Garden Bio-chemical: sharp decline in 2015 performance 02-29-2016

Garden Bio-chemical recorded a sharp fall in financial performance in 2015, negatively impacted by sluggish VD3 markets at home and abroad and cholesterol production shutdown & upgrading.


In Jan. 2016, Zhejiang Garden Bio-chemical High-tech Co., Ltd. (Garden Bio-chemical) released the pre-announcement of annual performance of 2015. Financial figures showing:

  • Revenue: down by 4.80% YoY
  • Net profit: down by 67.62% YoY

Garden Bio-chemical said that a sharp fall in net profit can be attributed to three factors:

  • A sharp decline in the selling price of main product-feed grade VD3
  • A rise in unit cost of VD3, because the company suspended cholesterol production for technological innovation and it purchased cholesterol from the market

2015 was the first year after it went listed, also a crucial year for Garden Bio-chemical. The company completed a lanolin comprehensive utilization project and a 100 t/a feed grade 25-hydroxyvitamin D3 from the raised funds, and it put two projects into production in Dec. 2015. Certainly, the projects generated profits for the company and they will improve the company's profitability and core competition.


In 2015, global economy was recovering slowly, and vitamins prices remained low in the international market. Chinese economic growth was slowing down, the demand for vitamins from feed industry declined. Therefore, the completion among vitamin enterprises is increasingly intensive.


It's reported that Garden Bio-chemical conducted technological innovation in cholesterol plant and shutdown the cholesterol plant since June 2014. Together with VD3 price slumping, the gross profit margin of Garden Bio-chemical’s main business decreased by 23 percentage points.


VD3 industry development shows periodic change, the occurrence and duration of industrial peak and bottom are jointly affected by multi-factors, such as International financial environment, domestic macroeconomic environment and industry self-adjustment. The periodic change is mainly reflected by capacity change and price fluctuation.

After price soaring experienced in 2009 and 2010, lots of new entrants penetrated into VD3industry, mainly producing feed grade VD3. Then, from the beginning of 2011 to Q4 2015, VD3 price maintained a downtrend, triggering industry self-adjustment. In 2015, VD3 industry was in a malaise.


Garden Bio-chemical is engaged in the R&D, production and sales of VD3 upstream and downstream products. After over ten yeas’ development, the company has an advantage of VD3 industrial chain, and it can simultaneously produce NF-grade cholesterol and VD3 series. Its VD3 sales achieved and maintained leading position in the VD3 market. 


Monthly market price of feed grade VD3 (500,000IU/g) in China, Oct. 2014-Jan. 2016

Source: CCM


Garden Bio-chemical's revenue and net profit, 2015

Source: Zhejiang Garden Bio-chemical High-tech Co., Ltd.


Garden Bio-chemical’s performance by product, 2015


Revenue, thousand USD

YoY change

Gross profit margin

YoY change

Feed grade VD3 (oil)





Feed grade VD3 (powder )





Pharmaceutical grade VD3





VD3 intermediate








Lanolin derivatives





25-hydroxyvitamin D3





Other lanolin products










Note: There were no 25-hydroxyvitamin D3 and other lanolin products businesses in Garden Bio-chemical in 2014.
Source: Zhejiang Garden Bio-chemical High-tech Co., Ltd.


About CCM:

CCM is the leading market intelligence provider for China’s agriculture, chemicals, food & ingredients and life science markets. Founded in 2001, CCM offers a range of data and content solutions, from price and trade data to industry newsletters and customized market research reports. Our clients include Monsanto, DuPont, Shell, Bayer, and Syngenta. CCM is a brand of Kcomber Inc.


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Tag: Garden Bio-chemical, VD3

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