Jindan Technology's revenue and net profit increase in Q1 2024

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Publish time: 30th July, 2024      Source: CCM
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    Summary: In Q1 2024, Jindan Technology achieved revenue of USD49.12 million (RMB350.08 million), representing a YoY increase of 7.96%, and its net profit attributable to shareholders of the listed company grew 9.99% YoY to USD2.40 million (RMB17.10 million).   

  

    Henan Jindan Lactic Acid Technology Co., Ltd. (Jindan Technology)'s production capacities for main products have remained stable since 2023, with the utilisation rate staying at a relatively high level; its lactic acid products recorded a slight decrease in output due to "Inventory Clearance" policy but a small increase in the sales volume; the company vigorously expanded lactate markets, driving an increase in production and sales; however, the production and sales volume of by-products dropped along with the reduction in lactic acid output, and due to the intensified market competition, Jindan Technology saw a decline in the prices of its main products in 2023.   

  Table Jindan Technology's sales and production of main products
  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
            Product                        Item                        2021                        2022                        2023                        Q1 2024           
            Lactic acid                        Capacity, t/a                        155,000                        155,000                        155,000                        155,000           
            Output, tonne                        123,539                        120,034                        117,077                        33,448           
            Sales volume, tonne                        100,768                        91,917                        92,083                        26,114           
            Price, USD/t                        1,196                        1,316                        1,184                        1,113           
            Lactate                        Capacity, t/a                        23,000                        28,000                        28,000                        28,000           
            Output, tonne                        28,343                        30,164                        35,198                        9,964           
            Sales volume, tonne                        28,172                        31,835                        34,889                        9,338           
            Price, USD/t                        1,179                        1,311                        1,208                        1,178           
            By-products                        Capacity, t/a                        80,000                        100,000                        100,000                        100,000           
            Output, tonne                        84,381                        77,878                        75,123                        16,710           
            Sales volume, tonne                        87,011                        77,314                        73,631                        14,847           
            Price, USD/t                        297                        349                        313                        201           
  

Note: 1. The lactate production line is operating beyond its capacity, mainly due to the relatively short production process. Production efficiency is improved by increasing direct labor and improving workflow without adding major equipment.2. In addition to direct sales, a portion of lactic acid is also used internally as a raw material for the production of lactate, etc.

Source: Jindan Technology

  

    Jindan Technology has a certain locational advantage, which helps reduce the cost of raw material transportation. In addition, the company also has a corn production capacity of approximately 15,000 t/a–17,500 t/a as of the end of March 2024.   

  Table Jindan Technology's raw material procurement
  
                                                                                                                                                                                                                                                                        
            Raw material                        Item                        2021                        2022                        2023                        Q1 2024           
            corn                        Purchase quantity, tonne                        278,900                        219,500                        275,300                        52,600           
            Purchase price, USD/t                        400                        391                        387                        333           
  


Source: Jindan Technology

  Table Status of ongoing and proposed projects as of March 2024
  
                                                                                                                                                                                                                                                                               
            Project                        Budget, USD million                        Proportion of Cumulative Invested Amount Against Budget                        Estimated completion and operation time           
            60,000 t/a biodegradable polyester and its products project                        65.42                        96.74%                        -           
            75,000 t/a polylactic acid biodegradable new material project                        123.78                        1.36%                        Aug. 2025           
            50,000 t/a lactic acid production expansion project                        43.92                        2.24%                        Dec. 2024           
  


Source: Jindan Technology

  Source:CCM

  

  

     

    More information can be found at CCM Acidity Regulator China Quarterly Report   

  

       

  

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