Amino Acids China E-News 1509

Date: 2015-10

“On 1 Sept.,2015, the newly revised Advertising Law was implemented. There are now more specific requirements and criteria for advertising, and punishments are heavier than ever. The newly revised Advertising law is likely to change the development conditions of advertising in many industries, especially the drugs and health-care industries.
On 30 Aug.,2015, Global Bio-chem announced to introduce USD232.2 million (HKD1.8 billion) for capital expansion. After that, it will gain large number of capital bail out the plight of capital. However, the company still faces challenges including overcapacity and good performance of competitors.
In H1 2015, Fufeng Group recorded a sharp YoY growth in net profit, fuelled by newly increased income from selling a subsidiary. Meanwhile, its gross profit margin represented a slight YoY growth, which was driven by the outstanding performance of amino acid segment.
In H1 2015, Real Nutriceutical recorded a slight YoY growth in revenue but YoY fall in gross profit and net profit, because of increasing distribution expenses and loss from exchange rate fluctuations. In this period, the com raised funds, through share allotment, in the hope of acquiring Shenzhen Ailire as soon as possible.
In H1 2015, Chengzhi showed unsatisfactory performance. Of this, biological pharmaceutical segment posted the largest losses to the company.
Shine Star (Hubei) has obtained production permit for arginine API. This move will extent industrial chain and bring cost advantage for the company.
In Sept.2015, the domestic market price of lysine went down, mainly due to a continual fall in raw material corn price, manufacturers resuming production and slow recovery in feed industry demand for lysine.
In Sept.2015, the market price of tryptophan went down, due to manufacturers resuming supply and weakened demand from downstream industry.
In Sept.2015, the market price of methionine continued to drop in China, especially for liquid methionine.The price fall can be attributed to the increasing import volume and weak domestic demand.
In July 2015, China’s import volume of methionine grew month on month, of this, the imports from Belgium recovered.
In July 2015, Chinese lysine ester and salt recorded a small growth in export volume but a slight fall in export value, probably driven by manufacturers’ sale promotions.
In July 2015, the export volume of China’s cystine grew sharply compared with June, driven by the increasing demand from Germany and India.

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