SUNHERE(SZ:300452)2022-12-04 06:52Market Overview - The foreign excipient market is primarily developed by chemical groups, with many companies promoting single varieties across multiple fields, establishing pharmaceutical divisions for excipients [4] - The company has expanded from 5 to 22 excipient varieties, with over 90% of clients being pharmaceutical companies, primarily through direct sales [4] Market Fragmentation - The high fragmentation in the excipient market is due to the large variety of products, with over 1,000 excipient types used in Europe and the US [5] - The tightening of regulations in China is expected to increase industry concentration in the future [5] Product Development and Pricing - The company focuses on R&D to compare its products with foreign counterparts and improve its processes, achieving quality parity with international products in recent years [6] - Rising raw material prices have pressured the company, leading to delayed price adjustments with clients; partial price increases were communicated post semi-annual report [6][7] Industry Impact and Client Development - The consistency evaluation is seen as a double-edged sword, potentially increasing industry concentration while risking the loss of smaller downstream clients; the company plans to focus on developing key clients [7] - Major clients include Wyeth, Pfizer, Sanofi, and Yangtze River Pharmaceutical Group [8] Export and Regulatory Compliance - The company exports to Southeast Asia and "Belt and Road" countries, with foreign trade sales accounting for about 10% of total revenue, growing at approximately 30% [8] - The product carboxymethyl starch sodium has passed foreign DMF registration, with plans for more products to follow [9] Regulatory and Environmental Considerations - The association review and approval process enhances customer loyalty but raises product stability requirements, potentially altering pricing power [9] - The company has established environmental facilities to ensure compliance with emission standards [10] Future Directions - The company aims to expand into food additives and specialty raw materials while maintaining a focus on excipients [11]