China Starch Annual Report 2015: Lysine costs fall and regain competitive advantage

2015 China Starch Group's revenue was RMB4.36 billion, up about 4.6% YoY; gross profit was RMB354 million, down 2.5% YoY;zxF
Revenue from upstream products rose about 12.4 percent to 33.4 yuanThe increase in sales was mainly due to a rise of about 31.6% to 1.02 million tonnes of corn starchHowever, the positive factors were offset by lower average selling prices of corn starch and other corn deep-processed by-productsThe average price of corn starch is 2385 yuan/tonne (2014: 2548 yuan/tonne)zxF
Fermentation and downstream products include lysine, amyloid, denatured starch and other fermented products (e.gD-lactic acid) (all produced from corn starch), as well as other servicesThe business division reported annual revenue of approximately RMB1.02 billion (2014: RMB1.20 billion)zxF
Lysine's sales performance was mainly affected by China's overcapacityIn addition, in the second half of the year, the Chinese government's grain storage in northeast China, including corn grains( the main raw material for the production of lysine), led to higher prices for corn grains in the regions concerned and had an indirect impact on the production activities of local lysine producersAs the Group's production sites are not located in these affected areas and corn grains are not purchased in such affected areas, the production costs of lysine have not been affected On the contrary, the sharp fall in the price of corn grainin in Shandong Province has benefited the Group, which has reduced the production cost of lysine in the second half of the year, and its price has fallen as a result In the year under review, the average selling price of lysine products was about 5,818 yuan/tonne (2014: RMB5,961/tonne) As a result, in the second half of the year, the Group's lysine products regained their competitive edge in the international market, while sales of lysine products increased significantly zxF revenue of Rmb4.36 billion in 2015, up about 4.6% YoY; gross profit of RMB354 million, down 2.5% YoY; zxF
　　Revenue from upstream products rose about 12.4 percent to 33.4 yuan The increase in sales was mainly due to a rise of about 31.6% to 1.02 million tonnes of corn starch However, the positive factors were offset by lower average selling prices of corn starch and other corn deep-processed by-products The average price of corn starch is 2385 yuan/tonne (2014: 2548 yuan/tonne) zxF
　　Fermentation and downstream products include lysine, amyloid, denatured starch and other fermented products (e.g D-lactic acid) (all produced from corn starch), as well as other services The business division reported annual revenue of approximately RMB1.02 billion (2014: RMB1.20 billion) zxF
　　Lysine's sales performance was mainly affected by China's overcapacity In addition, in the second half of the year, the Chinese government's grain storage in northeast China, including corn grains( the main raw material for the production of lysine), led to higher prices for corn grains in the regions concerned and had an indirect impact on the production activities of local lysine producers As the Group's production sites are not located in these affected areas and corn grains are not purchased in such affected areas, the production costs of lysine have not been affected On the contrary, the sharp fall in the price of corn grainin in Shandong Province has benefited the Group, which has reduced the production cost of lysine in the second half of the year, and its price has fallen as a result In the year under review, the average selling price of lysine products was about 5,818 yuan/tonne (2014: RMB5,961/tonne) As a result, in the second half of the year, the Group's lysine products regained their competitive edge in the international market, while sales of lysine products increased significantly zxF
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