On 29 March, 2016, Anhui Jinhe Industrial Co., Ltd. (Anhui Jinhe) released its
full-year 2015 financial report. Accordingly, large growths were achieved in
its financial figures:
Sales: USD501.25 million (RMB3.33 billion),
up by 3.52% YoY
Net profit: USD33.20 million (RMB214
million), up by 28.87% YoY
Anhui Jinhe's financial performance, 2011-2015
Source: Anhui Jinhe Industrial Co., Ltd.
Anhui Jinhe attributed the financial rises to the increased sales of fine
chemicals. For instance, its sales of acesulfame-K (AK) reached USD36.28
million (RMB234 million), up by 7.68% YoY. The corresponding gross profit
margin was 28.29%, up by 12.13 percentage points. Such growths can be further
ascribed to:
Stably rising price: the averaged quoted
price by Anhui Jinhe was up from USD4,335-4,645/t (RMB28,000-30,000/t) in 2014
to USD5,110-5,419/t (RMB33,000-35,000/t) in 2015
Technological reconstruction and subsequent
cost reduction: the cost for AK was down by 7.9% YoY to USD26.02 million
(RMB168 million). Accordingly, the company has been capable of self-supply of
sulphur trioxide and acetyl ketene (both key raw materials for AK), and has
achieved the yield rate of 68%+, a leading level in the industry
Significantly increased sales volume: the
figure was around 8,000 tonnes, up by 14% YoY
In 2015, Anhui Jinhe, reliant on its cost advantage, consolidated its leading
position in the AK segment, which offered it more sales channels and helped
strengthen its price bargaining ability, according to analyst CCM.
Specifically, the company occupied 60% of the global AK sales, up by 17
percentage points YoY, and became the largest AK supplier in the world.
On the contrary, its strongest competitor, Suzhou Hope Technology Co., Ltd.
(Suzhou Hope), due to capital pressure, had been trapped in bankruptcy and
reorganisation since Feb. 2015 and until Nov. it began to gradually resume the
production and operation. During this period, Anhui Jinhe seized the
opportunity to expand the market shares.
Anhui Jinhe's financial performance by AK business, 2011-2015
Source: Anhui Jinhe Industrial Co., Ltd.
Market share of AK in the globe, 2015
Note: Anhui Jinhe stands for Anhui Jinhe Industrial Co., Ltd.;
Suzhou Hope stands for Suzhou
Hope Technology Co., Ltd.;
Celanese stands for Celanese
Sales Germany GmbH;
Beijing Vitasweet stands for
Beijing Vitasweet Co., Ltd.
Source: CCM
In 2016, Anhui Jinhe will continue expanding its sweetener business. In
particular,
- AK
“We will continue giving full play to our cost advantage and adopting low-price
strategy to solidify the leading position in the market,” is a claim by Anhui
Jinhe.
According to CCM’s research, its competitor, Suzhou Hope is still under heavy
capital pressure and is at a fairly low level regarding its production and
sales rates. “Its monthly output and shipment are 200 tonnes (vs. production
capacity at 800 tonnes per month) and about 100 tonnes respectively,” disclosed
an industry insider, “If Anhui Jinhe continues its low-price strategy, this
undoubtedly will exert greater pressure on Suzhou Hope. However, it is really a
chance for Anhui Jinhe to improve its market position.”
- Sucralose
Anhui Jinhe intends to accelerate its technological upgrading for its 500 t/a
sucralose project, with an intention to achieve the output value of USD15.62
million. In addition, it has a plan to advance the construction of its 1,500
t/a sucralose project based on the upgraded production technology.
The company began conducting technology R&D for the sucralose production in
2014, and then in Aug. 2015, it finished the construction of the 500 t/a
sucralose project. Now the project is under equipment debugging, expected to
officially put into operation within H1 2016.
This article comes from Sweeteners China News 1604, CCM
About CCM:
CCM is the leading market
intelligence provider for China’s agriculture, chemicals, food &
ingredients and life science markets. Founded in 2001, CCM offers a range of
data and content solutions, from price and trade data to industry newsletters
and customized market research reports. Our clients include Monsanto, DuPont,
Shell, Bayer, and Syngenta. CCM is a brand of Kcomber Inc.
For more
information about CCM, please visit www.cnchemicals.com or get in touch with us directly by emailing econtact@cnchemicals.com or calling +86-20-37616606.
Tag: AK sweetener Sucralose