"Stop production and overhaul" of Dongyao and Huayao with continuous overcapacity in VC industry

"Although the vitamin C industry has not yet closed down, it has been shut down for maintenance." Cao Gang, director of Western Medicine Department of China Chamber of Commerce for import and export of medical and health products, told reporters It is understood that the companies that have stopped production include two vitamin giants, Northeast Pharmaceutical and North China Pharmaceutical Northeast Pharmaceutical and North China pharmaceutical personnel confirmed the news to reporters However, Northeast Pharmaceutical's sales manager said that the shutdown is a normal overhaul At this time of year, major manufacturers carry out the overhaul to avoid any impact on product quality Vitamin C market weak short-term difficult solution business Vitamin Industry Analyst yuejiayin told reporters that vitamin C market is still relatively weak, the market is difficult to improve in the short term Before that, although the market sales of the breeding industry had slightly improved, the price was difficult to change the declining trend due to the large inventory According to reports, at present, the factory price of feed grade vitamin C is about 20 yuan per kilogram, while the price of food grade vitamin C is only 23 yuan per kilogram, which is lower than the cost line of many enterprises "Several big manufacturers are all encumbered by vitamin C when it comes to vitamin C, all the manufacturers have a headache Now the enterprises are not willing to offer." Yue said The reporter learned that although the vitamin C industry has not yet seen a large-scale enterprise closure, there are shutdown and overhaul situations, including Northeast Pharmaceutical and North China Pharmaceutical among the five major vitamin giants Northeast Pharmaceutical's sales manager told reporters that the company has indeed stopped production, but the shutdown belongs to normal maintenance At this time of year, major manufacturers carry out maintenance to avoid any impact on product quality Huabei pharmaceutical also took the same position, saying that the maintenance time generally does not exceed two months But the shutdown was not announced Huabei pharmaceutical securities office explained that the shutdown belongs to normal maintenance, and the company has prepared enough inventory, which will not affect normal sales, without announcement Yuejiayin said that unlike other vitamin products such as vitamin A, the price of vitamin C may rise slightly when the enterprise stops production, but even if the production of vitamin C stops, it is difficult to guarantee the price recovery, because there is too much overcapacity of vitamin C In the 1980s, vitamin production was mainly monopolized by international pharmaceutical giants, but in the 1990s, its monopoly position was gradually replaced by domestic enterprises Northeast Pharmaceutical, North China pharmaceutical, Jiangshan pharmaceutical and Shiyao group occupy 80% market share of international vitamin C market, and the price of vitamin has soared to 140 yuan per kilogram High prices stimulate capital entry, and a large number of small and medium-sized enterprises have been on the marvel C project, which directly leads to excess capacity of vitamin C According to the vitamin C industry survey released by the national development and Reform Commission and the Ministry of industry and information technology, due to the illegal approval and construction of new vitamin C capacity projects in some places, the capacity of China's vitamin C industry nearly doubled the global demand As the price of vitamin C goes down, the profits of listed companies also fall sharply In the middle and late July, Northeast Pharmaceutical released a performance forecast that said it would still have a loss of 25 million to 45 million yuan in the first half of this year According to Cao Gang, the financing plan of all VC giants, in order to recover the market of vitamin C, it is necessary for the industry to reshuffle and some production enterprises to shut down so as to reduce the production capacity, which will take about two to three years In this period of time, who can carry the past depends on who can realize the upstream and downstream extension of products and provide more added value How to overcome the difficulties has become a problem that vitamin C enterprises must face Xu Jianwen, a representative of North China Pharmaceutical securities affairs, told reporters that adjusting the structure and increasing the preparation business have always been the direction of North China Pharmaceutical At present, the proportion of preparation business has reached 40% Cephalosporin products have built a complete industrial chain from raw materials to preparations In the R & D aspect, auxiliary biological albumin and anti-tumor drugs are also the focus of the company It is obvious that structural adjustment is not a one-day success In October last year, Huadong pharmaceutical raised nearly 3 billion yuan from Jizhong energy, a major shareholder, to repay bank and financial company loans and replenish working capital Recently, it announced again that it planned to raise 1.1 billion yuan from Jizhong energy, a major shareholder, at a price of 453 yuan per share, of which 750 million yuan was used to repay loans and the rest was used to replenish working capital Northeast Pharmaceutical refinancing may not be so lucky According to the public information, Northeast Pharmaceutical proposed financing plans in 2010 and 2011 respectively, but withdrew them successively In April this year, Northeast Pharmaceutical launched its third refinancing plan to issue shares to ten specific investors, including the controlling shareholder, Dongyao group, with an initial price of 7.3 yuan per share After the issuance of the additional plan, Northeast Pharmaceutical shares fell and stopped on the same day, and then the price was adjusted to 6.72 yuan At present, the closing price of Northeast Pharmaceutical is 6 yuan before the suspension.