Brother Enterprises (SZ:002562)2022-11-19 01:36Group 1: Company Overview - Brothers Technology Co., Ltd. has over 30 years of experience in the fine chemical industry, initially focusing on leather chemicals and vitamins, and has expanded into four major sectors: vitamins, flavors and fragrances, pharmaceuticals, and specialty chemicals [1] - The company has established four production bases located in Haining, Yancheng, and other regions, continuously developing its vitamin and specialty chemicals sectors [1] Group 2: Impact of COVID-19 - The Haining base was slightly affected by local COVID-19 restrictions, while other bases remained unaffected [2] - Logistics faced challenges in efficiency due to the pandemic, but the company managed to mitigate impacts through increased inventory and better logistics planning [2] Group 3: Future Investment Plans - The company plans to focus on existing products in the vitamin and specialty chemicals sectors, enhancing supply chain, technological innovation, and global marketing [2] - For the flavors and fragrances and pharmaceutical sectors, the company aims to accelerate production capacity release and project profitability [2] Group 4: Project Changes - The company has decided to change its pine oil project to a second phase of the phenol project due to rising market prices of pine oil, which could negatively impact economic benefits [2] - The first phase of the phenol project is currently operational, and the second phase will leverage existing infrastructure and expertise [2] Group 5: Raw Material Drug Progress - The iodine contrast agent project has commenced production, focusing on intermediate sales while awaiting regulatory approvals for market entry [3] - The company is also exploring specialty and patented raw materials to enhance its pharmaceutical platform [3] Group 6: Customer Base and Market Applications - The flavors and fragrances sector overlaps significantly with existing vitamin product applications, serving industries such as food, daily chemicals, and pharmaceuticals [3] - The phenol product is widely used in various applications, with the polymerization inhibitor sector being the largest market [3] Group 7: Financial Performance - Brothers CISA, a subsidiary, turned a profit in 2021 with a net profit of 26.67 million yuan, despite facing challenges from rising raw material and logistics costs [3] - The company is considering the potential redemption of its convertible bonds based on future performance and regulatory requirements [3]