GARDEN BIO-CHEM(300401)2022-11-22 03:04Company Overview and Strategy - The company is a national high-tech enterprise with over 20 years of development, having completed the full industrial chain layout for Vitamin D3, making it the only global enterprise with a full Vitamin D3 industrial chain [1] - The company has set a "one vertical, one horizontal" development strategy, focusing on building a complete Vitamin D3 upstream and downstream industrial chain (vertical) and leveraging its global market advantage for mergers and acquisitions (horizontal) [1] - The company aims to transform into a high-tech enterprise in the biopharmaceutical field while strengthening its Vitamin D3 industry, with the goal of becoming an influential player in the health sector [2] Core Products and Market Position - The company has three core products: lanolin cholesterol, 25-hydroxy Vitamin D3, and Vitamin D3 [2] - Lanolin cholesterol: The company is the only domestic enterprise with large-scale production capacity, with a design capacity of 200 tons/year, which will be expanded to 1,200 tons/year in the Jinxi Science Park [2] - 25-hydroxy Vitamin D3: Only two companies globally, including the company and Dutch DSM, can produce this product at scale. The company uses a chemical synthesis process, which has a competitive advantage over DSM's biological fermentation process. The design capacity is 100 tons/year (powder), which will be expanded to 1,200 tons/year in the Jinxi Science Park [2] - Vitamin D3: The company's traditional product, with feed-grade Vitamin D3 experiencing price fluctuations due to market consolidation, while food-grade Vitamin D3 has seen significant demand growth post-COVID-19 due to its immune-boosting properties [2] Jinxi Science Park Expansion - The Jinxi Science Park expansion includes increased production capacity for lanolin cholesterol and 25-hydroxy Vitamin D3 [2] - The South Zone of the Jinxi Science Park started production on November 11, 2020, and the East Zone is expected to be operational by the end of 2021 [3] - The company plans to prepare for the construction of a fully active Vitamin D3 (1α,25-hydroxy Vitamin D3) project after the completion of the current projects in the Jinxi Science Park [3] Market and Strategic Partnerships - The company has established long-term strategic partnerships with internationally renowned clients, including a 10-year strategic cooperation agreement with Dutch DSM for some core products [3] - The company is actively promoting the inclusion of lanolin cholesterol in the Chinese feed additive directory, which would significantly expand the market for feed-grade cholesterol [3] Relocation and Compensation - The relocation of the Xiasha production base is in the final stages of land remediation. The company has received the first and second installments of the relocation compensation, with the third installment to be paid upon land delivery to the local government [3]