LIANHE TECHNOLOGY(SZ:002250)2022-12-08 03:18Group 1: Company Development and Market Position - The company has a competitive advantage in customized chemical processing due to its strong capabilities in technology innovation, engineering construction, environmental facilities, and comprehensive management [1] - China plays a crucial role in the global chemical industry transition, with the company positioned to benefit from the outsourcing of production stages by multinational corporations [1] - The Jiangkou plant is designated as a new product incubation base, while the Taizhou plant focuses on pharmaceutical intermediates production [1][2] Group 2: Production Bases and Progress - The Taizhou plant officially commenced production in February 2015, with high-standard GMP multi-functional workshops under construction [2] - The company aims to obtain national pesticide production qualifications for its production bases in Yancheng and Jiangsu, with the first project starting trial production in March 2015 [2] - The Dezhou plant is actively developing downstream fine chemical projects to enhance production capacity [2] Group 3: Patent Expiry Impact - The company has products both under patent and nearing expiry, with varying impacts on business; generally, the price impact on original companies is significant, but the quantity impact is minimal [2] - Raw materials account for only 5%-10% of the final drug product price, indicating that price drops post-patent expiry do not primarily pressure custom service suppliers [2] Group 4: Business Strategy and Future Outlook - The trend of outsourcing pesticide and pharmaceutical intermediates in developed countries is expected to continue, providing growth opportunities for customized processing [2] - The company plans to focus on strategic alliances with major clients rather than entering formulation and terminal sales, while optimizing product structure to enhance profitability [2]