--- title: "Brother Technology earned over 60 million yuan in half a year: How long can the profit period last when the 'rising trend' of vitamins is gone?" type: "Topics" locale: "en" url: "https://longbridge.com/en/topics/31666388.md" description: "Brothers Technology, which 'made a fortune' last year due to the vitamin price surge, remained strong in the first half of this year. According to the company's latest earnings forecast, in the first half of 2025, it is expected to achieve a net profit of 60-75 million yuan, a year-on-year increase of 325%-431.25%; the net profit after deducting non-recurring gains and losses is 57-72 million yuan, with a year-on-year increase as high as 413.66%-548.83%. Based on recent performance trends, Brothers Technology has truly entered a profit cycle. The financial report shows that in 2024..." datetime: "2025-07-10T12:56:19.000Z" locales: - [en](https://longbridge.com/en/topics/31666388.md) - [zh-CN](https://longbridge.com/zh-CN/topics/31666388.md) - [zh-HK](https://longbridge.com/zh-HK/topics/31666388.md) author: "[医药研究社](https://longbridge.com/en/profiles/15545088.md)" --- # Brother Technology earned over 60 million yuan in half a year: How long can the profit period last when the 'rising trend' of vitamins is gone? Last year, Brother Technology, which "made a fortune" due to the price increase of vitamins, remained strong in the first half of this year. According to the company's latest performance forecast, in the first half of 2025, it is expected to achieve a net profit of 60-75 million yuan, a year-on-year increase of 325%-431.25%; after deducting non-recurring gains and losses, the net profit is 57-72 million yuan, with a year-on-year increase of 413.66%-548.83%. Judging from the performance in recent rounds, Brother Technology seems to have truly entered a profit cycle. The financial report shows that in 2024, the company achieved an operating income of 3.441 billion yuan, a year-on-year increase of 21.99%, and a net profit attributable to the parent company of 40.8137 million yuan, a year-on-year increase of 123.26%. In the first quarter of 2025, the company's operating income was 919 million yuan, a year-on-year increase of 12.1%; the net profit attributable to the parent company was 20.9081 million yuan, a year-on-year increase of 182.95%, turning losses into profits compared to the same period. Behind this, the vitamin price increase dividend has lasted for a long time. However, the market is ever-changing, and a new cycle is brewing, so Brother Technology needs to prepare in advance. **Performance closely follows market changes** As the world's largest vitamin producer, China's industry maturity is relatively high. According to Boya Hexun, in 2024, China's vitamin production is expected to be 420,000 tons, accounting for 85.9% of global production; the vitamin market value is about 3.79 billion US dollars, a year-on-year increase of 1.4%; vitamin exports are 332,000 tons, a year-on-year increase of 5.6%, with export value reaching 3 billion US dollars, a year-on-year increase of 11.1%. Although the industry is still in an expansion state overall, market prosperity always has periodic fluctuations. Companies like Brother Technology, which focus strongly on their business, have become a window for the public to observe changes in the vitamin market. It is understood that the company has been established for more than 30 years, focusing on the fields of pharmaceuticals, food, and specialty chemicals, with its pharmaceutical and food business, including vitamin categories, contributing about 60% of its income annually. Since the first vitamin product "Vitamin K3" was launched in 2000, Brother Technology has established an industrial platform for four major vitamin products: Vitamin K3, Vitamin B1, Vitamin B3, and Vitamin B5, with certain technical and brand advantages. Although Brother Technology is an established company in the vitamin industry, its development is not considered stable. According to the 2023 annual report, Brother Technology achieved an operating income of about 2.821 billion yuan, a year-on-year decrease of 17.30%; the net profit was -175 million yuan, a decrease of 157.43% compared to the previous year. However, as mentioned earlier, in 2024, Brother Technology began to "turn the tide". Behind the performance shift from decline to rise, the vitamin industry gradually opened up a recovery channel, which can be seen from the price trend. According to Tonghuashun iFinD, the average price of Vitamin A in 2023 was 84.48 yuan/kg, a year-on-year decrease of 48.44%, and the average price of Vitamin E was 70.53 yuan/kg, a year-on-year decrease of 17.76%. With the dual improvement of supply and demand, the vitamin industry achieved a significant rebound in 2024. According to statistics from Business Society, from the beginning to the end of 2024, the price of Vitamin A rose from 75 yuan/kg to about 89 yuan/kg; Vitamin C rose from 19 yuan/kg to 27 yuan/kg; Vitamin E rose from 64 yuan/kg to 80 yuan/kg. In this regard, Zhongtai Securities also released a research report, pointing out that "in 2024, the vitamin sector led the price increase wave after nearly two years of price bottoming. Driven by the low base in 2023 and the price increase, the vitamin sector's operating income increased by 22.5% year-on-year, and the net profit attributable to the parent company increased by 162.6% year-on-year; in the first quarter of 2025, the vitamin sector's revenue and net profit attributable to the parent company continued the high growth trend, with revenue increasing by 10.8% year-on-year and net profit attributable to the parent company increasing by 110.3% year-on-year." Brother Technology is clearly one of the beneficiaries of the favorable market conditions, and it also admitted in its financial report: "The year-on-year growth in performance is mainly due to the year-on-year increase in the prices of some vitamin products and the decrease in the costs of some products, leading to an overall increase in gross profit margin during the reporting period." However, with the warming of the track comes the market's cold thinking: as a typical cyclical industry, how long can this round of vitamin price increases last? When will the next cycle begin? **When the "price increase" of vitamins is no longer** Although the vitamin price increase cannot be said to be "short-lived," it will eventually end. The signals are becoming increasingly apparent. According to Baichuan Yingfu, as of June 8, 2025, the average market price of Vitamin A was 63 yuan/kg, down 47.50% from the beginning of this year and down 23.17% from the same period last year; the average market price of Vitamin E was 88 yuan/kg, down 33.83% from the beginning of this year and up 27.54% from the same period last year. Structural changes on both the supply and demand sides are still ongoing. According to Southwest Securities, the elasticity of vitamin prices mainly comes from the supply side, and the reasons for price increases are basically related to production stoppages and supply constraints. Now that vitamin prices are falling, it also reflects to some extent that industry supply is strengthening, but overall demand has not seen a significant increase. In this situation, it may be difficult for companies like Brother Technology to maintain a high growth state. At the same time, market competition remains fierce. Vitamins are a highly saturated industry with high concentration. From a global perspective, the vitamin industry has basically formed a three-pole production competition pattern with China as the production center, alongside Germany's BASF and the Netherlands' DSM. Specifically in the domestic market, in the vitamin B segment, representative companies include Tianxin Pharmaceutical, NHU, New Hope Pharmaceutical, Huazhong Pharmaceutical, and Brother Technology, among which the absolute leaders have pricing power and bargaining power. Under the dual influence of the fading price increase dividend and continued industry competition, Brother Technology has shown signs of slowing down. Based on Brother Technology's performance forecast for the first half of this year and actual operating data for the first quarter, it is expected that its net profit attributable to the parent company in the second quarter will be 39.0919-54.0919 million yuan, with a year-on-year growth rate expected to be 0%-37.56%. However, the "focused yet diversified" business layout may help Brother Technology mitigate certain development risks. As mentioned earlier, Brother Technology operates in both the pharmaceutical and chemical lines, with its pharmaceutical and food business mainly dealing with vitamins, flavors and fragrances, pharmaceuticals, and other related products, while specialty chemicals mainly include leather chemicals, chromium salts, etc. In addition, the company has four production bases in Haining, Zhejiang; Yancheng, Jiangsu; Jiujiang, Jiangxi; and South Africa. This layout is actually conducive to alleviating the risk of dependence on a single market, and there is the possibility of opening up new tracks under the synergy of technology. Previously, Brother Technology disclosed that its strategic positioning is to be a professional health product service provider, and in the future, it will focus on the main fields of animal nutrition and human health based on future market demand. The company has already taken steps to extend its business. According to the "Shenzhen Stock Exchange Interactive Easy" information in May 2024, Brother Technology Research Institute is conducting research projects involving enzyme synthesis, enzyme catalysis, biological fermentation, and other related technology research and development. Related synthetic biology is likely to become a key area for Brother Technology's subsequent layout. This track has promising prospects. The "China Synthetic Biology Industry White Paper 2024" shows that the global synthetic biology industry scale has grown from 5.3 billion US dollars in 2018 to over 17 billion US dollars in 2023, with an average annual growth rate of 27%; it is expected that the synthetic biology market size will reach nearly 50 billion US dollars by 2028. Academician Yuan Yingjin of the Chinese Academy of Sciences stated that China has positioned synthetic biology as a future industry, and in recent years, some specific applications of synthetic biology technology have been realized. From the frontier of technology, Brother Technology may find an upward momentum. **Conclusion** Brother Technology has proven its ability to seize opportunities with its performance growth, but the hidden signals of slowing growth in the financial report also remind us that the "easy money cycle" may be ending. As observers, we are pleased to see companies enjoy the dividends of industry recovery, and we look forward to seeing companies demonstrate their true ability to navigate cycles. At present, the key to navigating cycles is always written in the company's innovation genes. In this era of accelerated technological iteration, yesterday's cash cow may become a "lean dog" tomorrow, and companies can only avoid the impact of cycles and achieve greater value return by continuously forging a technological moat. Source: Pharmaceutical Research Society ### Related Stocks - [002562.CN](https://longbridge.com/en/quote/002562.CN.md)