21st century business herald reporter Lei Chen intern Dong Junping reports from Beijing

On May 31, a screenshot of the latest policy notice from the General Administration of Customs showed that from June 1, 2024, food containing NMN will no longer be sold in China through cross-border e-commerce platforms.

NMN is known as "ageless", its full name is "beta-nicotinamide mononucleotide", is a naturally occurring bioactive nucleotide. In the human body, NMN is the most direct precursor of NAD + (coenzyme I), and its function is reflected by NAD +.

However, since NMN has not obtained licenses for medicines, health foods, food additives and new food raw materials in my country, if you want to buy NMN-related products in China, you can only use cross-border e-commerce platforms and other channels.

Since 2021, regulation in the domestic NMN sector has been strengthened. Some interviewees believe that the introduction of the latest policy is intended to "block" the main sales channel of cross-border e-commerce, but there is still a certain buffer period.

A number of cross-border e-commerce merchants told reporters that this is the reason why consumers can still buy NMN products on many domestic e-commerce platforms.

Since the news of the ban appeared, according to Wind data, 9 of the 10 concept stocks in the NMN sector have fallen.

As of press release, Yaben Chemical (300261.SZ), Brother Technology (002562.SZ), Erkang Pharmaceutical (300267.SZ) and Jindawei (002626.SZ) all fell more than 4% from May 31.

At present, the General Administration of Customs website has not published the NMN related ban explicit instructions. However, the 21st Century Business Herald reporter learned from a number of listed companies that some listed companies have begun to remove NMN-related products from the shelves in accordance with platform requirements, and some companies are still waiting for clear instructions from relevant departments.

NMN regulation is strict

21st century business herald reporters consulted e-commerce data and learned that NMN-related products are still sold on Taobao, Pinduoduo and other platforms.

"the NMN policy was tightened again a few days ago. the reason is that NMN is researched and developed as a drug in the United States. at present, some ports cannot clear customs, but we can continue to issue it. the situation behind is a bit difficult to say." A cross-border electricity supplier business told reporters in twenty-first Century economic report.

Another cross-border e-commerce merchant also revealed to reporters that the NMN products currently available are available.

in terms of policy impact, the port-to-warehouse team is advised to check whether the goods in transit are in transit according to the store. if there is a port, they will be returned directly. For storage in the warehouse, as the customs prohibits sales through cross-border e-commerce platforms, the platform and merchants are required to immediately remove the sales link. the customs will lock the inventory and return or destroy it according to the specific customs policies. The notice also suggested to contact the consumer to cancel the order for the part that has been sold and suspended in the offline sales link.

The implementation of the above ban is seen by the industry as a formalization and strengthening of previous regulatory policies.

in may 2023, the website of the government service platform of the national health and health Commission published the information service of the decision on the non-administrative license of new varieties of food additives. NMN, as a new variety of food additives, failed to obtain administrative license in China.

In 2021, the State Administration of Market Supervision issued a letter on the investigation of illegal operation of "non-old drugs", clearly pointing out that NMN has not been licensed for drugs, health food, food additives and new food raw materials in China. In December of the same year, the State Administration of Market Supervision once again stated that the conditions for NMN as a health food raw material are not yet mature, and further monitoring and research are needed.

Zhan Junhao, a well-known strategic positioning expert and founder of Fujian Huace Brand Positioning Consulting, told the 21st Century Business Herald that the regulatory upgrade is mainly due to considerations of public health and market order.

"NMN, as a substance advertised as having anti-aging and health-improving effects, has not yet been fully scientifically validated, especially in terms of long-term safety and human applicability. Over-marketing and exaggerated publicity may mislead consumers and lead to unnecessary health risks and economic losses. Therefore, enhanced regulation can help prevent false publicity, protect consumers' rights and interests, and maintain fair competition in the market." Zhan Junhao said.

Related companies are hesitant to watch

A number of interviewed industry insiders told reporters that at present, NMN raw materials mainly come from China, and terminal products are mainly sold in China through cross-border e-commerce and duty-free shops.

It is understood that due to the ban on NMN-related food and health products in the domestic market, the relevant listed companies mainly focus on the production of raw materials and production equipment for NMN products.

At the same time, some companies choose to indirectly engage in the manufacturing and sales of NMN products through overseas investment, such as Jindawei, which enters the NMN product field through the acquisition of overseas health care companies such as DBH.

jindawei 2023 annual report shows that the company uses biological enzyme catalytic green production process to produce NMN raw materials, the product is pure beta-NMN, high biological activity, environmental friendly and pollution-free, design capacity among the world's forefront. At present, the company has launched the coenzyme raw material series NMN, NR, NAD + products.

on March 29, Zhejiang medicine (600216.SH) said on the interactive platform that NMN products could not be registered and sold as drugs or health care products under the current domestic regulations. currently, NMN products of the company are only exported to some overseas countries or regions that allow the products to be sold as health care products. this business belongs to the export/cross-border business being cultivated by the health care products sector of the company, and the sales volume in 2023 is not significant.

After overseas production and processing, some NMN products will enter the domestic market through cross-border e-commerce channels.

for example, jindawei disclosed in its annual report that the company's NMN products are mainly sold online through cross-border e-commerce platforms or channels such as Tmall, weipin, trembles, fast hands, little red books, and small programs.

yaben chemical has also disclosed that NMN products introduced by the company's subsidiaries have been sold on cross-border e-commerce platforms. NMN raw materials are produced by the company itself. the brand of NMN products is "Whollyyou" and the Chinese name is "yiyouya".

But as of press time, the reporter did not find a clear instruction on the NMN-related ban on the General Administration of Customs website. However, some listed companies have begun to process NMN-related products off the shelf according to the platform requirements.

"We will follow the platform recommendations for removal of NMN products from the shelf. However, it should be emphasized that NMN only represents a very small part of our many product categories, and we have more than 300 SKUs, so removal of NMN will not have a significant impact on our normal product operations." A Jindawei insiders of the twenty-first Century economic report reporter said.

The above-mentioned person further pointed out that during the 618 period, the promotion activities of other products of Jindawei were carried out normally. As for whether the relevant layout will be stopped in the future, he cannot give an exact prediction because it depends on policy changes.

Some enterprises are still waiting for clear instructions from the relevant departments.

"If the national policy explicitly prohibits the sale of NMN through cross-border channels, it may be necessary to suspend sales for some time to come. We are still verifying the relevant situation, and the General Administration of Customs has not yet issued a specific statement. We will adjust the way we conduct our business in accordance with the law after the final verification results come out and we receive clear instructions from the General Administration of Customs." Yaben chemical related people told reporters.

In Zhan Junhao's view, for companies already selling NMN, the most direct impact will be limited sales channels and potential inventory backlogs.

It said that cross-border e-commerce platforms are one of the main ways for NMN products to enter the Chinese market. Once banned, these companies will have to find new compliance channels to distribute their products, which may include export to domestic sales, Adjust the formula to comply with Chinese regulations, or go through the formal import approval process. In addition, policy changes may lead to a decline in consumer confidence, which in turn will affect sales. In the long run, companies need to increase R & D investment to ensure product safety and effectiveness, while paying close attention to regulatory developments in order to adjust their strategies in a timely manner.

Opportunities and challenges coexist

Interviewed industry insiders told reporters in 21st century business herald that NMN entered China around 2018, initially mainly through Taobao overseas purchasing and other channels.

In 2019, the US Reinvigorator brand NMN products were officially sold to the Chinese market through cross-border e-commerce platforms such as Tmall, Jingdong and Suning, becoming the first NMN brand to enter the Chinese market.

Since 2020, NMN has entered a phase of rapid development.

In 2020, in the 618 online promotion activities, there are 4 NMN brands in the top 10 third-party store turnover of Jingdong Nutrition and Health Care, of which the first and second are NMN product brands. This marks the beginning of the rapid growth of NMN in China.

In July 2020, A- share listed company Jindawei launched NMN products, marking the first listed company in China to enter the NMN market and opening the first year of China's NMN products. Subsequently, more Chinese companies began to pour into the NMN track.

According to iResearch, China's NMN ingredient health care product market will reach 5.106 billion billion yuan in 2020, up 34.87 percent year-on-year, and is expected to climb to 27.017 billion billion yuan at a growth rate of nearly 70.25 percent by 2023.

In the industry's view, the current NMN in the domestic opportunities and challenges coexist.

On the one hand, the filing of NMN as a new raw material for cosmetics has been approved by the State Food and Drug Administration. At the same time, more and more research results on the efficacy of NMN have been published in scientific authoritative journals, which has aroused widespread concern and discussion. NMN has gradually been recognized by consumers and industry insiders. As its safety and utility have been more comprehensively recognized and affirmed, its application fields and scope of application have been continuously expanded.

The reporter learned that in addition to the above-mentioned companies, many A- share companies are strengthening NMN-related research and development, hoping to achieve industrialization in the future. For example, Qianyuan Medicine (300254.SZ) announced on May 26 that NMN has already been studied by domestic medical institutions in clinical trials. Hua Xi Biology (688363.SH) 2023 Annual Report shows that NMN preparation by fermentation has entered the pilot stage during the reporting period. Fu Erjia (301371.SZ) completed the filing of new raw materials on November 1, 2023.

On the other hand, although China is the world's largest producer of NMN raw materials and consumer of end products, there are frequent market chaos and uneven product quality. The industry urgently needs to carry out standardized construction to reduce market chaos and promote The healthy development of the market.

In Zhan's view, the prospects for NMN products depend on a number of factors, including the progress of scientific research, regulatory policy clarity and market acceptance. If future research can further prove the positive impact of NMN on human health and no major safety problems are found, there may be broad development space for NMN products as the regulatory environment matures and the market is standardized.

If the findings fail to support its claimed health benefits or identify potential risks, thenIts market prospects will be limited. In addition, consumers' demand for health products is increasing, but at the same time, they also pay more attention to the real effect and safety of products, which will promote NMN related companies to continuously improve product quality and transparency.

Some interviewees believe that the first step is to strengthen scientific research: scientific research institutions and enterprises are encouraged to strengthen scientific research on NMN, accumulate more data and evidence, and provide a basis for formulating more reasonable regulatory policies. Secondly, we should improve the regulatory policy: according to the research progress of NMN and market changes, adjust and improve the regulatory policy in time to ensure the scientificity and effectiveness of the policy. Once again, we must strengthen international cooperation: learn from the experience and practices of other countries in NMN supervision, strengthen international cooperation and exchanges, and jointly promote the healthy development of the NMN industry. Finally, it is necessary to establish an industry self-discipline mechanism: encourage industry associations and enterprises to establish self-discipline mechanisms, strengthen self-discipline and standardized management, and enhance the image and reputation of the entire industry.