September 5, 2011
Global Bio-chem reports 158% increase in gross profit for H1
Global Bio-chem Technology Group Company Limited has reported increases of 77% and 158% in revenue and gross profit respectively for the first half of 2011.
Net profit attributable to owners of the company amounted to HKD626.5 million (US$80.4 million), representing a fivefold upsurge from that of the corresponding period last year.
In the first half of 2011, revenue and gross profit of the Bio-chem''s upstream corn refined products reached HKD1.8 billion (US$0.23 billion) and HKD100.4 million (US$12.9 million) respectively.
The increase in revenue and gross profit was mainly attributable to an on-year increase of approximately 37% in sales volume of all upstream products and a 24% increase in the average selling price.
The increase in sales volume was achieved on the back of 600,000 tonnes additional corn processing capacity of the corn refinery in Xinglongshan since the second half of 2010.
Revenue and gross profit of the Group''s downstream products, including amino acids (Bio-chem''s major business), polyol chemicals, modified starch, and corn sweeteners, in the first half of 2011, amounted to approximately HKD4.9 billion (US$0.6 billion) and HKD1.5 billion (US$0.2 billion).
Strong demand for food and necessities such as meat and egg in the first half of 2011 drove demand and selling prices of amino acids, leading to upsurges in the revenue and gross profit of amino acids of 97% and 199% to approximately HKD3.3 billion (US$0.4 billion) and HKD1.2 billion (US$0.15 billion) respectively as compared with those of the same period last year.
In view of the continuous rise in living standards in the PRC, the Group has been striving to increase its lysine production capacity to meet the robust demand for lysine products.
"We understand success in our industry lies in the constant process of invention and re-invention. Therefore, the Group has always placed immense focus on research and development.
"As the world''s largest lysine products supplier, we will maintain our leading position through technological upgrade, capacity expansion and continued focus on research and development," said Liu Xiaoming, Co-chairman of Global Bio-chem. "We believe the increase in lysine production capacity, together with the increase in demand for feed products driven by accelerating consumption of meat and eggs will further consolidate the Group''s leading position in the lysine market."