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The influence on the vitamin market after exposion of Kingdomway

Time: 2024-01-16 18:53:31

Author: Hubei Shiluo Technology Co., Ltd

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On the evening of January 11, Kingdomway (002626.SZ) announced that at about 9 a.m. that day, a flash explosion occurred in the sewage treatment tank space of Xiamen Jindawei Vitamin Co., Ltd., its wholly-owned subsidiary, and the accident killed 3 construction workers on site. One person died and three were injured and sent to hospital for treatment.

Nearly 30 hours after the incident, Xiamen Kingdomway Vitamin Co., Ltd. (hereinafter referred to as "KingdomwayVitamins"), a wholly-owned subsidiary of Kingdomway (002626.SZ) located at No. 37 Longmen Lane, Haicang District, Xiamen City, has Become the center of discussion among local residents.

On the evening of January 11, Jindawe issued an announcement stating that at about 9 a.m. on January 11, a flash explosion occurred in the Jindawe vitamin sewage treatment tank space. After preliminary investigation, it was found that during the construction and installation of the awning above the sewage treatment tank by Jindawei Vitamins, a flash explosion of flammable gas occurred in the space inside the pool, causing the sewage treatment tank and the awning above to collapse. The accident resulted in the death of three construction workers at the site, and three others were injured and sent to hospital for treatment.

At about 2 pm on January 12, Times Finance came to Kingdomway Vitamins. The company's door was closed and few people came in or out. Several employees of Jindawei Vitamins told Times Finance that the safety accident occurred during the welding process, and the casualties were outsourced workers.


After the accident, the originally "low-key" Kingdomway was instantly linked to the "flash explosion accident". Jindawei Vitamins, where the accident occurred, is a wholly-owned subsidiary of Jindawei and was recognized as a high-tech enterprise in 2016. According to the official website and annual report, Jindawei Vitamins is mainly engaged in the fully synthetic production and sales of vitamin A and vitamin D3 series products, and vitamin A is one of the six largest manufacturers in the world.

At present, Jindawei has ordered Jindawei Vitamins to suspend production for rectification. The production and operation of other production bases and business segments are normal. According to its preliminary prediction, the accident will not have a major impact on Jindawei's production and operations.

Several employees of Jindawei Vitamins in different positions confirmed to Times Finance that the factory is still in operation. Times Finance noticed that the display screen next to the entrance of Jindawei Vitamins showed, "Enterprise status - (8) sets of production equipment, of which (8) are in operation, (0) are out of production, and (0) are under maintenance."

In response to this, the above-mentioned relevant person from the Jindawe Securities Department responded to Times Finance, "Because the company is a chemical company, if it stops production, it is impossible to say that it will stop immediately, and it will need to stop production one after another."

"Generally, after an accident, work and production are required to be stopped immediately. However, there may be no way to stop some processes. It depends on the specific process of the company. Some cannot be stopped immediately and can only be stopped gradually or partially." On January 12, emergency management of a certain place Bureau staff told Times Finance.

Zhejiang Online Ecological Environmental Protection News Network once mentioned that organic matter in the sewage treatment tank will release explosive gases such as methane (biogas) during the anaerobic process. Since the biochemical tank was not tightly sealed in many places during the construction process, especially around the manhole covers and inspection wells, A certain amount of biogas will escape from the small holes in the manhole cover, and some of it will escape along the water inlet and outlet pipes and from the inspection well in the middle of the pipe. Under certain conditions, this part of the escaped biogas will quickly explode when encountering sparks. It burns and ignites the biogas in the pool, causing an explosion.

According to Jindawei Vitamin employees and construction workers at construction sites near the company, the accident occurred during welding operations. As of press time, this statement has not been confirmed by Jindawei Vitamins.


02 Vitamins are not easy to sell

Jindawei was founded in 1997 and is mainly engaged in the production and sales of nutritional and health food raw materials, pharmaceutical raw materials and nutritional and health food terminal products. It was listed on the Shenzhen Stock Exchange in 2011. The company is currently the world's largest coenzyme Q10 supplier and an important VA supplier.

Jindawei said that the market demand for vitamins mainly comes from downstream industries such as animal breeding, food and beverages, medicine and cosmetics.

Among them, animal breeding is the most important, accounting for 65%; medicines and cosmetics rank second, accounting for 25%; food and beverages rank third, accounting for 10%.

Financial report data shows that since 2016, Jindawei Vitamins has achieved positive profits. In 2018, its revenue reached 975 million yuan, accounting for approximately 33.95% of Jindawei’s revenue that year, and its net profit reached 638 million yuan. However, by 2023, Jindawei Vitamins will turn from profit to loss. In the first three quarters of 2023, it will achieve a total revenue of approximately 169 million yuan, accounting for only 7.27% of Jindawei’s consolidated revenue, and its net profit will be a loss of 68 million yuan. Yuan.

In response to the decline in Jindawei vitamin performance, Jindawei explained in its 2023 semi-annual report, “Affected by the continued downturn in the breeding industry, the vitamin A market continues to be weak, and the inventory of manufacturers and market terminals is relatively high. The vitamin A market The situation remains bleak.”

The decline in vitamin business can also be seen from the production and sales data disclosed by Jindawei.

Financial report data shows that in the first half of 2023, the production volume of vitamin A was approximately 183.03KG, a year-on-year increase of 35.71%, but the sales volume was only 121.48KG, a year-on-year decrease of 25.21%. With production exceeding sales, Jindawei's vitamin A inventory soared from 37.61KG in the first half of 2022 to 102.93KG in the first half of 2023, a year-on-year increase of 173.69%.

According to annual report records, Jindawei has expanded its production capacity of vitamin series products in 2021. In 2020, the company's vitamin A series production capacity was 2,700 tons, and as of the first half of 2023, the actual production capacity of the vitamin A series was 4,000 tons, and the vitamin D3 series was 1,600 tons.

At present, for Jindawei Vitamins, in addition to eliminating the impact of this safety incident, the company also needs to solve how to digest excess production capacity and turn losses into profits.

How to find new performance growth points has become a difficult problem facing Jindawei. Financial report data shows that in the first three quarters of 2023, Jindawei achieved a total revenue of approximately 2.321 billion yuan, a year-on-year increase of 0.69%; the net profit attributable to the parent continued the downward trend of the previous two years, recording approximately 243 million yuan, a year-on-year decrease of 30.17% %.

In December 2023, Jindawei also announced the issuance of convertible corporate bonds to unspecified objects to raise funds, hoping to raise 1.824 billion yuan (including the original amount) for the coenzyme Q10 reconstruction and expansion project and an annual production of 10,000 tons of pantothenic acid. Calcium construction project, annual production of 30,000 tons of allulose, annual production of 5,000 tons of myo-inositol construction project, information system construction project and supplementary working capital.

After this safety incident, it remains to be seen whether the above-mentioned fundraising plan can be realized as expected.


The influence on the vitamin market after exposion of Kingdomway
On the evening of January 11, Kingdomway (002626.SZ) announced that at about 9 a.m. that day, a flash explosion occurred in the sewage treatment tank space of Xiamen Jindawei Vitamin Co., Ltd., its wholly-owned subsidiary, and the accident killed 3 construction workers on site. One person died and three were injured and sent to hospital for treatment.
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