China Starch: Profits Fall 44% in 2013 Lysine Sales Jump 26%

On March 21,, China Starch announced its 2013 results, with total sales of RMB3.422 billion in 2013, down 3.7% YoY, of which sales cost was RMB3.122 billion, up 7.14% YoY, and sales gross profit was RMB3.04 billion, down 2.04 billion yuan YoY 2.6%; operating profit was RMB141 million, down 45.4% YoY; current profit was RMB124 million, down 44.1% YoY; shareholder stake was RMB122 million, down 44.4% YoY, and earnings per share were RMB20.6, down 45.4% YoYskB
In 2013, the Group adopted a strategy of maintaining high sales and enjoying the advantages of economies of scale, selling core products at competitive prices for a certain period of timeSales of lysine rose in 2013 and the impact of the new denatured starch business segment, the company's sales performance increased significantly, but due to the weakness in the Chinese market, the price of products lower than in previous years, despite the relative lysp cost of corn grain, but the gross margin continued to declineskB
The Group is divided into five divisions: corn starch, lysine, amyloid, denatured starch, shop and steamIn addition to the year-on-year increase in sales of denatured starch and starch sugar (denatured starch rose 10 times year-on-year), sales in other segments declinedskB
In terms of lysine and related products, the Group's annual total turnover was 15.1%, down 2.1 percentage points YoY, with sales of RMB516 million, down 9.3% YoY, while gross profit was RMB85.77 million, down 53.3% YoY, and gross margin was 16.6%, down 1.57 percentage points YoYIn 2013, rhododendle annual sales reached 712,000 tons, up 26.2% YoY, but unit prices fell 27.9% to 7,219 yuan/tonne, offsetting the positive results from the sharp increase in salesCompany analysis due to the impact of H7N9 on local demand for lysine, the Group concentrated on overseas sales, lysine annual export sales accounted for 32.4% of the total distribution, an increase of 12.6 percentage points year-on-yearskB
In November 2013, the Group signed two transfer contracts with Shouguang Municipal Land and Resources Bureau to acquire two industrial land with an area of 133,333 square meters for a value of 47.34 million yuan, and the Group may ship all production machines and equipment in the current Shouguang Production Plant Building to new production sites that may be approved by the Shouguang Municipal Government, in order to promote the Group's expansion plansThe Board of Directors plans to merge existing (acquisition in 2012) with the acquisition of land (adjacent to the two plots) and build a new production site with an estimated annual production capacity of 450,000 tons, 55,000 tons and 100,000 tons of corn starch, lysine and denatured starch production facilitiesskBMarch 21, China Starch announced its 2013 results, with total sales of RMB3.422 billion in 2013, down 3.7% YoY, of which sales cost was RMB3.122 billion, up 7.14% YoY; 22.6 percent decline, operating profit of 141 million yuan, down 45.4 percent yoy, year-on-year profit of 124 million yuan, down 44.1 percent year-on-year, and shareholder profit of 122 million yuan, down 44.4 percent from a year earlier, and a decrease of 45.4 percent year-on-yearskB
In 2013, the Group adopted a strategy of maintaining high sales and enjoying the advantages of economies of scale, selling core products at competitive prices for a certain period of timeSales of lysine rose in 2013 and the impact of the new denatured starch business segment, the company's sales performance increased significantly, but due to the weakness in the Chinese market, the price of products lower than in previous years, despite the relative lysp cost of corn grain, but the gross margin continued to declineskB
The Group is divided into five divisions: corn starch, lysine, amyloid, denatured starch, shop and steamIn addition to the year-on-year increase in sales of denatured starch and starch sugar (denatured starch rose 10 times year-on-year), sales in other segments declinedskB
In terms of lysine and related products, the Group's annual total turnover was 15.1%, down 2.1 percentage points YoY, with sales of RMB516 million, down 9.3% YoY, while gross profit was RMB85.77 million, down 53.3% YoY, and gross margin was 16.6%, down 1.57 percentage points YoYIn 2013, rhododendle annual sales reached 712,000 tons, up 26.2% YoY, but unit prices fell 27.9% to 7,219 yuan/tonne, offsetting the positive results from the sharp increase in sales Company analysis due to the impact of H7N9 on local demand for lysine, the Group concentrated on overseas sales, lysine annual export sales accounted for 32.4% of the total distribution, an increase of 12.6 percentage points year-on-year skB
　　In November 2013, the Group signed two transfer contracts with Shouguang Municipal Land and Resources Bureau to acquire two industrial land with an area of 133,333 square meters for a value of 47.34 million yuan, and the Group may ship all production machines and equipment in the current Shouguang Production Plant Building to new production sites that may be approved by the Shouguang Municipal Government, in order to promote the Group's expansion plans The Board of Directors plans to merge existing (acquisition in 2012) with the acquisition of land (adjacent to the two plots) and build a new production site with an estimated annual production capacity of 450,000 tons, 55,000 tons and 100,000 tons of corn starch, lysine and denatured starch production facilities skB
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