Breaking Down Xiamen Kingdomway Group Company Financial Health: Key Insights for Investors

Founded in 1997, Xiamen Kingdomway Group (002626.SZ) has grown into a powerhouse in nutritional and pharmaceutical raw materials, supplying Coenzyme Q10, vitamin D3, vitamin A and microalgae DHA to pharmaceutical, food and cosmetic industries and capturing approximately 50% of the global Coenzyme Q10 market as of March 2025; the company's focus on innovation, integrity and customer-centric service underpins strategic moves-like expanding CoQ10 production capacity by 1.5 times in 2024-that supported solid financial results in 2024 with operating revenues of RMB 3.24 billion and net profits of RMB 342 million, while parallel efforts to scale e-commerce and build a private ecological closed loop reflect its commitment to sustainability, cost-effective production and global expansion.

Xiamen Kingdomway Group Company (002626.SZ) - Intro

• Founded: 1997
• Core products: Coenzyme Q10, Vitamin D3, Vitamin A, Microalgae DHA
• Global CoQ10 share (Mar 2025): ≈50%
• 2024 operating revenue: RMB 3.24 billion
• 2024 net profit: RMB 342 million

• Quality-first: rigorous QA/QC and traceability across production.
• Innovation: continuous R&D investment in strains, processes, and scale-up.
• Customer-centricity: tailored regulatory and technical support for global clients.
• Sustainability: energy-efficient production, waste reduction, and eco-conscious sourcing.
• Integrity: compliance with GMP, ISO standards, and international export controls.

• Capacity: expanded CoQ10 production capacity by 1.5× in 2024 to meet global demand and secure market share.
• Domestic penetration: building a private ecological closed loop and enhancing e-commerce to increase direct-to-domestic-market sales.
• Product diversification: scaling microalgae DHA and vitamin lines for nutraceutical and infant nutrition segments.
• Global supply resilience: doubling down on vertical integration to reduce raw-material cost volatility.

• Scale: dominant CoQ10 producer with ~50% market share, enabling pricing power and supply security.
• Integrated value chain: in-house R&D to production reduces lead times and improves margins.
• Regulatory footprint: GMP-compliant facilities and export-ready documentation for global pharma and food customers.
• Channel strategy: combining B2B exports with strengthened domestic e-commerce and private ecosystem to capture end-market value.

• Capacity utilization (CoQ10): post-expansion target ≥85%
• Gross margin improvement: target incremental uplift from scale and product mix
• Domestic direct sales share: growth via private ecological loop and e-commerce
• R&D spend ratio: sustained to protect technological lead in fermentation and extraction

Xiamen Kingdomway Group Company (002626.SZ) - Overview

• Mission: Improve global human health by providing high-quality nutritional and pharmaceutical raw materials at competitive cost without compromising quality.
• Innovation focus: Continuous investment in R&D to create differentiated, high-margin active ingredients and advanced manufacturing processes.
• Cost leadership: Scale manufacturing and process optimization to ensure cost-effective production and competitive pricing.
• Global expansion: Leverage technological capabilities and diversified product portfolio to expand exports and international partnerships.
• Customer commitment: Build trust and long-term relationships through quality assurance, regulatory compliance, and technical support.

• R&D pipelines targeting proprietary formulations, process IP, and quality-control technologies (HPLC, GMP-certified lines).
• Quality management emphasizing GMP, ISO, and client-audited manufacturing sites to support pharmaceutical and nutraceutical standards.
• Supply-chain resilience through vertical integration of key raw materials and diversified supplier base to keep costs stable.
• Sales strategy balancing domestic demand and export growth, with priority regions in Southeast Asia, Europe, and North America.

• Increase R&D investment to 3.5%-4.0% of revenue within 3 years to accelerate product innovation and formulation patents.
• Grow export revenue to >50% of total sales through expansion in EU and North America distribution networks.
• Improve gross margin by 1-2 percentage points through process optimization and higher-value product mix.
• Maintain GMP compliance across all major production lines and achieve additional certifications for target markets.

Xiamen Kingdomway Group Company (002626.SZ) - Mission Statement

• Deliver scientifically backed, safe and traceable ingredient solutions.
• Scale global reach through technology, regulatory compliance and strategic partnerships.
• Drive sustainable growth via targeted M&A and continuous process innovation.
• Maintain customer-centric operations focused on quality assurance and long-term relationships.

• Become a global leader in the health and wellness industry by providing innovative and high‑quality products.
• Expand global presence by leveraging technological capabilities and a diverse product portfolio across nutraceutical, pharmaceutical excipient and food-grade ingredient segments.
• Enhance market position through strategic acquisitions, alliances and channel expansion in key markets (APAC, Europe, Americas).
• Commit to continuous improvement and adaptation to evolving scientific, regulatory and consumer trends.
• Build long-term relationships with customers by ensuring satisfaction, transparency and product traceability.
• Focus on delivering high-quality, innovative ingredients to diverse industries worldwide.

• Product diversification across phytochemicals, excipients, nutraceutical actives and specialty ingredients to mitigate market cyclicality.
• Targeted acquisitions to access new technologies, regulatory approvals and downstream formulation capabilities.
• Strengthening supply‑chain resilience via vertically integrated manufacturing and multiple sourcing strategies.
• Investing in compliance, quality systems (GMP/HACCP/ISO) and international certifications to support global market entry.

• Quality-first: rigorous QA/QC and full traceability across raw materials and finished goods.
• Integrity: transparent business practices and compliance with global regulatory frameworks.
• Innovation: continuous product and process R&D to address emerging health and wellness needs.
• Customer focus: long-term partnerships, technical support and customized solutions.
• Sustainability: responsible sourcing, waste reduction and energy-efficient manufacturing.

Xiamen Kingdomway Group Company (002626.SZ) - Vision Statement

• Integrity: Upholding honesty, transparency, and compliance across procurement, manufacturing, sales, and investor communications; Kingdomway maintains documented compliance programs and third‑party auditing across its supply chain.
• Innovation: Sustained investment in R&D to develop proprietary formulations and biosimilars, with a focus on modernizing production and accelerating new product pipelines.
• Customer centricity: Structured after-sales and clinical support teams and continuous feedback loops to drive product improvements and long-term partnerships with hospitals and distributors.
• Sustainability: Commitment to energy efficiency, emissions reduction and waste minimization across manufacturing sites and logistics operations.
• Teamwork: Cross-functional teams and training programs that shorten project cycles and increase employee engagement.
• Cost-effectiveness: Lean manufacturing and scale advantages enable competitive pricing without compromising GMP-compliant quality.

• Governance & ethics: Board-level compliance oversight, anti-corruption policies, and transparent investor reporting aligned to A-share best practices.
• R&D priorities: Small molecular generics, injectable formulations, and expansion into biologics and contract manufacturing services (CMO) for export markets.
• Sustainability initiatives: Energy-efficient boilers, solvent recycling systems, and waste-water treatment upgrades across key production sites.
• Talent & culture: Internal training academies, cross-departmental rotational programs, and KPI-linked incentives to foster collaboration and retention.
• Customer programs: Dedicated clinical affairs teams, digital feedback platforms, and service SLAs for institutional buyers and distributors.