Lin Yongxiang, Chairman of DaJiang Biomedical, is Expanding into the U.S. Market Despite the Trend: Stabilizing Prices and Capturing Orders Amid Taiwan Stock Market Volatility, Global Expansion as a Competitive Edge

On April 7, during fluctuations in the Taiwan stock market caused by Trump's "equal tariffs" policy, Chairman Lin Yongxiang of Great Tree Biotechnology (8436) announced that prices would not increase and that the company would expand into the U.S. market. They plan to utilize manufacturing bases in the U.S., China, and Taiwan to offer order transfer and tax optimization solutions. Great Tree Biotechnology has already established manufacturing bases in these regions and has initiated a global expansion strategy to strengthen its supply chain. Lin Yongxiang's strategy includes maintaining price stability, accurately targeting the demand for order transfers, and risk management, helping Great Tree Biotechnology continue to grow amid market fluctuations.

Global Expansion as a Key Advantage

As early as 2018, when Trump first imposed tariffs on China, Lin Yongxiang sensed a change in the tide. After reading Business Weekly's analysis of the US-China trade war, he quickly decided to establish a branch in Salt Lake City, USA, and completed the plant construction three years later. At the time, the industry widely questioned the necessity of such a high-cost investment, but now it has become a moat for Dajiang amid rising geopolitical risks.

By 2025, Dajiang has established manufacturing bases in the US, China, and Taiwan, and this year launched a "light asset global expansion strategy," actively expanding production lines in the US and India to enhance the capacity and flexibility of the supply chain. This layout allows Dajiang to respond flexibly to policy changes, assisting clients in dispatching production bases and transferring products manufactured in third locations to local areas, deepening regional operations.

Stable Pricing Strategy: Gaining Market Share Without Raising Prices

While other OEMs raised prices due to tariff pressures, Lin Yongxiang chose to go against the grain. He instructed the sales team to maintain the original quotes without raising prices and to fully strive for new American clients. The core of this strategy is to help clients expand their market share when competitors raise prices, thereby driving Dajiang's own growth.

"It's not a zero-sum game between us and our clients now, but rather thinking about what their competitors will do," Lin Yongxiang pointed out. When competitors' OEMs raise prices due to tariffs, if Dajiang can maintain stable prices, it can help clients capture the market with more competitive pricing.

Precisely Targeting Potential Order Transfers

Lin Yongxiang's strategy goes beyond pricing. He led the team to actively obtain import lists of health foods from China and the US, analyzing which products might face order transfer demands due to tariffs. For the Chinese market, he targeted health food brands imported from the US, actively reaching out to these potential clients to offer OEM services from China or Taiwan plants to help avoid taxes. Similarly, for the US market, he compared European imported products, striving to transfer production to Dajiang's US plant.

This proactive strategy allows Dajiang to accurately address client pain points amid chaos, providing concrete solutions and further solidifying cooperative relationships with clients.

Expansion and Risk Control in Parallel

Although Dajiang chose to expand during this turbulent period, Lin Yongxiang also emphasized risk management. He plans to expand the US manufacturing base, seek acquirable plants and companies, and acquire second-hand equipment from Asia to reduce capital expenditure. However, he also clearly instructed the sales team to hold off on shipments until after April 18, unless clients have specific requests, to observe market changes and avoid losses from rash shipments during unstable periods.

Moreover, Dajiang is not taking orders indiscriminately and will focus on two types of clients in the future: large enterprises with annual revenue exceeding $1 billion and small to medium-sized brands that value product performance rather than just price-cutting. This client selection standard will help Dajiang maintain high gross margins and stable cooperative relationships.

Nineteen Years of Revenue Growth, Building a Solid Foundation

Since transforming into a CDMO for functional health foods and skincare products, Dajiang Biotech has achieved over 30% annual revenue growth for nineteen consecutive years and maintained a gross margin of over 40% for nine consecutive years. This achievement stems from Lin Yongxiang's keen grasp of market trends and forward-looking layout.

Starting from a trading company, Lin Yongxiang led Dajiang to become a representative enterprise in Taiwan's CDMO field without a background in medicine or management. His business philosophy is to "capitalize on client demand" and emphasizes the strategic thinking of "taking the lead on curves." When the market is in panic, he chooses to surf rather than hide from the waves, turning crises into growth opportunities.

References

• 若你不是第一名，亂局，就是最佳彎道超車時刻！－商周CEO學院課堂筆記｜商周
• 杜蕙蓉 - 工商時報
• 杜蕙蓉 - 中時新聞網