Net profit attributable to owners of the Company amounted to HK$626.5 million (€55.66m), 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 HK$1.8 billion (+71%) and HK$100.4 million (+21%) respectively.
The increase in revenue and gross profit was mainly attributable to a year-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 metric 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 HK$4.9 billion (+83%) and HK$1.5 billion (+179%).
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 HK$3.3 billion and HK$1.2 billion respectively as compared with those of the same period last year.
“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.
“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,” said Liu Xiaoming, Co-chairman of Global Bio-chem.
Ammonia production increase
Meanwhile, the Group will also start to produce ammonia, one of the major raw materials of lysine, with expected annual production capacity of 120,000 metric tonnes at its Xinglongshan facility by end of 2011. The in-house production of ammonia will provide the Group with sufficient raw materials for its lysine production and lower its production cost.
Despite the presence of economic uncertainties in the United States and certain European countries, the Group successfully attained a moderate growth in export sales. Revenue from export sales was approximately HK$1,364 million, representing an increase of HK$365 million as compared to that of the same period last year.
Looking into the second half of 2011, Xu Zhouwen, co-chairman of Global Bio-chem, said: “Although the global economy is most likely to see further uncertainties and fluctuations, we are prepared to respond to any market changes brought by possible global economic slowdown.
“Global Bio-chem will strive to maintain its market share and increase diversity in its product mix, as well as enhance its capability in developing high value-added downstream products through research and development and forming strategic business alliances with prominent international market leaders.”