Allied-SCT to List on OTC Market in Late June, Targeting Natural Colorant Market Opportunity

Taipei, May 21 (CNA) – Allied-SCT, a major manufacturer of carotenoid products and professional biotech raw materials, will be listed on the OTC market in late June with a tentative underwriting price of NT$20 per share. COO Yang Bin stated that as California will ban public school cafeterias from serving foods containing related artificial colors starting at the end of next year, Allied-SCT's carotenoid products are poised to capture a US$300 million market opportunity. Allied-SCT held a media briefing today, where Chairman Yang Cheng-li said the company has been deeply involved in carotenoids for over 20 years and is currently one of the main suppliers in the global synthetic carotenoid market. It is also one of the few suppliers in Asia with the capability to mass-produce a series of products including β-carotene, canthaxanthin, lycopene, and lutein. Allied-SCT's revenue for April this year was NT$103 million, a year-on-year increase of 14.73%; its cumulative revenue for the first four months of this year reached NT$343 million, a year-on-year increase of 14.62%. He pointed out that the manufacturing technology for carotenoids has a very high barrier to entry, not only because of the complex process but also due to long customer certification times, strict quality requirements, and the need for products to comply with various national regulations. Additionally, market information is relatively closed, creating a significant entry barrier. Since Roche (now DSM) in Switzerland successfully synthesized β-carotene in 1954, the market has been dominated by three main players for over 70 years: Allied-SCT, DSM of the Netherlands, and BASF of Germany. Yang Cheng-li stated that the company's core competitiveness lies in its dual engine of "synthesis technology plus formulation technology." Currently, its own brand is sold in over 60 countries and has penetrated the supply chains of the world's top 3 food, beverage, and dairy clients, as well as the top 5 flavor and fragrance companies. Yang Bin said that with stricter global food regulations, the trend of replacing artificial colors with natural ones is becoming clearer. The U.S. FDA has announced a goal to phase out six artificial colors, including Red 40, Yellow 5, and Yellow 6, from food by the end of 2026. California also passed a Food Safety Act in 2024, which is expected to prohibit public school cafeterias from serving foods with related artificial colors starting at the end of 2027. Yang Bin pointed out that Allied-SCT's carotenoid products, covering a full spectrum from yellow to red, are expected to become an important solution for food companies to replace artificial colors. As sample testing with several major U.S. food manufacturers continues to progress, once certification is completed and mass production begins, it is expected to inject a new wave of growth momentum for Allied-SCT. (Editor: Pan Yi-ching) 1150521