Andisu: First-half net profit fell year-on-year, specialty products business contribution gradually increased

recently released the 2018 mid-year report, according to the relevant announcement, Andy Su's total operating income in the first half of 2018 was 5.750 billion yuan, up 16.58 percent year-on-year, net profit of 489 million yuan, down 15.27 percent year-on-yearIn the second quarter of 2018, total operating income was RMB2.736 billion, an increase of 11.08 percent yoY, and net profit was RMB137 million, down 47.51 percent YoYHDg
HDgHDgAndesu products are divided into three categories: functional products (methionine and the production of by-products ammonium sulfate and sodium sulfate, vitamins), specialty products (enzymes, probiotics, organic selenium, ruminant products) and other productsIf classified by product, functional products accounted for 75.29% of operating income, specialty products accounted for 19.23%, and other products accounted for 5.48%HDg
HDgrevenue from functional products in the first half of 2018 was $4.329 billion, up 13% YoY, primarily due to double-digit growth in sales of liquid methionine and higher prices for vitamin products due to market supply shortagesHowever, due to macro-environmental impact, raw material costs are rising and methionine prices are at historical lows, with gross margin slower to 30% for functional productsDespite intense competition, the liquid methionine maintains high growth rates and leadership positionsHDg
In the first half of 2018, specialty products revenue was RMB1.11 billion, up 33% YoY, with a gross margin of 50%, down 6 percentage points YoY, and still maintaining a high gross marginThe growth was mainly due to the integration company's acquisition of Nutriad's portfolio in FebruaryEndogenous growth in products such as enzymes, ruminant methionine, organic selenium and probiotics has continued to grow rapidly In terms of specialty products, Aetna and Sherry have seen significant sales growth in the first half of 2018, particularly in asia-Pacific and North America, Andesu said on the interactive platform on the evening of July 30 Aetna has now completed its entry registration in all major markets around the world and has more than doubled its growth in the first half of 2018, more than doubling Sherry selenium has also achieved a good growth of 40%, with the licensing process in different countries and regions, the future will achieve better results Overall, the company expects the specialty products business to contribute more to the company's gross profit, with EBITDA contributing more than one-third over the next three years HDg
HDg HDg liquid methionine continued to grow by double digits in the first half of 2018 However, due to the decline in sales prices and rising raw material costs, gross margins are under greater pressure Given the changes in supply and demand in the market, the company believes that the overall price trend remains weak In the event of some exceptional circumstances, there may be some price correction in the second half of 2018 Construction of the new nanjing plant with a capacity of 180,000 tons is progressing well and will help Andesu meet growing customer needs and further improve production cost-effectiveness In addition to the new plant in Nanjing, the company's plant expansion projects in Europe are also well under way, while the commercialization of the A-Dry Plus is also under way The following can be described in the annual report: HDg 1, European production platform expansion project: by adding a third production line to the Burgos plant, and additional supporting investment in the upstream plant at the Les Roches plant, the european plant will increase its annual production capacity by 50,000 tons The project went ahead as planned and is expected to be completed by the end of 2018 HDg
　　2, launch of Roddime ® A-Dry plus: Andesu in 2017 to develop and complete the revolutionary innovative product Roddime ® A-Dry plus This is a new powdered methionine product based on the development of liquid methionine, so that customers who are not able to use liquid methionine due to limited product or production processcans can also benefit from liquid methionine The product will be commercialized in the second half of 2018 Rodime's A-Dry-plus production unit, with an annual production capacity of approximately 9 kilotons, is under active construction at the Burgos plant, a step towards consolidating the strategic position of the Spanish plant HDg
　　3 Approved the construction of the new Nanjing plant: In order to meet the growing needs of customers and consolidate industry leadership, the Board of Directors of Blue Star Andesu Co., Ltd approved the construction of a new plant with an annual output of 180,000 tons of liquid methionine on January 16, 2018 The facility will be located in the Nanjing Hexa chemical park, next to the existing Nanjing plant The project is expected to be in production uethed by mid-2021 As of the end of June 2018, investment agreements have been concluded with local governments HDg
　　4, as the company's second business pillar, Andesu is actively developing special tying products business to better improve animal production and health level Andesu actively explores innovative products and is confident of the great potential for future development of specialty products Andy Su completed its acquisition of Nutriad in February 2018, and Nutriad's product portfolio, animal categories covered and its target market are highly complementary to Andesu', which helps the two sides work together to create integrated solutions that create more value for their customers HDg recently released the 2018 mid-year report, according to the relevant announcement, Andisu's total operating income in the first half of 2018 was 5.750 billion yuan, up 16.58 percent year-on-year, net profit of 489 million yuan, down 15.27 percent year-on-year In the second quarter of 2018, total operating income was RMB2.736 billion, an increase of 11.08 percent yoY, and net profit was RMB137 million, down 47.51 percent YoY HDg
HDg HDg Andesu products are divided into three categories: functional products (methionine and the production of by-products ammonium sulfate and sodium sulfate, vitamins), specialty products (enzymes, probiotics, organic selenium, ruminant products) and other products If classified by product, functional products accounted for 75.29% of operating income, specialty products accounted for 19.23%, and other products accounted for 5.48% HDg
HDg revenue from functional products in the first half of 2018 was $4.329 billion, up 13% YoY, primarily due to double-digit growth in sales of liquid methionine and higher prices for vitamin products due to market supply shortages However, due to macro-environmental impact, raw material costs are rising and methionine prices are at historical lows, with gross margin slower to 30% for functional products Despite intense competition, the liquid methionine maintains high growth rates and leadership positions HDg
　　In the first half of 2018, specialty products revenue was RMB1.11 billion, up 33% YoY, with a gross margin of 50%, down 6 percentage points YoY, and still maintaining a high gross margin The growth was mainly due to the integration company's acquisition of Nutriad's portfolio in February Endogenous growth in products such as enzymes, ruminant methionine, organic selenium and probiotics has continued to grow rapidly In terms of specialty products, Aetna and Sherry have seen significant sales growth in the first half of 2018, particularly in asia-Pacific and North America, Andesu said on the interactive platform on the evening of July 30 Aetna has now completed its entry registration in all major markets around the world and has more than doubled its growth in the first half of 2018, more than doubling Sherry selenium has also achieved a good growth of 40%, with the licensing process in different countries and regions, the future will achieve better results Overall, the company expects the specialty products business to contribute more to the company's gross profit, with EBITDA contributing more than one-third over the next three years HDg
HDg HDg liquid methionine continued to grow by double digits in the first half of 2018 However, due to the decline in sales prices and rising raw material costs, gross margins are under greater pressure Given the changes in supply and demand in the market, the company believes that the overall price trend remains weak In the event of some exceptional circumstances, there may be some price correction in the second half of 2018 Construction of the new nanjing plant with a capacity of 180,000 tons is progressing well and will help Andesu meet growing customer needs and further improve production cost-effectiveness In addition to the new plant in Nanjing, the company's plant expansion projects in Europe are also well under way, while the commercialization of the A-Dry Plus is also under way The following can be described in the annual report: HDg 1, European production platform expansion project: by adding a third production line to the Burgos plant, and additional supporting investment in the upstream plant at the Les Roches plant, the european plant will increase its annual production capacity by 50,000 tons The project went ahead as planned and is expected to be completed by the end of 2018 HDg
　　2, launch of Roddime ® A-Dry plus: Andesu in 2017 to develop and complete the revolutionary innovative product Roddime ® A-Dry plus This is a new powdered methionine product based on the development of liquid methionine, so that customers who are not able to use liquid methionine due to limited product or production processcans can also benefit from liquid methionine The product will be commercialized in the second half of 2018 Rodime's A-Dry-plus production unit, with an annual production capacity of approximately 9 kilotons, is under active construction at the Burgos plant, a step towards consolidating the strategic position of the Spanish plant HDg
　　3 Approved the construction of the new Nanjing plant: In order to meet the growing needs of customers and consolidate industry leadership, the Board of Directors of Blue Star Andesu Co., Ltd approved the construction of a new plant with an annual output of 180,000 tons of liquid methionine on January 16, 2018 The facility will be located in the Nanjing Hexa chemical park, next to the existing Nanjing plant The project is expected to be in production uethed by mid-2021 As of the end of June 2018, investment agreements have been concluded with local governments HDg
　　4, as the company's second business pillar, Andesu is actively developing special tying products business to better improve animal production and health level Andesu actively explores innovative products and is confident of the great potential for future development of specialty products Andy Su completed its acquisition of Nutriad in February 2018, and Nutriad's product portfolio, animal categories covered and its target market are highly complementary to Andesu', which helps the two sides work together to create integrated solutions that create more value for their customers HDg