1 Overview
Human production activities and daily life are producing a large quantity of plastics debris accumulated in the
environment and the plastic pollution possessing negative impacts on human life. Plastics can adsorb pollutants
from the surrounding environment (which means higher specific surface area) and release pollutants into natural
world. Among all these plastics forms, PET is one of the major plastics, in addition to polyethylene,
polypropylene, polystyrene, polyvinyl chloride, and polyurethane, and its worldwide production amounted to more
than 106 million tons in 2020. Synthetic plastic polymers Polyethylene terephthalate (PET) is one of the most
widely used forms of synthetic plastics in several industrial fields, which has been reported spreading as
particles less than 5 mm in environments and being captured from environments with low efficiencies.
Furthermore, in addition to the microplastics found in the environment, PET is frequently used in household
products, which is severely accumulated in the landfill and even worse, natural environments.
In China, as one of the world's top 10 plastic producers and consumers of plastic products, Chinese natural
environment and city are faced with severe plastic pollution and high recycling pressure. In 2020, China
produced 70.302 million tons of plastics and imported nearly 450 thousand tons. The total consumption of
plastics in China in 2019 was about 90.877 million tons, of which millions of tons were used for packaging. In
2020, the total consumption of PET bottles in China reached 9.49 million tons. In terms of consumption level,
the consumption of bottle-grade PET in China continues to grow from 6.33 million tons in 2016 to 9.49 million
tons in 2020. In 2020, the total consumption of PET bottles in China reached 9.49 million tons. At the same
time, a large number of plastics float on the surface of the ocean and suspend in various layers of seawater,
which hinders the transmission of light in the seawater, affects the use of light by various organisms in the
water, and interferes with their normal life activities. The wandering plastic is easily eaten by low-end food
chain organisms such as mussels and zooplankton. Plastic can not be digested, but can only exist in the stomach
all the time, occupying space, causing animals to get sick or even die. If microplastics with organic pollutants
are eaten, the damage to these plankton will be even worse. The pollutants are released by enzymes in the
organism, which undoubtedly aggravates the disease. Mussels, zooplankton and other organisms at the bottom of
the food chain will be eaten by the upper foodchain species, and thus, the plastics debris particles and
pollutants like PET material will enter the upper foodchain. Only 1% of the accumulated harmful substances of
plastics from the bottom foodchain will become 20% in the upper layer, which will make a large number of
organisms that eat plastics sick or die. And the current treatment of plastic pollution mainly adopts the method
of salvage, centralization and incineration, which requires more manpower and may produce secondary pollutants
like PM2.5.
Fortunately, in 2016, Japense scientists reported the discovery of the bacterium, Ideonella sakaiensis 201-F6,
which develops a two-enzyme system to deconstruct PET plastic to TPA and EG molecules, which could be
effectively catabolized as a carbon and energy sources for cells. Simultaneously, a specific protein, the
hydrophobin protein is discovered to be capable of attaching to plastic surface via its hydrophobic part and
expose its hydrophilic part to aqueous environment. This unique feature may effectively make enzymes more
accessible to hydrophobic surface of PET. Therefore, inspired by nature, we designed a delicate multicomplex
enzyme system, in which short peptide tags (Redesigned RIAD and RIDD derived from natural proteins) are applied
to create scaffold-free modular enzymes assemblies. Here, in order to effectively degrade microplastic PET
particles, we construct enzymes of IsPETase and MHETase and protein hydrophobin together in our complex system
via scaffold modular part, which may reveal higher catalytic efficiency in mild temperature and avoid high
possible loss of enzymes activity. Therefore, we created an innovative strategy to improve PET degradation at
mild temperature via biosynthetic factories and artificially designed proteins system that do not exist in the
nature.
As a substitute for degradable plastic, due to the current requirements of governments around the world for the
prevention and control of plastic pollution, major enterprises need to be responsible for the plastic they may
discharge into the environment. As a method to effectively reduce the environmental cost of enterprises, the
market size is expected to reach 10 billion yuan.
2 Product and Customer
We browsed large quantities of literatures and investigated a lot of speialists and stakeholders to ensure our
products possessing the characteristics of good safety, stability, high efficiency, which may significantly
degrade the PET plastics at mild temperatures and avoid the needing of high temperature values arund 72 °C, and
significantly improves the degradation efficiency by adopting PETase and MHETase enzymes and protein
hydrophobin.
After careful, and comprehensive analysis by all departments of the project team, the following SWOT (Strength,
Weakness, Opportunity and Threat) analysis table is summarized here:
Figure 1 SO, SW, WO, WT Chart
We can launch two types of products for two types of target customers:
1.Aim at Enterprises, government agencies and national organizations, we will provide them with complex enzyme
systems suitable for their specific production environment and requirements.
(1) The food packaging, plastic tableware, shopping bags and other daily plastic products are one of the largest
growth momentums of biodegradable plastics. As a substitute for biodegradable plastic, as a new way of a rapid
degradation of PET plastic, our compound enzyme system can be immobilized to the garbage bins after
classification of plastic, acting as a cooperation project with the local government. The scale can reach more
than 10 billion yuan, and the profit margin can reach more than 80%
(2) According to the emission reduction policies of the Chinese government, plastic processing manufacturers
should strictly control the content of PET particles in discharged sewage and solid waste. Therefore, we can
provide them with sewage filter screen of immobilized compound enzyme system and enzyme preparation that can be
used for plastic degradation in solid waste. At the same time, for plastic recycling enterprises, we can provide
enzyme preparation to maintain high content of economic products such as TPA and full degradation of other
intermediates with no economic value.
(3) Mulching films materials are widely used in the modern agricultural technology. However, its low recycling
efficiency and high leaking rate into agricultural land are severly threatening the safety of national food
safety because the accumulation of plastics including PET in the agricultural land are decreasing the yielding
rate of these valuable lands and making the lands more and more barren. The agricultural lands area is highly
limited in China and the protection of these lands via our safe and responsaible products is significantly
important.
2. For public customers, namely family application scenarios, the project team will develop some basic compound
enzyme systems that can be added to household scenarios, and this "basic model" of clothing will be sold to the
public.
(1) Such as the compound enzyme filter element in the household drinking machine: Users can buy our enzyme
containing filter element and put it into the drinking machine by themselves.
(2) Such as household water quality testing device: As a rapid degradation of PET enzyme preparation, we can
cooperate with faucet manufacturers, the color module will be installed on the faucet, to achieve real-time
water quality testing. We will also ensure that the detection device installed on the faucet will not affect the
water quality through mechanical design,
For the complex enzyme system developed by the general public, we will emphasize safety and reliability.
3 Entrepreneurial Team
3.1 Company Profile
The business scope of the enterprise includes enzyme production, technology research and development, technology
transfer, technical consultation and technical services. In terms of organizational structure, the company
adopts a flat model to avoid many drawbacks of hierarchical management, such as overlapping organizational
levels, staff redundancy, inefficient organizational operation, and accelerate the flow of information, which is
conducive to the refinement of management levels. The company has six departments: R & D Department, Marketing
Department, Human Resources Department, Finance Department, Operation Department and Biosafety Department.
3.2 Company leaders and responsibilities
Executive Director
Name: Sizhe Chen
Duties: The executive director shall be responsible to the general meeting of shareholders and shall be
responsible for convening and organizing the meetings of the board of directors, examining and approving the
work plan and work summary of the general manager, formulating the reward and punishment system for the general
manager. The chairman of the board of directors has the right to decide the important matters of the company,
such as investment, capital increase, capital reduction, etc.
Head of R & D Department
Name: Yuliang Huo
Duties: Be responsible for the development of new products and the maintenance of related platforms, and do a
good job in intellectual property and technology protection. Be responsible for design management, process
management and scientific research and development planning. And also need to prepare the company's medium and
long-term scientific and technological development plan and scientific research plan.
Head of Marketing Department
Name: Xuanshuo Zhang
Duties: Understand the industry situation and the basic situation of customers, conduct market research and
analysis, formulate marketing plans according to market conditions and national policies, and promote sales.
3.3 R & D management
Based on the design of R & D system structure and various management theories, this paper comprehensively
measures three key indicators of R & D management: quality, time and cost, with the help of information
platform, team building, process design and specific coordination of performance management, cost management,
project management, risk management and other activities. After the company's new products successfully entered
the market, the second-generation R & D will be carried out according to the product effect and market demand,
and the key R & D will be carried out in stages according to the long-term development strategy and market
changes.
3.4 Performance evaluation of department personnel
1. The assessment factors for management personnel are divided into: mutual evaluation within the department,
scoring by the project manager, and self-evaluation.
2. Proportion and calculation method of assessment factors:
| Intra-departmental mutual evaluation |
50% |
| Scoring of project leader |
30% |
| Self-evaluation |
20% |
3. Reward and punishment
① If the score is greater than 90, the salary will be paid at 120%.
② If the score is lower than 60 for two consecutive months, the salary will be paid at 80%.
4 Market and Competition
4.1 Market Policy
The "Opinions on Further Strengthening the Control of Plastic Pollution" was issued, and some plastic products
will be banned, but as an effective way to prevent and control plastic pollution, the development of domestic
related industries-recycled plastics industry may usher in opportunities.
By the end of 2020, China will take the lead in banning and restricting the production, sale and use of some
plastic products in some areas and fields. By the end of 2022, the consumption of disposable plastic products
will be significantly reduced and alternative products will be promoted.
4.2 Market size and market structure
As a major producer of plastic products, with the basic clearance of small, scattered and polluted enterprises,
the growth of downstream demand has accelerated, resulting in a rapid increase in the output of plastic
products. It is estimated that in 2019, the output of plastic products enterprises above designated size in
China will be 79.915 million tons, up 32.26% year on year. At the same time, plastic pollution is increasing.
Today, nearly 300 million tons of plastics are produced every year. About a third are thrown away immediately
after use. Most waste plastics are incinerated in landfills and are likely to have residues. And most of the
rest ends up in the sea. "With all the plastic produced so far, there is enough to wrap the entire planet
around," said Jan Zalasvich, a scientist at the University of Leicester in the UK.
In order to strengthen the control of plastic pollution, besides restricting the use of plastic products, it is
also an effective way to strengthen the recycling of waste plastics. At present, both at home and abroad are
taking action. At a meeting held in Geneva, Switzerland, in early May 2019, an amendment to the Basel Convention
was formulated to add dirty plastic waste to the import and export restrictions. This is the first international
legal restriction on plastic waste. The Amendment Agreement shall become effective on January 1, 2021.
Domestically, China has completely banned the import of waste plastics. Establish and improve the recycling
system of waste agricultural film; Standardize the recycling and disposal of waste fishing nets and fishing
gear. To promote the standardization, centralization and industrialization of plastic waste recycling, related
projects should be gathered in parks such as resource recycling bases. And that utilization level of plastic
waste resource is improved. As a fast and effective means of plastic treatment, the current market has not been
completely stable. As a parallel market with degradable plastics, we believe that our enzyme preparation will
also have a future market scale of nearly 10 billion yuan.
At the same time, as a special industry, the market structure of plastic treatment in China is: local government
+ large enterprises + scientific research institutes. Local governments put forward emission reduction
requirements for large and medium-sized enterprises, focusing on prevention, and scientific research institutes
provide technology for large enterprises to reduce emissions.
4.3 Competitor analysis and substitute analysis
At present, researchers in related professional fields are actively developing biodegradable technologies. In
recent years, there have been a large number of related patents, but these methods have slow degradation rate or
high environmental requirements. There is no large-scale promotion abroad. At present, few companies are engaged
in the production of plastic-degrading enzymes. However, we are convinced that the complex enzymatic degradation
system is the latest trend in the plastics treatment and recycling market and a valuable opportunity for key
players.
At present, some manufacturers have produced microbial agents for degrading plastics, but these microorganisms
may cause certain biosafety problems, and at the same time, microbial agents are not suitable for some special
environments.
5 Marketing and Sales
5.1 Product Strategy
The products will first be piloted in some sewage treatment plants, water sources and other units. After the
success of the pilot units, the reputation of the pilot units will be expanded through the Internet, and the
civil basic functions will be gradually added in the process of expansion. We will further consolidate and
improve the system, and build the platform into a complete ecological closed loop. We will also increase user
stickiness and loyalty, and steadily improve the market position and occupy the market share.
5.2 Price strategy
According to the market investigation of the project team in the early stage, and taking into account the
consumption ability and willingness of the target customer groups of the project, the project decided to give
full play to the long-term use advantage of the product, with a high price but durable and efficient, and to
launch a highly competitive product price.
During the trial period, the products will be launched at a preferential price of 85%.
5.3 Channel strategy
Promotion strategies are mainly divided into online and offline promotion, as well as some other small but
extensive promotion methods.
1. Online channel
(1) WeChat official account
The public number will popularize the safety, stability and efficiency of the complex enzyme system and why the
system should be designed. At the same time, according to our research, ordinary people generally do not
understand the widespread and long-standing problems of plastic pollution, such as the possible existence of
plastic particles in human placenta.The public number can also export ideas such as the universality of plastic
pollution and the latency of harm to the public, thus paving the way for the promotion of civil products in the
future.
(2) Long-term advertising
As a new product entering the market, the project takes "market promotion" as the primary task, invests part of
the proceeds in the cost of publicity in a planned way, and disseminates product publicity information through
online means such as official Q, official micro, QQ group, WeChat circle of friends, and cooperative marketing
with third-party stores APP or related well-known websites, so as to expand potential customers and improve
brand awareness in a short time.Advance the layout of the more common civilian product market.
2. Offline channel
(1) Activity promotion
By holding some offline publicity activities, such as small charitable donation activities, or sponsoring
scholarships for certain schools or other college-level competitions.
(2) Internal promotion of professional units
At the current stage, the project is mainly piloted in sewage treatment plants, water sources and other units,
and the service objects are mainly professional institutions, so the platform will give full play to the
publicity effectiveness of these professional units at the social level, such as popularity, credibility and
human relations, and jointly promote marketing with them, so as to better integrate into the general public.So
as to rapidly expand the influence of products in society, expand customer base in a short period of time, and
improve brand awareness.
5.4 Brand Image Promotion Strategy
1. Enhance the credibility and popularity of products and establish a good brand image through official
cooperation with the government and enterprises.
2. Conduct customer satisfaction evaluation regularly, give effective feedback to user opinions in time, improve
user satisfaction, increase user stickiness and loyalty, steadily improve market position and enhance brand
image.
3. Hold thematic education days regularly, organize or sponsor various competitions or charitable activities
independently.
4. Increase the financing of public welfare projects on the platform, and declare that 5% of the proceeds will be
used to fund public welfare projects.
5. Hold regular training sessions and performance evaluation for members to improve the ideological and moral
quality and labor enthusiasm of marketing promotion members, and at the same time give reasonable returns to
members to meet their needs, get their ownership and recognition of the project and brand, enhance team
awareness, and help to create a good brand image.
6 Business Model
6.1 Main activities
The business model of the complex enzyme system is mainly composed of two parts, one is to design and develop
high-efficiency PET-degrading complex enzymes suitable for specific scenarios, and provide customized services
for enterprises, such as sewage treatment plants, water sources, food processing plants, environmental
protection research institutes, recycled plastic factories, etc.
The other is to provide basic optional products for mass customers.
The overall development model is designed to take full advantage of the team's development capabilities and the
relatively easy preservation of the product.
As a highly mobile synthetic biology project, we can meet the needs of different scenarios. Therefore, for
enterprise users, we can provide products such as enzyme preparations at different temperatures and with
different purities according to their personalized needs and even for their needs.
For mass customers, the project team itself will develop some basic complex enzyme systems, which will be sold to
the public, similar to the "basic style" of clothing, so as to achieve household scenarios, such as household
water dispensers, air purifiers and other devices.
6.2 Profitability
For enterprise users, we contract with them and then develop enzymes that meet their needs in the laboratory.
According to the technical difficulty, charge RMB 200,000-1,000,000/order
For the general public users, we provide them with a safe and directly added immobilized enzyme filter element
layer in their water purifier, which is sold at the price of 100-500 yuan per unit.
6.3 Cost Structure
Our main costs are laboratory rent, labor costs, and material costs. According to the researchers who have been
engaged in the research of complex enzymes for more than eight years, from the market price point of view, the
cost of raw materials for complex enzymes is high, there are many manufacturers, and the bargaining power of the
industry is low. Therefore, the market price of raw materials is relatively high, accounting for 20% of the
total cost of products. The equipment functions required for the preparation of complex enzyme products are
relatively basic. The cost of equipment in midstream laboratories and research institutes is relatively low,
with an average price of less than 500000 per machine, accounting for less than 20% of the total cost of
products.
In addition, advertising is also an important expense for us. We will publicize our project on the Internet,
television and various biological journals, and organize or participate in relevant conferences and
exhibitions.
7 Risk control
7.1 Risk management measures
1. Prevention
A risk management team shall be set up to discuss the risks in all aspects regularly.
2. Emergency
Select members who are good at emergency decision-making and set up emergency response teams to reduce the
severity of emergencies or inhibit further fermentation of emergencies.
3. After the event
After dealing with the emergency, analyze the causes of the emergency, and punish or reward the relevant
personnel according to the performance of the whole process of risk time.
7.2 Key defense against major risks
1. Industry risk
(1) Establish commercial barriers to improve the anti-piracy capability of the entire business model.
(2) Focus on defense in the face of vicious competition and DNA sequence theft.
(3) In the initial stage of development, we should adopt active and powerful propaganda means, faithful and
sincere service concept, thoughtful and mature product mechanism and cutting-edge scientific development
strategy, and effectively improve the professionalism and feasibility of the development platform by constantly
improving the regulatory mechanism and expanding the number of user groups.
2. Personnel management risk
(1) Implement the contribution points system and formulate reasonable and clear assessment indicators to ensure
fairness.
(2) Adopt the mode of the old leading the new, and provide assistants in advance for the students of postgraduate
recommendation and direct doctoral.
7.3 Financial risk
1. Control the amount of accounts receivable and various accounts, withdraw a certain amount of bad debt
reserves, and regularly check the financial affairs. Strict estimation and control of financial expenditure,
avoid excessive risk of investment and cost consumption, and ensure the normal turnover of funds.
2. Opening a special account for the company, which shall be verified by the supervisor and the accountant
respectively.
7.4 Main biosafety issues
1. As a synthetic biology system, the following problems may arise:
(1) E. coli, which produces complex enzymes, needs to be strictly controlled, otherwise problems such as gene
drift may occur.
(2) For mass customers, it may cause allergic and other immune reactions due to eating complex enzymes by
mistake.
7.5 Biosafety prevention and control strategies
1. For mass customers, inform them of the safety and use specifications of compound enzymes to avoid eating by
mistake, and strengthen the research of downstream industries, such as water purifier manufacturers.
2. The immunogenicity of the complex enzyme can be studied, and the possibility of allergy can be reduced
through structural optimization.
