COFCO TECH(SZ:000930)2025-08-27 05:54Financial Performance - In the first half of 2025, COFCO Biotechnology achieved a net profit attributable to shareholders of 107 million, a year-on-year increase of 74.4% [2] - The non-recurring net profit was 31.9 million, up 71.5% year-on-year [2] - The overall gross margin improved, with a comprehensive gross margin nearing 8.5%, an increase of 1.3 percentage points year-on-year [3] Sales and Production - Despite stable production rates and overall sales, sales revenue decreased due to a drop in product prices [2] - The company maintained a high production and sales rate, with total sales volume remaining consistent with the previous year [3] - The sales revenue of fuel ethanol, starch sugar, and monosodium glutamate products saw a decline due to lower raw material prices and insufficient downstream demand [4] Cost Control Measures - The company implemented several cost-reduction strategies, including: - Strengthening the integration of procurement and sales to manage inventory effectively [2] - Utilizing hedging strategies to control risks related to raw material and product pricing [2] - Continuous improvement of production processes to lower comprehensive production costs [2] - Increasing sales of niche products such as flavored syrups and modified starches to enhance overall gross margin [2] Project Developments - Key projects are progressing as planned, including: - The relocation of the polylactic acid project and the expansion of the Chengdu company's fructose production capacity [3] - The construction of a new starch sugar project in Taicang with an annual capacity of 550,000 tons, expected to start construction in Q4 2025 [4] - The enzyme-based production of allulose has received approval from the health authority, establishing a market advantage for the company [3] Business Segment Insights - The fuel ethanol business remains stable, with market demand between 3 to 3.5 million tons [4] - The starch sugar business is a key focus area, with significant investments in capacity expansion and expected stable production post-launch [4] - The allulose product is positioned as a critical growth area, with optimistic market potential anticipated over the next 2-3 years [5]