Andisu: Sales of liquid methionine continue to grow

recently released the 2018 report, the company achieved revenue of 11.4 billion yuan in 2018, up 10% YoY; According to the annual report, Andesu products are divided into three categories: functional products (methionine, vitamins, ammonium sulfate and sodium sulfate), specialty products (enzymepreparations, transcancerous gastric protective methionine, organic selenium and probiotic additives) and other products (disulfide, sulfuric acid and preparation services)The highest percentage of revenue was in functional products, up 5% YoY, with liquid methionine continuing to grow steadily, and specialty products with the highest gross margin of 49.2% (see figure below)iP5
iP5Figure 1: Ratio of business and gross margin for the reporting period, source: Oriental Fortune.comiP5methionine project progressiP5methionine is one of the main products of the Andesu GroupAndesu currently has two production platforms in Europe and Nanjing, China, and decided in January 2018 to establish a third production platform in Nanjing, adjacent to the existing Nanjing plantiP5the first production platform: The European production platform expansion project has been completed and started running, with an additional additional supporting investment in the Burgos and Les Roches plants, as well as additional supporting investments in existing intermediate production plants, with an additional capacity of 50,000 tons of liquid methionine per yeariP5
A-dry, a new powdered methionine product based on liquid methionine technology ("HMTBA") ® A-dry, was licensed in Europe in early 2019The product allows customers who are not able to use the liquid methionine due to the product or production process, and can also benefit from liquid methionine iP5 the second production platform : the expansion of the Nanjing plant is also progressing well The project helped Andesu increase its annual production capacity of liquid eggs to 170,000 tons and further increase its productivity Thanks to the existing Nanjing plant, and despite new entrants and new capacity from existing manufacturers, Andesu managed to increase its market share from 24% to 27% between 2012 and 2017 and consolidate its existing market share in 2018 iP5 the third production platform : the Nanjing Liquid Methionine II project with an annual production capacity of 180,000 tons is progressing smoothly The new plant is located in the Nanjing Hexachemical Park next to the existing Andesu Nanjing plant and is expected to start production in mid-2021 The completion of phase II will help Andesu meet growing customer needs and will further enhance the cost-effectiveness of Andesu iP5
iP5 Figure 2: Production capacity and investment in construction, Source: Andesu 2018 Report iP5 Global Methionine Supply and Demand iP5 Andisu plays an important role in all regions of the world market Among them: Novicos has the highest market share in North America, with Evonik and Andesu as the main players in the market, while Evonik, Andesu, Sumitomo, Xinhe Cheng and Ningxia Ziguang are the main players in China and Asia Pacific, while Novishi has a relatively low market share, while in other regional markets, the main players are Evonik, Andesu and Norwich The world's leading methionine producer capacity (in kilotons/year) is as follows: iP5 iP5 Figure 3: Global methionine projected capacity 2018 Source: Andesu 2018 Annual Report iP5 , as noted above, Andesu remains the second largest methionine producer in the world in 2018 From the demand side, according to internal forecasts, the global methionine market demand is growing at an annual rate of 5-6% per year: iP5 iP5 Figure 4: Global demand for methionine growth, Source: IP5 methionine cost control iP5 Andisu integrates upstream and downstream production processes, and its methionine production process can be extended to aureone, sulfur and other basic raw materials These intermediates mainly include methanol, methanol-based proces, , hydrogen sulfide, cyanide and other chemical materials The suppliers of these materials are limited and do not achieve integrated production By producing these high-risk intermediates independently, Andesu is able to monitor the quality of each production link and reasonably reduce production costs to gain a greater competitive advantage iP5
　　In 2019, Andesu will continue to implement the "two-pillar" strategy, strengthening the company's leading position in the methionine industry by continuously increasing the penetration of liquid methionine, while accelerating sales growth of specialty products through organic and extended growth, helping the company achieve sustainable and profitable growth iP5 recently released the 2018 report, in 2018 the company achieved revenue of 11.4 billion yuan, up 10% YoY; According to the annual report, Andesu products are divided into three categories: functional products (methionine, vitamins, ammonium sulfate and sodium sulfate), specialty products (enzymepreparations, transcancerous gastric protective methionine, organic selenium and probiotic additives) and other products (disulfide, sulfuric acid and preparation services) The highest percentage of revenue was in functional products, up 5% YoY, with liquid methionine continuing to grow steadily, and specialty products with the highest gross margin of 49.2% (see figure below) iP5
iP5 Figure 1: Ratio of business and gross margin for the reporting period, source: Oriental Fortune.com iP5 methionine project progress iP5 methionine is one of the main products of the Andesu Group Andesu currently has two production platforms in Europe and Nanjing, China, and decided in January 2018 to establish a third production platform in Nanjing, adjacent to the existing Nanjing plant iP5 the first production platform : The European production platform expansion project has been completed and started running, with an additional additional supporting investment in the Burgos and Les Roches plants, as well as additional supporting investments in existing intermediate production plants, with an additional capacity of 50,000 tons of liquid methionine per year iP5
　　A-dry, a new powdered methionine product based on liquid methionine technology ("HMTBA") ® A-dry, was licensed in Europe in early 2019 The product allows customers who are not able to use the liquid methionine due to the product or production process, and can also benefit from liquid methionine iP5 the second production platform : the expansion of the Nanjing plant is also progressing well The project helped Andesu increase its annual production capacity of liquid eggs to 170,000 tons and further increase its productivity Thanks to the existing Nanjing plant, and despite new entrants and new capacity from existing manufacturers, Andesu managed to increase its market share from 24% to 27% between 2012 and 2017 and consolidate its existing market share in 2018 iP5 the third production platform : the Nanjing Liquid Methionine II project with an annual production capacity of 180,000 tons is progressing smoothly The new plant is located in the Nanjing Hexachemical Park next to the existing Andesu Nanjing plant and is expected to start production in mid-2021 The completion of phase II will help Andesu meet growing customer needs and will further enhance the cost-effectiveness of Andesu iP5
iP5 Figure 2: Production capacity and investment in construction, Source: Andesu 2018 Report iP5 Global Methionine Supply and Demand iP5 Andisu plays an important role in all regions of the world market Among them: Novicos has the highest market share in North America, with Evonik and Andesu as the main players in the market, while Evonik, Andesu, Sumitomo, Xinhe Cheng and Ningxia Ziguang are the main players in China and Asia Pacific, while Novishi has a relatively low market share, while in other regional markets, the main players are Evonik, Andesu and Norwich The world's leading methionine producer capacity (in kilotons/year) is as follows: iP5 iP5 Figure 3: Global methionine projected capacity 2018 Source: Andesu 2018 Annual Report iP5 , as noted above, Andesu remains the second largest methionine producer in the world in 2018 From the demand side, according to internal forecasts, the global methionine market demand is growing at an annual rate of 5-6% per year: iP5 iP5 Figure 4: Global demand for methionine growth, Source: IP5 methionine cost control iP5 Andisu integrates upstream and downstream production processes, and its methionine production process can be extended to aureone, sulfur and other basic raw materials These intermediates mainly include methanol, methanol-based proces, , hydrogen sulfide, cyanide and other chemical materials The suppliers of these materials are limited and do not achieve integrated production By producing these high-risk intermediates independently, Andesu is able to monitor the quality of each production link and reasonably reduce production costs to gain a greater competitive advantage iP5
　　In 2019, Andesu will continue to implement the "two-pillar" strategy, strengthening the company's leading position in the methionine industry by continuously increasing the penetration of liquid methionine, while accelerating sales growth of specialty products through organic and extended growth, helping the company achieve sustainable and profitable growth iP5