Zhejiang Garden Bio-chemical High-tech Co., Ltd.: history, ownership, mission, how it works & makes money

A Brief History of Zhejiang Garden Bio-chemical High-tech Co., Ltd.

Zhejiang Garden Bio-chemical High-tech Co., Ltd., established in 1997, specializes in the production of bio-chemical products, including amino acids and their derivatives. The company is headquartered in Hangzhou, Zhejiang Province, China. Its primary focus has been on the research, development, and manufacturing of natural plant extracts, amino acids, and organic acids.

Since its inception, the company has grown significantly, expanding its production capabilities and product lines. As of the end of 2022, Zhejiang Garden Bio-chemical reported total revenue of approximately RMB 2.56 billion (roughly USD 380 million), showcasing a year-on-year growth of 20%.

In 2021, the company achieved a net profit of RMB 300 million (around USD 45 million), compared to RMB 250 million in 2020. This growth can be attributed to increased demand for its amino acid products, which have found applications in various sectors including animal nutrition, pharmaceuticals, and cosmetics.

Zhejiang Garden Bio-chemical holds a leading position in the amino acid market within China, with a market share of approximately 15%. The company's key products include L-lysine, DL-methionine, and L-threonine, which are essential for animal feed and aquaculture.

In terms of production capacity, the company operates several state-of-the-art facilities. As of 2023, Zhejiang Garden Bio-chemical's total production capacity for L-lysine reached 300,000 tons per year, making it one of the largest producers globally. The company has invested heavily in environmental conservation and sustainable practices, investing over RMB 100 million in green technology initiatives since 2020.

Zhejiang Garden Bio-chemical is publicly traded on the Shenzhen Stock Exchange under the ticker symbol 002220. The company's stock price saw an increase of approximately 30% in 2022, reflecting strong investor confidence bolstered by robust financial performance and successful product launches.

R&D remains a cornerstone of the company's strategy, with an annual budget of around RMB 50 million allocated for innovation and new product development. The company has secured numerous patents, enhancing its competitive edge in the industry.

As of mid-2023, the company has expanded its export markets, reaching countries in North America, Europe, and Southeast Asia, contributing to over 40% of total sales. This international presence has also helped the company mitigate risks associated with domestic market fluctuations.

A Who Owns Zhejiang Garden Bio-chemical High-tech Co., Ltd.

Zhejiang Garden Bio-chemical High-tech Co., Ltd. (stock code: 300401) is a publicly traded company based in China, listed on the Shenzhen Stock Exchange. The ownership structure of the company is significant for understanding its governance and financial strategies.

As of the latest reports from October 2023, the major shareholders of Zhejiang Garden Bio-chemical High-tech Co., Ltd. are as follows:

The company’s strategic direction is influenced predominantly by its largest shareholder, Jiangsu Garden Group Co., Ltd., which holds a substantial stake of 29.44%. This level of ownership provides significant voting power within the company, affecting decisions related to corporate governance, operational strategies, and financial policies.

In terms of financial performance, Zhejiang Garden reported a revenue of approximately 1.55 billion CNY in its latest earnings report for the fiscal year ending June 2023, with a net profit margin of 12%. This performance can be attributed to its leading position in the bio-chemical sector, focusing on products such as amino acid derivatives, which have seen increased demand.

The company has also made significant investments in research and development, allocating around 100 million CNY for innovative projects aimed at expanding its product lines and enhancing its production capabilities. This commitment to R&D is crucial as it positions the company to capture more market share amid growing competition.

Furthermore, the broader market environment in which Zhejiang Garden operates reflects a growing interest in bio-chemical products, driven by increasing applications in agriculture and food sectors. The market for amino acids is projected to grow at a CAGR of 6.3% from 2023 to 2028, indicating a favorable outlook for Zhejiang Garden’s future revenues.

Overall, understanding the ownership structure and financial metrics of Zhejiang Garden Bio-chemical High-tech Co., Ltd. sheds light on its operational capabilities and strategic focus within the bio-chemical industry. The influence of major shareholders plays a vital role in shaping the company's future direction and responding to market dynamics.

Zhejiang Garden Bio-chemical High-tech Co., Ltd. Mission Statement

Zhejiang Garden Bio-chemical High-tech Co., Ltd. is a leading player in the biochemical industry, focusing its efforts on sustainable development and innovation. Its mission statement emphasizes commitment to the production of high-quality chemical products while prioritizing environmental protection and social responsibility. The company aims to provide value to customers through advanced technology and a dedicated approach to bioproducts.

The mission statement underlines the importance of innovative processes and sustainable practices, reflecting the company's strategy to leverage science and technology in creating bio-products that are not only efficient but also environmentally friendly. As part of their commitment, Zhejiang Garden has implemented initiatives to reduce waste and carbon emissions in their production processes.

Furthermore, the company has positioned itself for global expansion, actively pursuing markets in North America and Europe. In 2023, it secured partnerships in the European Union aimed at extending its product offerings, which is expected to contribute an additional 15% to revenue over the next two years.

Financially, the company has shown a steady growth trajectory, with a compound annual growth rate (CAGR) of 8% from 2020 to 2022. This growth is attributed to strong demand for eco-friendly chemical products and the company's robust pipeline of new technologies.

Moreover, Zhejiang Garden has demonstrated consistent profitability, with its return on equity (ROE) standing at 8% in 2022. This is indicative of effective management and resource utilization, further aligning with their mission of delivering shareholder value.

How Zhejiang Garden Bio-chemical High-tech Co., Ltd. Works

Zhejiang Garden Bio-chemical High-tech Co., Ltd. is a leading player in the biochemistry sector, specializing in the production of amino acids and other fine chemicals. The company’s operations are primarily focused on the R&D, production, and distribution of biological products that cater to various industries, including food, pharmaceuticals, and agriculture.

The company’s financial performance has demonstrated significant growth in recent years. For the fiscal year ending December 31, 2022, Zhejiang Garden reported a revenue of approximately ¥4.5 billion, reflecting an increase of 11.5% compared to the previous year. Their net profit for the same period was around ¥730 million, up from ¥650 million in 2021, showcasing a net profit margin of 16.2%.

The company utilizes advanced fermentation technology to produce high-quality amino acids. Their key products include L-glutamic acid, L-lysine, and L-tryptophan, which are essential in many industrial applications. Specifically, their L-lysine production capacity was reported to be 150,000 tons per year, making them one of the largest producers in Asia.

Zhejiang Garden emphasizes sustainability in its processes. They have invested in eco-friendly production techniques to minimize environmental impact. The company aims to achieve a reduction of 20% in carbon emissions by 2025. In 2022, their energy consumption per ton of product decreased to 1.5 MWh, down from 1.7 MWh in 2021.

The company’s commitment to innovation is evident in its annual R&D investment, which accounted for approximately 5% of total revenue in 2022, amounting to ¥225 million. This investment has resulted in the launch of new products, including bio-based fertilizers and nutraceuticals that cater to an increasingly health-conscious market.

International sales continue to be a significant portion of their revenue. In 2022, Zhejiang Garden reported that approximately 35% of their sales came from overseas markets, particularly in Europe and North America, where demand for biochemicals has been on the rise.

The firm operates several production facilities across China, with the major plant located in the Zhejiang province. This facility is equipped with state-of-the-art technology for fermentation and purification, contributing to a high production yield and efficiency. Their total asset value as of 2022 was approximately ¥5.8 billion, reflecting a solid balance sheet with a current ratio of 1.8, indicating good short-term financial health.

Overall, Zhejiang Garden Bio-chemical High-tech Co., Ltd. stands out due to its robust production capabilities, focus on innovation, and commitment to sustainability, positioning itself as a key player in the global biochemistry market.

How Zhejiang Garden Bio-chemical High-tech Co., Ltd. Makes Money

Zhejiang Garden Bio-chemical High-tech Co., Ltd. is a key player in China's biochemical industry, primarily focused on the production of amino acids and related products. The company generates revenue through several primary segments, including the production of feed-grade amino acids, food additives, and pharmaceutical intermediates.

Revenue Breakdown

During the fiscal year 2022, Zhejiang Garden reported a total revenue of approximately RMB 4.5 billion. The revenue sources can be delineated into the following segments:

• Feed-grade amino acids: RMB 3 billion
• Food additives: RMB 1 billion
• Pharmaceutical intermediates: RMB 500 million

Market Position and Growth

Zhejiang Garden holds a significant market share in the amino acid sector, producing over 200,000 tons of amino acids annually. The company has secured contracts with several major agricultural companies, bolstering its position in the feed industry.

The global amino acids market was valued at approximately USD 24.1 billion in 2021 and is projected to reach USD 34.4 billion by 2028, growing at a CAGR of approximately 5.4% during the period. Zhejiang Garden's strategic initiatives in expanding its production capacity and enhancing product quality have positioned it to capitalize on this growth.

Financial Performance Metrics

The financial performance indicators for Zhejiang Garden in the last fiscal year reflect its profitable operations and growth trajectory. Key financial metrics include:

Cost Structure

Zhejiang Garden's cost structure is influenced by the raw materials required for producing amino acids, energy costs, and labor. The main components of the cost structure include:

• Raw materials: 60% of total costs
• Energy: 20% of total costs
• Labor: 15% of total costs
• Other expenses: 5% of total costs

Market Expansion and Innovation

The company invests significantly in research and development, with a budget of around RMB 150 million annually, aimed at enhancing production efficiency and developing new products. Recent innovations include the introduction of more sustainable production methods and expanding their product lines to include high-demand health supplements.

International Sales

Zhejiang Garden has expanded its international footprint, with exports accounting for approximately 25% of total revenue. Key international markets include:

• North America: RMB 600 million
• Europe: RMB 400 million
• Asia-Pacific: RMB 300 million

Partnerships with foreign distributors and participation in international trade fairs have further strengthened its global presence.

Future Outlook

Looking ahead, Zhejiang Garden aims to increase its production capacity by 30% over the next three years and enhance its product range. The company is also focusing on sustainable practices to meet global environmental standards, which is becoming increasingly important in the global market.