnel in the company was 636, accounting for 24.11% of the total number of employees, and 63.99% of R&D personnel had a master's degree or above. Reporting period

In addition, 39 new intellectual property applications (including 32 invention patent applications) were added, and 35 intellectual property rights were authorized

(including 16 invention patents).

(2) R&D progress

1. Upstream common technology and process development

During the reporting period, the company's basic science research institute orderly promoted the key technology research and development projects related to the product development of each business division, and the delivery rate of the research and development projects reached 90% on schedule, continued to enrich the variant library for important enzymes and enzyme antibodies, screened potential variants, assisted the product development and performance improvement of the business division, and continuously improved and upgraded the company's enzyme/synthetic biology platform, bioanalysis platform, cell and immunity platform, and chemistry/materials platform, focusing on improving computer-aided protein design, chassis cell design and transformation, Large-scale recombinant protein preparation platform, single B cell high-performance antibody development, antibody engineering and other core root capabilities.

During the reporting period, the important R&D achievements of the company's basic science research institute are as follows:

(1) Based on the high-sensitivity and high-specificity antibody discovery platform, complete the development and delivery of the first version of six antibodies to Alzheimer's disease, and complete the related development of kidney disease detection kits;

(2) Continue to expand the development and application research of GLP-1 (glucagon-like peptide-1) products for biomedicine

Completed the development of highly specific proteases, which have great performance advantages in the production process of biological GLP-1, and completed the development of intermediate products.

(3) Focus on improving the ability of high-yield molecular design, process optimization and large-scale preparation (large-scale enzymatic digestion process, ultrafiltration platform, high-pressure preparation, lyophilization process, etc.) to achieve scale-up production and large-scale supply, which can ensure the batch production capacity of tens of kilograms of GLP-1 product intermediates;

(4) Improve the accuracy of pTau antibody detection in Alzheimer's disease by more than 100-fold through improved development protocols, such as upgraded immunization protocols, precise epitope sorting, and throughput screening;

and (5) the application of large model tools such as Alpha Fold 3, an AI model for predicting the structure of biomolecules

It significantly improves the accuracy of protein prediction and complex force analysis, and improves the ability of protein modification such as enzymes and antibodies.

2. Life sciences

In the first half of 2024, we will focus on the expansion of application scenarios, differentiated performance improvement, convenience of use, and customers

With key goals such as cost savings, the company's life science division has developed more than 160 new products (including customized products with R&D participation), and product lines such as basic scientific research, gene sequencing, cell proteins, consumables and instruments, and animal quarantine have continued to be updated, and product development and performance upgrades have been completed in multiple categories, and 16 core technology developments have been completed, which are mainly used in high-throughput sequencing platform technology optimization, high-efficiency extraction reagent development, high-sensitivity detection reagent development, and cell/protein reagent development and other subdivisions.

3. Biomedicine

Focusing on the whole process of pharmaceutical and vaccine enterprises in the R&D-clinical-production stage, the company's biopharmaceutical division has developed a series of new drug R&D reagents, quality control reagents, core production raw materials and other products through a variety of technology combinations such as single B cell antibody screening platform and enzyme directed evolution platform to help customers improve R&D efficiency and success rate, improve production efficiency, reduce production costs, and establish a stable and safe supply chain system.

4. Biomedicine

(1) POCT diagnostic reagents

The company's in vitro diagnostic division continues to deploy in cardiovascular and cerebrovascular, inflammatory infection, eugenics, gastric function, autoimmunity, renal function, chronic disease management, respiratory and nervous system diseases, and has become one of the enterprises with the most complete products of myocardial markers, infection markers and Alzheimer's disease blood biomarkers in China. By the end of the reporting period, the company's subsidiary, Novozan Medical, had formed more than 100 products according to applicable disease fields and methodologies.

Among them, 52 kinds of detection reagent products have obtained the China Medical Device Registration Certificate (8 products have also obtained CE certification

certificates). During the reporting period, Novozan Medical and its subsidiaries obtained 6 new Class II medical device registration certificates and 5 medical device filing certificates, and by the end of the reporting period, a total of 130 medical device registration certificates and filings had been obtained.

(2) Instrument Research Institute

In the first half of 2024, the R&D work of the Instrument Research Institute will mainly focus on product upgrading and new product development: product upgrade|upgrade the QD-S2000 automatic quantum dot fluorescence immunoassay analyzer, from the original 12 detection channels to 24 channels, and at the same time increase the mixing function of peripheral blood and elution tubes, which has been started for registration; The focus is on the development of the company's automatic chemiluminescence analyzer, which innovatively adopts a double-needle design, which can significantly reduce cross-contamination, and the intelligent all-in-one machine operation mode can realize the integration of automatic sample filling and mixing, and has been registered at present; In order to seamlessly connect with Mindray's blood cell assembly line project, a fully automatic quantum dot fluorescence immunoassay analyzer QD- was developed.

S2100 and QD-S2900 have entered trial production.

(3) Microfluidic detection

Based on the microfluidic technology platform, the company has built a rich detection menu system, and has successfully developed a joint detection kit for upper respiratory tract infection, and has carried out IVDR certification switching, and has lower respiratory tract infection, bloodstream infection, gastrointestinal infection, meningitis infection, venereal disease infection and other detection reagent products are in research and development.

The company has also carried out R&D, improvement and optimization of existing production equipment and production processes, which has effectively improved the production first-pass rate of production equipment and the overall first-pass rate of production lines.

8. Whether the progress of the new business is consistent with the information disclosed in the previous period

Not applicable.

9. The use of the raised funds and whether they are compliant

Approved by the China Securities Regulatory Commission Zheng Jian Xu Xu [2021] No. 2367, Nuovezan publicly issued 40.01 million RMB ordinary shares (A shares) to the public at an issue price of RMB 55.00 per share, raising a total of RMB 220,055.00 million, and the actual net amount of funds raised was RMB 210,917.02 million after deducting the issuance expenses of RMB 91,379,800. The actual situation of the above-mentioned raised funds has been verified by Lixin Certified Public Accountants (Special General Partnership), and the Capital Verification Report [2021] No. ZA15793 has been issued.

As of June 30, 2024, the use and balance of the proceeds are as follows:

Item Amount (RMB)

Received raised funds of 2,200,550,000.00

Less: Issuance expenses paid directly from the proceeds of the proceeds 85,281,579.41

Replacement amount of 6,098,200.00 with self-raised prepayment of issuance costs

Net proceeds 2,109,170,220.59

Less: 432,004,717.81 of self-raised funds that have been invested in the fundraising project in advance

Permanently replenish liquidity with over-raised funds 518,069,500.00

981,005,505.43 funds were used in the fund-raising project

Item Amount (RMB)

Purchase of wealth management products 7,146,080,000.00

Payment fee 8,295.43

Subtotal expenditure 9,077,168,018.67

Add: Redemption of wealth management products 6,996,080,000.00

Investment income of wealth management products 31,345,255.83

Interest income 11,504,890.36

Subtotal revenue 7,038,930,146.19

As of June 30, 2024, the balance of funds raised is 70,932,348.11

Note: As of June 30, 2024, the company subscribed for the balance of unexpired structured deposits with raised funds of 15,000.00 yuan.

As of June 30, 2024, the specific deposits of the raised funds are as follows:

Account Name, Opening Bank, Bank Account Number, Account Balance

(RMB)

Nanjing Nuovezan Biotechnology Bank of Hangzhou Co., Ltd. South 3201041060000034401 3,055.56

Technology Co., Ltd. Jingpukou Branch

Nanjing Novozan Biotechnology Co., Ltd. Shanghai Pudong Development Bank Co., Ltd. has 93100078801400001310 70,929,292.55

Technology Co., Ltd. Limited to Nanjing Chengbei Branch

Total 70,932,348.11

The deposit and use of the company's raised funds in the first half of 2024 complied with the provisions of regulations and documents such as the Listing Rules of the Science and Technology Innovation Board of the Shanghai Stock Exchange and the Regulatory Guidelines for Listed Companies No. 2 - Regulatory Requirements for the Management and Use of Raised Funds by Listed Companies.

10. Shareholding, pledge, freezing and reduction of shareholdings, pledges, freezes and holdings of controlling shareholders, actual controllers, directors, supervisors and senior managers

The controlling shareholder of the company is Nanjing Nuovezan Investment Management Co., Ltd., which directly holds 161,907,300 shares of the company, and the number of shares held by the company's controlling shareholder in the first half of 2024 has not been increased, decreased, pledged or frozen.

The actual controllers of the company are Cao Lin and Duan Ying. In the first half of 2024, the number of shares held by the actual controller of the company is not available

Additions, deletions, changes, pledges, or freezing.

In the first half of 2024, there was no increase, decrease, pledge or freezing of the number of shares held by the company's directors, supervisors and senior management.

To sum up, as of June 30, 2024, the company's controlling shareholders, actual controllers, directors, supervisors

There is no pledge, freezing or reduction of the company's shares held by the company and senior management.

11. Other matters on which the Shanghai Stock Exchange or the sponsor deems it necessary to express its opinions

As of the date of issuance of this Continuous Supervision and Follow-up Report, there are no other matters that the sponsor believes should be expressed.