SHENGDA BIO-PHARM(SH:603079)2023-11-21 07:41Company Overview - Zhejiang Shengda Biological Pharmaceutical Co., Ltd. focuses on clean label products and biological preservatives, utilizing microbial technology for food safety [1][2]. Clean Label Products - Clean label products include ingredients like celery powder and sugar fermentation products, which are safer alternatives to chemical preservatives [1][2]. - The company has established the first enterprise standard for clean label products in China and is the first to obtain compliance production qualifications [2]. Cost and Efficiency - Biological preservatives are more efficient, requiring only about 1/6 to 1/10 of the amount needed for chemical preservatives, resulting in slightly higher costs [2]. - The company aims to lower costs through continuous technological innovation, making biological preservatives accessible to small and medium-sized food producers in China [4]. Market Position and Growth - Biological preservatives currently account for approximately 10% of the total preservatives market in China [4]. - The vitamin segment represented about 42% of the company's sales revenue in 2022, with lactic acid bacteria and other biological preservatives contributing significantly to revenue [3][5]. Research and Development - The company collaborates with several universities, including Zhejiang University and Southeast University, to enhance its R&D capabilities [3]. - The company is building a synthetic biology platform to strengthen its competitive advantage in the market [5]. Future Prospects - The company anticipates that if certain chemical preservatives are banned, the demand for biological preservatives will significantly increase [4]. - There is potential for biological preservatives to be used in ready-to-eat meals and possibly in the pet food sector in the future [5].