Huaxi Biology takes root in bioactive substances, creates competitive life and health consumer goods through R & D platform, industry transformation platform and market transformation platform, and continuously empowers industry development and promotes industrial upgrading

Zhuo Ma, Investment Times Researcher

In recent years, the overall appearance and quality of listed companies have undergone gratifying changes. The market has gradually gathered a group of "big and excellent" industry leaders and "small and beautiful" market champions in the subdivision field. It is in technological innovation and absorbing employment., Boost the economy and other aspects play an important role as a "ballast stone.

In this context, how to further stabilize expectations to boost market confidence? How can Chinese enterprises maintain high-quality development strategy? On December 20, 2023, the "See the Future • 2023 Sixth Capital Market Summit Forum and Golden Jubilee Awards Annual Awards Ceremony" hosted by the Punctuation Finance Research Institute, Investment Times and Investment Time Network was grandly held in Beijing. Guests gathered together to conduct in-depth discussions and exchanges on multiple topics, and contribute to the promotion of high-quality development of enterprises and the further improvement of China's capital market.

in the round-table discussion entitled "exploring new momentum: innovation and upgrading and high-quality development of listed companies", four guests from different industries conducted in-depth discussions on how to promote the high-quality development of listed companies. among them, Li yizheng, director, deputy general manager and dong mi of huaxi biotechnology co., ltd. (hereinafter referred to as huaxi biology, 688363.SH), introduced the practical experience of huaxi biology from many dimensions.

become a synthetic biological whole industry chain enterprise research and development industry landing three forces in one

"Investment Times": the emergence of synthetic biology has changed the traditional industrial production mode, and has been widely used in medicine, consumption, energy, materials, chemical industry, agriculture and other fields with its greener and more efficient characteristics. Therefore, the emergence of synthetic biology is also known as the "third biotechnology revolution". Bio-manufacturing, with synthetic biology as its core, is also becoming the focus of a new round of great power games. As a leading enterprise in the development of the industry, under this background, how to maintain a higher position of the enterprise? How to think about the core momentum of enterprise development?

Li yizheng: huaxi biology began to lay out the field of synthetic biology in 2018, and took synthetic biology as the company's bottom core technology and development strategy focus, taking the lead in investing in technology platform, research and development team, research and development center, industrial transformation, industry-university-research cooperation and other aspects. After years of layout, Huaxi Biology has developed into a synthetic biological whole industry chain enterprise integrating "R & D innovation ability, pilot test and industrialization ability, and market transformation ability.

at the research and development end, Huaxi biology has successfully built a synthetic biology research and development platform. in 2021, the "key laboratory of synthetic biology of bioactive substances in Shandong province" was recognized by the science and technology department of Shandong province. In the first half of 2022, Huaxi Bio's "Synthetic Biotechnology International Innovation Industry Base" settled in Daxing, Beijing and put it into use, and cooperated with more than 20 scientific research institutions around the world in the field of synthetic biology. At the industrial end, Huaxi Biology has built the world's largest pilot transformation platform, accelerating the transformation of scientific research results of synthetic organisms. In addition, Huaxi Biology has also built the world's first synthetic biological science museum, which has promoted the scientific popularization and promotion of synthetic biology.

huaxi biology follows the development logic of "science → technology → product → brand" and the development mode of the whole industrial chain. through the leading layout, it consolidates the bottom synthetic biotechnology, continuously deepens and expands the ecology of a large health industry, increases the brand's long-term doctrine and diversified, high-end and international development strategy, and deeply improves the management level of the whole industrial chain of the digital platform.

As a platform enterprise of the whole industry chain, Huaxi Bio's business model is "four-wheel drive", including bioactive raw materials, medical terminals, functional skin care products and functional foods. The company takes root in bioactive substances, creates competitive life and health consumer goods through research and development platform, industry transformation platform and market transformation platform, and constantly empowers the development of the industry and helps industrial upgrading.

For a long time, Huaxi Biology firmly believes that the vitality of an enterprise comes from continuous innovation and profitability, adheres to the "three-chain isomorphism", and strives to become the setter and leader of industry standards in the industrial chain. It has become a key link to control the intermediate links, and has become the core center of the optimal allocation of resources in the value chain.

"Investment Times": Huaxi Biology has continued to consolidate technological innovation in the past few decades, laying a solid foundation for building a full scene of life and health consumption to better serve the new generation of consumers. So, how does Huaxi Biology work together when the whole link from demand to supply resonates at the same frequency?

Li Yizheng: Huaxi Bio has now built a synthetic biological green manufacturing industry chain that runs through "scientific and technological innovation, pilot test, industrial transformation and market transformation.

As a platform company for the whole industry chain of synthetic biotechnology, Huaxi Bio adheres to basic research and applied basic research, attaches importance to R & D and production capacity, and has the world's largest pilot capacity and continuous product innovation capability.

At the same time, Huaxi Biology continues to carry out in-depth work in the established research and development strategic direction, and continuously introduces innovative achievements in raw material composition, formula technology, process technology and packaging materials to enhance the technical barriers and market competitiveness of products. Continue to adopt the research and development model of internal development and opening to the outside world to achieve efficient collaboration between different sectors and promote the application of technologies in the field of raw materials and medical devices in the field of skin care products.

in addition, in terms of big data operation, with the awareness of indicators and data operation management deepening into the daily business operation of huaxi biology, various tools such as BI vision, OKR target management based on office collaboration software, end-to-end data query page, etc. have been put into use, making the collaboration scene more efficient and convenient.

Empowering Startups for Green Development

"Investment Times": As a biotechnology company that started with hyaluronic acid raw material business and currently has four upstream and downstream fields such as bioactive raw materials, medical terminal products, functional skin care products, and functional foods, R & D strength is not only the foundation of Huaxi Biology, but also the core advantage of the company compared with other companies. It is understood that many types of synthetic biological products have been hatched in the company's R & D library. Which or which products will the company seek breakthroughs in its future development?

Li yizheng: at present, huaxi biology has used cell factories to obtain various bioactive substances through the research and development and industrial application of synthetic biotechnology, mainly focusing on six categories of substances such as functional sugars, proteins, polypeptides, amino acids, nucleotides and natural active substances, and has done a solid job in application mechanism research and development solutions.

based on basic research and applied basic research, huaxi biology has built six research and development platforms, namely, synthetic biology research and development platform, microbial fermentation platform and application mechanism research and development platform. As well as the pilot test results transformation platform, cross-linking technology platform and formulation process research and development platform, three major application basic research platforms.

At the same time, Huaxi Biology has built a synthetic biological green manufacturing industry chain covering "scientific and technological innovation, pilot test, industrial transformation and market transformation", mastered the industrial double advantages of "fermentation + pilot test", and is committed to building synthetic biological "biological intelligence benchmark, whole industry chain benchmark and green manufacturing benchmark".

Huaxi Biology believes that "green manufacturing" is fundamental and synthetic biology is the underlying support for China to achieve carbon peak and carbon neutrality. Synthetic biomass can change the traditional "plant extraction, animal extraction, chemical synthesis" and other material acquisition methods, and use biomass raw materials such as straw, cassava, and seaweed that can be obtained many times in nature to produce high value-added bioactive substances, such as Polysaccharides, amino acids, proteins, etc., reduce costs and energy consumption, and reduce carbon dioxide emissions. Generally speaking, compared with the plant extraction method, the animal extraction method and the chemical extraction method can effectively reduce the carbon emission by more than 35%-65% and the cost by more than 50%-95%.

"Investment Times": Standing at the forefront of the development of synthetic biology, this "golden track" has also attracted many "gold diggers". Many start-ups have sprung up. There are as many as 500 companies in the field of synthetic biology around the world. The cycle of "technology-industry-capital" is fully reflected in the field of synthetic biology, and a number of synthetic bio-science and technology board companies have laid out start-ups in advance. Does the company have an investment plan for such start-ups and how can it empower the industry in the future?

Li Yizheng: As a leader in the industry, Huaxi Bio hopes to actively assume the responsibility of leading the development of the industry and continuously promote the development of the synthetic biological industry with its own strength. At the same time, it is also a reserve for the company's future development and serves the company's medium-and long-term development strategy. Therefore, Huaxi Bio set up the first synthetic biological CVC fund in China this year to empower the bioeconomy through capital to empower the upstream and downstream of the industrial chain. We do not make diversified investments and focus on entrepreneurial enterprises supported by synthetic organisms to create an industrial ecology.

huaxi biology hopes to provide help to start-ups through the fund and realize three major empowerment: first, research and development empowerment, relying on huaxi biology's advantages in co-creation of industry, university and research and six major research and development platforms, to help start-ups carry out research and development innovation; The second is pilot empowerment. Huaxi Biology has the world's largest pilot transformation platform, which can help start-ups to carry out rapid industrial transformation of scientific research achievements. The third is empowered, relying on Huaxi Bio's advantages and foundation in terminal products, brands, markets, etc., to help start-ups develop and commercialize terminal products. At the same time, explore creative enterprises and talents, combine the needs of enterprises, empower at various key nodes, and finally achieve coordinated development.

Investment Times: What expectations does Huaxi Biology have for its own industry and the future development of the company?

Li Yizheng: The enterprise purpose of Huaxi Biology is to continuously bring healthy, beautiful and happy life experience to human beings-to improve the quality of life and prolong the length of life. With the development of synthetic biology science and technology, what remains unchanged is the first heart, which is the peak.