In the third quarter of ①, the prices of vitamin products all declined, and the current trend is still declining. The decline in sales of ② vitamin products led to a decline in the company's net profit in the first three quarters compared with the same period last year. At the same time, the company's research and development expenses, sales expenses and financial expenses all increased compared with the same period last year, while ③ revenue declined.
Financial Associated Press, October 25 (Reporter Chen Kang)Vitamin prices failed to stop falling and rebounding, and the profitability of related companies continued to decline. The net profit of Zhejiang Pharmaceutical (600216.SH) Q3 fell 69.02% year on year, which the company said was mainly due to the decline in sales of life and nutrition products and the impact of exchange gains and losses.
This evening, Zhejiang Pharmaceutical disclosed that the company's revenue in the first three quarters was 5.877 billion yuan, down 4.04 percent from the same period last year, and its net profit was 301 million yuan, down 37.8 percent from the same period last year. The company's net profit fell by 30.29% in the first half of the year.
Zhejiang Pharmaceutical's life nutrition products include synthetic vitamin E, vitamin A, natural vitamin E, lutein, lycopene and other vitamins and vitamins, accounting for more than 40% of the company's total revenue, which is the company's main source of income. the rest are pharmaceutical manufacturing, pharmaceutical business and other three sectors.
Longzhong Information vitamins industry analyst Rai Lingyun told the Financial Associated Press, "at present, the demand for vitamins in the market is low, the prices of many products are downward, the downstream demand has no boost signal compared with the first half of the year, and the competitive pressure of vitamin enterprises is great. Inventory removal is relatively slow. According to the follow-up survey of the market, most of the market participants are not very optimistic about the future."
Longzhong information data show that in the first half of 2023, the average price of vitamin An is about 86 yuan / kg, and the average price of vitamin E is about 72.5 yuan / kg. In the third quarter, the average price of products continued to decline slowly. in July, August and September, the average price of vitamin A dropped from 82-83 yuan / kg to 75-77 yuan / kg, and the average price of vitamin E dropped from 67 yuan / kg to 65-66 yuan / kg.
Wang Lin, a vitamin analyst at Zhuochuang Information, mentioned that relatively speaking, the good momentum of overseas exports supported the domestic market to a certain extent. The export volume of unmixed vitamin An and derivatives increased by 55.3% in the third quarter compared with the same period last year, and vitamin E exports increased by 28.7%. In addition, the arrival of reserve demand in the fourth quarter may be able to promote the gradual digestion of market inventory.
While the revenue of the main products is declining, the cost of Zhejiang Pharmaceutical is rising. In the first three quarters of this year, R & D expenses, sales expenses, management expenses and financial expenses increased by 9.32%, 6.82%, 4.75% and 44.35% respectively compared with the same period last year.
Zhejiang Pharmaceutical's pharmaceutical manufacturing products are mainly drug-resistant antibiotics, anti-malaria and other pharmaceutical raw materials, quinolones, anti-drug-resistant antibiotics, hypoglycemic and other pharmaceutical preparation products, as well as lutein, coenzyme Q10 and other major health products. The company continues to invest in the research and development of innovative drugs. its subsidiary Xincode Biological products include ARX788 and ARX305, two ADC biological innovative drugs. NCB003 was approved for clinical trials in September. As of August 2023, the NCB003 project has invested 62.8321 million yuan in research and development.