Overview of Performance of Listed Vitamin Companies in 2023

On April 22, Zhejiang NHU Co., Ltd. released the 2023 annual report, showing that the company's operating revenue was 15.116 billion yuan, a YoY decrease of 5.13%. Net profit attributable to shareholders was 2.704 billion yuan, down 25.30% YoY.

In the nutritional products sector, methionine phase II 250,000 mt/a project, of which 100,000 mt device ran smoothly, 150,000 mt device process flow was completed at one time. The 180,000 mt/a liquid methionine (converted) project, a joint venture between NHU and China Petroleum and Chemical Corporation, was put into construction; the 4,000 mt/a cystine project was started; 30,000 mt/a taurine and 2,500 mt/a vitamin B5 projects are put into normal production and market.

In the API sector, pharmaceutical-grade coenzyme Q10 was launched.

On April 24, Jiangxi Tianxin Pharmaceutical Co., Ltd. released its 2023 annual report, which showed that the company's revenue was 1881.993 million yuan, a YoY decrease of 18.34%, and the net profit attributable to shareholders was 475.8533 million yuan, a YoY decrease of 23.51%.

In 2023, the company's vitamin business (Vitamin Bs, other Vitamins) accounted for 96.30% of the revenue in the main business, which is the main factor affecting the fluctuation of the company's performance. During the reporting period, the revenue of Vitamin Bs (including vitamin B6, vitamin B1, biotin, folic acid, etc.) was 1650.31 million yuan, a YoY decrease of 16.67%, and the gross profit margin was 41.91%, an increase of 0.76 % YoY, and the revenue of other vitamins (including vitamin D3, ascorbyl palmitate, vitamin E powder, etc.) was 132.590 million yuan, a YoY decrease of 40.95%, and the gross profit margin was 5.90%, a YoY decrease of 7.14 %. The production volume of B vitamins was 12,316.89 mt, a YoY decrease of 0.82%, the sales volume was 11,391.19 mt, a YoY decrease of 2.49%, the inventory volume was 3,114.21mt, an increase of 86.71% YoY, the production volume of other vitamins was 2,188.83 mt, a YoY decrease of 23.84%, the sales volume was 2,017.87 mt, a YoY decrease of 31.70%, and the inventory volume was 414.88 mt, an increase of 158.07% YoY.

Overall downstream demand is weak, and competition pressure on the supply side has increased, suppressing the price of vitamin products. At the same time, primary commodity prices fell from high levels, driving the cost of raw materials downward, hedging part of the negative impact of the decline in the price of vitamin products and making a positive contribution to the company's gross profit margin.

On April 22, Anhui Huaheng Biotechnology Co., Ltd. released its 2023 annual report, which showed that in 2023, the company achieved operating revenue of 1938.2681 million yuan, a YoY increase of 36.63%, and a net profit attributable to the shareholders of the parent company is 449.0615 million yuan, a YoY increase of 40.32%, mainly came from the increase in the production and sales of the company's products.

During the reporting period, the revenue of vitamin products (D-calcium pantothenate, D-panthenol, inositol) was 218 million yuan, a significant increase of 574.96% YoY, and the gross profit margin was 55.10%, an increase of 18.52% over the last year. The revenue of amino acid products (L-alanine, DL-alanine, β-alanine, L-valine) was 1.465 billion yuan, an increase of 25.62% YoY, and the gross profit margin was 43.32%, an increase of 0.95% over last year. The production capacity continued to increase, and the production volume increased from 64,186.79 mt in the previous year to 78,739.14 mt, an increase of 22.67% YoY. The sales volume increased from 59,434.07 mt to 77,184.91 mt, an increase of 29.87% YoY. The inventory was 5,754.55 mt, an increase of 30.84% over the previous year.

The following construction projects were both implemented and landed:

---Bayannur base: 60,000 mt/a of three-branched chain amino acids and tryptophan, and 10,000 mt/a of refined amino acids.

---Chifeng base: 25,000 mt/a of valine, arginine and 1,000 mt/a of inositol.

On April 26, Zhejiang Medicine Co., Ltd. released its 2023 annual report, which showed that during the reporting period, the company achieved operating revenue of 7.794 billion yuan, a YoY decrease of 3.96%, and a net profit attributable to shareholders of the parent company of 430 million yuan, a YoY decrease of 20.37%.

During the reporting period, the revenue of life-nutrition products, mainly refer to synthetic vitamin E, vitamin A, natural vitamin E, vitamin H (biotin), vitamin D3, coenzyme Q10, β-carotene, canthaxanthin, lutein, lycopene and vitamin-like products, was 3272.642 million yuan, accounting for 41.99% of the company's operating revenue, a YoY decrease of 14.80%, gross profit margin of 31.26%, a YoY decrease of 5.28%.
The production volume of the vitamin series was 40,434 mt, an increase of 1.93% YoY, and the sales volume was 38,517 mt, a YoY decrease of 3.61%.

On April 9, Hubei Zhenhua Chemical Co., Ltd. released the "2023 Annual Report", which showed that the company achieved revenue of 3.699 billion yuan, a YoY increase of 4.67%, net profit attributable to the parent company is 371 million yuan, a YoY decrease of 11.07%.

During the reporting period, the total output of chromium salt products (sodium dichromate) was about 245,000 mt, an increase of about 15.46% YoY, the output of ultra-fine aluminum hydroxide reached 40,000 mt for the first time and basically achieved a balance between production and sales, and the sales volume increased by about 22% YoY, and the sales volume of chromium salt co-production products represented by vitamin K3 increased by about 17%, and both the production and sales of the above products reached the highest level in history. The overseas sales revenue was about 470.4266 million yuan, a YoY increase of 18.02%, reaching a historical peak.

In 2023, the sales volume of Zhenhua's three main products (dichromate, chromium oxide, and chromium salt co-production products) was 25600mt, 106300mt, and 32100 mt, respectively, up 0.94%, 19.83%, and 17.23% YoY.

On March 30, Northeast Pharmaceutical Group Co., Ltd. released its 2023 annual report, which showed that the company achieved operating revenue of 8.243 billion yuan, a YoY decrease of 6.42%, and a net profit attributable to the parent company of 358 million yuan, a YoY increase of 2.34%.

On April 8, Xiamen Kingdomway Group Co., Ltd. released its 2023 performance report, showing that in 2023, the market price of coenzyme Q10 (API) went down, but the sales hit a record high, and the market price of vitamin A products fell sharply and the product sales decreased. Under the combined influence as above, the company achieved operating revenue of 3.103 billion yuan, a YoY increase of 3.10%, an operating profit of 359 million yuan, a YoY increase of 15.07%, and a net profit attributable to shareholders of 277 million yuan, a YoY increase of 7.50%.

On April 19, Nenter released its 2023 annual report, which showed that in 2023, the company achieved operating revenue of 11.129 billion yuan, a YoY decrease of 9.23%, and net profit attributable to ordinary shareholders was 259 million yuan, a YoY decrease of 41.79%.

During the reporting period, after the completion of the intelligent upgrading and transformation, Yemant, a joint venture between Nenter and DSM, achieved a good profit level in 2023.

In 2023, the sales volume of VE intermediates was 10,688 mt, an increase of 1.36% YoY; the production volume was 11296 mt, up 7.13% YoY, and the inventory was 436 mt. The substantial increase in VE intermediate inventory was mainly due to Yemant's change of procurement mode to purchase on actual demand.

On April 16, Zhejiang Garden Biopharma Co., Ltd. released its 2023 annual report, showing that the company's operating revenue was 1.095 billion yuan, a YoY decrease of 22.78%. net profit attributable to shareholders was 192 million yuan, a YoY decrease of 49.87%.

The main reasons for the performance: 1. The selling prices of pharmaceutical products and vitamin D3 declined. 2. The employee stock ownership plan was implemented in 2022, the share-based payment expenses increased in 2023. 3. R&D expenditure increased over the past years.

The technical transformation project for the annual output of 200 mt of feed-grade fish oil cholesterol has been completed. The products were put into production, and vitamin A and AD3 products were put into the market.

On March 30, North China Pharmaceutical Co., Ltd. released its 2023 annual report, which showed that the company achieved operating revenue of 10.120 billion yuan, a YoY decrease of 3.62%; The net profit attributable to shareholders was 4.8903 million yuan, a turnaround over the past years.

On April 20,Zhejiang Shengda Biopharmaceutical Co., Ltd. released its 2023 annual report, which showed that the company's operating revenue was 727.4057 million yuan, a YoY decrease of 1.44%, and the net profit attributable to shareholders of listed companies was -54.0629 million yuan, a decrease of 271.71% over the same period of the last year.

During the reporting period, the feed additives industry achieved a gross profit of -21.809 million yuan, and the gross profit margin decreased by 13.82% YoY. The main reasons: 1--the overseas customers are destocking after continuous overbuying, and 2--the decline in consumption of the downstream breeding industry.

The production volume of the company's main products, including biotin (purified) and folic acid (purified), was 511.95 mt, an increase of 2.33% YoY, sales was 567.50 mt, a YoY increase of 25.33%, and inventory was 46.55 mt, a YoY decrease of 54.41%.The revenue of vitamin products was 248.313 million yuan, a YoY decrease of 18.96%, the gross profit was -14.884 million yuan, and the gross profit margin was -5.99%, a YoY decrease of 14.21%, mainly due to the market price being falling to a record low, which in turn affected the profit margin.

On April 26, Hubei Guangji Pharmaceutical Co., Ltd. released its 2023 annual report, which showed that the company achieved operating revenue of 738 million yuan, a YoY decrease of 7.50%, and a net loss attributable to shareholders of 140 million yuan, a YoY decrease of 378.64%.The market demand for its leading product (VB2) was sluggish, and due to the increased market supply, the market price came to a low level.

Guangji (Mengzhou)'s "Annual Output of 1,000 mt Vitamin B12 (1%) Project" officially launched trial production in November 2023, the R&D progress of methylcobalamin (B12 pharmaceutical grade) was promoted.

On April 20, Brother Enterprises released its 2023 annual report, which shows:

The company achieved an operating revenue of 2.821 billion yuan, a YoY decrease of 17.30%, and a net loss of 175 million yuan, a YoY decrease of 157.43%.

Brother Vitamins's net loss was 34.421 million yuan from the production and sales of VB1,and revenues were 255.187 million yuan.

On April 20, Yifan Pharmaceutical Co., Ltd. released its 2023 annual report, which showed that the company achieved operating revenue of 4068.1073 million yuan, a YoY increase of 6.03%, and net profit attributable to shareholders was -551.0731 million yuan.

During the reporting period, the sales volume of vitamin series products increased significantly compared with the same period last year, resulting in a slight increase in sales revenue, but the average transaction price of products fell significantly, resulting in a YoY decline in net profit.

The revenue of APIs of vitamin B5 (D-calcium pantothenate) was 799,718,592.51 yuan, a YoY increase of 1.58%, accounting for 19.66% of revenue, and the gross profit margin of APIs was 47.47%, a YoY decrease of 6.19%.