We published our semiannual report 2023 on August 26, 2023. In the 1^st half of the year, we realized RMB 199 million in revenue, up by 16.13% from the same period last year and inclusive of RMB 34.85 million in net profit attributable to the parent. The human nutrition business realized RMB 178.8868 million in revenue, up by 10.94% from the same period last year. The animal nutrition business realized RMB 6.6499 million, up by 29.52% from the same period last year. R&D investment totaled RMB 17.8339 million, accounting for 8.97% of the revenue, whereas green investment totaled RMB 1.2392 million for fulfilling environmental and social responsibilities.  

Thanks to the new national regulatory standards for dried milk as human nutrition, our baby formula revenue climbed steadily in the 1^st half of 2023. Favorable health product regulation policies encouraged us to continue revitalizing the Omega-3 fatty acids business and expanding for larger shares of the comprehensive health market. With the expiry of DSM ARA’s main patents and availability of more access into the international market, we developed international customers by steps and sped up global involvement in international supply chains.

In the animal nutrition field, we adhered to the philosophy of fatty acid precision nutrition to power technical verification and market promotion. Commercialization and collaboration drove us to achieve scientific insights into animal fat and pioneer journals on lipid studies.    

Sialic acid, our core product as an ingredient for personal care and cosmetic products, was licensed for the market in the 1^st half of 2023 and accounted for increasing applications in cosmetic products. Statistics showed our sialic acid to have been used in 16 new products in 2023. Now we maintain partnerships with 19 brands on 33 sialic acid-containing products. Meanwhile, we made breakthroughs in the international makeup market.

In addition, we started a series of biomaterial mechanism studies on our synthetic biology platform intended to drive progress in multiple fields like high-end makeup, biomedicine and biomaterials.

Despite the widespread challenges in the 1^st half of 2023, we reversed the trend by grasping industry and regulatory policy opportunities and finally achieving steady and substantive growth. This was a hard-earned success.

Believing firmly in sustainable development in the face of opportunities and challenges, we will root ourselves deeper in synthesis biotechnology, consolidate the biomanufacturing chain and continue steadily with explorations in our major field (human nutrition) and branch fields (animal nutrition and personal care). The three-pronged market expansion strategy guides us to grab more shares in biomedicine, biomaterials, nutrition and healthcare. At the same time, we will take action as requested by the national green initiative, take social responsibilities, be firm in sustainable development and devote ourselves as a world-leading biotechnology firm.