Core Viewpoint - China Starch (03838) reported a revenue of 5.115 billion RMB for the six months ending June 30, 2025, representing a year-on-year decrease of 9.4% [1] - The company's attributable profit was 151 million RMB, down 29.47% year-on-year, with basic earnings per share at 0.0254 RMB [1] Revenue and Profit Analysis - The decline in revenue was primarily due to a decrease in the average selling price of products and total sales volume [1] - The significant increase in the market price of corn kernels, a key raw material, contributed to the financial pressures faced by the company [1] Margin and Cost Pressure - The company experienced downward pressure on product prices and a substantial rise in raw material costs, leading to a reduction in gross profit [1] - The gross profit for the six months ending June 30, 2025, was 429 million RMB, compared to 507 million RMB in 2024 [1]

Core Viewpoint - China Starch (03838.HK) reported a decline in mid-term performance, with revenue decreasing by 9.40% year-on-year to RMB 5.115 billion, and net profit attributable to shareholders dropping by 29.47% to RMB 151 million [1] Financial Performance - Revenue for the period was RMB 5.115 billion, a decrease of 9.40% compared to the previous year [1] - Net profit attributable to shareholders was RMB 151 million, down 29.47% year-on-year [1] - Basic earnings per share were RMB 0.0254 [1] Market Conditions - The decline in revenue was primarily due to a decrease in the average selling price of the company's products and a reduction in total sales volume [1] - The price of corn kernels, a key raw material, significantly increased during the period [1] Profitability Challenges - The company faced pressure from both declining product prices and rising raw material costs, leading to a reduction in gross profit [1] - These adverse changes have significantly impacted the company's profit margins [1]

CHINA STARCH HOLDINGS LIMITED 中國澱粉控股有限公司 董事會提名委員會職權範圍 Terms of Reference of the Nomination Committee of the Board of Directors Version: 8/2025 China Starch Holdings Limited (the "Company") 中國澱粉控股有限公司(「本公司」) -------------------------------------------------- Terms of Reference of the Nomination Committee (the "Committee") of the Board of Directors (the "Board") of the Company 本公司董事會(「董事會」) 提名委員會(「委員會」)職權範圍 (中文本爲翻譯稿，僅供參考用) 1.1 The Committee is established pursuant to a resolution passed by the Board at its me ...

[Corporate Information and Announcements](index=1&type=section&id=%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF%E4%B8%8E%E5%85%AC%E5%91%8A%E5%A3%B0%E6%98%8E) [Disclaimer](index=1&type=section&id=%E5%85%AC%E5%91%8A%E5%A3%B0%E6%98%8E) The Hong Kong Exchanges and Clearing Limited disclaims responsibility for this announcement's content and any loss arising from reliance upon it[1](index=1&type=chunk) [Corporate Information](index=1&type=section&id=%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E4%BF%A1%E6%81%AF) China Starch Holdings Limited (Stock Code: 3838) announces its unaudited consolidated interim results for the six months ended June 30, 2025[2](index=2&type=chunk)[3](index=3&type=chunk) [Consolidated Financial Statements](index=1&type=section&id=%E5%90%88%E5%B9%B6%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=1&type=section&id=%E5%90%88%E5%B9%B6%E6%8D%9F%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E7%BB%BC%E5%90%88%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the Group's revenue decreased by 9.4% to RMB 5.115 billion, with profit for the period declining by 15.7% Key Data from Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | For the six months ended June 30, 2025 (RMB'000) | For the six months ended June 30, 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 5,114,852 | 5,645,514 | -9.4% | | Cost of sales | (4,686,096) | (5,138,334) | -8.8% | | Gross profit | 428,756 | 507,180 | -15.4% | | Operating profit | 279,725 | 342,483 | -18.3% | | Profit before tax | 297,133 | 355,294 | -16.4% | | Profit and total comprehensive income for the period | 225,636 | 267,482 | -15.7% | | Profit attributable to owners of the Company | 151,390 | 214,659 | -29.5% | | Basic and diluted earnings per share (RMB) | 0.0254 | 0.0360 | -29.4% | [Consolidated Statement of Financial Position](index=2&type=section&id=%E5%90%88%E5%B9%B6%E8%B4%A2%E5%8A%A1%E7%8A%B6%E5%86%B5%E8%A1%A8) As of June 30, 2025, the Group's total assets remained stable at RMB 6.96 billion while total liabilities decreased, indicating an optimized financial structure Key Data from Consolidated Statement of Financial Position | Metric | As at June 30, 2025 (RMB'000) | As at December 31, 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Total non-current assets | 2,490,059 | 2,539,526 | -1.9% | | Total current assets | 4,469,492 | 4,419,363 | +1.1% | | **Total assets** | **6,959,551** | **6,958,889** | **+0.01%** | | **Equity** | | | | | Equity attributable to owners of the Company | 4,204,055 | 4,105,970 | +2.4% | | Non-controlling interests | 448,431 | 387,685 | +15.7% | | **Total equity** | **4,652,486** | **4,493,655** | **+3.5%** | | **Liabilities** | | | | | Total non-current liabilities | 214,568 | 306,648 | -30.0% | | Total current liabilities | 2,092,497 | 2,158,586 | -3.0% | | **Total liabilities** | **2,307,065** | **2,465,234** | **-6.4%** | - Borrowings under non-current liabilities were reduced to **zero** as of June 30, 2025, from RMB 59,267 thousand at the end of 2024[4](index=4&type=chunk) [Notes to the Financial Statements](index=4&type=section&id=%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%99%84%E6%B3%A8) [Basis of Preparation](index=4&type=section&id=%E7%BC%96%E8%A3%BD%E5%9F%BA%E6%BA%96) The interim financial statements are prepared in accordance with HKAS 34 and the Listing Rules, using accounting policies consistent with the 2024 annual report - The condensed consolidated interim financial statements are prepared in accordance with the Listing Rules of The Stock Exchange of Hong Kong Limited and HKAS 34[6](index=6&type=chunk) - The statements are presented in RMB and prepared under the historical cost convention, as modified by the revaluation of certain financial assets and liabilities[6](index=6&type=chunk) [Adoption of New/Revised Hong Kong Financial Reporting Standards (HKFRSs)](index=4&type=section&id=%E6%8E%A1%E7%B4%8D%E6%96%B0%E8%A8%82%E2%95%B1%E7%B6%93%E4%BF%AE%E8%A8%82%E9%A6%99%E6%B8%AF%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A%E6%BA%96%E5%89%87) The Group adopted an amendment to HKAS 21 in 2025, which had no material impact on its financial position or performance - The Group adopted the amendment to HKAS 21 "Lack of Exchangeability" in 2025[7](index=7&type=chunk) - The amendment did not have any impact on the Group's results and financial position[7](index=7&type=chunk) [Segment Information](index=4&type=section&id=%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group operates two segments, with upstream product performance declining significantly while fermentation and downstream product performance improved External Sales and Performance by Segment | Segment | For the six months ended June 30, 2025 (RMB'000) | For the six months ended June 30, 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | **External Sales** | | | | | Upstream products | 3,149,725 | 3,524,090 | -10.7% | | Fermentation and downstream products | 1,965,127 | 2,121,424 | -7.4% | | **Total** | **5,114,852** | **5,645,514** | **-9.4%** | | **Reportable Segment Performance** | | | | | Upstream products | 5,607 | 98,337 | -94.3% | | Fermentation and downstream products | 295,113 | 255,951 | +15.3% | | **Total** | **300,720** | **354,288** | **-15.1%** | [Other Net Income](index=5&type=section&id=%E5%85%B6%E4%BB%96%E6%B7%A8%E6%94%B6%E5%85%A5) Other net income decreased by 13.9% to RMB 49.4 million, primarily due to an increased loss on the disposal of property, plant, and equipment Breakdown of Other Net Income | Item | For the six months ended June 30, 2025 (RMB'000) | For the six months ended June 30, 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Amortisation of government grants | 37,530 | 38,977 | -3.7% | | Gain on sales of scrap materials | 12,855 | 14,611 | -12.0% | | Net foreign exchange gain | 2,644 | 4,265 | -38.0% | | Loss on disposal of property, plant and equipment | (6,216) | (512) | +1114.1% | | Government grants | 253 | 131 | +93.1% | | Gain on futures | – | 333 | -100.0% | | Others | 2,371 | (389) | +709.0% | | **Total** | **49,437** | **57,416** | **-13.9%** | [Profit Before Tax](index=5&type=section&id=%E9%99%A4%E7%A8%85%E5%89%8D%E5%88%A9%E6%BD%A4) The Group's profit before tax was RMB 297.1 million, with notable changes in major expenses including a significant decrease in research costs Breakdown of Major Expenses | Item | For the six months ended June 30, 2025 (RMB'000) | For the six months ended June 30, 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Cost of inventories | 4,018,342 | 4,465,085 | -10.0% | | Salaries and other related expenses | 153,658 | 136,605 | +12.5% | | Depreciation of property, plant and equipment | 134,737 | 136,663 | -1.4% | | Depreciation of right-of-use assets | 5,185 | 5,185 | 0.0% | | Delivery and logistics | 46,767 | 65,622 | -28.7% | | Research expenses | 20,731 | 43,689 | -52.6% | - Research expenses include the cost of inventories, staff costs of the R&D department, and depreciation[10](index=10&type=chunk) [Income Tax Expense](index=5&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) Income tax expense decreased by 18.6% to RMB 71.5 million, mainly due to a reversal of deferred tax liabilities and over-provision in prior years Breakdown of Income Tax Expense | Item | For the six months ended June 30, 2025 (RMB'000) | For the six months ended June 30, 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Current income tax - PRC Enterprise Income Tax | 80,797 | 45,298 | +78.4% | | Over-provision in prior years | (4,933) | – | N/A | | Deferred tax | (4,367) | 42,514 | -110.3% | | **Total** | **71,497** | **87,812** | **-18.6%** | - The enterprise income tax rate for PRC subsidiaries is **25%**, with a preferential rate of **15%** for high-tech enterprises[11](index=11&type=chunk) - The PRC withholding tax rate was reduced from **10%** in 2024 to **5%** in 2025[12](index=12&type=chunk) [Earnings Per Share](index=6&type=section&id=%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) Basic earnings per share for the period decreased by 29.4% to RMB 0.0254, with no diluted EPS presented due to the absence of dilutive shares Calculation of Earnings Per Share | Metric | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Profit attributable to owners of the Company (RMB'000) | 151,390 | 214,659 | -29.5% | | Weighted average number of ordinary shares in issue ('000) | 5,964,492 | 5,965,532 | -0.02% | | **Basic earnings per share (RMB)** | **0.0254** | **0.0360** | **-29.4%** | - No diluted earnings per share was presented as there were no potential dilutive ordinary shares in either period[13](index=13&type=chunk) [Dividends](index=6&type=section&id=%E8%82%A1%E6%81%AF) The Board does not recommend an interim dividend for the first half of 2025, but a final dividend for 2024 was approved in May 2025 - The Board does not recommend the payment of an interim dividend for H1 2025 (H1 2024: Nil)[14](index=14&type=chunk) - On May 20, 2025, shareholders approved a final dividend of **HK 0.98 cents** per share for 2024 (2023: HK 0.69 cents)[14](index=14&type=chunk) [Trade and Other Receivables](index=6&type=section&id=%E8%B2%BF%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE) Total trade and other receivables increased by 22.1% to RMB 535.3 million, driven by higher trade receivables and prepayments Breakdown of Trade and Other Receivables | Item | As at June 30, 2025 (RMB'000) | As at December 31, 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Trade receivables | 157,110 | 82,970 | +89.4% | | Bills receivable - bank acceptance | 274,145 | 280,774 | -2.4% | | Prepayments and other tax receivables | 94,217 | 52,993 | +77.8% | | Others | 9,853 | 21,602 | -54.3% | | **Total** | **535,325** | **438,339** | **+22.1%** | Ageing Analysis of Trade Receivables | Ageing | As at June 30, 2025 (RMB'000) | As at December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | 0 to 30 days | 152,266 | 75,434 | | 31 to 60 days | 4,844 | 7,190 | | 61 to 90 days | – | 346 | | **Total** | **157,110** | **82,970** | - The Group generally grants a credit period of 0 to 150 days to its customers[15](index=15&type=chunk) [Trade and Other Payables](index=7&type=section&id=%E8%B2%BF%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE) Total trade and other payables decreased by 4.3% to RMB 345.3 million, mainly due to the settlement of notes payable and lower other tax payables Breakdown of Trade and Other Payables | Item | As at June 30, 2025 (RMB'000) | As at December 31, 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Trade payables | 154,180 | 157,694 | -2.2% | | Notes payable | – | 2,000 | -100.0% | | Payables for construction and equipment | 56,335 | 60,639 | -7.0% | | Salaries and welfare payables | 48,978 | 43,806 | +11.8% | | Accrued expenses | 32,878 | 42,555 | -22.7% | | Other tax payables | 12,876 | 24,665 | -47.8% | | Tender deposits | 31,982 | 20,757 | +54.1% | | **Total** | **345,263** | **360,653** | **-4.3%** | Ageing Analysis of Trade and Notes Payables | Ageing | As at June 30, 2025 (RMB'000) | As at December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | 0 to 60 days | 133,346 | 134,654 | | 61 to 90 days | 1,120 | 2,164 | | Over 90 days | 19,714 | 22,876 | | **Total** | **154,180** | **159,694** | - The average credit period for purchases is 80 days[18](index=18&type=chunk) [Management Discussion and Analysis](index=8&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) [Industry Overview and Corporate Development](index=8&type=section&id=%E8%A1%8C%E6%A5%AD%E6%A6%82%E8%A6%BD%E5%8F%8A%E5%85%AC%E5%8F%B8%E7%99%BC%E5%B1%95) The Group faced economic headwinds, intense market competition, and margin pressure from rising corn costs but maintains a stable financial position - In H1 2025, the domestic economy faced challenges with sluggish demand and ongoing Sino-US trade disputes, leading to market oversupply and downward price pressure[20](index=20&type=chunk) - The corn starch and deep processing industry saw stable capacity but faced intensified competition from low-cost imported tapioca starch and weak demand from the feed and breeding sectors[20](index=20&type=chunk) - Domestic corn prices rose steadily, but prices for corn starch and related products remained low due to weak demand, leading to **margin contraction**[21](index=21&type=chunk) - The Group's financial position remains **stable with sufficient funds**, and management has adopted a prudent strategy to control costs and improve operational efficiency[21](index=21&type=chunk) - The Linqing production base expansion project was delayed until early August due to permit approvals but is not expected to affect the 2026 trial production schedule[21](index=21&type=chunk) - The expansion project involved dismantling existing facilities, resulting in a **higher loss on disposal of obsolete equipment** in H1, with no significant further losses expected in H2[22](index=22&type=chunk) [Business Review](index=9&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) The upstream segment faced multiple pressures while the downstream segment saw improved gross profit despite lower revenue, driven by strategic shifts - **Upstream products (corn starch)** faced pressure from rising corn kernel prices due to lower imports, falling prices of substitutes like wheat/tapioca starch, and industry capacity expansion[23](index=23&type=chunk) - The **fermentation and downstream products** segment saw an overall revenue decline but improved gross profit through strategic adjustments and solid performance of new bio-based materials[24](index=24&type=chunk) - The **lysine business** strategically shifted its sales focus from overseas to domestic channels due to an anti-dumping investigation in China[24](index=24&type=chunk) - The **starch sugar business** faced challenges from weak demand in the catering industry and intensified competition from industry capacity expansion, pressuring profitability[24](index=24&type=chunk) - The **modified starch business** experienced a significant decrease in sales volume, mainly due to stricter wastewater control measures[24](index=24&type=chunk) - The **new bio-based materials business** performed satisfactorily, achieving growth by expanding its distribution network, attracting new customers, and launching new products[24](index=24&type=chunk) [Financial Performance](index=9&type=section&id=%E8%B2%A1%E5%8B%99%E8%A1%A8%E7%8F%BE) The Group's revenue and gross profit declined by 9.4% and 15.4% respectively, pressured by lower sales volume and rising raw material costs - The Group's revenue decreased to **RMB 5,114,852,000 (down 9.4% YoY)**, mainly due to a decline in both average selling prices and total sales volume[25](index=25&type=chunk) - A significant increase in the market price of corn kernels (the main raw material) led to a decrease in gross profit to **RMB 428,756,000 (down 15.4% YoY)**, putting significant pressure on profit margins[25](index=25&type=chunk) - Profit before tax was **RMB 297,133,000 (down 16.4% YoY)**, and profit after tax was **RMB 225,636,000 (down 15.7% YoY)**[25](index=25&type=chunk) [Segment Performance: Upstream Products](index=10&type=section&id=%E5%88%86%E9%83%A8%E8%A1%A8%E7%8F%BE%EF%BC%9A%E4%B8%8A%E6%B8%B8%E7%94%A2%E5%93%81) The upstream product segment's revenue and gross margin fell significantly due to rising corn costs, reduced demand, and competition from substitutes Upstream Products Segment Performance | Metric | For the six months ended June 30, 2025 (RMB'000) | For the six months ended June 30, 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 3,149,725 | 3,524,090 | -10.6% | | Gross Profit | 91,475 | 198,370 | -53.9% | | Gross Profit Margin | 2.9% | 5.6% | -2.7 p.p. | - Corn starch sales volume was approximately **856,500 tonnes** (2024: 891,288 tonnes), with an average selling price of approximately **RMB 2,465 per tonne** (2024: RMB 2,679 per tonne)[26](index=26&type=chunk) - Profitability was mainly affected by a significant increase in corn kernel costs, reduced market demand, and intensified competition from substitutes[26](index=26&type=chunk) [Segment Performance: Fermentation and Downstream Products](index=10&type=section&id=%E5%88%86%E9%83%A8%E8%A1%A8%E7%8F%BE%EF%BC%9A%E7%99%BC%E9%85%B5%E5%8F%8A%E4%B8%8B%E6%B8%B8%E7%94%A2%E5%93%81) The fermentation and downstream segment's revenue decreased by 7.4%, but its gross margin improved due to strategic adjustments and product mix changes Fermentation and Downstream Products Segment Performance | Metric | For the six months ended June 30, 2025 (RMB'000) | For the six months ended June 30, 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 1,965,127 | 2,121,424 | -7.4% | | Gross Profit | 337,281 | 308,810 | +9.2% | | Gross Profit Margin | 17.2% | 14.6% | +2.6 p.p. | Revenue Breakdown of Fermentation and Downstream Products | Product | For the six months ended June 30, 2025 (RMB'000) | For the six months ended June 30, 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Lysine | 1,553,051 | 1,605,963 | -3.3% | | Starch sugar | 222,607 | 247,926 | -10.3% | | Modified starch | 110,250 | 216,954 | -49.2% | | Others (incl. new bio-based materials) | 79,219 | 50,581 | +56.6% | - Domestic sales volume of lysine increased to **247,596 tonnes** (2024: 227,549 tonnes), while total sales volume rose slightly to approximately **275,187 tonnes** (2024: 273,256 tonnes), with the average selling price decreasing to **RMB 5,644 per tonne** (2024: RMB 5,877 per tonne)[28](index=28&type=chunk) - Both sales volume and average selling price of starch sugar decreased, with the proportion of liquid starch sugar rising to **81.7%**, leading to a lower overall average selling price[28](index=28&type=chunk) - Revenue from new bio-based materials and other products grew by **56.6%**, mainly benefiting from an enhanced distribution network[29](index=29&type=chunk) [Cost of Sales](index=11&type=section&id=%E9%8A%B7%E5%94%AE%E6%88%90%E6%9C%AC) Total cost of sales decreased by 8.8% to RMB 4.69 billion, with the average purchase cost of corn kernels being lower than the prior period - Total cost of sales was approximately **RMB 4,686,096,000**, a year-on-year decrease of 8.8%[30](index=30&type=chunk) - The average purchase cost of corn kernels (net of VAT) was approximately **RMB 2,068 per tonne**, lower than H1 2024 (RMB 2,135) but higher than the H2 2025 forecast (RMB 2,040)[30](index=30&type=chunk) - The Group did not enter into any forward/futures contracts to hedge against corn kernel price fluctuations during the period[30](index=30&type=chunk) [Other Operational Review](index=11&type=section&id=%E5%85%B6%E4%BB%96%E7%87%9F%E9%81%8B%E5%9B%9E%E9%A1%A7) The Group saw significant changes in operating expenses, with distribution and research costs decreasing while administrative expenses increased [Distribution and Administrative Expenses](index=11&type=section&id=%E5%88%86%E9%8A%B7%E5%8F%8A%E8%A1%8C%E6%94%BF%E8%B2%BB%E7%94%A8) Distribution expenses fell by 22.6% due to lower sales volume, while administrative expenses rose by 18.5% driven by higher government levies Breakdown of Distribution Expenses | Item | For the six months ended June 30, 2025 (RMB'000) | For the six months ended June 30, 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Delivery and logistics | 46,767 | 65,622 | -28.7% | | Marketing expenses | 7,604 | 7,817 | -2.8% | | Staff costs | 5,624 | 5,116 | +9.9% | | Others | 3,709 | 3,663 | +1.3% | | **Total** | **63,704** | **82,218** | **-22.6%** | Breakdown of Administrative Expenses | Item | For the six months ended June 30, 2025 (RMB'000) | For the six months ended June 30, 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Staff costs | 60,077 | 52,629 | +14.1% | | Government levies | 22,147 | 13,434 | +64.9% | | Depreciation and amortisation | 18,090 | 17,677 | +2.3% | | Others | 13,719 | 12,466 | +10.1% | | **Total** | **114,033** | **96,206** | **+18.5%** | [Research Expenses](index=12&type=section&id=%E7%A0%94%E7%A9%B6%E8%B2%BB%E7%94%A8) Research expenses decreased substantially by 52.6% as the Group focused on developing production technology and proprietary techniques - Research expenses decreased significantly by **52.6%** from RMB 43,689,000 to RMB 20,731,000[34](index=34&type=chunk) - These expenses, mainly comprising material costs, depreciation, and staff costs, were focused on the development of production technology and proprietary techniques[34](index=34&type=chunk) [Other Net Income](index=12&type=section&id=%E5%85%B6%E4%BB%96%E6%B7%A8%E6%94%B6%E5%85%A5) Other net income decreased by 13.9% to RMB 49.4 million, mainly due to a significant loss on the disposal of equipment at the Linqing plant Breakdown of Other Net Income | Item | For the six months ended June 30, 2025 (RMB'000) | For the six months ended June 30, 2024 (RMB'000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Amortisation of government grants | 37,530 | 38,977 | -3.7% | | Gain on sales of scrap materials | 12,855 | 14,611 | -12.0% | | Net exchange gain | 2,644 | 4,265 | -38.0% | | Loss on disposal of property, plant and equipment | (6,216) | (512) | +1114.1% | | Government grants (one-off) | 253 | 131 | +93.1% | | Gain on futures | – | 333 | -100.0% | | Others | 2,371 | (389) | +709.0% | | **Total** | **49,437** | **57,416** | **-13.9%** | - The decrease in other net income was mainly due to the loss on disposal arising from the dismantling of certain equipment at the Linqing production plant[35](index=35&type=chunk) [Liquidity, Financial Resources, and Capital Structure](index=12&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E3%80%81%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90%E5%8F%8A%E8%B3%87%E6%9C%AC%E6%9E%B6%E6%A7%8B) The Group maintained sufficient working capital and a sound financial structure, with a lower gearing ratio and slightly changed liquidity ratios Key Financial Performance Indicators | Metric | As at June 30, 2025 | As at December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Accounts receivable turnover (days) | 14 | 12 | +2 days | | Accounts payable turnover (days) | 8 | 5 | +3 days | | Inventory turnover (days) | 28 | 24 | +4 days | | Current ratio (times) | 2.1 | 2.0 | +0.1 | | Quick ratio (times) | 1.7 | 1.8 | -0.1 | | Gearing ratio - borrowings to total assets (%) | 20.1 | 21.3 | -1.2 p.p. | - The Group has sufficient working capital to meet its current requirements, and all borrowings are short-term[37](index=37&type=chunk) - Total bank borrowings of **RMB 1,337,864,000** are at fixed interest rates, and a loan from a controlling shareholder of **RMB 61,101,000** is at a fixed annual rate of 0.5%[37](index=37&type=chunk) [Human Resources and Remuneration Policy](index=12&type=section&id=%E4%BA%BA%E5%8A%9B%E8%B3%87%E6%BA%90%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) The Group reduced its headcount but increased total staff costs, implementing measures to optimize labor efficiency and retain talent - As of June 30, 2025, the Group employed **2,073 staff** (2024: 2,267), a decrease in headcount[38](index=38&type=chunk) - Total staff costs (including directors' remuneration) were approximately **RMB 153,658,000**, a year-on-year increase of 12.5%[38](index=38&type=chunk) - To cope with operational challenges, the Group implemented measures to optimize labor efficiency, support staff retention, increase reliance on automation, and introduce discretionary performance bonuses[38](index=38&type=chunk) - The remuneration review during the period involved an in-depth assessment, resulting in a **significant adjustment** to enhance morale and maintain market competitiveness[38](index=38&type=chunk) [Financial Management, Treasury Policy, and Foreign Exchange Risk](index=13&type=section&id=%E8%B2%A1%E5%8B%99%E7%AE%A1%E7%90%86%E3%80%81%E5%BA%AB%E5%8B%99%E6%94%BF%E7%AD%96%E5%8F%8A%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%9A%AA) There were no material changes to the Group's financial management, treasury policies, or foreign exchange risk exposure compared to the 2024 annual report[39](index=39&type=chunk) [Pledge of Assets](index=13&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, the Group pledged bank deposits and bills receivable totaling RMB 1.138 billion as security for certain banking facilities - As of June 30, 2025, the Group pledged bank deposits and bills receivable with a total carrying value of **RMB 1,138,000,000** as security for banking facilities[40](index=40&type=chunk) - No land use rights or buildings were pledged as security for banking facilities during the period[40](index=40&type=chunk) [Contingent Liabilities](index=13&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) The Group had no significant contingent liabilities as of June 30, 2025[41](index=41&type=chunk) [Material Investments](index=13&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87) The Group had no material investments or future plans for significant capital asset investments beyond its disclosed business development plans[42](index=42&type=chunk) [Other Disclosures](index=13&type=section&id=%E5%85%B6%E4%BB%96%E6%8A%AB%E9%9C%B2%E4%BA%8B%E9%A0%85) [Interim Dividend](index=13&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 (2024: Nil)[43](index=43&type=chunk) [Purchase, Sale, or Redemption of the Company's Listed Securities](index=13&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E7%9A%84%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the period[44](index=44&type=chunk) [Corporate Governance](index=13&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) The Company complied with the applicable code provisions of the Listing Rules, with the exception of the Chairman's absence from the 2025 AGM - The Company has complied with the applicable code provisions contained in Part 2 of Appendix C1 to the Listing Rules[45](index=45&type=chunk) - The Chairman, Mr Tian Qixiang, was unable to attend the 2025 Annual General Meeting due to other business engagements[45](index=45&type=chunk) [Review of Interim Financial Statements](index=13&type=section&id=%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E5%AF%A9%E9%96%B1) The Audit Committee has reviewed the unaudited condensed consolidated interim financial statements for the six months ended June 30, 2025[46](index=46&type=chunk) [Interim Report](index=13&type=section&id=%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) The 2025 Interim Report will be published on the websites of the HKEX and the Company by the end of September 2025[47](index=47&type=chunk)

Core Viewpoint - *ST Sitong (603838.SH) announced that as of the date of this announcement, Mr. Huang Jianping has cumulatively increased his shareholding in the company by 1.884 million shares, accounting for 0.59% of the total share capital, with a total transaction amount of 10.1815 million yuan (excluding transaction fees). The shareholding increase plan has been completed [1] Summary by Category - Shareholding Increase - Mr. Huang Jianping has increased his shareholding by 1.884 million shares [1] - This increase represents 0.59% of the company's total share capital [1] - The total amount spent on this shareholding increase is 10.1815 million yuan [1] - Completion of Plan - The shareholding increase plan has been successfully implemented [1]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不發表任何 聲明，並明確表示概不就因本公告全部或任何部份內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 CHINA STARCH HOLDINGS LIMITED 中國澱粉控股有限公司 ( 於開曼群島註冊成立之有限公司 ) (股份代號: 3838) 中國澱粉控股有限公司 (「本公司」) 之董事會 (「董事會」) 謹此宣佈將於 二 零二 五 年 八月 二 十(星 期三 ) 舉 行 董 事會 會 議，藉以 （其中包括）批准刊發本公司及其附屬公司截至 二零 二 五年 六 月三 十 日止 六個 月 之中 期 業績 及考 慮 派發 中 期股 息(如 有)。 承董事會命 中國澱粉控股有限公司 主席 田其祥 中華人民共和國，壽光，二零二五年八月八日 於本公告日期，本公司董事為： 執行董事： 田其祥先生（主席） 高世軍先生（行政總裁） 于英泉先生 劉象剛先生 獨立非執行董事： 花強教授 孫明導先生 施得安女士 董事會會議通知 ...

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 中國澱粉控股有限公司 呈交日期: 2025年8月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 03838 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 10,000,000,000 | HKD | | 0.1 | HKD | | 1,000,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 10,000,000,000 | HKD | | 0.1 | HKD | | 1,000,000,000 | 本月底法 ...

Core Insights - The global starch and starch products market is projected to have significant growth, with China expected to hold a substantial market share by 2025 [2] - The report provides a comprehensive analysis of the starch market, including production, sales, consumption, and the impact of COVID-19 on future developments in China [2][3] - Major companies in the starch industry include Archer Daniels Midland Company, Roquette Freres Co, Cargill, Emsland Group, Ingredion, Agrana Group AG, Avebe U.A., and Tate & Lyle [2][3] Industry Overview - The report categorizes the starch and starch products industry into various segments, focusing on production, consumption data, and future trends across regions such as China, the US, Europe, Japan, Southeast Asia, and India [3] - Different types of starch products are analyzed, including corn starch, cassava starch, potato starch, wheat starch, and others, with insights into their pricing, production volume, market share, and growth trends [3] Market Dynamics - The report outlines the supply and demand conditions for starch and starch products globally, including capacity, production, utilization rates, and development trends [5] - It also discusses the competitive landscape, highlighting the production volume, market share, and revenue of major companies in the starch sector from 2018 to 2025 [5] Regional Analysis - The report provides detailed insights into the market size and growth rates of starch and starch products in various regions, including China, the US, Europe, Japan, Southeast Asia, and India [5][6] - It emphasizes the importance of downstream applications for starch products, such as textiles, paper and plywood, and adhesives, detailing consumption volumes and market shares in these sectors [3][6] Impact of COVID-19 - The report assesses the overall development status of the starch industry in various countries, including the effects of the COVID-19 pandemic on the market [6] - It highlights the international trade environment and policy factors that have influenced the starch and starch products industry during the pandemic [6]

Core Viewpoint - The corn starch industry in China is a crucial pillar of the agricultural product deep processing sector, exhibiting a mature supply-demand system with a balanced state in 2024, where production is projected to reach 37.99 million tons and apparent demand at 37.97 million tons, indicating a tight balance overall [1][13]. Group 1: Industry Overview - The corn starch industry has established a stable supply-demand structure, with production and demand closely aligned, reflecting a trend of "stable total volume and optimized structure" [1][13]. - The industry is transitioning from traditional scale expansion to high-quality development, with an increasing proportion of high-value-added products, demonstrating resilience [1][13]. - The corn starch is derived from corn kernels through various processes and is categorized into three types: regular corn starch, modified starch, and specialty corn starch, widely used in food processing, pharmaceuticals, textiles, and biodegradable materials [2][4]. Group 2: Policy Support - Recent national policies have significantly supported the corn starch industry, emphasizing green manufacturing and high-end product development, with specific encouragement for bio-based products and functional food additives [4]. - Local governments are also promoting the development of the corn starch deep processing industry, aiming for a stable planting area and a substantial industry scale by 2027 [4]. Group 3: Industry Chain - The corn starch industry in China features a complete industrial chain with a "dispersed upstream, concentrated midstream, and diversified downstream" structure [6]. - The midstream processing segment is highly concentrated, with key regions like Shandong and Hebei forming industrial clusters, while downstream applications are diversifying into traditional and emerging sectors [6]. Group 4: Market Dynamics - The corn production in China is vital, with a total output exceeding 294.92 million tons in 2024, accounting for over 40% of the total grain production, supported by increased planting area and yield [9]. - The demand for corn starch is robust across various sectors, with the food industry being the largest consumer, followed by starch sugar, paper, pharmaceuticals, and chemicals [11]. Group 5: Competitive Landscape - The competitive landscape of the corn starch industry is characterized by a concentration of leading firms, with the top five companies holding approximately 45% market share, while smaller firms focus on niche markets [19]. - The industry is evolving towards a "technology-driven, chain collaboration, and scenario-focused" competitive model, with leading companies integrating their operations from corn to starch to bio-based materials [19]. Group 6: Future Trends - The corn starch industry is undergoing a transformation driven by technological innovation, with advancements in smart manufacturing and green production methods [21]. - Market demand is shifting towards high-end and diversified applications, particularly in biodegradable materials and health-oriented products, with significant growth expected in these areas [22][23]. - The industry is also seeing increased integration and globalization, with leading firms expanding their operations and establishing a presence in international markets [24].

Revenue and Business Segments - The Group's revenue is derived from two business segments: upstream products and fermented and downstream products, with production activities carried out in the People's Republic of China (PRC) [5]. - Total revenue for the Group decreased slightly by 3.2% to approximately RMB11,415,755,000, while gross profit increased significantly from approximately RMB556,572,000 to RMB1,163,247,000 [91]. - Revenue from fermented and downstream products rose significantly by 37.7% to RMB4,407,871,000 (2023: RMB3,200,671,000) [105]. - Lysine revenue increased by 51.5% to RMB3,427,579,000 (2023: RMB2,261,792,000), with sales volume reaching 578,095 tonnes, a 69.7% increase [107]. - The annual production capacity for starch and lysine reached 2,800,000 tonnes and 560,000 tonnes, respectively, an increase from 2,700,000 tonnes and 500,000 tonnes in 2023 [77]. Financial Performance - Profit after taxation increased over fourfold to RMB625,589,000, with basic earnings per share rising to RMB0.0808 [92]. - The Group's gross profit for upstream products increased by 230.4% to RMB429,334,000, despite a substantial decrease in market prices for corn kernel and upstream products [83]. - The profitability of the corn-refined industry improved despite a decline in market prices for starch and lysine, as raw corn kernel prices dropped significantly [75]. - Total cost of sales for 2024 was approximately RMB10,252,508,000, an 8.8% decrease from RMB11,240,962,000 in 2023, primarily due to lower raw material prices [110]. - The average corn kernel cost for 2024 was about RMB2,071 per tonne (2023: RMB2,543), reflecting a significant decrease [111]. Dividends and Shareholder Returns - The Board recommends a final dividend of HK0.98 cents per share for the year ended 31 December 2024, expected to be paid on or about 16 July 2025 if approved at the AGM [13]. - The total shareholder return for 2024 was 44.8%, a significant recovery from a negative return of -36.5% in 2023 [132]. - The Company had reserves available for distribution to shareholders amounting to approximately RMB126,115,000 as of December 31, 2024 [140]. Corporate Governance and Compliance - Related party transactions for the year ended 31 December 2024 are fully exempt connected transactions as defined in the Listing Rules [8]. - No significant transactions, arrangements, or contracts involving Directors' material interests were reported during the financial year [25]. - The Directors and other officers are indemnified against losses and liabilities incurred in the execution of their duties, excluding those arising from fraud and dishonesty [26]. - The company has maintained appropriate directors' and officers' liability insurance for indemnifying against losses from legal actions [36]. - There were no incidents of non-compliance with relevant laws and regulations during the year under review, indicating a strong adherence to legal standards [198]. Environmental and Sustainability Efforts - The Group is committed to complying with all environmental policies and has an internal laboratory to monitor product quality to ensure compliance with national standards, including food safety standards [7]. - The Group's environmental and sustainability efforts are detailed on pages 20 to 31, highlighting compliance and stakeholder relationships [6]. - The report highlights the company's commitment to environmental sustainability and compliance with local regulations [164]. - The company recognizes the significance of ESG (Environmental, Social, and Governance) issues and integrates them into its business operations [168]. Risk Management - The Risk Review Report on pages 32 to 36 provides a comprehensive review of principal risks and uncertainties facing the Group [6]. - The Group does not consider foreign exchange risk significant, as most transactions are denominated in Renminbi [148]. Employee and Training Initiatives - The number of employees in 2024 is 2,205, a decrease of 2.6% from 2,263 in 2023 and 6.6% from 2,360 in 2022 [194]. - The staff turnover ratio for all grades in 2024 is 3.6%, down from 4.7% in 2023 and 5.8% in 2022 [194]. - Mandatory in-house training is provided to all staff, enhancing awareness of anti-corruption and conflict of interest situations [197]. - The training hours per month for general staff increased to 15.0 hours in 2024 from 14.6 hours in 2023 [194]. Share Option Scheme - The Share Option Scheme was adopted on May 19, 2017, to incentivize directors and employees [40]. - The Company has not granted any share options under the Share Option Scheme since its adoption [48]. - Eligible participants of the Share Option Scheme include employees, non-executive directors, suppliers, customers, and other contributors to the Group's growth [45]. - Any grant of options to a director or substantial shareholder exceeding 0.1% of the issued shares or valued over HK$5 million requires shareholder approval [46]. Production and Operational Efficiency - The Group's production volume increased due to technological upgrades and improved operational efficiency [74]. - The modified starch business recorded increased sales supported by enhancements in sewage treatment capabilities and increased customer orders [90]. - New thermal power facilities are expected to enhance operational efficiency and reduce energy costs over time [80]. - The management anticipates continued stock competition in 2025 and is exploring opportunities to extend the industrial chain and diversify its business layout [76].