Company Dynamics Overview
In April 2025, two major players in the vitamin industry, Hubei Nengter Technology Co., Ltd. (Nengter Technology) and Xiamen Kingdomway Group Company (Kingdomway), announced their respective financial performances for the fiscal year 2024. The two companies showcased contrasting results, underlining differing strategic challenges and market responses.
Nengter Technology’s Financial Results
On April 9, 2025, Nengter Technology disclosed its preliminary 2024 earnings estimate:
- Revenue: USD 1.71 billion (RMB 12.28 billion), up 10.35% YoY
- Net Profit Attributable to Shareholders: -USD 68.12 million (RMB 488.94 million), down 288.97% YoY
- Net Profit After Non-Recurring Gains/Losses: -USD 58.03 million (RMB 416.51 million), a significant YoY decrease of 10,112.05%
Despite a modest increase in revenue, Nengter Technology faced a drastic net loss due to fierce competition in its plastic trade e-commerce segment, leading to shrinking gross margins. In response, the company plans to restructure by scaling down its plastic e-commerce operations, closing high-cost, low-profit subsidiaries, and focusing on optimizing its core businesses.
Kingdomway’s Strong 2024 Performance
On April 10, 2025, Kingdomway released its 2024 annual report, presenting strong financial growth:
- Revenue: USD 451.42 million (RMB 3,240.06 million), up 4.43% YoY
- Net Profit Attributable to the Parent Company: USD 47.65 million (RMB 341.99 million), up 23.59% YoY
- Net Profit After Non-Recurring Gains/Losses: USD 47.20 million (RMB 338.75 million), up 20.80% YoY
- Gross Margins: 38.52%, an increase of 1.19% YoY
- Net Margin: 11.33%, an increase of 2.43% YoY
For Q4 2024, Kingdomway also reported remarkable growth:
- Revenue: USD 125.02 million (RMB 897.30 million), up 14.76% YoY and 9.51% MoM
- Net Profit: USD 16.89 million (RMB 121.25 million), up 265.04% YoY and 33.74% MoM
- Net Profit After Non-Recurring Gains/Losses: USD 16.08 million (RMB 115.43 million), up 207.32% YoY
- Gross Margins: 39.79%, up 1.40% YoY
- Net Margin: 15.99%, up 11.77% YoY
Kingdomway’s performance highlights its operational efficiency and steady expansion in the vitamin and healthcare markets, showcasing strong momentum heading into 2025.
Market Outlook and Strategic Implications
The contrasting financial results reflect the broader challenges and opportunities in the vitamin and chemicals industries. Nengter Technology’s pivot toward core operational improvements will be critical for future profitability, while Kingdomway’s sustained growth positions it as a strong player in both domestic and international vitamin markets.
Both companies’ 2024 performances will significantly influence supply chain strategies, raw material procurement, and competitive dynamics within the vitamin industry sector in China.
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