On 29 Aug., 2016, Xiamen Kingdomway Group
Co., Ltd. (Kingdomway, stock code: 002626) released its H1 financial figures:
-
Total revenue: USD120.65 million (RMB805.75
million), up 47.66% YoY
-
Net profit: USD19.40 million (RMB129.58
million), up 52.27% YoY
-
Net cash flows from operating activities:
up 1,471.85% YoY
-
Earnings per share: USD0.03 (RMB0.22), up
46.67% YoY
The significant growth was boosted by the surged domestic market price of vitamin A (VA). In H1, the company's VA business recorded:
-
Revenue: USD29.23 million (RMB195.23
million), up by 75.22% YoY
-
Gross profit margin: 61.06% (vs. 47% of
Zhejiang Medicine Co., Ltd.'s VA series), up 26.77 percentage points YoY; the
highest among all other leading products
On the contrary, coenzyme Q10 series, another leading product of Kingdomway,
performed poorly:
-
Revenue: down 31.84% YoY, mainly due to the
decreased sales price and volume
-
Gross profit margin: 42.05%, down 3.13
percentage points YoY
Yet, as the largest domestic producer of coenzyme Q10, Kingdomway still enjoys
advantages in market share and production experience.
Kingdomway's financial performance by
product, H1 2016
|
Product
|
Revenue, million USD
|
YoY change, %
|
Gross profit margin, %
|
YoY change, percentage points
|
|
Vitamin A series
|
29.23
|
+75.22
|
61.06
|
+26.77
|
|
Coenzyme Q10 series
|
25.65
|
-31.84
|
42.05
|
-3.13
|
|
Healthcare product – capsules
|
31.72
|
+72.96
|
28.15
|
-10.94
|
|
Healthcare product – tablets
|
12.88
|
+286.96
|
17.93
|
-10.86
|
|
Healthcare product – powder
|
13.36
|
+2,505.56
|
37.01
|
-1.05
|
Source: Xiamen Kingdomway Group Co., Ltd.
In recent years, Kingdomway has speeded up
acquiring overseas assets related to healthcare industry and continued
expanding its healthcare business, which is also a driving factor behind its
great financial growth in H1 2016. Specifically, the company:
-
Obtained production licence for healthcare
products on 31 Oct., 2014
-
Acquired 51% of shares in Doctor's Best
Inc., a US producer of dietary nutritional supplements, in Jan.2015 (mounted to
96.11% in May 2016)
-
Acquired 49.6% of shares in Doctor's Best
Holdings, Inc., a US healthcare product enterprise, on 20 Jan., 2015
-
Set up a wholly-owned subsidiary VitaBest
Nutrition, Inc. (VitaBest) in the US in June 2015 and purchased Vitatech
Nutritional Sciences, Inc. (Vitatech)'s major assets through VitaBest, including
Vitatech's advanced production technology, production capacity as well as the
brand and client resources in the healthcare industry
-
Purchased 20% of shares in Shanghai Ranka
Trading Co., Ltd. (which runs www.kaluli.com,
an online platform offering nutritional supplements) through capital increase
on 31 Jan., 2016, for the latter's rich experience on E-commerce marketing for
healthcare products
-
Acquired two Singaporean healthcare product
sellers, Vitakids Pte. Ltd. and Pink of Health Pte. Ltd. via its wholly-owned
subsidiary in Singapore Kingdomway Pte. Ltd. on 17 Feb., 2016, to introduce its
products (including the ones produced in overseas plants) into the South Asian
market
This article comes from Vitamins E-China News 1609, CCM
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Tag: vitamin