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Anti-photoaging Fusion Protein Production, Research and Development Base Project of Changchun City

Information Source: Jilin Provincial Commercial Information Center
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1. Introduction to the Project

1.1 Project background

1.1.1 Introduction to the Project

Fusion protein has two different meanings. Firstly, it is the expression product from recombination of two genes through DNA recombination technology. Secondly, it is a group of proteins that mediate the fusion of two cell membranes, such as one of the two glycoproteins found in the outer lobules of the Sendai virus lipid bilayer. It mediates the fusion of the viral envelope with the host cell plasma membrane. Another glycoprotein is hemagglutinin ceramidase. Two different proteins are connected into a large molecule. They can be either connected by chemical method or achieved through gene fusion.

The project is located in Changchun Economic and Technological Development Zone, and it relies on the technology of Genehero Biotechnology’s Research and Development (R&D) Team to develop and produce anti-photoaging fusion protein cosmetics.

1.1.2 Market prospect

(1) Current market situation of anti-photoaging cosmetics

With the increasing awareness of the consumers toward anti-photoaging, the market demands for efficient anti-photoaging cosmetics is growing day by day. At present, this market is mainly dominated by products with antioxidant and sunscreen functions, which delay the aging process of the skin by reducing the damage of ultraviolet rays to the skin. However, with the progress of science and technology, new active ingredients and formula technologies are being developed to provide more comprehensive protection and more significant anti-aging effect. For example, some brands have started using bioengineering technology to extract specific active molecules from plants that can effectively repair DNA damage caused by photoaging. In addition, personalized skincare solutions have also begun to receive attention, and the consumers can choose the most suitable products for themselves based on their skin type and aging degree. This trend has not only driven the product innovation, but also provided new market opportunities for cosmetics companies.

Under this trend, the cosmetics companies are committed to developing anti-aging products with multiple effects. In addition to traditional antioxidant and sunscreen functions, these new products also combine various skincare effects such as moisturizing, repairing, and promoting collagen production, etc. For example, formulas containing hyaluronic acid and vitamin C can not only provide immediate moisturizing effect, but also improve skin elasticity in the long term and reduce the formation of wrinkles. In addition, some products also incorporate nano-technology, which can allow the active ingredients to penetrate the skin more deeply, thereby improving their efficacy. These innovations have not only met the consumers’ demand for efficient skincare products, but also driven the technological innovation in the entire cosmetics industry.

Data showed that, in 2023, the market size of cosmetics industry in China reached 516.9 billion yuan, with a year-on-year growth of 6.4%. It is expected to have increased to 579.1 billion yuan by 2025. More than 60% of Chinese consumers have started paying attention to anti-aging information at the age of 26-35 years old, and it is expected that the size of anti-aging market in China will have exceeded 100 billion yuan by 2027. Analysts believe that with the continuous penetration of anti-aging concept, the consumers’ demand for skincare is gradually increasing, and domestic consumption of cosmetics continues to rise. In the future, the cosmetics industry in China will usher in more innovations and breakthroughs.

In order to meet this market demand, the cosmetics enterprises are making constant explorations and innovations. They not only put efforts in product formulation, but also seek breakthroughs in packaging and marketing strategies. For example, some brands have launched environment-friendly packaging to reduce their impact on the environment, while enhancing interaction and communication with young consumers through social media and KOL collaborations. In addition, with the increasing demand of consumers for transparency in product ingredients, the cosmetics companies are also striving to improve the traceability and safety of their products in order to win trust from the consumers.

At the technical level, the cosmetics industry is actively adopting big data and artificial intelligence technologies to analyze the consumer behaviors, in order to more accurately position the market and optimize the products. Through these technologies, the enterprises can better understand the consumers’ demands, predict the market trend, and quickly respond to market changes. Meanwhile, the application of these technologies also makes the implementation of personalized skincare solutions more feasible, providing the consumers with more customized skincare experience.

To sum up, with the increasing awareness of the consumers against photoaging and the continuous progress of technology, the cosmetics industry is facing unprecedented development opportunities. Through continuous technological innovations and market strategy adjustments, the enterprises not only meet the consumers’ demands for efficient, safe, and personalized skincare products, but also inject new vitality into the development of the entire industry. Looking ahead to the future, with the further development of technology and the continuous evolution of consumer demand, the cosmetics industry is expected to achieve more breakthroughs, bringing the consumers richer and more efficient skincare solutions.

(2) Market prospect forecast of anti-photoaging cosmetics

The market demand for anti-photoaging cosmetics mainly comes from the consumers’ concerns about photoaging. Photoaging is one of the main causes of skin aging, including damage to the skin from external factors such as ultraviolet and blue light. Therefore, anti-photoaging cosmetics have become an important subdivision field in the market. In addition, the four subdivision concepts of anti-photoaging, anti-oxidation, anti-glycation, and anti natural aging are being strengthened, among which the concepts of anti-oxidation and resistance to free radical have seen the most significant increase in strength‌.

In the anti-photoaging cosmetics market, international brands such as L’ORÉAL, ESTĒE LAUDER, Shiseido, and domestic brands such as PROYA, Shanghai Jahwa, and BLOOMAGE BIOTECH are actively launching related products. These brands not only make constant innovation in their ingredients, but also enhance the competitiveness of their products through exclusive compound ingredients and technology. For example, PROYA adopts “self-developed cyclopeptide-161” and “exclusive type-17 collagen”, Skinceuticals introduces “Type III Collagen Essence”, and OLAY focuses on “6 compound signal peptides”, etc.‌

In the future, the market of anti-photoaging cosmetics will continue to maintain a rapid growth, especially for products targeted towards the general public, which will demonstrate enormous potential. According to the data from Guoji · Jigua, in the first half of 2022, the sales amount of anti-aging related products on TikTok and Kuaishou platforms broke through 10 billion, with a year-on-year growth rate of 189%, of which face cream had a year-on-year growth of up to 433%, becoming the skin care category with the fastest growth. In addition, the increasing awareness of anti-aging among Generation Z will also drive further expansion of the market.

To sum up, the market prospect for anti-photoaging cosmetics is optimistic, with significant growth potential and market demand. The brands need to continuously innovate and optimize their products to meet the diverse needs of the consumers.

1.1.3 Technical analysis

The project technology comes from Genehero Biotechnology’s R&D Team, which possesses a complete set of genetic engineering technologies for recombinant proteins, including sequence design, plasmid construction, bacterial strains, fermentation, purification, and preparation, etc. Large-scale production processes for recombinant conotoxin and recombinant collagen (various subtypes and 3K/5K) have been established, and in combination with the existing recombinant anti-photoaging fusion proteins, it has formed the production capacity for full range of raw materials from aging prevention (anti-photoaging) to anti-aging. The company will develop into a manufacturer of sunscreen products and a supplier of raw materials for anti-aging cosmetics around this field of technology.

Since the discovery of the light conversion function of the fusion protein by the R&D Team of Genehero Biotechnology in 2021, they have completed the establishment of a strain library, validation of multiple batches of large-scale processes (stable production process), animal toxicity testing, 2-year stability research of pure products, formulation, and sunscreen comparison test in human body (liquid and solid comparison test), etc.

Genehero Biotechnology has production technology for a series of recombinant collagen raw materials for cosmetics, including Type I, Type III, Type 17, and with molecular weights of 3k and 5k. It has complete anti-aging recombinant protein supply chain, and the supplied recombinant proteins are all technically mature products that can be put into production at any time.

1.14 Advantageous conditions of project construction

(1) Policy advantages

On January 15, 2024, the General Office of the State Council issued the Opinions on Developing the Silver Economy to Enhance the Well-being of the Elderly, which clearly proposed to develop the anti-aging industry, and promote the research and development of cosmetic raw materials, formulation, and production process design and development. The policy background is the increasing aging of population in China, and the enterprises are expected to vigorously develop various products or services suitable for the elderly to improve the well-being of the elderly‌.

(2) Talent advantages

Changchun Economic and Technological Development Zone has abundant human resources and strong technological strength. There are 28 colleges and universities such as Jilin University in its jurisdiction, with national-level research institutions such as Changchun Institute of Optics, Fine Mechanics and Physics of the Chinese Academy of Sciences, Changchun Institute of Applied Chemistry, Chinese Academy of Sciences, 97 independent scientific research institutions, 71 national-level or provincial-level key laboratories, 25 academicians of the Chinese Academy of Sciences and Chinese Academy of Engineering, over 300,000 college students, and a total of more than 600,000 talents of all kinds, which can provide talent support for the project.

(3) Location advantages

Changchun Economic and Technological Development Zone is located in Changchun City, Jilin Province, at the geographical center of Northeast Asia. It is an important node in the Harbin-Dalian Economic Belt and the China-Mongolia-Russia Economic Corridor. This geographical location makes the Economic and Technological Development Zone an important hub connecting various countries in Northeast Asia, which is conducive to international trade and regional cooperation.

The transportation network in the Economic and Technological Development Zone is extremely convenient. The zone integrates various modes of transportation such as aviation, railway, highway, and light rail, etc., and has Longjia International Airport. It will take 1.5 hours to reach 2/3 of the cities in China and 5 hours to fly to major cities around the world. In addition, there are multiple highways and railway lines within the zone, which can facilitate the logistics and personnel flow.‌

1.2 Contents and scale of project construction

1.2.1 Product scale of the project

The project has an annual production capacity of 4 million pieces of 25 g sunscreen, 300,000 to 500,000 pieces of eye essence, and 10 kilograms of recombinant conotoxin.

1.2.2 Contents of project construction

The project covers an area of 20,000 square meters and plans to build one production line with an annual output of 100 kilograms of recombinant anti-photoaging fusion protein and 20 kilograms of recombinant conotoxin, as well as one production line with an annual output of 2 million bottles of cream cosmetics.

1.3 Total investment of the project and capital raising

The total investment of the project is 200 million yuan, including the construction investment of 160 million yuan.

1.4 Financial analysis and social evaluation

1.4.1 Main financial indexes

After the project reaches the production capacity, its annual sales income will be 2.4691 trillion yuan, its profit will be74.07 million yuan, its investment payback period will be 5.2 years (after the tax, including the construction period of 2.5 years), and its investment profit rate will be 37.04%.

Note: “10 thousand yuan” in the table is in RMB

1.4.2 Social evaluation

After the implementation of the project, it will help to build a sound industrial chain system, promote the upgrading of industries, stimulate the vitality of downstream industries, and accelerate the rapid development of locally emerging industries such as cosmetics in Changchun. Through the implementation of this project, the new forms of employment will be integrated with innovative trade models, which will further promote the high-quality development of regional economy and bring significant social benefits.

1.5 Cooperative way

Joint venture, cooperation

1.6 What to be invested by the foreign party

Funds, equipment, and technology

1.7 Construction site of the project

Changchun Economic and Technological Development Zone

1.8 Progress of the project

The project cooperation plan has been prepared

2.Introduction to the Partner

2.1 Basic information

Name: Changchun Economic and Technological Development Zone Management Committee

Address: No. 6188 Jilin Road, Changchun City

2.2 Overview

Changchun Economic and Technological Development Zone was established in 1992 and was approved by the State Council as a national-level economic and technological development zone in 1993. It currently has an administrative jurisdiction area of 112 square kilometers, covering four streets and one town, and with a permanent population of nearly 400,000. Changchun Xinglong Comprehensive Bonded Zone was approved by the state in 2011 and was officially put into operation in March 2014. With a planned area of 4.89 square kilometers, it is the 19th comprehensive bonded zone in China and the first comprehensive bonded zone in Jilin Province. Changchun Economic and Technological Development Zone implements the management model of “one team with two brands” with Xinglong Comprehensive Bonded Zone. It is the main battlefield of the real economy in Changchun City, Jilin Province, the pioneer in opening up to the outside world, and the pacesetter in institutional and mechanism innovation. In 2017, it ranked 19th in the comprehensive evaluation of 219 national-level economic and technological development zones by the Ministry of Commerce. The mother city i.e., Changchun City is located in the core area of the three provinces in Northeast China, and it is the geometric center of Northeast Asia.

Changchun Economic and Technological Development Zone is located in the east of Changchun City. It is the forefront of the Changchun-Jilin-Tumen Development and Opening-up Pilot Zone (a national development strategy), an important portal for the integration of Changchun and Jilin, the core area of the Changchun Northeast Opening-up and Development Pilot Zone; according to the overall spatial layout of “two cores, three wings and multiple clusters” in the Overall Urban Planning of Changchun City (2004-2020), it is located in the main area that promotes industralization in southwest-northeast direction throughout the city, and is the hub connecting the surrounding urban areas, development zones and the central downtown. Changchun Economic and Technological Development Zone has developed transportation and a comprehensive transportation advantage of integrating highways, railways, and aviation: It is located at the intersection of airports, high-speed railways, and railways, with relatively low transportation costs. In terms of aviation, it is only 15 kilometers away from the aviation hub of Jilin Province - Longjia Airport, radiating domestically and internationally through 70 domestic routes and 16 international routes; In terms of highways, it will take one hour to reach the surrounding counties and cities of Changchun, and only 4-6 hours by car to reach sea ports such as Dalian, Dandong, and Yingkou, etc.; In terms of railways, the “Changchun-Manzhouli-Europe” international freight train can have direct access to the hinterland of Europe, and the international logistics channel has been opened up.

It has also built the only comprehensive bonded zone in Jilin Province - Xinglong Comprehensive Bonded Zone, which is currently the special customs supervision zone with the highest level of openness, the most preferential policies and the most complete functions in Jilin Province. Over the years, it has invested a total of 10 billion yuan to complete the land acquisition and demolition, land consolidation and infrastructure construction in the Comprehensive Bonded Zone and its supporting areas, having formed a construction scale of 135,000 square meters of standard workshops, 62,000 square meters of public bonded warehouses, and 40,000 square meters of container yards. The 200,000-square-meter Changchun Xinglong International Land Port and the 51,000-square-meter Import and Export Commodity Exhibition Center have been put into use.

2.3 Contact method:

2.3.1 Contact person of cooperator of the project:

Contact person of the project unit: Leng Hongyang

Tel: +86-15568856600

E-mail:6348750@qq.com

2.3.2 Contact method of the city (prefecture) where the project is located:

Contact unit: Changchun Cooperation and Exchange Office

Contact person: Zhang Junjie

Tel: +86-15704317930

Fax: +86-431-82700590

E-mail: xmc82763933@163.com

(责任编辑:李光辉)
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