The first quarter saw declining performance of Chenguang Biotech as a result of return of lutein to a normal state. The price of lutein soared in the first quarter of 2011, with the maximum at RMB 5/g around. In the first half of 2011, the gross profit margin of lutein was up to 60.52%, far greater than the level of 20% in normal years. This year, market price returns to a normal level. Now, lutein is priced at RMB2-2.5 around. This has led to a decrease of RMB 20 million in the gross profit of the Company as compared with the previous years.
In the first quarter, marketing and administrative expenses of Chenguang Biotech grew at faster rates of 58.85% and 34.99% to RMB 7.94 million and RMB 13.68 million respectively as compared with the same period in the previous year. The main reason for such growth was that the new subsidiary Yingkou Plant and the overseas branch India Chenguang were put into production. Meanwhile, grants received by the Company from government increased sharply, with non-operating income reaching RMB 9.5357 million.
Chili Red and Other Business Progress Steadily
In the first quarter, chili red business developed steadily, with price at RMB1/g around. Gross profits of chili red and chili essence grew RMB 10 million around as compared with the same period in the previous years. This part of business will remain steady and sound growth. Still, there will be new projects completed this year. Expansive growth continues. In the second half of the year, the “2000t-capacity top-grade natural pigment project” and “1000t-capacity water soluble pigment general project” will be completed. The Company will extend continuously in the field of natural pigment extraction.
Profit Prediction
In 2012, designed levels will be reached gradually for new production capacities. EPS in 2012-2014 will be RMB 0.54, RMB 0.68, and RMB 0.8 respectively. As an international leading company of natural pigment, Chenguang Biotech has steadily growing performance, and receives the “Accumulate” rating.
Source：Herbridge Media
- White Paper on Bone and Joint Health of Chinese Consumers 2020
- Yili Dairy launched high-protein yogurt, focusing on sport people
- Sinopharm Xingsha launched the Japan's Champion probiotics
- China has introduced its first policy to support the industrial hemp industry
- Beyond Meat became the first overseas Artificial Meat company to set up a factory in China
- Nongfu Spring's market value exceeded HK $370 billion on its first day
- German infant nutrition brand Amykon launched two probiotics in China
- The revenue of Besunyoung in the first half year is about 610 million yuan
- Jellly candy and powder included in the health food filing dosage form in China
- H&H Group net profit increased by 9% for the first half of year
