September 3, 2004

China's Major Lysine Producer Global Bio-Chem's Net Profit for First Half 2004 Up 83.84% To HK$421 Million

An eFeedLink Exclusive Report

Global Bio-Chem Technology Group Co. Ltd, a Hong Kong-listed corn processor and major lysine producer in China, announced recently that its net profit for the first half-year of 2004 rose 83.84% on increased sales of lysine products, a feed additive used mainly in hog feed.
 

The company posted a net profit of HK$421 million (US$54 million) for the first six months of this year, compared with net profit of HK$229 million for the same period last year.

In 2003, Global Bio-Chem's lysine sales totaled 47,000 metric tons. Lysine products accounted for 50 % of the company's total gross profit in the first half of 2004.

Lysine prices in China have been on the downward trend since late March this year mainly due to supply largely outstripping demand. 

Global Bio-Chem also produces corn-based biochemical products and cornstarch, corn oil gluten, sugar derivatives, and feed at its plants in China's northeastern provinces of Jilin and Liaoning.

It's turnover in the first half of this year was up by 41% from the previous year to HK$1.45 billion.
 

The Group is reportedly working on furthering the application of its products from animal feed, food and beverage, paper making and pharmaceutical industries to the chemical industry through the use of biochemical technology to produce polyol. It had begun trial production of polyol or polyhydric alcohol in July this year.