DaBomb 's interim meeting approved a name change and increased capital expenditure to expand its CDMO business.

DaBomb (6578) held an extraordinary shareholders' meeting on the 27th and passed a resolution to change the company name to " DaBomb Protein Biotech Corp. " and the English name to "DABOMB PROTEIN BIOTECH CORPORATION". In addition, it will expand capital expenditure of its Taiwan plant, launch CDMO business, and pursue long-term stable profit growth based in Taiwan and looking to the world.

Chairwoman Liu Yu-fen stated that DaBomb Protein Biotech Corp. is expanding its capital expenditure at its Taiwan plant. The first phase of the expansion, which involves setting up a 20KL fermentation production line, has already been contracted out and is expected to be completed in Q2 of next year, increasing capacity by several dozen times. Another 20KL fermentation tank will be added in the second half of next year, further increasing capacity.

DaBomb primarily targets the export market, with Southeast Asia accounting for over 60% of its revenue. Facing market price competition, the company has launched high-value-added products and gradually increased the proportion of high-margin animal health products. Although its revenue in the first half of the year was lower than the same period last year, its gross profit of NT$15.64 million was a significant increase of 2.4 times. The gross profit margin for the quarter also rose rapidly from 4.43% in the first quarter to 11.54% in the second quarter. With continued optimization of the product mix in the second half of the year, the gross profit margin is expected to improve further. As shipments of animal health products climb again in the fourth quarter, a return to profitability for the quarter is anticipated.

Liu Yu-fen stated that DaBomb has launched animal health products DBT-100 HT and DBT-100 LS for aquaculture and livestock respectively. The animal health products have already begun shipping to a large global marketing international animal health and nutrition strategy company in the United States. Existing channels have also introduced the new products to key customers in Southeast Asia. After the customers' experimental evaluations are approved, and as more countries obtain feed additive import permits and registration certificates, the shipment volume is expected to jump month by month starting from the fourth quarter.

Liu Yufen stated that product development is geared towards strategic alliances and functional customization needs. CDMO has received orders from a large US global marketing international animal health and nutrition strategy company, a US-based feed additive developer focused on R&D, and a domestic enzyme R&D and design company. It will also collaborate with a Singapore-based startup that possesses novel antibacterial active peptide technology, which can meet the company's expanded production capacity over the next two years.

Following its strategy of establishing a foothold in Taiwan and expanding globally, DaBomb Protein Biotech Corp. plans to close its Zhangzhou plant after completing its phased objectives. All R&D efforts and capacity expansion will now focus on Taiwan. By fully developing its CDMO business, the company aims to expand its overseas markets from Asia to the world, achieving its goal of long-term and stable profit growth.

The above content is excerpted from a live report by Du Huirong, a reporter for the Commercial Times, on September 27, 2023.
https://www.ctee.com.tw/news/20230927701725-430504