Andisu Performance Overview and New Plant Construction

Andisu 2017 Results Express and Methionine Market Analysis, New Nanjing Plant Constructionhpv12017 Results Overview:hpv(1) Andy Su Company achieves better-than-expected performance and relatively good profit levels due to its strong pressure resistance and challenging market environmentsOperating income and net profit attributable to shareholders in 2017 were 105% and 114% respectively in the 2017 budgetNet profit attributable to shareholders in the second half of 2017 increased by approximately 25% quarter-on-quarterAll major product lines achieved double-digit sales growth in 2017(2) Industrial investment projects including Polar Project, Panda Project and A-dry will be carried out steadily in 2017At the same time, the acquisition of Nutriad will achieve a good complement to the product, covered animal species and target market(3) "We Move" new operating model can help Andesu more effectively implement the "two-pillar" strategy2Methionine market analysis and construction of new plant in Nanjinghpv(1) methionine market analysis: Based on historical experience, global demand for methionine has maintained an annual growth rate of about 6% in the past, and is expected to maintain an annual growth rate of about 6% in the coming yearsAccording to Andesu's calculations, assuming that 0.20% methionine is added to each unit of weight feed, about 23% of the total production cost will be saved, i.e methionine can create a value of about 8 times its own price for customers As a result, the risk of methionine being replaced is low and customers are less sensitive to methionine price increases 　　(2) The growth in demand for methionine will be higher than that of solid methionine: the current market supply of methionine consists mainly of solid methionine and liquid methionine Larger, more automated customers prefer to use liquid methionine It is estimated that the current global use of liquid methionine accounted for about 40% of the total use of methionine, while in the United States, Mexico and other countries, the use of liquid methionine accounted for more than 60% With the gradual integration of the poultry industry in developing countries such as China and India, as well as the upgrading of aquaculture industrialization and automation levels, the demand for liquid methionine will grow faster than solid methionine 　　(3) Andisu's market position: Andy Su is the only company in the methia first tier to increase its market share in recent years (23% to 27%) Andesu has the largest market share in the liquid methionine, is a leader in methionine products, and is the only global producer to supply methionine in all categories (Source Investor Research) hpv (4) capacity expansion consolidates market position: 1) The polar project adds 50,000 liquid methionine capacity, is expected to be completed by the end of 2018, 2) Panda Phase II and the existing Nanjing plant expansion project help and further expand the production capacity of Andisu, and 3) the new Nanjing plant with a new capacity of 180,000 tons, with an investment of US$490 million, to be operational by about mid-2021 By leveraging the existing team, project implementation experience and facilities at the Nanjing plant, we can further reduce the production costs of the Nanjing production site, making it the world's lowest production cost of liquid methionine production base hpv Andisu 2017 Results Express and Methionine Market Analysis, New Nanjing Plant Construction hpv 1 2017 Results Overview: hpv (1) Andy Su Company achieves better-than-expected performance and relatively good profit levels due to its strong pressure resistance and challenging market environments Operating income and net profit attributable to shareholders in 2017 were 105% and 114% respectively in the 2017 budget Net profit attributable to shareholders in the second half of 2017 increased by approximately 25% quarter-on-quarter All major product lines achieved double-digit sales growth in 2017 　　(2) Industrial investment projects including Polar Project, Panda Project and A-dry will be carried out steadily in 2017 At the same time, the acquisition of Nutriad will achieve a good complement to the product, covered animal species and target market 　　(3) "We Move" new operating model can help Andesu more effectively implement the "two-pillar" strategy 　　2 Methionine market analysis and construction of new plant in Nanjing hpv (1) methionine market analysis: Based on historical experience, global demand for methionine has maintained an annual growth rate of about 6% in the past, and is expected to maintain an annual growth rate of about 6% in the coming years According to Andesu's calculations, assuming that 0.20% methionine is added to each unit of weight feed, about 23% of the total production cost will be saved, i.e methionine can create a value of about 8 times its own price for customers As a result, the risk of methionine being replaced is low and customers are less sensitive to methionine price increases 　　(2) The growth in demand for methionine will be higher than that of solid methionine: the current market supply of methionine consists mainly of solid methionine and liquid methionine Larger, more automated customers prefer to use liquid methionine It is estimated that the current global use of liquid methionine accounted for about 40% of the total use of methionine, while in the United States, Mexico and other countries, the use of liquid methionine accounted for more than 60% With the gradual integration of the poultry industry in developing countries such as China and India, as well as the upgrading of aquaculture industrialization and automation levels, the demand for liquid methionine will grow faster than solid methionine 　　(3) Andisu's market position: Andy Su is the only company in the methia first tier to increase its market share in recent years (23% to 27%) Andesu has the largest market share in the liquid methionine, is a leader in methionine products, and is the only global producer to supply methionine in all categories (Source Investor Research) hpv (4) capacity expansion consolidates market position: 1) The polar project adds 50,000 liquid methionine capacity, is expected to be completed by the end of 2018, 2) Panda Phase II and the existing Nanjing plant expansion project help and further expand the production capacity of Andisu, and 3) the new Nanjing plant with a new capacity of 180,000 tons, with an investment of US$490 million, to be operational by about mid-2021 By leveraging the existing team, project implementation experience and facilities at the Nanjing plant, we can further reduce the production costs of the Nanjing production site, making it the world's lowest production cost of liquid methionine production base