May 8, 2006

China's Global Bio-Chem revenue up 21 percent in 2005

China's Global Bio-Chem Technology Group(GBTG) has announced that consolidated revenues for 2005 totalled about HK$4.1 billion (about US$528.974 million), up 21 percent on-year due to increased production capacity.

Despite weak domestic lysine prices throughout 2005, GBTG said full efforts were made to control production cost and maximise capacity utilisation. The company reported a gross profit margin of 26 percent, with a net profit of HK$466 million (about US$60.117 million) attributed to shareholders.

According to Co-chairman Liu Xiaoming of GBTG, the group "maintained full utilisation of its lysine production lines during a period of weak product prices and high transport costs."

GBTG said that in 2005, the average price of all lysine products fell by 36 percent on-year. Gross profit from lysine sales fell by about HK$422 million (about US$54.441 million) or 51 percent.

The group reports its annual production of lysine and protein lysine at 140,000 tonnes and 220,000 tonnes respectively.

GBTG estimates current lysine consumption in China at over 250,000 tonnes annually. However, the group said animal diseases in China and oversupply worldwide last year weighed on domestic lysine prices.

According to GBTG, the group's lysine exports rose from 15,000 tonnes in 2004 to 50,000 tonnes in 2005. This accounted for about 21 percent of GBTG's production last year. The group also seeks to increase lysine exports to the US, Europe and Africa.