NIE 2023 | HuaXi Biotechnology Zhao Yan: Technological Innovation Reshapes Earth Resources

Zhao Yan first briefly introduced Huaxi Biology from the perspectives of enterprise development logic and business model.

She pointed out that the company is a typical R&D and technology-driven enterprise, having developed into a biotech company driven by synthetic biology technology innovation and a platform company covering the entire bio-material industry chain. During its development, Huaxi Biotech has always adhered to the corporate development logic of 'science & technology & product & brand', with 'technological innovation' as its underlying support.

In terms of enterprise technology construction, Huaxi Biotechnology has continuously strengthened basic research and applied basic research. At present, it has established six major R&D platforms including a synthetic biology R&D platform, microbial fermentation platform, application mechanism R&D platform, pilot-scale transformation platform, cross-linking technology platform, and formula process R&D platform, forming a strong scientific and technological foundation. At the same time, Huaxi Biotechnology also actively plays a leading and guiding role as an innovation entity, integrating industry, academia, and research. It has currently cooperated with more than 20 globally renowned scientific research institutions and established the world's largest pilot-scale transformation platform, undertaking the transformation of scientific research achievements from both internal and external scientific research institutions within the enterprise.

Zhao Yan stated that Huaxi Biotech has always followed the principle that everything is aimed at serving consumers, and has put forward the 'Four Developments' concept: 'Science is discovery, technology is invention, product is development, and brand is promotion.'Zhao Yan believes that to become an international first-class enterprise, one must 'build a brand with long-termism and perseverance', making continuous investments to build brand strength, so that the enterprise can achieve sustained development.

In the view of Huaxi Biotechnology, the company's major business segments have different strategic significance and positioning. Among them, bioactive ingredient raw materials (B-B) represent the depth of the company's operations, serving as the foundation for its business, providing solutions to global pharmaceutical companies, consumer goods enterprises, and food manufacturers; medical end-users (B-B-C) represent the technical height of the company, being the highest barrier. In addition to medical aesthetics, there are also products in orthopedics, ophthalmology, gastroenterology, dermatology, and other fields; the consumer end-users (B-C), mainly focused on functional skincare and functional foods, represent the breadth of Huaxi Biotechnology's business, bringing about a vast market.

Therefore, unlike other enterprises with a single business model,Huaxi Biotechnology is a platform-based life health consumer goods company driven by synthetic biology technology, dedicated to 'improving the quality of life and extending lifespan'.Its mission is to make every life vibrant, continuously bringing healthy, beautiful, and joyful life experiences to humanity.

Image source: Huaxi Biology

Zhao Yan pointed out that biotechnology, quantum technology, new energy, artificial intelligence, and network access technology are the five major technologies humanity faces in the future. Among them, biotechnology ranks first, especially synthetic biology-driven biotechnology.Synthetic biology is a disruptive technology that reshapes Earth's resources.The bioeconomy, supported by synthetic biology and centered on biomanufacturing, is the fourth wave of human economic and social development."By the end of this century, we expect biomanufacturing to account for one-third of global manufacturing output, with the value of biomanufacturing expected to be close to $30 trillion."

The development of synthetic biotechnology provides underlying support for the sustainable development of the bioeconomy. Bio-manufacturing is the core production method for achieving the dual carbon goal and green manufacturing, capable of reducing carbon emissions and decreasing dependence on natural resources.

Zhao Yan pointed out that in the future, 80% of the materials in our lives can be produced through synthetic biocell factories.She gave an example: 'Before 2015, China accounted for 85-90% of the global raw material supply for artemisinin. After 2015, the United States began using synthetic biotechnology to transform yeast cells by inserting artemisinin gene fragments into them. From production in 2015 to 2020, within just five years, a factory of about 50,000 square meters in the United States has replaced our 1.8 million acres of artemisinin-producing land. The produced artemisinin now accounts for 80% of the global market share, while China's share has dropped to less than 10%. Another example is hyaluronic acid, which is traditionally extracted from chicken combs. The chicken breeding cycle is long, and the extraction rate is low; it takes 200 kilograms of chicken combs (about 20,000 chickens) to extract 1 kilogram of hyaluronic acid, resulting in low purity; whereas through microbial fermentation, it only takes 18 hours, with a high yield and a cost reduction of three-quarters, making it more green and low-carbon environmentally friendly. Therefore, synthetic biotechnology can greatly improve efficiency and reduce energy consumption.'

Zhao Yan believes that today, biotechnology and bioeconomy have become the focus of global competition and an important strategic development direction for various countries.Countries around the world attach great importance to biomanufacturing because sustainable development, environmental protection, and the dual carbon goals of various countries all rely on biomanufacturing for support. China and the United States each have their own advantages in the field of synthetic biomanufacturing. Among them, China has the world's largest and unified market, is a global fermentation powerhouse with leading technology and diverse talent, has a complete supply chain, and owns the world's largest pilot-scale conversion platform in the field of synthetic biology, with rapid commercialization of new technologies and products. If China wants to seek leadership, it must achieve the integration of 'three SHI's'.

Zhao Yan further explained that the first 'SHI' refers to the general trend. Against the backdrop of global warming, environmental pollution, frequent natural disasters, biodiversity loss, resource and energy shortages, and severe food security issues, countries around the world have introduced supportive policies for synthetic biology and biomanufacturing. The second 'SHI' is the market. Global consumers have also realized the need to be environmentally friendly and are willing to pay for sustainable development. International giants and enterprises that previously relied on petrochemical production have also begun green transformation and upgrading. The third 'SHI' is the enterprise. Enterprises need to continuously adhere to basic research and applied basic research, produce good products that meet consumer needs, and ensure that their products are environmentally friendly. 'If these three SHIs are integrated, we can rely on synthetic biology technology as a foundational technology to support the bioeconomy and achieve great results, which is definitely very promising.'To promote the sustainable development of the bioeconomy based on synthetic biology, Huaxi Biotechnology is ready to integrate industry, academia, and research. It has built the world's largest pilot-scale transformation platform, enabling scientific and technological achievements to truly become productive forces."

Image source: Huaxi Biology

In Zhao Yan's view,For an enterprise to develop sustainably in the long term, it must possess two capabilities: continuous innovation and sustained operational profitability. These are the keys to determining a healthy and sustainable development of an enterprise.For this reason, Huaxi Biotechnology has integrated its ESG strategy into the development and production operations of the enterprise, and has implemented many specific actions in environmental, social, and corporate governance aspects, including obtaining various materials through synthetic biology technology.

In addition, Zhao Yan specifically mentioned,As a listed company, Huaxi Biotechnology continuously improves and optimizes its corporate governance structure. It has cooperated with Frost & Sullivan for many years and leverages the professional and authoritative third-party endorsement of Frost & Sullivan to enhance the company's credibility and business ethics trustworthiness. Through Frost & Sullivan's strategic consulting and market research reports, it views its industry position from an external perspective.

As a leading enterprise in the industry, pioneer and leader, Huaxi Biotech has always regarded empowering industry development as its essential responsibility and mission.

According to Zhao Yan, Huaxi Biotech has established the first CVC company mainly focused on industrial capital in China, namely a special fund for synthetic biology, to help develop and strengthen the entire synthetic biology industry. It is also a reserve for the company's future development. Huaxi Biotech invests in the synthetic biology CVC fund, empowering the upstream and downstream of the industrial chain through capital and leveraging its strengths to provide R&D empowerment, pilot-scale production empowerment, and market empowerment. 'We do not make diversified investments; instead, we focus on start-up enterprises supported by synthetic biology, discover creative enterprises and talents, and empower them at key nodes according to the needs of the enterprises. Ultimately, we aim for collaborative development and create an industrial ecosystem.'

Finally, Zhao Yan concluded that for a company to thrive, it must achieve homomorphism of three chains and integration of five forces. It must use technological and product strength to support itself as a leader and innovator in the industry; become a key link in the supply chain; co-create and build on the value chain, achieving symbiosis and win-win results. 'We must respect every life and make each life vibrant; this is our original intention. We must overcome one hurdle after another, climb one mountain after another, until we finally reach our peak!'