SIHUAN PHARM (00460) makes a strategic investment in Hanteng Biotech to improve the layout of the entire regenerative medical aesthetics industry chain.

SIHUAN PHARM (00460) announces that recently, Meiyan Space Biotechnology (Jilin) Co., Ltd. (Meiyan Space), a subsidiary of the Group, has completed a strategic equity investment in Guangzhou Hanteng Biotechnology Co., Ltd. (Hanteng Biotech). At the same time, the two parties plan to carry out joint commercialization cooperation around the commercial sales of Hanteng Biotech's full-length triple-helix recombinant human collagen raw material (the raw material). Meiyan Space will develop a series of collagen medical aesthetics formulation products based on this raw material, improving the Group's regenerative medical aesthetics business layout. Hanteng Biotech possesses multiple biomanufacturing technology platforms, including CHO cells, prokaryotic fermentation, and viral expression, with a complete production system and industrial synergy with the Group's medical aesthetics and pharmaceutical business segments. This strategic investment by Meiyan Space in Hanteng Biotech and the advancement of joint commercialization cooperation between the two parties is a key strategic layout for the Group's medical aesthetics segment to extend into the upstream core biological raw material field, and is of great significance to the Group's deep cultivation of the regenerative medical aesthetics track, mainly reflected in four dimensions: 1. Securing the supply of scarce upstream core raw materials and breaking through industry technical bottlenecks: obtaining a stable supply of full-length recombinant human type III collagen with a complete triple-helix structure, breaking through the industry's raw material bottleneck of generally using fragmented collagen and animal-derived collagen, and consolidating Meiyan Space's raw material advantages in the regenerative medical aesthetics track. 2. Connecting the complete industrial chain of "upstream raw materials - formulation R&D - terminal commercialization" and building industrial competitive barriers: deeply binding the source of technology through equity investment; the two parties intend to advance the market promotion and sales of this raw material through a cooperation model, with Meiyan Space undertaking medical aesthetics formulation R&D and registration application work, achieving closed-loop implementation from biological raw materials to terminal medical aesthetics products. 3. Strengthening the Group's differentiated competitive advantages in regenerative medical aesthetics and aligning with industry development trends: the Group grasps the trend of technological upgrading in the recombinant collagen industry and actively lays out high-end recombinant human collagen as defined in the National Medical Products Administration's "Guiding Principles for the Naming of Recombinant Collagen Biological Materials" (different from recombinant humanized fragmented collagen), precisely matching high-end medical aesthetics consumer demand and helping the Group further expand the domestic high-end regenerative medical aesthetics market. 4. Achieving complementary industrial resources and win-win development: this cooperation fully leverages the respective resource advantages of both parties. Hanteng Biotech relies on the technical advantages of its CHO cell expression platform and GMP large-scale production advantages; Meiyan Space leverages its capabilities in medical aesthetics product R&D, registration, channel layout, and brand commercialization. Together, the two parties help advance the industrialization of domestic full-length triple-helix recombinant human collagen technology and promote high-quality industry development. Recombinant collagen is a core biological material in the field of regenerative medical aesthetics. The domestic market is in a stage of rapid growth, and it is expected that by 2027 the domestic recombinant collagen market size is expected to exceed RMB 100 billion. With the implementation of the National Medical Products Administration's "Guiding Principles for the Naming of Recombinant Collagen Biological Materials," the industry regulatory system has continued to become more standardized. The authorities have clearly divided recombinant collagen into three major categories: recombinant human collagen (full-length, high homology, with a stable triple-helix structure), recombinant humanized collagen (fragmented, partially triple-helix structure), and recombinant collagen-like protein (low homology, generally without a triple-helix structure). Among them, full-length, high-homology recombinant human collagen with a stable triple-helix structure aligns with the mainstream direction of industry technological upgrading and market consumption iteration, and is a key product type currently being developed in the high-end regenerative medical aesthetics field. The full-length triple-helix recombinant human collagen laid out by the Group this time has better product characteristics and technical advantages. It is highly homologous to the amino acid sequence of natural human collagen, with a complete structure and stable performance. It has outstanding biological activity in scenarios such as cell repair, tissue regeneration, and skin anti-aging, and can be widely used in the high-end medical aesthetics field. It has enormous commercial value and market prospects, can effectively enrich the Group's high-end medical aesthetics product matrix, and continuously enhance the Group's comprehensive competitiveness in the regenerative medical aesthetics field.