CABIO(SH:688089) 2 1 Shi Ji Jing Ji Bao Dao·2026-01-07 10:54Core Viewpoint - Nestlé is recalling infant formula products in multiple countries due to quality issues with Arachidonic Acid (ARA) supplied by a vendor, which may contain Bacillus cereus, a bacteria that can cause foodborne illness [4][5]. Group 1: Company Actions - Nestlé has conducted tests on all ARA and related oil mixtures used in potentially affected infant formula products, finding quality issues with the supplied ARA [4]. - As a precautionary measure, Nestlé China has initiated a voluntary recall of specific batches of infant formula, although no adverse health reports have been received so far [5]. - The company emphasizes that all registered and sold special medical infant formula products in mainland China are unaffected by this issue [5]. Group 2: Supplier Information - The supplier of the problematic ARA, Jia Bi You, has reported a 10.56% year-on-year revenue increase to 428 million yuan and a 54.18% increase in net profit to 129 million yuan [7]. - Jia Bi You is the largest ARA supplier in China and is expanding its international market presence, having established stable relationships with major infant formula companies like Nestlé and Danone [7]. - DSM-Firmenich has clarified that the ARA raw material in question was not supplied by them, and they are working to meet the increased demand for ARA [2][4]. Group 3: Health and Safety Concerns - Bacillus cereus is highly heat-stable, making it difficult to eliminate through cooking or boiling, which raises concerns about food safety [4]. - Symptoms of foodborne illness from Bacillus cereus can appear rapidly, including nausea, vomiting, and abdominal cramps [4]. Group 4: Market Impact - As of January 7, Jia Bi You's stock price was 24.01 yuan per share, with a market capitalization of 4.041 billion yuan [9].