Summary of Huayi Biological Conference Call Company Overview - Huayi Biological holds a dominant position in the global cholesterol market with a market share of 70%-80% [2][7] - The company utilizes patented technology from lanolin, creating high technical barriers and limiting the number of competitors in high-purity cholesterol production [2][7] Key Insights and Arguments - The Ministry of Agriculture has approved the inclusion of cholesterol in aquaculture feed, with rapid completion of provincial registration expected, positioning Huayi Biological to accelerate commercialization of cholesterol products [2][9] - Adding cholesterol to aquaculture feed can reduce fishmeal usage by 8%-10%, leading to overall cost savings of 200-700 RMB per ton of feed despite an additional cost of 500-1,000 RMB for cholesterol [2][5] - The total volume of aquaculture feed in 2024 is projected to be approximately 22.6 million tons, with shrimp and crab feed accounting for about 3.5 million tons, indicating significant market potential for cholesterol [2][6] Pricing and Market Dynamics - The current price of industrial-grade cholesterol produced by Huayi Biological is around 500 RMB per kilogram, with potential for price increases due to rising demand and supply constraints [2][8] - The price of fishmeal ranges from 15,000 to 17,000 RMB per ton, making cholesterol a cost-effective alternative [2][8] Commercialization and Growth Expectations - Huayi Biological anticipates that 2026-2027 will be critical growth years for cholesterol sales, with plans to adjust sales strategies and expand production capacity based on market demand [2][10] - The company is also advancing its pharmaceutical business, with new products expected to contribute to revenue growth [4][15] Strategic Partnerships and Product Development - Huayi Biological has renewed its strategic cooperation agreement with DSM for 25-hydroxyvitamin D3, with optimistic conditions for future product launches [4][12] - The company is developing L-alanine fermentation technology, which has cost and environmental advantages, targeting well-known clients like BASF [4][14] Impact of Industry Trends - The pharmaceutical business has stabilized after the impact of centralized procurement, and the company is actively applying for new products to achieve business growth [4][15] - Other vitamin products, such as biotin and B6, have begun production and are expected to enter the market soon, with rising prices positively impacting vitamin D3 prices [4][17] Additional Considerations - Cholesterol's role in shrimp and crab farming is critical for molting, reproduction, and overall growth efficiency, highlighting its importance in aquaculture [3][11] - The demand for cholesterol is expected to influence vitamin D3 prices, which are currently low in inventory and may see price increases [11][12] Future Projections - The market for fish feed is significantly larger than that for shrimp and crab feed, indicating greater potential for cholesterol adoption in fish feed [19][20] - Capital expenditures in the coming years will primarily focus on convertible bond projects, with cholesterol expansion requiring minimal investment due to pre-allocated resources [20]

Group 1 - The core viewpoint is that the recent increase in the price of Vitamin B1 products has positively impacted the company's performance in the first half of the year [1] - The company encourages investors to monitor professional websites like Boya Hexun for specific price information [1] - The rise in vitamin product prices is noted to have a significant positive effect on the company's overall performance [1]

Group 1 - The company, Brother Technology, has reported a recent increase in the price of Vitamin B1 products [1] - The company advises investors to monitor professional websites such as Boya Hexun for specific price information [1] - The company will closely observe industry trends and actively respond to national policies [1]

Core Viewpoint - The vitamin sector in the A-share market experienced a strong surge, primarily driven by a significant increase in the price of vitamin D3, with various companies showing substantial stock price gains [1][3][9]. Price Movements - The price of feed-grade vitamin D3 was raised to 600 RMB per kilogram domestically, while the export price soared to 75 USD per kilogram (approximately 540 RMB per kilogram), marking a new high for 2023 [3]. - Major companies in the vitamin sector, such as Erkang Pharmaceutical, Brother Technology, and Yong'an Pharmaceutical, saw their stock prices hit the daily limit up, with Erkang Pharmaceutical's stock price increasing by 20% to 3.12 RMB [1][2]. Supply Chain Dynamics - The collective halt in price reporting by major domestic manufacturers and urgent inventory shortages in the European market have contributed to the rising prices of vitamin D3 [4]. - The explosion at BASF's factory in Ludwigshafen, Germany, has led to a significant supply shortage of vitamins A and E, further driving up global vitamin prices [5][6]. Company Performance - Erkang Pharmaceutical reported a total revenue of 354 million RMB for Q1 2025, a year-on-year increase of 28.19%, with net profit soaring by 868.91% to 28.11 million RMB [9]. - Brother Technology projected a net profit of 18 to 23 million RMB for Q1 2025, marking a turnaround from losses, attributed to rising sales prices of certain vitamin products [9]. - New Hec's expected net profit for Q1 2025 is projected to be between 1.8 billion to 1.9 billion RMB, reflecting a year-on-year growth of 107% to 118% [9]. Market Outlook - Analysts expect that the vitamin prices will remain high in the short term due to ongoing supply constraints and the concentration of production in China [7][10]. - The domestic share of the vitamin market is anticipated to continue increasing, with projections indicating that by 2024, China's production will account for approximately 86% of the global market [10].