China Starch: Lysine Price and Cost Impact Revenue and Gross Margin Decline

's 2012 revenue was RMB3.301 billion, up about 10% YoY; gross profit was RMB388 million, down 13.78% YoY; operating profit was RMB259 million, down 14.52% YoY; net profit was RMB222 million, down 3.6% YoY;aEQ
Among them, the main business is corn starch and corn deep processing business sales revenue of 2.436 billion yuan, up 15.3% YoY, accounting for 73.8% of 2013 sales revenue, business gross margin of 186 million yuan, a decrease of 4.3% YoY, mainly due to the decline in corn starch prices and corn grain costs increasedaEQ
In addition, sales revenue from lysine and fertilizer business was RMB569 million, down 17.2% YoY, accounting for 17.2% of total sales in 2013, gross margin was RMB184 million, down 26.98% YoY, and gross margin was 32.3%, down 4.4 percentage points YoYAmong them, lysine sales revenue was RMB565 million, down 15.8% YoY; Lysine export sales were RMB113 million, up 68.66% YoY, accounting for 3.4% of total export sales revenue, up 1.2 percentage points; sales were 565,000 tons, up 3.29% YoY; and the average sales price was RMB10.01/kg, down 18.35% YoYThe decline was mainly due to the decline in lysine average prices and the rise in corn grain costsaEQ
In 2012, 36 million investment in the new Shouguang plant is under construction, is expected to be completed in the third quarter of 2013, corn starch, lysine and denatured starch production capacity of 450,000 tons, 55,000 tons and 100,000 tonsThe old factory is in normal production for the time being until the new factory can run wellaEQrevenue of RMB3.301 billion in 2012, up about 10% YoY; gross profit of RMB388 million, down 13.78% YoY; operating profit of RMB259 million, down 14.52% YoY; net profit of RMB222 million, down 3.6% YoY;aEQ
Among them, the main business is corn starch and corn deep processing business sales revenue of 2.436 billion yuan, up 15.3% YoY, accounting for 73.8% of 2013 sales revenue, business gross margin of 186 million yuan, a decrease of 4.3% YoY, mainly due to the decline in corn starch prices and corn grain costs increasedaEQ
In addition, sales revenue from lysine and fertilizer business was RMB569 million, down 17.2% YoY, accounting for 17.2% of total sales in 2013, gross margin was RMB184 million, down 26.98% YoY, and gross margin was 32.3%, down 4.4 percentage points YoYAmong them, lysine sales revenue was RMB565 million, down 15.8% YoY; Lysine export sales were RMB113 million, up 68.66% YoY, accounting for 3.4% of total export sales revenue, up 1.2 percentage points; sales were 565,000 tons, up 3.29% YoY; and the average sales price was RMB10.01/kg, down 18.35% YoYThe decline was mainly due to the decline in lysine average prices and the rise in corn grain costsaEQ
In 2012, 36 million investment in the new Shouguang plant is under construction, is expected to be completed in the third quarter of 2013, corn starch, lysine and denatured starch production capacity of 450,000 tons, 55,000 tons and 100,000 tonsThe old factory is in normal production for the time being until the new factory can run wellaEQ