Press Release

CH Biotech's R&D Capabilities Unrivaled in Taiwan's Agritech Industry



Yu-xiu Chen, chairwoman of the Taiwan Broadcasting System (TBS), and Maw-shin Hsu, director general of Central Taiwan Science Park, visited CH Biotech (TWSE: 6534) on November 15 and learned about recent developments in Taiwan’s agricultural biotechnology (agritech) industry.
 
During the visit, Chen said that CH Biotech shared a similar vision that she had promoted when serving as the minister of the Council for Cultural Affairs (CCA): to make Taiwan a world-renowned brand. She hoped that by concentrating on R&D, CH Biotech would raise Taiwan’s profile in the world even further.
 
Chen and Hsu were joined by CH Biotech chairman Chen-pang Wu, and toured the Global R&D Center, the Flavor Lab, and the world’s first greenhouse cafe.
 
During her term at the CCA, Chen played a key role in helping various industries to incorporate cultural and creative elements and promote brand awareness. She was impressed by the results of CH Biotech’s R&D work over the last six years.
 
Wu noted that, aside from its premium product range, CH Biotech has established a number of records in Taiwan since it was founded in 2013.
 
Unique business modelCH Biotech specializes in developing brand-new pharmaceuticals, believes in the “think local and act global” mentality, and operates a three-tier business model: innovation in Taiwan, manufacturing in the U.S., and marketing globally. The R&D center is located in the Central Taiwan Science Park, manufacturing is outsourced to California, in the U.S., and products are then shipped to clients worldwide. Exports account for more than 98% of its revenues.
 
Taiwan’s biggest plant research center, in investment and research scopeIn June 2018, CH Biotech invested NT$2 billion to build its Global Research Center, equipped with over 1,000 advanced instruments. The center covers a wide range of research areas, including plant lifecycle, new chemical and biological pharmaceuticals, and individual plants and their ecosystems. While doing this, CH Biotech also strives to be a responsible global citizen by being environmentally conscious and reducing pesticide consumption.
 
Industry-leading gross marginSince its inception, CH Biotech has been profitable every year, with an unrivaled operating margin of over 80% in Taiwan’s agritech industry. This is because all of its new pharmaceuticals are based on unique formulas and thus have strong pricing power.
 
Unmatched R&D investmentCH Biotech’s commitment to R&D speaks for itself. In the first half of 2020 it dedicated 18% of its revenues to R&D spending (versus 19.31% in 2019). This is the highest among Taiwan’s listed agritech companies, and far ahead of the 8.5% average among listed biotech companies. (Sources: The Biotechnology Industry White Paper, the Ministry of Economic Affairs.)
 
Top talent and top compensationCH Biotech currently has 98 employees, and its R&D team comprises 61.2% of the workforce. The R&D staff, all of whom hold PhDs or master’s degrees in agricultural biotechnology, are Taiwan-trained experts with global perspectives. As many as 45% of them hold PhDs, which is the highest percentage anywhere in Taiwan’s agritech industry.
 
Recognition from all sectorsOver the past five years, CH Biotech has won a total of 17 local and international awards and more than NT$2 million in prize money. It has also participated in a range of government projects, including RAISE (Rebuild After PhDs’ Industrial Skill and Expertise) and SBIR (Small Business Innovation Research), as well as 25 industry–academia collaboration programs with Academia Sinica and top universities. In doing so, CH Biotech aims to commercialize Taiwan’s agritech R&D prowess and bring benefits to industry, government, and academia.
 
As Chairman Wu also noted, CH Biotech will strive to live up to the expectations that various sectors have for the company, by dedicating itself to new agricultural pharmaceutical development and helping to bolster agritech R&D efforts in Taiwan. Through its unique product development system and collaboration with Nutrien, the world’s leading provider of crop inputs and services, CH Biotech seeks to help Taiwan promote agritech products in international markets and to improve agriculture worldwide.