The interpretation of methionine and vitamins in and out of the Andessu Annual Report.

Recently, Andesu released its 2017 annual report, its operating income in 2017 was 10.4 billion yuan, down 2.72% YoY, and the net profit attributable to shareholders of listed companies was 1.32 billion yuan, down 29.06 percent year-on-yearThe Main Business of the AndesU Group is the research and development, production and marketing of animal nutrition additives, its 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)According to the annual report of the methionine and vitamin information collated for reference, see: MRM2017 methionine market competition, methionine product prices have dropped significantlyHowever, Andesu's full-year operating income has remained largely stableThe company's sales of methionine increased significantly by 11% in 2017, with liquid methionine sales increasing even more than the industry average of 6% annual growth in the global methionine market demand, and revenue from functional products was driven mainly by the methionine businessRevenue decreased 7% yoy, primarily due to a significant decrease in methionine prices in 2017 compared to 2016However, methionine sales increased significantly by 11%, particularly in liquid methionine, partially offsetting the negative impact of lower methionine pricesThe impact of adverse factors such as the USD/EURO exchange rate and the rising cost of purchasing raw materials led to a decline in gross margins, but earnings remained at a relatively good levelMRM MRMAndesu functional products mainly include methionine and vitaminsMethionine is one of the main products of the Andesu Group and one of the few producers in the world that can produce both solid and liquid methionineAndesu is also an important player in the vitamin market, offering a full range of vitamin products, including A, B, D3, E, H and moreAndesu already has two production platforms (Europe and Nanjing) and further expansion of production capacity in Nanjing and Europe, with Anisu adding 50,000 tons of liquid methionine production capacity in 2018 thanks to the Expansion of the European production platform, while Andesu will add 9,000 tons of new product Roddime A-DryThe new plant for liquid methionine, which is approved for construction in 2018, has an annual output of 180,000 tons and is located in the Nanjing Hexachemical Park, adjacent to the existing Nanjing plant in AndesuSee MRM MRMEuropean production platform: this early production platform consists mainly of four factories: the Les Roches plant, the upstream raw material plant, the first intermediate MMP for the production of synthetic methionine, supplied to the Chessry plant in France and the Roussillon plant to produce solid methionine, and the Burgos plant in Spain for the production of liquid methionine Andessoannounced a European production platform expansion project in 2016 that will increase the production capacity of the liquid methionine plant in Europe by 50,000 tons/year Total investment in the project: EUR 110 million, including the addition of a third production line at the Burgos plant, and additional ancillary investment in the upstream plant at the Les Roches plant It is expected to be completed by the end of 2018 In addition, with the commercialization of Roddy Methane ® A-Dry Plus project in 2018, Andesu is able to market 9,000 tons of innovative powdered methionine products, enabling customers who cannot use liquid methionine due to product or production processes to enjoy the benefits of liquid methionine MRM Nanjing production platform: Andesu established the Nanjing plant in 2013, and the existing Nanjing plant has achieved production levels of 150,000 tons of liquid methine at full capacity after the construction of the project was completed in 2016 The capacity of the existing Nanjing plant will be expanded to 170,000 tons per year after the completion of the de-bottleneck project at the existing Nanjing plant To meet the growing needs of our customers and consolidate its leadership position, the Board of Directors of Blue Star Andesu Co., Ltd approved the construction of a new plant with an annual production capacity of 180,000 tons of liquid methionine on January 16, 2018 The plant will be located in the Nanjing Hexachemical Park, next to the existing Andesu Nanjing plant The project is expected to be operational by mid-2021 with an investment budget of approximately $490 million Thanks to the existing Nanjing plant, Andesu has managed to increase its market share from 24% to 27% between 2012 and 2017, despite new entrants and new capacity from existing manufacturers Andesu hopes to continue to lead in the future through projects such as the European production platform expansion project and the new production platform in Nanjing According to the annual report, Novicos has the highest market share in The North American market, with Evonik and Andesu as the main players, while In China and Asia Pacific, Evonik, Andesu and Sumitomo are the main players, with relatively low market share in Novo, and in other regional markets, the main players are Evonik, Andesu and Noves MRM Vitamins: Andesu has a 21% market share in vitamin A Andesu owns a vitamin A production plant, and Andesu buys raw materials and produces vitamin A through a variety of sourcing channels, including some large chemical companies In early November 2017, the company's largest intermediate material supplier, the production plant, resulting in a shortage of raw materials, and Andesu has handled the resulting global vitamin A crisis Vitamin A production is now expected to resume in the second quarter of 2018 On the sales side, and Esso sales team has full knowledge of the customer situation and is taking all possible measures to minimize the impact on the customer Although existing sales orders will not be affected, the remaining supply at this stage will be very limited On the market, Andesu expects global vitamin A production to be reduced by more than 50% As a result, the vitamin A market will be in short supply in the coming months The market price of vitamin A has risen rapidly, to a six-fold increase between November 2017 and the end of the year Vitamin E prices are also affected, increasing fourfold over the same period, but the impact on performance will be largely reflected in 2018 The pricing environment of vitamins is mainly affected by the changes in supply and demand The main application areas for vitamin A and vitamin E products are animal feed However, vitamin E is also affected by fluctuations in the human food, pharmaceutical and cosmetic markets MRM highly concentrated capacity in the global methionine market, controlled by giants such as Evonik, Andesu, Noves and Sumitomo The demand for methionine in the Asia-Pacific region, including China, is growing rapidly due to factors such as population growth, improved economic levels in developing countries and the continuous development of modern livestock farming In an effort to consolidate its existing market position, the international industry giants have gradually increased their investment in the region At the same time, domestic enterprises represented by Ningxia Ziguang and Zhejiang XinheCheng have also accelerated the pace of development and continued investment in capacity expansion Products from Zhejiang Xinhe's 50,000-ton methionine production line entered the market in the first half of 2017 However, with a global total demand of approximately 1.265 million tons, the new capacity of 50,000 tons designed for this part did not have a particular impact on the market Higer's sales increased year-on-year in 2017 However, year-on-year growth in supply across the market has been relatively limited, with some of the new capacity absorbed by increased market demand According to feedinfo's December 2017 report, there has been only a modest increase in the number of new capacity on the market over the past 12 months The global major methionine producer capacity (in kilotons/year) is as follows: MRM MRM New Entrants in China (Ningxia Ziguang, XinheCheng) all started new capacity projects between 2016 and 2017 All other original market participants (Sumitomo, Evonik, Noves and Andesu) have also announced that additional capacity will be available in 2018-2021, and methionine supply capacity will continue to grow In this regard, With the help of part of the production process does not rely on petrochemical raw materials, through the development of diversified, more competitive sources of raw materials to reduce their production costs Andy Suee takes steps to improve its competitiveness, including strict cost control, continuous improvement of production processes, increased capacity and the provision of high value-added services and the continuous enrichment of its product portfolio MRM recently released its 2017 annual report, its operating income in 2017 was 10.4 billion yuan, down 2.72% YoY, and the net profit attributable to shareholders of listed companies was RMB1.32 billion, down 29.06% YoY The Main Business of the AndesU Group is the research and development, production and marketing of animal nutrition additives, its 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) According to the annual report of the methionine and vitamin information collated for reference, see: MRM 2017 methionine market competition, methionine product prices have dropped significantly However, Andesu's full-year operating income has remained largely stable The company's sales of methionine increased significantly by 11% in 2017, with liquid methionine sales increasing even more than the industry average of 6% annual growth in the global methionine market demand, and revenue from functional products was driven mainly by the methionine business Revenue decreased 7% yoy, primarily due to a significant decrease in methionine prices in 2017 compared to 2016 However, methionine sales increased significantly by 11%, particularly in liquid methionine, partially offsetting the negative impact of lower methionine prices The impact of adverse factors such as the USD/EURO exchange rate and the rising cost of purchasing raw materials led to a decline in gross margins, but earnings remained at a relatively good level MRM MRM Andesu functional products mainly include methionine and vitamins Methionine is one of the main products of the Andesu Group and one of the few producers in the world that can produce both solid and liquid methionine Andesu is also an important player in the vitamin market, offering a full range of vitamin products, including A, B, D3, E, H and more Andesu already has two production platforms (Europe and Nanjing) and further expansion of production capacity in Nanjing and Europe, with Anisu adding 50,000 tons of liquid methionine production capacity in 2018 thanks to the Expansion of the European production platform, while Andesu will add 9,000 tons of new product Roddime A-Dry The new plant for liquid methionine, which is approved for construction in 2018, has an annual output of 180,000 tons and is located in the Nanjing Hexachemical Park, adjacent to the existing Nanjing plant in Andesu See MRM MRM European production platform: this early production platform consists mainly of four factories: the Les Roches plant, the upstream raw material plant, the first intermediate MMP for the production of synthetic methionine, supplied to the Chessry plant in France and the Roussillon plant to produce solid methionine, and the Burgos plant in Spain for the production of liquid methionine Andessoannounced a European production platform expansion project in 2016 that will increase the production capacity of the liquid methionine plant in Europe by 50,000 tons/year Total investment in the project: EUR 110 million, including the addition of a third production line at the Burgos plant, and additional ancillary investment in the upstream plant at the Les Roches plant It is expected to be completed by the end of 2018 In addition, with the commercialization of Roddy Methane ® A-Dry Plus project in 2018, Andesu is able to market 9,000 tons of innovative powdered methionine products, enabling customers who cannot use liquid methionine due to product or production processes to enjoy the benefits of liquid methionine MRM Nanjing production platform: Andesu established the Nanjing plant in 2013, and the existing Nanjing plant has achieved production levels of 150,000 tons of liquid methine at full capacity after the construction of the project was completed in 2016 The capacity of the existing Nanjing plant will be expanded to 170,000 tons per year after the completion of the de-bottleneck project at the existing Nanjing plant To meet the growing needs of our customers and consolidate its leadership position, the Board of Directors of Blue Star Andesu Co., Ltd approved the construction of a new plant with an annual production capacity of 180,000 tons of liquid methionine on January 16, 2018 The plant will be located in the Nanjing Hexachemical Park, next to the existing Andesu Nanjing plant The project is expected to be operational by mid-2021 with an investment budget of approximately $490 million Thanks to the existing Nanjing plant, Andesu has managed to increase its market share from 24% to 27% between 2012 and 2017, despite new entrants and new capacity from existing manufacturers Andesu hopes to continue to lead in the future through projects such as the European production platform expansion project and the new production platform in Nanjing According to the annual report, Novicos has the highest market share in The North American market, with Evonik and Andesu as the main players, while In China and Asia Pacific, Evonik, Andesu and Sumitomo are the main players, with relatively low market share in Novo, and in other regional markets, the main players are Evonik, Andesu and Noves MRM Vitamins: Andesu has a 21% market share in vitamin A Andesu owns a vitamin A production plant, and Andesu buys raw materials and produces vitamin A through a variety of sourcing channels, including some large chemical companies In early November 2017, the company's largest intermediate material supplier, the production plant, resulting in a shortage of raw materials, and Andesu has handled the resulting global vitamin A crisis Vitamin A production is now expected to resume in the second quarter of 2018 On the sales side, and Esso sales team has full knowledge of the customer situation and is taking all possible measures to minimize the impact on the customer Although existing sales orders will not be affected, the remaining supply at this stage will be very limited On the market, Andesu expects global vitamin A production to be reduced by more than 50% As a result, the vitamin A market will be in short supply in the coming months The market price of vitamin A has risen rapidly, to a six-fold increase between November 2017 and the end of the year Vitamin E prices are also affected, increasing fourfold over the same period, but the impact on performance will be largely reflected in 2018 The pricing environment of vitamins is mainly affected by the changes in supply and demand Life.