Redefine the map! Yuanda Pharmaceutical's (00512) strategic merger and acquisition deepens the core competitive advantage of amino acids and consolidates the leading position in the industry

The Zhitong Finance App learned that since December, Yuanda Pharmaceutical (00512) has had significant benefits. At the end of 2025, the company once again ushered in a strategic expansion in the biotechnology sector — according to the company's announcement on December 31, Yuanda Pharmaceutical recently acquired all shares in Hebei Yuanda Jiufu Biotechnology Co., Ltd. (Hebei Yuanda Jiufu) and other companies (collectively known as “target companies”), which strategically integrates the company's industrial chain layout in the amino acid sector in the biotechnology field.

This acquisition is another important industrial layout of Yuanda Pharmaceutical in the amino acid sector. After the acquisition is completed, the company will improve the stability of its upstream amino acid raw material supply through production technology platform and market channel integration, enrich the midstream product pipeline matrix, and accelerate market penetration into downstream terminal products such as Big Health to achieve collaborative development of the industrial chain. This will comprehensively strengthen the integrated layout of Yuanda's pharmaceutical biotechnology industry chain, enhance its core competitiveness and voice in the global market, and lay a solid foundation for the implementation of the company's diversified development strategy in the field of biotechnology.

The amino acid industry is experiencing heavy snow, and the full chain layout consolidates the leading position

Amino acids are the basic structures that make up protein macromolecules. They have various effects such as protein synthesis, energy supply, hormone synthesis, neurotransmitters, cell repair and regeneration, etc., and can be widely used in various fields such as the food industry, agriculture, animal husbandry, and human health care, and are substances with great functional value and economic value.

Strong demand in various fields continues to drive the expansion of the amino acid market space. According to Polaris Market Research data, the global amino acid market reached about US$26.19 billion in 2021, and is expected to grow at a compound annual growth rate of about 7.5% to about US$49.42 billion in 2030. As a major global producer and consumer of amino acids, China occupies an important position in the global amino acid industry. According to data from Zhiyan Consulting, China's amino acid market accounted for 32.23% in 2020, ranking first in the world.

On the long and snowy circuit of amino acids, Yuanda Pharmaceutical, as an industry leader, undoubtedly has broad development opportunities and deep potential for growth. According to reports, the company has been deeply involved in the field of amino acids for more than 20 years and has built a rich product matrix and deep technical advantages. In terms of products, the company currently has nearly 50 kinds of amino acids and derivatives, and has 26 registration numbers for amino acid raw materials. It is the pharmaceutical company with the most registration numbers for amino acid raw materials in China. At the same time, the company has added a variety of food-grade and feed-grade amino acid products to open up room for growth through a differentiated path. Some amino acid varieties rank among the highest in the market share, and the core product cysteine series ranks first in the world in terms of market position and production capacity.

In terms of technology, Yuanda Pharmaceutical has always adhered to the spirit of scientific and technological innovation. With synthetic biology as the core, China pioneered the world's leading biotechnology to produce various amino acids, filling the gap in the industry. The company has now built eight major technology platforms, including enzyme engineering and fermentation engineering, which have formed unique technical advantages in strain construction optimization, fermentation control, separation and purification, and product application development. The company undertakes China's national industrial base project and industrial infrastructure reconstruction project. It is the first domestic enterprise to be approved with the “same line, same standard and same quality” three certification certificates for amino acids to ensure the safety of the supply chain and industrial chain of high-quality amino acids in China.

In addition, the company has established a relatively complete amino acid sales channel, and its core products have long served high-quality customers, including the world's top 500 companies. The company's sales network covers mainstream international markets such as China, Europe, America, Japan, and Southeast Asia, with overseas business accounting for about 40%. In the first half of 2025, the company's amino acid sector (including taurine) generated a total revenue of HK$1,347 billion.

Under a perfect industrial layout, Yuanda Pharmaceutical has stabilized its leading position in the amino acid industry. This will also become the company's core competitiveness, enabling Yuanda Pharmaceutical to effectively control costs, ensure product quality stability, rapidly iterate product matrices, and keenly capture industry trends in fierce market competition, thereby consolidating and continuously expanding its leading position in the amino acid segment, laying a solid foundation for the company's long-term steady development.

Strategy to expand amino acid categories and improve industrial chain synergy advantages

As a benchmark enterprise in the field of amino acids, Yuanda Pharmaceutical has always adhered to the business philosophy of “new technology, high quality, industrial chain and internationalization” as the core, continuously strengthened the expansion of the amino acid industry, leveraged its industrial advantages based on pharmaceutical-grade amino acids, and continued to expand into diversified amino acids. This acquisition is an important strategic step for the company to implement its core business philosophy. It will also further consolidate the company's product and industrial chain advantages in the amino acid business.

According to the announcement, the target company of Yuanda Pharmaceutical's strategic acquisition has unique technical advantages, diverse product pipelines and mature market channels in the field of amino acids. It is a high-tech enterprise in China, a specialized and new small and medium-sized enterprise in Hebei Province. It has long been committed to developing and applying fermentation engineering and enzyme engineering technology to replace traditional chemical synthesis technology. It can produce a variety of edible amino acids, and has a complete industrial chain from amino acid raw materials to terminal health products. Its core products include food-grade glycine, serine, citrulline malic acid series, hydroxyproline series, etc., which rank among the top in the market share. Through this acquisition, related products will later be incorporated into Yuanda Pharmaceuticals to further improve the company's characteristic amino acid product pipeline, strengthen the product layout of high-quality amino acids, and help the company deepen its diversified amino acid expansion strategy.

With this acquisition, Yuanda Pharmaceutical was able to quickly obtain advanced production technology, high-quality customer resources and mature sales channels in the amino acid target of the acquisition, further improving the company's efficiency in raw material procurement, production collaboration, market expansion, etc., reducing comprehensive operating costs and increasing market share. Specifically, in terms of upstream raw material procurement and product development, the stable supply of various core amino acid raw materials by target companies can directly guarantee the Group's upstream supply of high-quality amino acid products, optimize the supply chain cost structure, and strengthen the safety and stability of the industrial chain. At the same time, the target company's mature technology in the fields of fermentation engineering and enzyme engineering will be deeply integrated with Yuanda Pharmaceutical's synthetic biology technology platform to further consolidate technical barriers.

In the downstream process, the target company's mature customer resources in the fields of human nutrition, nursing and daily chemicals can complement the global sales network of Yuanda Pharmaceutical Biotechnology, accelerate the market penetration of the company's big health terminal products through the integration of channel resources, and achieve collaborative development of the industrial chain.

This comprehensive resource integration helps Yuanda Pharmaceutical maintain its innovative advantage and market advantage in increasingly fierce market competition, so as to further consolidate its leading position in the industry and help the company grow steadily. Yuanda Pharmaceutical said that in the future, the company will continue to rely on the world's leading biomedical manufacturing technology, solid industrial base and industrial accumulation in the field of high-quality amino acids, rich amino acid product clusters, high-standard quality certification systems, and strong international registration and commercialization capabilities, focusing on high-value-added fields related to high-end parenteral nutritional formulations, innovative peptides, cell culture media, etc., and functional dietary nutritional supplements such as sports protection, specialty medicine and baby food, beauty and pet food to continuously deepen the core competitiveness of high-quality company amino acids in major health consumption fields such as food, beauty and pet food. The actual position of the company as a leading enterprise.