CCM - Brother Enterprises doubles net profit in 2015 03-04-2016

Thanks to the increasing price of VB1, Brother Enterprises doubled its net profit in 2015.


On 25 Feb. 2016, Brother Enterprises Holding Co., Ltd. (Brother Enterprises) announced that its total revenue in 2015 reached about USD139 million (RMB 911.51 million), up by 13.81% YoY, with the net profit of USD12.368 million (RMB81.062 million), up by 102.49%. Brother Enterprises explained that the increasing prices of some products in 2015 had led to the great growth of the total gross rate, which helped double the net profit.


The main products of Brother Enterprises are vitamin B1 (VB1), vitamin K3 (VK3), niacin and nicotinamide. According to its semi-annual report of 2015, the revenue of vitamin products accounted for over 60% of the total revenue. The vitamin products were mainly in charge by Brother Enterprises' two subsidiaries: Jiangsu Brothers Vitamins Co., Ltd. (Brothers Vitamins, Brother Enterprises had 70% of its stake) and Jiangxi Brothers Pharmaceutical Co., Ltd. (Brothers Pharmaceutical, Brother Enterprises had 100% of its stake).




VB1, as one of the major products in Brother Enterprises, had an upward trend in its market price in 2015. Both the environmental pressure from the government and the high concentration of the manufacturers had led to the increasing price of VB1. As of Jan. 2016, the market price of domestic 98% feed grade VB1 was USD46,131/t (RMB300,000/t), up by 62% YoY.


On 1 Nov. 2015, because of an explosion, the VB1 factory of Brothers Vitamins suspended the production for maintenance. In the meanwhile, Brother Enterprises halted its quotations on VB1 and didn't offer any quotations until Jan. 2016. In some way, it had led to the tense supply of VB1 in the market and helped increase the price. The factory in Brothers Vitamins is the only VB1 manufacturing base for Brother Enterprises, with a capacity of 3,200t/a in 2015, just second to the capacity of 4,000t/a in Hubei Huazhong Pharmaceutical Co., Ltd.


Brother Enterprises has expanded its production capacity of vitamins. Its 5,000t/a VB3 project had full-load operation in 2015. Currently, Brothers Pharmaceutical has a 13,000 t/a VB3 project and a 20,000 t/a 3-Cyanopyridine project in Jiujiang City, Jiangxi Province. It is predicted that these two projects would be put into production in Q3 2016. At that time, Brother Enterprises would become a larger manufacturer in the VB3 market. In the meantime, the 5,000 t/a VB5 project of Brothers Pharmaceutical is predicted to be put into production in 2016, which may lead to new revenue growth in Brother Enterprises.


Brother Enterprises was founded in Sep. 2007 with its headquarter located in Haining City, Zhejiang Province. In March 2011, it was listed in Shenzhen Stock Exchange. Currently, its registered capital is USD32.56 million (RMB213.4 million). Brother Enterprises focuses on the R&D, manufacturing and selling of leather chemicals, vitamins and fine chemicals.


Performance of Brother Enterprises during 2012-2015

Source: Brother Enterprises Holding Co., Ltd.


Market price of 98% feed grade Vitamin B1, Jan., 2015-Jan., 2016

Source: CCM



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Tag: VB1

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