In August 2024, Synaura Biotechnology (Shanghai) Co., Ltd. (“Synaura”), a subsidiary of China Mengniu Dairy Company Limited (“Mengniu” or the “Company”), received GRAS certification from the U.S. Food and Drug Administration (FDA) for its 2’-FL (2’-Fucosyllactose), making it the first and only human milk oligosaccharides (HMOs) company from China to receive approval.

    HMOs are the third largest solid component in human breast milk, following fat and lactose, and contribute significantly to infant health by enhancing gut health, supporting the immune system, and aiding cognitive development. Despite their immense potential when used in nutritional products, little progress has been made in the research and development and industrialization of HMO raw materials by Chinese companies. The most recent technological breakthroughs were all achieved by multinational companies.

    Recent years have witnessed Mengniu emerge as a pioneer in developing nutritional ingredients, particularly through groundbreaking advancements in HMO technology. As one of leading biosynthesis companies in China and the first domestic company engaged in HMO research and development, Synaura’s flagship HMOs have garnered recognition from several regulatory bodies both domestically and internationally. In June 2023, Synaura became the first Chinese company to obtain Self-Affirmed GRAS (Generally Recognized as Safe) certification in the U.S. In October 2023, Synaura became the only domestic HMO supplier to receive approval from China’s National Health Commission (NHC) for its 2’-FL (2’-Fucosyllactose). Recognition from multiple regulatory bodies underscores the product’s safety, efficacy, and purity at an international level while unlocking promising market opportunities for broader applications.

    As a leading dairy company in China, Mengniu is committed to enhancing and transforming its product offerings from offering basic nutrition to promoting enhanced health benefits. While driving the research and development of HMOs, Mengniu has also accelerated their use in various products, including its Enzhi (恩至) series infant formula andFuture Star liquid milk for children, while at the same time exploring additional opportunities domestically. In May 2024, Synaura successfully secured nearly RMB100 million in pre-A round financing led by CICC Qide Fund (中金啟德基金), under CICC Capital, and Moutai Fund (茅臺基金), along with investments from early shareholder Beihai Mengniu Venture Capital (北海蒙牛創投). This further solidifies Synaura’s position as a leader in synthetic biology and innovative nutrition and healthcare technologies.

    Advancements in nutritional ingredients such as HMOs demonstrate Mengniu’s dedication to the health and nutrition sector. Forming the “two wings” in Mengniu’s new “one core, two wings” operational strategy, the development of innovative health and nutritional ingredients, together with its continued expansion overseas, will drive the sustainable development of Mengniu. This will be supported by the enhanced efficiency and improved profitability of Mengniu’s “core” business including branded liquid dairy milk, milk formula, ice cream, and cheese business units.

    Going forward, Mengniu will continue to drive the high-quality development of dairy industry and provide healthy and nutritious products to consumers across the world.