Bo Hao Biological Cancellation Behind The Meeting: Performance Depends On Policy Support, Product Technology Is Not Competitive.

The main reason is that the company's performance depends on policy support, which is behind the lack of competitiveness of the company's products and technologies.

More than a month after the listing of Capsicum (300138, stock bar) as the main industry, Bo Hao, whose main business is lutein, is also trying to land on the gem, but this time it is not so lucky.

In November 23rd, the SFC announced that "in view of the need for further implementation of Qujing's bio Ho Polytron Technologies Inc, we decided to cancel the Seventy-eighth gem trial committee meeting to examine the issuance of the declaration documents."

Lack of competitiveness in product technology

"This is not the first time," said Mr. Yang of Mr. Bo Hao bio. According to it, the company has been preparing for listing in the past two years.

According to Seth spice Li Xuezhong, lutein industry chain is usually divided into lutein granules, lutein extract and lutein.

The main product of Bo Hao bio products is lutein extract.

In 2007, 2008, 2009 and 1-6 months in 2010, sales of lutein extract accounted for 66.42%, 87.54%, 98.55% and 98.35% of main business income respectively.

"Lutein extract is usually divided into feed and food products. The technical content of feed is relatively low, and the technical content of food is relatively high. On the price, the price of feed lutein extract is about 10-20 tons per ton, and the lutein extract for food is about 20-30 yuan."

Li Xuezhong said.

Bo Hao biological prospectus revealed that Bo Hao bio lutein extract is still mainly used for feed, and is vulnerable to fluctuations in the downstream feed industry.

There is no lutein extract available for food and high purity lutein crystals for health products, cosmetics and pharmaceuticals.

For reference, there is currently a lutein extract company in India, India AVT Natural Products Co., Ltd. (Stock Code: 519105), which mainly produces food grade, health care grade lutein extract, and is a global partner of Mumbai Jianming company.

In the technical chain, "Hao Hao bio" claims that its production of lutein extract has high content and less impurity, but has not given comparable industry parameters and advantages.

According to the prospectus, the more production of lutein effective content is, the lower the cost of lutein is at the same cost.

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But in Yunnan, the content of lutein in Marigold is higher than that in other producing areas.

In 2009, a total of 2000.05 tons of xanthophyll extract was sold by Bo Hao, with a sales income of 165 million 868 thousand and 800 yuan and a unit price of 82.93 yuan.

In 2009, 532.02 tons of lutein extract was produced, with a sales income of 44 million 524 thousand and 600 yuan and a unit price of 83.69 yuan.

The biology of Bo Hao is lower than that of morning light.

As early as 3 years ago, Chenguang biology is an important customer of bio bio lutein granules.

"The company would like to raise funds for the lutein deep processing through the listing to produce high quality lutein extract."

Mr. Yang said.

In the prospectus, Bo Hao biological construction of food for the lutein extract production base as one of its fundraising projects, in addition, will also be extended to chili red pigment and other related products.

According to Mr. Yang, he has 1 Ph. D. and 2 master's degree.

Bo Hao biological prospectus also revealed that the current undergraduate degree or above 12 people.

"The company is also trying to attract and train talents, and this year it has added a salary."

In 2009, the 102 employees of Bo Hao biological industry were 1 million 890 thousand, of which 14 executives and core staff earned 770 thousand, while the average employees were 1000 yuan per month.

"102 people are regular employees, and there are hundreds of seasonal workers," Mr. Yang said.

But unlike the morning light biashier in the prospectus to make a clear explanation of seasonal employment, Bo Hao biological did not account for this.

Performance depends on policy support.

Because of the lack of competitiveness in product technology, policy support in the source of Bo Ho's biological performance accounts for over weight.

The fiscal subsidies for three years in 2007, 2008 and 2009 were 6 million 157 thousand yuan, 8 million 871 thousand yuan and 6 million 502 thousand and 300 yuan respectively, while the profits for the same period were 13 million 876 thousand yuan, 25 million 859 thousand and 400 yuan and 28 million 810 thousand and 100 yuan, and the proportion of fiscal subsidies in total profits reached 44.37%, 34.32% and 22.57% respectively.

The comparable data is that the annual government subsidy granted by Chenguang Biology (after the deduction of income tax) accounts for 11.54%, 8.38% and 11.37% of net profit.

The first half of 2010 has reached 3.89%.

In addition, from 2007 to 2009, the income tax of Bo ho biological relief was 6 million 889 thousand yuan, 11 million 110 thousand and 400 yuan and 6 million 507 thousand and 800 yuan respectively, accounting for 49.65%, 42.25% and 22.67% of the net profit respectively.

The impact of the morning light bio income tax on net profit is almost negligible.

Comprehensive financial subsidies and income tax relief can be seen that Bo Ho's profits depend too much on policy, which makes the market doubtful about its future development.

In view of this, Bo Hao biological also said that if the enterprise income tax law abolished preferential policies for tax exemption from initial processing of agricultural products, or the State Administration of Taxation adjusted the initial processing scope of agricultural products that enjoy preferential policies, the company's initial processing business may not enjoy the preferential tax policy of exempting enterprise income tax, which will have a certain impact on the company's future business performance.

In the technology and industry chain, there is no obvious advantage of Bo Hao biology, the biggest bright spot is backed by a large raw material base.

"The demand for land is not high, and labor input is also less than that of tobacco. When it comes to the price of marigold, the benefits can catch up with tobacco," Yang said.

In 2007, 2008 and 2009, the purchase amount of flowers of bio Marigold is 115 thousand tons, 146 thousand tons and 95 thousand tons.

As for the sudden decline in the purchase amount of flowers in 2009, the explanation of Bo Hao biology is the influence of frost weather in Qujing and other places. Besides, the drought in early 2010 will also affect the yield of the local marigold.

In order to ensure the growth in 2009, Luomin granules purchased by Bo Hao biology from Heilongjiang, Liaoning, Shanxi, Inner Mongolia and other places were commissioned to be commissioned by Henan Anyang crystal Biology Engineering Co., Ltd., which accounted for 1/4 of the total output of the year.

Therefore, how to keep the advantage of raw materials is a difficult problem for Bo Hao biology.