ZHONG YUAN BIO-TECHNOLOGY HOLDINGS LIMITED is mainly engaged in the brain health research, develop products and sales of plant-derived Nervonic Acid which is a widely accepted effective agent for pharmaceutical and nutraceutical applications in the prevention and treatment of neurological disorder and associated diseases including Alzheimers disease. ZHONG YUAN BIO-TECHNOLOGY HOLDINGS LIMITED was established in 2012 and the company cumulates the top raw material of Nervonic acid, it is engaged in the R&D of the medicine for neuroscience. Currently the patented Category III medical device: Cognitive Impairment Diagnosis Early Screening Kit is in the phrase of pre-clinical trial. The company devotes itself to build research & development engine for new medicine of new target and new mechanism.
The Company was originally incorporated in the State of Delaware on April 4, 2016 under the name “Agate Island Acquisition Corporation.”, and was changed its name to China Biotech Holdings Limited on March 13, 2017. Effective August 21, 2018, the Company was redomiciled from Delaware to the Cayman Islands by merging into its wholly-owned Cayman Islands subsidiary. As a result of the Redomicile Merger, the Company’s name was changed to Zhong Yuan Bio-Technology Holdings Limited.
China Bio is a wholly-owned subsidiary of the Company and the Company, through its indirect subsidiary, Bao Feng, is engaged in the business of nervonic acid research, the development and sale of nervonic acid-based health supplements and the development of nervonic acid-based herbal and chemical drugs.
Beijing Baofeng Internet Bio-technology Co., Limited (“BF Internet”) was incorporated in the PRC on May 23, 2022 and the principal activities of BF Internet are to sell and market Bao Feng’s nervonic acid-based health supplements over the internet.
Business of Bao Feng
Bao Feng is in the business of nervonic acid research, the development of nervonic acid based herbal and chemical drugs and the sale of health supplements containing nervonic acid. Nervonic acid is a long chain unsaturated omega 9 fatty acid that is an important component in myelin biosynthesis in the central and peripheral nervous system. Myelin insulates nerve cell axons to increase the speed at which information (encoded as an electrical signal) travels from one nerve cell body to another or from a nerve cell to another type of cell in the body. It is thought that nervonic acid may enhance brain function and prevent demyelination of nerve cells, and that, therefore, it may be effective in retaining or improving the health of the brain, for example in preventing or ameliorating attention-deficit hyperactive disorder (“ADHD”) in children, Alzheimer's disease and mental degradation in the elderly and cerebrovascular disease, as well as promoting normal brain development in premature infants. The role of nervonic acid is also being studied with respect to psychotic illnesses, such as schizophrenia.
Bao Feng’s goal is to provide a complete solution for neurological disorders, from screening to intervention. Bao Feng is dedicated to the development of early detection kits for brain diseases, plant-derived nervonic acid health supplements and new drugs for neurological diseases. Over the past decade, it has focused on research related to neurological diseases and discovered that nervonic acid can be used as a core molecular marker, laying the foundation for the development of the detection kits and drugs. More recently, Bao Feng has made breakthroughs in the research and development of new drugs to treat cognitive impairment, brain atrophy and other encephalopathies caused by brain white matter damage.
Nervonic acid is considered to be an important biomarker for many neurological diseases, such as ADHD in children and neurodegenerative diseases in the elderly and, thus, in high demand among those populations. Bao Feng’s marketing efforts are primarily aimed at the elderly population. The problem of the aging of the world population is becoming more and more serious. According to the United Nations’ “World Population Ageing 2019: Highlights” report, in 2019, there were 703 million persons aged 65 years or over in the world population, or approximately 10% of the global population. It is estimated that by 2050 the world’s 65 and over population will double to 1.5 billion so that one in six people in the world will be aged 65 years or over. According to census statistics released by the National Bureau of Statistics, in 2022, China has 267 million persons aged 60 or over, representing 18.9% of the total population, and 14% of the country’s population are aged 65 or over.
The price of nervonic acid in the world market ranges from approximately $2,000 to approximately $6,000 per kilogram, depending on the purity. Since it is considered to be an important biomarker for many neurological diseases, such as ADHD in children and neuro-degenerative diseases in the elderly, management believes that there exists a significant market for nervonic acid health supplements among those populations. Bao Feng’s marketing efforts are primarily aimed at the elderly population.
Nervonic acid is not present in many foods. In the past, nervonic acid was derived from the brains of sharks. However, the extraction process from that source is difficult, and the cost is too high for commercialization. In addition, sharks are protected by the United Nations and many countries. Another good source of nervonic acid is the malania oleifera plant, which is native to southern China. The malania oliefera plant is said to have up to 40.9% to 50% nervonic acid; however, it is a threatened species in the world and is on the list of key wild plants for state protection. The dried seeds of the Acer truncatum tree, which is a type of maple native to northern China, Mongolia and Korea, were found to contain 5.8% nervonic acid. Therefore, the seed oil of the Acer truncatum tree is considered to be a good source of natural nervonic acid, as well as other compounds such as Vitamin E. Bao Feng extracts the nervonic acid that it utilizes in its products from Acer truncatum seeds.
The raw material sources of nervonic acid are insufficient to meet Chinese demand. Therefore, Bao Feng has a contract with the Wengniuteqi government pursuant to which it obtains Acer truncatum seeds for use in making its products. In 2011, the Chinese government No. 9 announcement “Food Safety Law of the People’s Republic of China” and “Regulations of Novel Foods” approved Acer truncatum seed oil as a new resource for food ingredients, thereby recognizing the safety status of Acer truncatum.
Bao Feng intends to expand its product line by building factories for purification of nervonic acid for medical level product usage. There can be no assurance, however, that either Bao Feng or the Company will be able to effect this plan.
Bao Feng’s current products consist of:
- • NEURO ENHANCER nervonic acid oil;
- • Muzhiyuan Acer truncatum formula oil; and
- • Life’s NA Candy.
Early detection kits
Bao Feng is in the process of developing early screening kits for brain white matter signal abnormalities, Parkinson’s disease and ischemic strokes. It is in the clinical trial stage. After completion of clinical trials, Bao Feng will apply to the Ministry of Health of the PRC for an innovation class III product registration certificate and related business operation license in China for the production and sale of domestic disposable medical devices. It intends to distribute its innovation class III products to major clinics and hospitals through domestic distributors, as well as through direct sales to its partner hospitals and other medical institutions.
Plant-based and synthetic drugs
Bao Feng has improved its purification process so as to produce high (medical) grade nervonic acid in a laboratory setting and is currently working on building factories in order to achieve mass production. The next step is expected to be the development of pharmaceutical products or the sale of raw materials for nervonic acid products throughout China and abroad.
Application of Acer truncatum seed oil for regulation of intestinal flora
Bao Feng has found that supplementation of Acer truncatum seed oil can regulate intestinal flora. Its research in this area found that after taking nervonic acid oil, the abundance of Firmicobacterium, which increases with Alzheimer's disease, showed a downward trend, while the abundance of Bacteroidetes, which decreases with Alzheimer's disease, showed an upward trend. Therefore, we believe that taking nervonic acid oil may help to improve Alzheimer's disease. This research may also be used in the future to intervene in other diseases believed to be caused by disorders of intestinal flora, such as autism.