Summary: As of 31 Jan., nine listed vitamin companies have disclosed their estimated results for 2022.

As of 31 Jan., nine listed vitamin companies have disclosed their estimated results for 2022. Among those nine companies, four reported estimated year-on-year increases in their net profits attributable to equity holders, two of which, namely Brother Enterprises Holding Co., Ltd. (Brother Enterprises Holding) and Guanfu Holdings Co., Ltd. (ST Guanfu), estimate marked growth. There are another four companies reporting estimated year-on-year decline in their net profits attributable to equity holders; two out of those four firms predict significant decreases, including Hubei Guangji Pharmaceutical Co., Ltd. (Guangji Pharma) and Xiamen Kingdomway Group Company Limited (Kingdomway). But there is one firm, namely North China Pharmaceutical Co., Ltd., estimating losses in its financial results for fiscal year 2022.

On 31 Jan., Brother Enterprises Holding disclosed estimated results for 2022, which is detailed as follows:

• Estimated net profit attributable to equity holders of the Company: USD42.23 million–USD48.15 million (RMB285.00 million–RMB325.00 million), up by 905.91%–1,047.09% compared to USD4.20 million (RMB28.33 million) in 2021.
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• Estimated net profit after deduction of non-recurring loss/profit: USD39.86 million–USD45.78 million (RMB269.00 million–RMB309.00 million), up by 2,659.85%–3,070.24% compared to USD1.44 million (RMB9.75 million) in 2021.

Brother Enterprises Holding attributes the estimated performance growth to:

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• The prices of some vitamin products and chromic salt products showed various degrees of rises. That resulted in an increase in the gross margin of those products, boosting profitability.
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• The economic benefits delivered by "20,000 t/a catechol & hydroquinone and 31,100 t/a catechol & hydroquinone derivatives project (Phase I)", gradually increased, thanks to activation of more production capacity and optimisation of equipment operation.

On 31 Jan., ST Guanfu disclosed estimated results for 2022, which is detailed as follows:

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• Estimated net profit attributable to equity holders of the Company: USD60.75 million–USD88.90 million (RMB410.00 million–RMB600.00 million), up by 305.59%–493.55% compared to USD14.98 million (RMB101.09 million) in 2021.
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• Estimated net profit after deduction of non-recurring loss/profit: USD4.15 million–USD5.93 million (RMB28.00 million–RMB40.00 million), varying by -24.28%–8.17% compared to USD5.48 million (RMB36.98 million) in 2021.

ST Guanfu attributes the estimated performance growth to the fact that Nenter & Co., Inc., a wholly-owned subsidiary of ST Guanfu, and its associated enterprise Yimante Health Ingredients (Jingzhou) Co., Ltd. completed Yimante product upgrading and retrofitting project as well as put this project into operation, which led to year-on-year increases in the operating performance of these two firms for 2022.

On 30 Jan., Guangji Pharma disclosed estimated results for 2022, which is detailed as follows:

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• Estimated net profit attributable to equity holders of the Company: USD6.16 million–USD8.00 million (RMB41.60 million–RMB54.00 million), down by 50.96%–62.22% compared to USD16.31 million (RMB110.11 million) in 2021.
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• Estimated net profit after deduction of non-recurring loss/profit: USD2.86 million–USD4.70 million (RMB19.33 million–RMB31.73 million), down by 51.66%–70.55% compared to USD9.73 million (RMB65.64 million) in 2021.

Guangji Pharma attributes the estimated performance decline to:

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• The sales volumes of two main products high-content vitamin B2 and 80% feed-grade vitamin B2 dropped, due to COVID-19 pandemic and intensified market competition.
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• The sales income and net profit of the main product 80% feed-grade vitamin B2 declined, partially owing to the climb in production costs arising from increased prices of raw materials and energy.
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• During the reporting period, the company expanded the sales network, increased expenditure on R&D projects like vitamin B2 fermentation process optimisation project, and granted stocks to the stock incentive recipients in the restricted stock incentive plan for 2021, which all contributed to a year-on-year rise in the costs.
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• The non-recurring loss/profit dropped year on year.

On 31 Jan., Kingdomway disclosed estimated results for 2022, which is detailed as follows:

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• Estimated net profit attributable to equity holders of the Company: USD34.33 million–USD41.96 million (RMB231.71 million–RMB283.20 million), down by 64.10%–70.63% compared to USD116.88 million (RMB788.86 million) in 2021.
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• Estimated net profit after deduction of non-recurring loss/profit: USD33.23 million–USD40.62 million (RMB224.30 million–RMB274.14 million), down by 64.59%–71.02% compared to USD114.69 million (RMB774.09 million) in 2021.

Kingdomway attributes the estimated performance decline to:

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• Affected by external macro influencing factors and supply-demand relations, the products' selling prices (especially prices of vitamin A and coenzyme Q10) in 2022 dipped significantly.
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• Due to conflicts involving geopolitics, some dietary supplement distributors reduced their purchase volume of products from the company.
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• Preparation was made for goodwill impairment resulting from the acquisition of Jiangsu Chengxin Pharmaceutical Co., Ltd.