C.S Group: The first company with Cordyceps sinensis as its main business to successfully list on the US SEC

Is Cordyceps sinensis a bug or a herb? Older Taiwanese may have heard of it, but younger generations are far less familiar with it. It has been a cherished tonic for generations of royal families since ancient times, and modern medicine has confirmed its pharmacological benefits, including anti-inflammatory, lung-tonifying, kidney-protecting, vascular-protecting, and athletic performance-enhancing properties.

Due to growing market demand, wild Cordyceps sinensis has been over-harvested. Coupled with the recent global pandemics of viral human respiratory diseases such as SARS and COVID-19, the market demand for Cordyceps sinensis health care has been further fueled. Even though the International Union for Conservation of Nature has already included Cordyceps sinensis in the 2020 revised "Red List of Endangered Species", its price has continued to soar. The price of top-quality Cordyceps sinensis is even no less than NT$1 million per kilogram!

Seeing the growing scarcity of wild Cordyceps production, coupled with increasing market demand, CS Group saw a clear market opportunity. They then began acquiring and integrating decades of experience in Cordyceps research, focusing on developing comprehensive Cordyceps cultivation, production, and bioprocessing technologies. They introduced cutting-edge strain research and technology from Taiwan and established a Cordyceps cultivation center in Chengdu, close to Tibet, effectively integrating the two industries. They overcame numerous technical challenges within the Cordyceps industry and successfully established a Cordyceps industry chain based on traditional cultivation methods and scientific management.

On March 30, 2023, Cordyceps Sunshine [CS Group] successfully published its initial public offering prospectus with the U.S. SEC. This is the first company listed on the SEC's radar system to primarily focus on Cordyceps sinensis assets, and it attracted considerable attention from the capital market from its early stages.

(Left) Vincent Liu, CTO of Cayman Amakusa Group (Right) Dalan Huang, President of Cayman Amakusa Group

Leveraging the expertise and experience of a Taiwanese strain research team, CS Group has successfully applied for patents related to Cordyceps sinensis incubation biotechnology, including "An Artificial Feed for Young Bat Moth Larvae, Its Preparation Method, and Application - Patent No. CN113475648A," "A Method for Proliferating Cordyceps Sinensis for Infecting Bat Moth Larvae - Patent No. CN113348965A," "Customizable Cordyceps Cultivation Equipment with Exclusive Formulas - New Patent No. M540473," "Environmental Control Equipment - New Patent No. M540472," and "Mobile Culture Box Storage Device for Cultivating Fungi with Cancer Cell Inhibition Function - New Patent No. M543537." CS Group has successfully implemented large-scale mass production, leading the healthy development of the industry.

CS Group Sichuan Chengdu Cordyceps Factory

Cordyceps breeding operations

Cordyceps successfully emerged

Taiwan's unique medicinal fungus, Antrodia cinnamomea, is internationally renowned for its proven pharmacological properties. However, due to its dwindling wild population and the endangered Cinnamomum camphora tree, a species endemic to Taiwan, the government has long since enacted legislation prohibiting its felling. To survive, biotech companies have developed various cultivation methods for Antrodia cinnamomea, but these all involve the mycelium, which differs significantly in both appearance and active ingredients from the fruiting bodies cultivated from traditional Cinnamomum camphora (bastwood). Some companies have also attempted to use Cinnamomum camphora trees for afforestation, hoping to fill the significant market demand gap. However, Cinnamomum camphora grows very slowly, taking at least 30 years from seedling to full-grown tree for practical use. Hoping that afforestation could quickly be used for Cinnamomum camphora health and biopharmaceutical applications is simply too slow.

After years of continuous investment in biotechnology research and development, CS Group leveraged the experience of industry, government, and academic experts from Taiwan to successfully develop a uniquely Taiwanese method for cultivating the precious Antrodia cinnamomea fungus. The company has subsequently applied for patents in China, the United States, Japan, and Taiwan for "Method for Cultivating Antrodia cinnamomea and Porous Carrier for Cultivating Antrodia cinnamomea (Taiwan Invention Patent No. I735106)." This patent successfully achieves the standard of artificially cultivated Antrodia cinnamomea that is identical in appearance to wild mushrooms, even containing significantly more active ingredients than wild mushrooms. This overcomes the core issue that has plagued the industry for years: the lack of basswood.

The first industry group production standard, "Antrodia Cinnamomea Production Technical Specifications" issued in mainland China in 2022, also directly stipulated the need to use the group's technical patents in Antrodia Cinnamomea production, and also established the leading position of [CS Group] in China's Antrodia Cinnamomea.

(Top) CS Group's Antrodia cinnamomea cultivation facility. (Bottom left) Cultivation conditions within the facility. (Bottom right) Bright red Antrodia cinnamomea fruiting bodies.

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