Summary: As of the end of Oct., 14 listed firms that engage in vitamin business have released their reports of Q3 2023 results.

As of the end of Oct., 14 listed firms that engage in vitamin business have released their reports of Q3 2023 results. Due to the adverse effects of vitamin market's sluggishness, most of those 14 firms gave dismal business performance for Q3 2023. Of those 14 firms, 9 firms saw year-on-year declines in their operating revenues, with Jiangxi Tianxin Pharmaceutical Co., Ltd. (Tianxin Pharma) presenting the largest decline rate; 12 firms reported year-on-year declines in their net profits attributable to shareholders, with Hubei Guangji Pharmaceutical Co., Ltd. (Guangji Pharma) presenting the largest decline rate; only Hubei Zhenhua Chemical Co., Ltd. (Zhenhua Chemical) achieved year-on-year growths in both operating revenue and net profit attributable to shareholders.

Jiangxi Tianxin Pharmaceutical Co., Ltd. (Tianxin Pharma)

In Q3 2023, Tianxin Pharma witnessed a YoY fall of 27.94% in its operating revenue and a YoY fall of 44.68% in its net profit attributable to shareholders.

Tianxin Pharma attributed the performance decline mainly to the drops in sales revenue and gross profit, which arose from slack downstream demand of vitamin industry and the resulting YoY declines of products' selling prices. Besides, exchange earnings for Q3 2023 slid markedly compared with that in Q3 2022.

Hubei Guangji Pharmaceutical Co., Ltd. (Guangji Pharma)

In Q3 2023, Guangji Pharma witnessed a YoY growth of 11.43% in its operating revenue, but a YoY drop of 759.72% in its net profit attributable to shareholders. Major influencing factors of business performance include: the sales volume of high-content vitamin B2, the company's main product, dipped; costs went up because of efforts to expand sales network, expenses of paying compensation for restricted stock incentive plan, and the increase in interest-bearing liabilities.

Guangji Pharma's inventory balance as of 30 Sept., 2023 stood at USD43.00 million (RMB308.68 million), an uplift of 39.38% compared with USD30.85 million (RMB221.47 million) at 31 Dec., 2022; the uplift was primarily caused by the fact that the decline rate of sales volume of high-content VB2 exceeded the counterpart of the product's output.

In order the pursue the development plan of "active pharmaceutical ingredients + preparations + big health", Guangji Pharma registered and established a new wholly-owned subsidiary named Hubei Guangji Health Technology Co., Ltd. on 30 May, 2023, which is set as the carrier of development in the big health industry's sub-industries like Chinese traditional medicine and health care products. Since the establishment of new subsidiary, five new health care products like Coenzyme Q10 Soft Capsules and B Vitamins Tablets, and three health gift box products have been marketed; also, a functional beverage product with liver-protecting and anti-fatigue effects has been researched and developed, which is being produced through commissioned manufacturing. The sale of said new products has been launched in two E-commerce retail platforms in China—Tmall and JD. Additionally, talks with Zhongbai Holdings Group Co., Ltd., a publicly-traded enterprise engaging in chain supermarkets, about business cooperation are being held.

Hubei Zhenhua Chemical Co., Ltd. (Zhenhua Chemical)

In Q3 2023, Zhenhua Chemical witnessed a YoY increase of 36.48% in its operating revenue and a YoY increase of 26.60% in its net profit attributable to shareholders. The performance growth was mainly because sales volume of the company's products for Q3 2023 swelled YoY.

Sales volumes of and revenues from "oxides of chromium" and ultrafine aluminium hydroxide for the quarter both climbed up YoY. The Q3 revenues from "products co-produced with chromic salts (vitamin K3 and basic chromic sulphate)" dipped by 16.47% YoY to USD39.15 million (RMB281.00 million) principally owing to market price oscillations, although the sales volume of this product category gained 10.14% YoY to 23,900 tonnes in Q3.