SIHUAN PHARM (00460) has announced that its subsidiary Meiyan Space Biotechnology (Jilin) Co., Ltd. (Meiyan Space) 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 centered on the commercial sales of Hanteng Biotech's full-length triple-helix recombinant human collagen raw material (the raw material). Based on this raw material, Meiyan Space will develop a series of collagen medical aesthetics formulation products to enhance 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 that has 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 represents a key strategic move for the Group's medical aesthetics segment to extend into the upstream core biological raw material field. It holds significant importance for the Group's deep cultivation of the regenerative medical aesthetics track, primarily reflected in four dimensions:

First, securing upstream scarce core raw material supply and breaking through industry technical bottlenecks: Obtaining a stable supply of full-length recombinant human type III collagen with a complete triple-helix structure breaks through the industry's common raw material bottleneck of using fragmented collagen and animal-derived collagen, solidifying Meiyan Space's raw material advantage in the regenerative medical aesthetics track.

Second, connecting the complete industry chain from "upstream raw materials to formulation R&D to terminal commercialization" and building industrial competitive barriers: Through equity investment, the Group deeply binds with the technology source; the two parties plan to promote the market promotion and sales of the raw material through a cooperative model, with Meiyan Space undertaking medical aesthetics formulation R&D and registration filing work, achieving closed-loop implementation from biological raw materials to terminal medical aesthetics products.

Third, strengthening the Group's differentiated competitive advantage in regenerative medical aesthetics and aligning with industry development trends: The Group grasps the technology upgrade trend of the recombinant collagen industry and actively positions itself in high-end recombinant human collagen as defined by the National Medical Products Administration's "Guidelines for the Naming of Recombinant Collagen Biomaterials" (distinguished from recombinant humanized fragment collagen), precisely matching high-end medical aesthetics consumer demand and helping the Group further expand into the domestic high-end regenerative medical aesthetics market.

Fourth, achieving complementary industrial resources and win-win development: This cooperation fully leverages each party's respective resource advantages. Hanteng Biotech relies on its CHO cell expression platform's technical advantages and GMP-scale production advantages; Meiyan Space leverages its capabilities in medical aesthetics product R&D, registration, channel layout, and brand commercialization. Together, the two parties support 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 regenerative medical aesthetics field, and the domestic market is in a stage of rapid growth, with the domestic recombinant collagen market size expected to exceed RMB 100 billion by 2027. With the implementation of the National Medical Products Administration's "Guidelines for the Naming of Recombinant Collagen Biomaterials," the industry regulatory system continues to be standardized. Official guidelines clearly divide recombinant collagen into three major categories: recombinant human collagen (full-length, high homology, with stable triple-helix structure), recombinant humanized collagen (fragmented, partially triple-helix structure), and recombinant collagen-like protein (low homology, generally without triple-helix structure).

Among these, full-length, high-homology recombinant human collagen with a stable triple-helix structure aligns with the mainstream direction of industry technology upgrading and market consumption iteration, and is a key development product type in the current high-end regenerative medical aesthetics field. The full-length triple-helix recombinant human collagen that the Group is positioning this time possesses better product characteristics and technical advantages. Its amino acid sequence is highly homologous to natural human collagen, with a complete structure and stable performance. It demonstrates outstanding biological activity in scenarios such as cell repair, tissue regeneration, and skin anti-aging, and can be widely applied in the high-end medical aesthetics field with tremendous commercial value and market prospects, effectively enriching the Group's high-end medical aesthetics product matrix and continuously enhancing the Group's comprehensive competitiveness in the regenerative medical aesthetics field.