GARDEN BIO-CHEM(300401)2022-11-19 03:26Business Overview - The company is a national high-tech enterprise with over 20 years of development, having completed the full industry chain layout for VD3, making it the only global VD3 full industry chain producer [1] - The company has formulated a "one vertical, one horizontal" development strategy, focusing on vertical extension into the pharmaceutical field and horizontal expansion of vitamin products [1] - The company aims to become a high-tech enterprise with influence in the health field [1] Product Structure and Market Situation - The company has two main business segments: VD3 and pharmaceutical manufacturing [1] - VD3 segment products include wool cholesterol, 25-hydroxy VD3, and VD3 (feed grade and food/medical grade) [1][2] - Wool cholesterol: The company is the only domestic large-scale producer, with a design capacity of 200 tons/year, expanding to 1200 tons/year in the Jinxi Science Park [2] - 25-hydroxy VD3: Only two companies globally can produce it at scale, with the company using a chemical synthesis process that has a competitive advantage over the biological fermentation process used by DSM [2] - VD3: Feed grade VD3 has seen price fluctuations due to market dynamics, while food grade VD3 has stable prices and increased demand post-COVID-19 [2] Pharmaceutical Manufacturing - Key products include Valsartan Amlodipine Tablets (I), Levofloxacin Tablets, Doxofylline Injection, Lipoic Acid Injection, and Escitalopram Oxalate Tablets [2] - These products have been selected for national and local alliance centralized procurement, leading to rapid sales growth and increased market recognition [2] Future Development and Strategy - The company will focus on the "one vertical, one horizontal" strategy, extending the VD3 industry chain vertically and expanding vitamin products horizontally [2][3] - The Jinxi Science Park, operated by Garden Nutrition, will become the main production base, supporting the company's transformation into a competitive high-tech enterprise in the health field [2] - The company plans to increase R&D investment in the pharmaceutical sector, focusing on high-barrier generic drugs with good future market prospects [3] Market Prospects and Competitive Advantages - 25-hydroxy VD3 has broad market prospects due to its superior efficacy compared to regular VD3, with applications in feed additives and health products [2][3] - The company's 25-hydroxy VD3 production technology has won multiple awards and has high technical barriers, with several patents filed domestically and internationally [3] Raw Materials and Supply Chain - The main raw material, wool grease, is sourced domestically, with limited impact from rising sea freight costs [3] - COVID-19 related lockdowns and traffic controls have affected wool grease transportation, but the company maintains safety stock to avoid production disruptions [3]