DaBomb (6578) shareholders approved a cash dividend of NT$0.66 per share. The proportion of high value-added products is increasing and the gross profit margin is rising quarter by quarter (share price on June 28 was NT$18.5).

DaBomb (6578), a probiotic biotechnology company, held its 2023 Annual General Meeting today. The meeting approved the 2022 annual report, financial statements, and loss compensation plan, and passed a resolution to distribute cash from capital reserves at HK$0.66 per share. The meeting also completed the re-election of all directors and independent directors. Immediately after the shareholders' meeting, a board meeting was held to elect a new chairman. Liu Yufen was unanimously elected to continue as chairman by all attending directors, including the largest shareholder, Guohuan Enterprise Group.

DaBomb utilizes microbial integration engineering as its core technology, developing products that prioritize antibiotic-free farming, food safety, and sustainable health. In addition to continuously optimizing the production process of its main product, hydrolyzed soybean peptide protein, DaBomb has recently launched high-value-added products such as probiotics and enzymes. Facing the impact of the COVID-19 pandemic and the Russia-Ukraine war on the livestock industry, DaBombIn 2022, revenue reached 434 million yuan, a slight decrease of 7.86% compared to the previous year. Although the company still incurred a net loss of 44.66 million yuan after tax, this represented a 28.48% reduction in losses compared to the previous year..

It is worth mentioning that the companyAdjusting the order structure led to an increase in shipments of high value-added products.After its gross profit margin turned positive to 0.64% in the first quarter of 2022, the gross profit margin has been rising quarter by quarter, reaching 8.35% in the fourth quarter. Revenue in the first quarter of this year was NT$99.32 million, which, although lower than the same period last year, saw a nearly five-fold increase in gross profit to NT$4.4 million, with a gross profit margin of 4.43%, an increase of 3.79 percentage points compared to the same period last year. The company's strategy of optimizing its product portfolio is gradually taking effect.

At the shareholders' meeting, Chairwoman Liu Yufen thanked shareholders for their support and stated that the company possesses strong R&D capabilities, globally leading lactic acid bacteria fermentation technology, and has passed the highest EU standards of HACCP, ISO22000, and FAMI-QS triple certification. Its products are sold worldwide, including in China, Japan, South Korea, the Philippines, Thailand, Vietnam, and Malaysia.Asian countries are collaborating with large local distributors and agents to sell products such as peptides and enzymes. Earlier this month, the Tainan Science Park factory was inspected by a major US-based global marketing and animal health and nutrition strategy company.Shipments of high-margin enzyme products are expected to continue to grow. Liu Yufen stated that this client is dedicated to developing and selling animal health products with high market demand, such as enzymes and amino acids, covering poultry, pigs, cattle, and aquatic products. She anticipates further collaboration between DaBomb and this client in the future.

One of DaBomb 's original shareholdersGuohuan Enterprise GroupParticipating in DaBomb for the first time this yearPrivate EquityCommon stock, becomingDaBomb largest single shareholder, Kuo-Huan Enterprises Group, is Taiwan's largest animal product distributor.With a complete distribution network in Taiwan, the strategic alliance with DaBomb will help increase DaBomb domestic sales and penetration rate. DaBomb is developing a poultry product line, and leveraging the distribution channels of the Kuo-Huan Enterprise Group will accelerate its expansion in the domestic market.

Due to the expiration of the board's term, the shareholders' meeting today also completed a comprehensive re-election of the board. Seven directors were elected (including four independent directors), including representatives of Jiaying Investment Co., Ltd.: Liu Yufen, Guohuan Enterprise Co., Ltd., and Guojing Enterprise Co., Ltd., as well as independent directors Huang Huawai, Zhang Yongfu, Zhang Zhi, and Xu Libing. Their terms of office are three years, from the date of their election at this shareholders' meeting until June 27, 2026. Immediately after the shareholders' meeting, a board meeting was held to elect a chairman. All attending directors unanimously elected Liu Yufen to continue as chairman.

The above content is excerpted from Genet's Viewpoint, published on June 25, 2023, by author Chen Manlin.
http://www.genetinfo.com/investment/featured/item/71506.html