CCM: China Starch achieves revenue growth in lysine segment in 2014 09-08-2016

China Starch recorded a substantial revenue growth in lysine products in 2014, driven by an increase in sales orders from overseas customers. Under the lysine market downturn of last year, China Starch was confronted with huge challenges.


Source: Bing

In 2014, China Starch Holdings Limited (China starch) achieved USD109 million (RMB671.21 million) of revenue from lysine segment, increasing substantially by 30.0% year on year. This business segment includes lysine, fertilizers and other deep-processing products.


The revenue growth was mainly attributable to an increase in sales orders from customers, in line with the continuous exploration of the overseas markets. In 2014, the company recorded a substantial YoY growth of 58% to 112,351 tonnes in lysine product sales. Due to the overcapacity of lysine and intense competition in the domestic market, China Starch, like most of the domestic lysine enterprises, quicken the pace to overseas expansion. According to China Customs, the export volume of lysine ester and salt amounted to 256,963 tonnes, hitting a record high, with a 34% year-on-year growth rate.


The sales performance was disappointing in the first half of 2014 due to the depressed animal feed market, leading to consecutive losses on the lysine export trade from March to May 2014. Additionally, the average selling price of lysine has fallen to an all-time low of less than USD895/t (RMB5,500/t) in Q2, and its price decreased by USD195/t (RMB1,200/t) in 2014 compared with that of 2013.


The company has completed the relocation of the production facilities at the end of 2014. At present, the annual lysine production capacity is 105,000 t/a, mainly for 98.5% lysine and 65% lysine.


Established in 2006, China Starch is mainly engaged in the production of cornstarch, starch sugar, corn by-products and the sales of electricity and steam.

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