Amino Acids China E-News(Amino Acids China E-News 202404)

Welcome to the April issue of Amino Acids China E-News.

Several listed companies have released their financial performance reports for 2023. For the reporting period ended 31 Dec., 2023:

• Fufeng Group reported a YoY increase in revenue, but a decrease in gross profit, with lysine products performing better than threonine products in terms of operating statistics.
• Bluestar Adisseo's revenue and net profit both declined YoY, mainly due to poor performance of functional products such as methionine.
• Hebang Biotech's revenue from methionine and its by-products business increased YoY, though the gross profit margin decreased.
• Zhejiang NHU saw both revenue and net profit decline YoY, primarily due to poor performance in the nutrition products business that includes vitamins and amino acids.
• Huaheng Biotech reported increases in both revenue and net profit YoY, with amino acid products showing strong performance.

Project developments:

• In the "production project of 3,000 t/a amino acids and derivative series products", Xinranyu Pharma is introducing several new product categories, and adjusting planned production capacities. Xinranyu Pharma revised the EI report and re-submitted it for approval.
• The passing results of post-completion EP acceptance inspection on Bayannur Huaheng's "16,000 t/a three branched-chain amino acids and derivative project" were published.
• The EI report of Chuzhou Huarui's "renovation project for 1,525 t/a high-value amino acid and derivative, and 200 t/a glucose derivative" was approved.
• Planned capacities in Hwatson Biochem's "sodium sarcosinate 30% solution project" underwent changes. The project's EI report was approved.
• The EI report of Bokeli Biotech's "integrated project for scientific innovation, research, development and production of synthetic biology (products)", which will deliver 1,440 t/a of capacity for γ-Aminobutyric acid, was accepted and published.

Governmental Direction:

• MARA approved the new registration or registration renewal of 9 imported feed or feed additive products related to amino acids.
• The draft of revised national drug standard for Compound Amino Acids Injection (14AA) was made open by ChPC for public comments.

Price: In April, the markets of lysine and threonine started off active but later declined, with their overall price trajectories trending upwards. In contrast, the methionine and tryptophan markets were relatively subdued, resulting in weak price trends.

Import and Export: In the first quarter of 2024, China's export volume of lysine ester and salt increased by 31.64% YoY, continuing the growth trend since the second half of 2023.

Reminders:

1. The USD/CNY exchange rate in this newsletter is USD1.00=CNY7.0938, which was sourced from the People's Bank of China on 1 April, 2024. All the prices mentioned in this newsletter will include the VAT, unless otherwise specified.
2. In this newsletter, the variance rates (MoM, QoQ, YoY, etc.) of all figures that involve RMB/USD conversion (prices, sales values, costs, etc.) are calculated with pre-conversion RMB prices/values, except for the figures in Import and Export column.