On 3
February, Yifan Pharmaceutical Co., Ltd. (Yifan Pharmaceutical) held a
teleconference with investors to state the impact of the pneumonia caused by
the new coronavirus on the company's vitamin export. It is expected that the
pneumonia will have little influence on Yifan Pharmaceutical's vitamin export.
In terms of export supply, Yifan Pharmaceutical said that the
company has more than 10 years of export experience in vitamin products, and
has its own warehouses and sufficient stock abroad, which can meet the orders
of the end of Q1 and the beginning of Q2 in 2020.
As to export restrictions, Yifan Pharmaceutical indicated that
about 70% of its vitamin products is for export and it has a global market
share of 40%–45%. There is no alternative production capacity of vitamin B5
(D-calcium pantothenate) and provitamin B5 (D-panthenol) in Europe and the
United States. Although World Health Organisation has listed China as a country
of concern, WHO recommends no restrictions on China's trade and tourism.
However, a few other countries may still be reluctant to accept the company's
export goods owing to the pneumonia. But the company's products are mostly
exported by sea, usually lasting from 45 days to about 2 months. And the
incubation period of the new coronavirus is generally 7–12 days, so the
influence of the virus will not be too great. On the contrary, foreign
customers will consider whether the company's products can be normally produced
and supplied, so that overseas orders will be activated, which may benefit the
overseas sales of the company's vitamin products.
When it comes to product prices, Yifan Pharmaceutical said that
due to African swine fever and avian flu in 2019, the demand for feed in
breeding industry has decreased, so the company's sales volume of vitamin B5
(VB5) products is small. However, it is expected that the price of VB5 will not
have a downward trend in the short term.
At present, Yifan Pharmaceutical is the largest producer of VB5
in the world. Seen from the operating data during the SARS (Severe Acute
Respiratory Syndromes) period in 2002 and 2003, Yifan Pharmaceutical was less
affected as its revenue, VB5 sales volume and VB5 export volume all showed an
upward trend for two consecutive years.
Yifan Pharmaceutical's revenue in 2002 was USD18.91 million
(RMB130.95 million), up by 43.37% compared with USD13.19 million (RMB91.34
million) in 2001. Its revenue in 2003 was USD25.53 million (RMB176.77 million),
up by 34.99% YoY.
The company's VB5 sales volume in 2002 was 1,648 tonnes, up by
62.20% compared with 1,016 tonnes in 2001. Its VB5 sales volume in 2003 was
2,588 tonnes, up by 57.04% YoY.
The company's VB5 export volume in 2002 was 1,198 tonnes, up by
67.32% compared with 716 tonnes in 2001. Its VB5 export volume in 2003 was
2,050 tonnes, up by 71.12% YoY.
Based on the operation and export performance of Yifan
Pharmaceutical during the SARS period, CCM predicts that Yifan Pharmaceutical
will strive to weaken the influence of the new coronavirus and continue to
maintain a good situation in the operation and export of its vitamin business
in H1 2020 by virtue of the company's leading position in the industry,
technological advantages and high global market share.
More updates on CCM Vitamin China News or contact emarket1@cnchemicals.com.