From: Prospective Industry Research Institute

major listed companies in the industry: huada zhizao (688114.SH); Kaisai Biology (688065.SH); Huaxi Biology (688363.SH); Huaheng Biology (688639.SH), etc.

The core data of this article: cost structure combination of synthetic biology industry; added value of synthetic biology industry chain

-- Industry chain involves multiple links

Synthetic biology mainly refers to the use of existing or modified genetic modules to assemble and build a living system that does not exist in nature. Therefore, synthetic biology is an emerging field that is guided by engineering ideas and combined with multiple disciplines. Through a series of redesigns and technologies, organisms or cells are modified to have new capabilities. In this process, a series of new standardized biological components, components and systems are designed and constructed to achieve ideal biological manufacturing capabilities. Its upstream includes basic technology and raw materials, the midstream is synthetic biology manufacturing, including platform construction and product manufacturing, and the downstream is the application field, involving medical, agricultural, industrial, food and other fields.

-- industry chain link benchmarking different types of competitors

The synthetic biology industry can be divided into three parts: upstream, midstream, and downstream, representing three categories: tool type, platform type, and product type, corresponding to three business models. They are a tool-based model that sells tools, reagents, and material products; a platform-based model that assists in research and development and provides technical services; a product-based model that produces and sells synthetic biology products.

-- Product manufacturers account for a relatively large proportion in the industry

For different types of competitors, the representative companies are listed below. There are relatively few tool-based enterprises, of which Huada Zhizao is the leader of tool-based enterprises, mainly providing high-throughput gene sequencer products. The scale of platform-based enterprises is also relatively general, with Kaisai Biology and Huaxi Biology being representative. There are many types of product-based enterprises. At present, listed enterprises include Huaheng Biology, etc. Some enterprises have also submitted listing applications.

-- Different types of enterprises have different cost structures

take Huada Zhizao, a representative tool-based enterprise in the synthetic biology industry, as an example, its direct material cost accounts for the highest proportion of 75.71, followed by manufacturing cost, accounting for 22.82. as most of the current tool-based enterprises are developing towards the form of smart factories, the direct labor cost accounts for only 1.47. However, judging from the cost structure of product-oriented enterprises, taking Huaheng Biology, a representative tool-oriented enterprise in the synthetic biology industry, as an example, its direct material cost accounts for the highest proportion of 69.01, followed by manufacturing cost, accounting for 26.59. As the current product-oriented enterprises involve the extraction of cell products and other work in production, to a certain extent, there are certain requirements for labor, so the direct labor cost accounts for slightly higher, accounting for 4.4. On balance, tool-based companies have a relatively higher proportion of direct material costs.

Note: Platform companies have different product types, making it difficult to provide an overview of their cost structure combinations, so no additional summary is provided here.

-- Higher value added upstream of the industrial chain

judging from the transmission of the value chain of the synthetic biology industry, the upstream of the synthetic biology industry involves the production of raw materials such as genetic engineering and chassis cells. due to the high scientific research content, fewer competitors, longer research and development cycle and generally higher gross profit margin, preliminary statistics show that the gross profit margin of listed enterprises in chassis cell production and gene recombination is as high as 75% and 80%. The middle reaches involve the supply of synthetic biology technology platform and biological instruments, relatively speaking, the gross profit margin has decreased, about 40% and 50% respectively; the downstream application market is different due to the difference in the added value of the industry, in which the gross profit margin of biomedicine is higher, reaching 60%, while the chemical and food industries The added value is low.

Note: The values in the value chain analysis represent an approximation of the gross margin in this area.

For more research and analysis of this industry, please refer to the "China Synthetic Biology Industry Market Outlook and Investment Strategic Planning Analysis Report" by the Foresight Industry Research Institute.

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