On September 15, China’s State Council released guidelines on developing a more diversified food-supply system under the “Big Food Concept,” encouraging the use of broader biological resources and the development of new food technologies.
Soon after, the National Development and Reform Commission (NDRC) emphasized that it will continue supporting industries that expand food sources through biotechnology.

Fushine's Position in Microbial Protein

Fushine Pharmaceutical is one of China’s early movers in microbial protein.
Its subsidiary, Fushine Biotech, has developed Fusarium brachygibbosum as a proprietary production strain for microbial protein and is among the first in the country to achieve industrial-scale manufacturing.

The company notes that this technology converts inorganic nitrogen into protein, without relying on plant-based raw materials or large areas of farmland. Through microbial fermentation, high-quality protein can be produced with lower environmental impact than conventional animal protein.

An evaluation by the China National Light Industry Council concluded that the core technology and industrial application of the process have reached an internationally advanced level, with strain-development capabilities rated as internationally leading.

Synthetic Biology as a Strategic Direction

China’s “14th Five-Year Plan for the Bioeconomy” highlights synthetic biology as an emerging driver of industrial upgrading and supports research into technologies such as “artificial protein.”

According to the China Synthetic Biology Industry White Paper 2024, the global synthetic biology market grew from USD 5.3 billion in 2018 to more than USD 17 billion in 2023, with an average annual growth rate of 27%. The market is projected to approach USD 50 billion by 2028.

Fushine's Industrial Capacity and Business Layout

Fushine’s core business focuses on APIs and intermediates for anti-infective drugs. Building on its chemical and biological synthesis capabilities, the company has expanded into lithium-battery electrolyte additives and microbial protein.

Current microbial protein infrastructure includes:

• a 1,200-ton production line already in commercial operation

• a 200,000-ton per year microbial protein and resource-utilization project under construction, expected to include protein and amino-acid by-products

  
  

The company sees microbial protein as part of its long-term development strategy, aligned with national goals in food security and biomanufacturing.

Stable Core Business, Microbial Protein as a New Growth Driver

Fushine remains a leading supplier of β-lactamase inhibitor APIs:

• the only China-based internationally certified supplier of sulbactam, with the largest global market share

• one of the major global suppliers of tazobactam

  
  

Margins for its API/intermediate business improved in the first half of the year, indicating gradual recovery. Meanwhile, interest in microbial protein is growing.

At a national conference hosted by the company in May, multiple food manufacturers and nutrition-focused companies requested samples. Fushine is working with partners on product development for food applications, both domestic and international.

Operational performance has also improved, with a significant increase in operating cash flow in the first half of the year.

Analyst Outlook

Several institutions expect Fushine’s pharmaceutical business to return to profitability this year, while microbial protein may become a meaningful second growth area in the coming years.

Some analysts project an average earnings increase of more than 250% over the next three years, with particularly strong growth potential in 2025.