Nowadays, global energy resources are in short supply, and the pressure on the living environment is increasingly severe. Fossil energy resources are limited, and their price impact is significant. Therefore, governments firstly support renewable fuels. For example, China has proposed the "carbon peak and carbon neutrality" goals, while the EU's Renewable Energy Directive requires a gradual increase in the blending ratio of biofuels. Many countries have also formulated strict standards for the treatment of waste oils; otherwise, they may face high penalties or even imprisonment. Countries are encouraging and promoting green development. Secondly, technology has gradually advanced over time, with conversion processes continuously upgraded, reducing energy consumption and improving conversion rates. Cost optimization has also lowered large-scale production costs, expanded production capacity, enhanced raw material procurement bargaining power, and reduced unit production costs by approximately 30% compared to 10 years ago.

Moreover, waste oils have a stable source: globally, more than 100 million tons of waste cooking oil, animal fats, etc., are generated each year. In China alone, the daily output of gutter oil reaches 100,000 tons. Chongqing is a city where a large amount of food waste oil is generated every day due to the influence of traditional food culture.The raw material cost is significantly lower than that of food crops, and it has circular economic value. It can not only solve the food safety hidden danger of gutter oil flowing back to dining tables but also create additional value (converting 1 ton of waste oil into biodiesel can generate a profit of about 2,000 yuan), which fits the circular economy model. Furthermore, market demand is gradually growing. In the transportation sector, there is rigid demand for diesel from trucks, ships, agricultural machinery, etc. Biodiesel can be directly blended with fossil diesel, and some countries have piloted 100% biodiesel vehicles. In cross-border energy applications, biodiesel can be further processed into aviation kerosene, lubricating oil base oil, etc., to expand high-value-added markets.

We are committed to using bio-enzymatic technology to efficiently convert waste oils (such as gutter oil) into clean energy, reducing reliance on fossil fuels and carbon emissions, and promoting a circular economy. We adhere to full life-cycle environmental assessments to ensure our technology does not generate secondary pollution, protecting ecological diversity.

We prevent gutter oil from re-entering the food supply chain, safeguarding food safety and public health. We collaborate with communities and governments to raise awareness about waste oil recycling and advocate for sustainable lifestyles.

We strictly comply with international environmental standards and local regulations, ensuring transparency in our supply chain and carbon footprint data. Promote green environmental initiatives and combat global climate change.Advance sustainable development for human society.Uphold bioethical principles

In our R&D process, we prioritize biodegradable and low-toxicity bio-enzymes, avoiding potential risks associated with genetic modification technologies. Through patent sharing and open technology, we support developing countries in addressing energy transition challenges.

Figure 1 Our Powder-type product Sample

Our product is a biological enzyme preparation formulated as a 500g powder. It is developed using recombinant DNA technology: Pichia pastoris serves as the host cell, into which a recombinant plasmid is introduced via transformation. This plasmid carries three core functional components: the lipase gene from Candida antarctica (the key catalytic unit), the alcohol oxidase 1 (AOX1) promoter derived from Pichia pastoris’ endogenous promoters (to drive high-efficiency expression of the lipase), and a signal peptide from Saccharomyces cerevisiae (to facilitate secretion of the expressed lipase).

The enzyme powder is designed for direct application: a single 500g unit can be directly poured into boiling waste hotpot oil to initiate an enzymatic reaction. To streamline the separation process post-reaction, we have also developed a matching separation device. After the enzyme catalyzes the conversion of waste hotpot oil into biodiesel, this device is used to process the reaction mixture, effectively separating the resulting biodiesel from residual waste by-products. Alternatively, the immobilized form of this enzyme can be installed in the oil outlet pipeline of oil-water separators in hotpot restaurants, targeting separated waste hotpot oil for on-site biodiesel conversion—with the subsequent separation of biodiesel and waste completed by the matching device.

The products are based on a verified method using biological technology to modify enzymes. In that way, the advanced enzyme can act effectively to deal with waste oil. Compared with other alternative routes to recycle waste oil, such as supercritical transesterification and chemical catalysis, the enzyme catalysis method requires milder conditions and produces no toxic byproducts. Additionally, enzymes can be used with different types of raw materials, allowing this method to be applied in a broader range of conditions. For the other two methods, chemical catalysis requires strong acid or strong base, which may not only harm the equipment but also cause environmental pollution. Additionally, this method is not suitable for waste cooking oil samples with high levels of free fatty acids. In contrast, supercritical transesterification requires extreme conditions to maintain the reaction, resulting in significant energy costs that may even exceed the income generated.

The market demand for the waste hotpot oil recycling project is supported by a solid foundation: in 2024, China’s hotpot market exceeded RMB 590 billion, generating over 10 million tons of waste waste oil annually, with the Sichuan-Chongqing region—home to over 66% of 2023’s hotpot revenue as the mainstream Sichuan-Chongqing style hotpot hub—alone producing more than 2 million tons of waste oil yearly to ensure stable raw material supply; however, the industry faces challenges including high costs for waste oil pretreatment and purification, domestic biodiesel prices (RMB 8,000–10,000/ton) still relying on policy subsidies despite a narrowing gap with traditional diesel, illegal waste oil collection raising raw material costs for formal enterprises and limiting their capacity utilization to below 50%, and differing biodiesel standards between China and markets like the EU/US requiring extra export certifications; looking ahead, driven by policies, domestic biodiesel demand is projected to grow at 15%–20% annually (with waste oil accounting for over 30% of biodiesel feedstock), and as the market matures and technical costs fall, waste oil-based biodiesel is expected to replace 10%–15% of traditional energy in transportation and industrial sectors, becoming a critical bioenergy track.

Segmentation:

Hot pot restaurants, municipal food waste oil recycling plants, biodiesel manufacturers, school canteens, restaurants, households, etc.

Target:

1. In the initial stage, the product will primarily focus on local hot pot restaurants (large in number, high volume of food waste oil generation).

2. Upon future expansion, the product will be introduced nationwide, establishing long-term contracts with waste oil processors and biodiesel producers across regions.

Positioning:

1. Conduct interviews with hot pot restaurant owners to assess their awareness of waste oil disposal and their acceptance of using lipase for treatment, which will guide subsequent promotional content.

2. Utilize short-video platforms like Douyin (TikTok) and Xiaohongshu (Little Red Book) to raise public awareness about the hazards of waste oil while promoting our technology and products.

3. Develop convenient, user-friendly integrated products to make them more appealing to hot pot restaurant owners, ensuring our product becomes a daily necessity in every hot pot restaurant

When deciding our initial price for our final product, we applied five year cost price trial calculation. To ensure we can make profit in the future five years, we assume the costs are separated into three parts which are one-time initial investment, annual fixed cost and variable products costs and use these three aspects to set a proper price (the precise cost can be viewed at chapter 6 Finance Forecast). We calculated a series of possible prices from 59 CNY to 199 CNY, with intervals are 10 CNY and assume there are 30 customers purchasing for our products each day. Through that process we find 139 CNY is the most reasonable prices that can be accepted by the market by comparing with our competitors and with a relatively significant profit. Thus we set our price at 139 CNY.

To achieve market penetration, brand building, and long-term customer retention, we have developed a multi-tiered, phase-specific promotion strategy tailored to our target customers (initially hotpot restaurants, later expanding to waste oil processors and biodiesel manufacturers). The strategy integrates offline trust-building, online awareness-raising, and policy-resource-driven cost reduction, with clear priorities across different business stages.

3.5.1 Promotion Principles

We adhere to three core principles: customer-centricity, aligning promotions with target customers’ pain points; policy synergy, leveraging relevant policies to lower adoption barriers; and data-driven optimization, tracking channel ROI to dynamically adjust resource allocation.

3.5.2 Phase 1: Market Entry (Months 1–6)

This phase focuses on validating product efficacy and building initial credibility in the local market. We collaborate with industry associations to identify target customers for free product trials paired with on-site guidance, then collect feedback to form case studies. We partner with local governments to link product purchases with green enterprise certification subsidies, and host joint workshops to educate customers on compliance and product value. Online, we create educational and case-based content on short-video platforms and WeChat, and collaborate with relevant KOLs to boost awareness and credibility.

3.5.3 Phase 2: Market Expansion (Months 7–18)

We expand to broader regional markets by recruiting distributors and launching official stores on B2B e-commerce platforms. We introduce volume-based discounts and exclusive contract incentives to drive customer loyalty and bulk purchases. We also participate in industry exhibitions to showcase products and sign cooperation agreements, and issue press releases for key milestones to enhance brand exposure.

3.5.4 Phase 3: National Scaling (Months 19–36)

We expand target customers to include waste oil recycling plants and biodiesel manufacturers, providing customized product formulations and technical collaboration services. We optimize digital marketing by launching a multi-language corporate website, using SEO/SEM to capture national and international traffic, and conducting email marketing to nurture leads. Additionally, we launch public welfare projects to enhance social impact and brand reputation.

Figure 2 PEST Analysis

Figure 3 Porter’s 5 Forces

Figure 4 SWOT Model

Figure 5 Business Canva

The pricing of our product was iteratively refined through Excel-based financial modeling. We input variables including unit price, sales volume, and various long-term/short-term costs to assess five-year profitability against benchmarks characteristic of synthetic biology companies—such as achieving profitability within five years and market price acceptability. If results proved unreasonable, we recalibrated the selling price.

Setting the unit price at ¥139/kg yielded optimal alignment with target metrics.

We project daily sales of 30 units per sales representative, translating to an annual volume of 10,950 units (based on 365 operating days).

Costs are categorized into three components:

Long-term costs:

• Equipment purchase totaling ¥500,000 (one-time capital expenditure with no ongoing maintenance).

Annual fixed costs:

• Salaries: ¥650,000 (based on Chongqing’s 2024 private sector average annual income of ¥65,000 for 10 full-time employees covering CEO, CFO, sales, R&D roles).
• Utilities: ¥120,000/year (¥10,000/month for power, water, and gas for a small-scale operation).
• -Marketing: ¥200,000/year for promotions across Douyin, WeChat, and social media.
• Rent: ¥240,000/year (¥15,000/month for a 500m² suburban Chongqing lab).
• Variable costs: ¥15/unit for readily available raw materials.

Projected five-year profitability is as shown in the accompanying figure.

Figure 6 Finance Forecast

Phase 1: Foundation & Validation (Months 1–6)

Core Goal: Secure resources, validate product efficacy, and build initial partnerships

• Resource Acquisition

Secure government grants for waste oil recycling and apply for bank green loans.

Finalize R&D team (strain engineers, enzyme specialists) and lease 500m² lab space in Chongqing.

• Product Refinement

Optimize 500g enzyme powder formula; test compatibility with local hotpot waste oil.

Pilot the matching separation device to ensure ≥85% biodiesel conversion yield.

• Partnership & Trial

Collaborate with 5–8 local hotpot restaurants for free 1-month product trials.

Partner with Chongqing catering associations to gain industry endorsement.

Phase 2: Market Entry & Scale - up Preparation (Months 7–12)

Core Goal: Launch commercial sales, expand customer base, and reduce costs

• Commercial Launch

Officially launch enzyme products at ¥139/unit; roll out direct sales to 50+ hotpot restaurants.

Launch Douyin/Xiaohongshu campaigns to raise awareness of waste oil hazards and product value.

• Cost Optimization

Negotiate long-term contracts with raw material suppliers to cut variable costs by 10%.

R&D on immobilized enzymes to improve recycling efficiency and lower unit production costs.

• Supply Chain Build

Establish partnerships with 2–3 local waste oil collectors to ensure stable raw material supply.

Apply for environmental permits for small-scale enzyme production.

Phase 3: Expansion & Industrialization (Months 13–18)

Core Goal: Scale operations, enter new segments, and lay groundwork for profitability

• Market Expansion

Expand sales to 150+ hotpot restaurants in Sichuan-Chongqing region; recruit 2–3 regional distributors.

Pilot cooperation with 1–2 biodiesel manufacturers to test bulk enzyme supply.

• Production Scale - up

Upgrade lab equipment to support 2x production capacity; reduce average cost by 15%.

File patents for optimized enzyme formula and separation device.

• Brand & Policy Synergy

Participate in national environmental technology exhibitions to enhance brand exposure.

Apply for additional policy subsidies for green technology scaling.

Figure 7 Key Milestone of Our Business Plan