Transferred from: China Merchants Group Co., Ltd

Driven by the in-depth promotion of the national "dual carbon" strategy and the full implementation of the cultivation of strategic emerging industries, the biomanufacturing industry takes synthetic biology technology as the core, systematically integrates a new generation of technologies such as fermentation engineering, modern enzyme engineering, biorefining and bioprocess engineering, and builds an advanced synthesis system of energy chemicals and materials, which has now become a key pillar with global traction in the layout of China's strategic emerging industries. China Merchants Group adheres to the mission of serving the major national strategies of central enterprises, and systematically promotes the "development and industrialization project of a series of bio-based polyamides". As an important project of the "Top 100 Projects" of the State-owned Assets Supervision and Administration Commission of the State Council, the project focuses on overcoming the problems of raw materials, efficiency, cost and polyamide market application of bio-based polyamide monomer.

In order to build a leading edge in the biomanufacturing industry, China Merchants Group has strategically deployed and invested in Shanghai Cathay Biotechnology Co., Ltd. (stock code: 688065, hereinafter referred to as "Cathay Biotech"), a leading enterprise in the field of synthetic biology in China. Based on the horizontal synergy of industrial clusters and the vertical integration of technological innovation, the two sides have made significant progress in improving the R&D efficiency of core monomers of polyamide materials, building a biomanufacturing ecosystem and adding vitality to the bioeconomy, providing a practice paradigm for central enterprises to cultivate new quality productivity and create a new engine for bioeconomy, and effectively supporting the deep decarbonization transformation of industrial structure and the cultivation of new kinetic energy for high-quality development under the national "dual carbon" strategic goal.

technology-oriented, the R&D efficiency of the core monomer highlights the advantages of investment

In the molecular structure of polyamide materials, the R&D efficiency of the two core monomers of dibasic acid and dibasic amine directly determines the industrial competitiveness. China Merchants Group has made an in-depth layout of the core technology system of biomanufacturing, and realized the disruptive technological innovation of synthetic biotechnology over traditional chemical processes through its subsidiary, Cathay Biotech.

Different from the traditional chemical production of long-chain diacids, such as long synthesis routes, harsh reaction conditions, and low product acquisition rates, Cathay's cell factory can efficiently produce the core monomers of polyamide materials, and its reaction process is at room temperature, green, and has significant cost advantages, and has been the leading supplier of long-chain diacids in the world for many years. The strategic investment in "Molecular Heart", an AI protein design platform company, in 2023 marks that the biomanufacturing industry of the investment spectrum has begun to introduce emerging technologies such as AI technology and protein structure modification into the R&D system. Starting from the source of science, drive the change of R&D paradigm. By continuously improving the production efficiency of dibasic acids, pentanediamine and other products, and developing high-yield strains with different carbon chain lengths, the research and development of related technologies has made rapid breakthroughs, and the conversion rate of some products has approached the theoretical limit. Among them, low-carbon biological sebacic acid has a carbon emission reduction of more than 40% per ton compared with the products on the market that use castor oil as raw material and are produced through traditional chemical processes. Bio-based green diacid products can achieve up to 100% bio-based sources, which has a significant effect on further reducing the carbon emissions of products.

China Merchants Group is transforming its technological advantages into industrial scale, and on the basis of the existing all-disciplinary R&D of gene editing, biotransformation, biochemistry, polymerization and material application development, through the construction of AI-assisted R&D platform and intelligent production system, China Merchants Group is continuously promoting breakthroughs in bio-based polyamide production capacity, and gradually realizing the closed-loop of biomanufacturing technology from scientific innovation to industrial implementation.

Product is king, and the biomanufacturing "ecosystem" shows its investment strength

Technological breakthroughs lead to product leadership. China Merchants Group reconstructs the performance boundary and industrial value of industrial materials with the bio-based product matrix of bio-based polyamide materials. Thanks to the self-developed "one-step bio-based high-temperature polyamide preparation process", Cathay Biotech, a subsidiary of China Merchants Group, has successfully broken through the technical shackles of the traditional high-temperature nylon field for several years - compressing the polymerization time to less than 1% of the traditional process, achieving accurate and controllable melting point of 290-310°C, and at the same time overcoming the pain points of the industry such as yellowing and easy decomposition of materials, and developing thermoplastic bio-based polyamide composites with glass fiber content of more than 70%. This new material strength of bio-based polyamide combined with glass or carbon fiber can replace metal, with a density of only 1/4 of steel and about 2/3 of aluminum, which is expected to achieve a lightweight revolution in scenarios such as new energy battery shells, photovoltaic frames, wind turbine blades, refrigerators, building templates, etc., and provide green and low-carbon technology solutions for traditional industries while increasing the supply of cost-effective products.

The industrialization process of this technological achievement resonates with the collaborative innovation ecology built by China Merchants Group. China Merchants Group deeply integrates the resources of the industrial chain, promotes Cathay Biotech to carry out strategic cooperation with various downstream application enterprises, empowers the application of bio-based polyamide series products in textiles, engineering plastics, new energy, transportation and other fields, accelerates its commercialization process, and creates an "ecosystem" for investment promotion of bio-based polyamide applications. In May 2024, China Merchants Innovation and Technology Co., Ltd., Cathay Biotech, and the Hefei Municipal Government signed a tripartite strategic cooperation agreement to give full play to their respective advantages in industrial policy guidance, application scenario building, and biomanufacturing technology innovation, build a synthetic biology research and product application development platform, and a leading place for biomanufacturing scenario applications, build a globally competitive biomanufacturing industry cluster, and further promote the upgrading of the biomanufacturing industry.

Innovation-oriented, industrial value breakthroughs add vitality to the investment of the bioeconomy

The industrialization process of bio-based materials is writing a new paradigm of green growth for investment promotion. Verified by international authoritative institutions, bio-based polyamide has reduced carbon emissions per unit by more than 50% compared with traditional petrochemical-based materials, and simultaneously reduced its dependence on petroleum resources, which has injected core momentum into industrial transformation. In the first three quarters of 2024, Cathay's revenue reached 2.215 billion yuan, a year-on-year increase of 41.49%, and the net profit attributable to the parent company was 345 million yuan, a year-on-year increase of 9.97%, confirming the value transformation ability of biomanufacturing technology from the laboratory to the market.

Through the dual drive of technological innovation and industrial synergy, China Merchants Group has built a new life-cycle business format of bioeconomy. The 10,000-ton straw-to-lactic acid demonstration line of Taiyuan production base has been completed and commissioned, marking the completion of the leap from technical verification to large-scale production to promote the high-value utilization of biomass waste (such as straw, etc.), and opening up a low-cost and sustainable raw material path for bio-based materials. At the same time, the application test of bio-based polyamide high-performance composite materials is also actively exploring and exploring alternative markets for "replacing steel with plastic, replacing aluminum with plastic, and replacing thermosetting materials with thermoplastic" in the fields of new energy and construction, highlighting the commercialization potential of biomanufacturing technology.

Based on the national "dual carbon" strategy, China Merchants Group will further lead the innovation and breakthrough of bio-based polyamide in the future and create a new engine for the bioeconomy. This strategic layout not only accelerates the green upgrading of traditional industries, but also strengthens the leading position of central enterprises in the global bioeconomy through technological breakthroughs and industrial empowerment, and provides sustainable "investment promotion solutions" for high-quality development.

[Editor in charge: Zhang Rentian Hui].