Vitamin China E-News 1607
LONDON, Nov. 14, 2016 /PRNewswire/ -- On 1 July, 2016, the Regulations on Registration and Filing of Health Food came into effect, which may save time and expenses for enterprises when they apply for Health Food Approval Certificate. Meanwhile, more and more Chinese enterprises, like CSPC and By-health, are looking for opportunities to acquire foreign healthcare enterprises, mainly due to the rapid growth of the domestic healthcare product market and Chinese consumers' preference for overseas brands.
The G20 Summit is to be held on 4 Sept., 2016 in Hangzhou City, Zhejiang Province. The government will impose stricter environmental regulations to make the air quality meet standards during the conference. Vitamin producers in surrounding areas, like Zhejiang NHU, Zhejiang Medicine and Yifan Xinfu, are required to suspend production for more than 10 days. This may push up the market prices of many vitamins such as VA, VB1, VB5 and VD3 in the short run.
This month, a number of listed vitamin enterprises released their H1 financial pre-announcements.
Guangji Pharmaceutical predicted a financial turnaround thanks to rises in sales prices of its leading products, VB2 and VB6. In the past few years, the company has suffered fluctuating performances, as a result of its lack of diversity in product structure.
Northeast Pharmaceutical reported to turn losses into profits in its corrected H1 financial pre-announcement, due to the rises in sales prices of some APIs and sales volumes of some pharmaceutical preparations. However, the low price of its leading product, VC, may continue put it under heavy business pressure.
Garden Biochemical predicted its net profit to realize large growth, as its lanoline integrated use project has been put into production and the corresponding sales have started.
High production concentration and tight supply boost the market prices of vitamins, like VA, VB1, VB2, VB5 and VE. On the contrary, those of VB3 and VC keep low, affected by the excess production capacity and oversupply. Given the stricter domestic environmental policies than before and serious homogenization in APIs, Chinese vitamin producers are confronted with great challenges at present.The G20 Summit is to be held on 4 Sept., 2016 in Hangzhou City, Zhejiang Province, for which vitamin producers in surrounding areas are required to suspend production for at least half a month. This is likely to tighten China's supply of vitamins and push up corresponding market prices in the short run.
The Regulations on Registration and Filing of Health Food came into effect on 1 July, 2016, potentially saving time and expense for enterprises applying for Health Food Approval Certificates. However, these regulations may also intensify product homogenization and competition in the health food market.
In H1 2016, China's overall VE market was in an upturn with its price rising continuously, mainly thanks to less output and higher quotations from producers.An increasing number of Chinese companies are looking for opportunities to acquire foreign healthcare enterprises, mainly due to the rapid growth of the domestic healthcare product market and Chinese consumers' preference for overseas brands. The rise of demand among young consumers and changes in consumption habits may help boost demand for healthcare products.Guangji Pharmaceutical forecasts to turn losses into gains in H1 2016, thanks to the increasing prices of its leading products, VB2 and VB6. In the past few years, the company has suffered fluctuating performances, as a result of its lack of diversity in product structure.
Thanks to the rises in sales prices of some APIs and sales volumes of some pharmaceutical preparations, Northeast Pharmaceutical predicts to gain profits in H1 2016. However, it will continue under heavy pressure due to low price of its leading product, VC.
Given the high VB12 market price, Hebei Yuxing, the leading global VB12 producer, plans to expand its production capacity to further consolidate its leading position in the VB12 market.
From Jan. to May 2016, China's exports of VA ran stably with upward export price, mainly affected by the continuously high domestic market price.
H1 2016 witnessed a downward trend in the Chinese nicotinamide market, mainly attributed to overcapacity, low prices of raw materials and slack demand. This is not likely to change in the short run.In H1 2016, China's market price of VB1 continued being high, mainly due to the improving production concentration and environmental restraints on production. Additionally, from Jan. to May, the export price of VB1 showed an obvious upward trend.Download the full report: https://www.reportbuyer.com/product/4037700/
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