Dentons Biochemistry: Amino acid sales of 650,000 tons, falling unit price affects gross profit

2012 Dentons' earnings of HK$11,908 million, down 17% YoY, while gross margin of US$1.532 billion decreased by 54% YoY, gross margin decreased by 13%, decreased by 10 percentage points YoY, profit was HK$32 million, down 99% YoY, and profit margin decreased by 0% YoY, down 16 points YoYThe main reasons for the decline in both earnings and gross margin were due to the loss of gross margin of upstream and biochemical alcohols due to rising corn costs and lower average unit prices of products33t
Amino acids, one of the core businesses in 2012, were the main driving force behind the Group's performance, with Dentons' amino acid production capacity of 800,000 tons and sales of 650,000 tons in 2012Operating income was HK$6.5 billion, down 8% YoY, while Gross Profit was HK$1.4 billion, down 46% YoY, accounting for 54% and 93% of the Group's total mobile phone and gross marginSales of amino acids increased by 14% year-on-year, with average selling prices down 19% and gross margindown down 46%33t
The Group plans to continue to upgrade research and development and technological innovation of new strains in 2013, without the need to invest heavily in building facilities to increase productionIn order to consolidate the leading position, the company will also invest in research and development of new extended new product chains and optimize output33t
Progress in tort litigation:33tlitigation in a patent infringement case related to lysine products in EuropeIn these proceedings, on 22 August 2007, the Hague District Court issued a judgment finding that the Group's L-Lysine products infringed the patents of two third parties and issued an immediate ban on further infringement by the Group and the submission of the sale, import or sale of any infringing L-Lysine products in the Netherlands; The Group has appealed against the decision and has upheld the provisional decision of the Hague Court of Justice of 29 March 2011In September 2011, the Group filed an appeal with the Supreme Court of the Netherlands on the decision of the Court of The Hague and issued an appeal writIn addition, the Group has developed another strain for the production of its L-Lysine product, which is not a judgment target and has therefore discontinued the production of L-Lysine products using the strain of the judgment target33t 2012 Dentons revenue of HK$11,908 million, down 17% YoY, gross margin of US$1.532 billion, decrease of 54% YoY, gross margin of 13%, decrease of 10 percentage points YoY, profit of HK$32 million, decrease of 99% YoY, and profit margin of 0%, decrease of 16 points YoY The main reasons for the decline in both earnings and gross margin were due to the loss of gross margin of upstream and biochemical alcohols due to rising corn costs and lower average unit prices of products 33t
Amino acids, one of the core businesses in 2012, were the main driving force behind the Group's performance, with Dentons' amino acid production capacity of 800,000 tons and sales of 650,000 tons in 2012 Operating income was HK$6.5 billion, down 8% YoY, while Gross Profit was HK$1.4 billion, down 46% YoY, accounting for 54% and 93% of the Group's total mobile phone and gross margin Sales of amino acids increased by 14% year-on-year, with average selling prices down 19% and gross margindown down 46% 33t
The Group plans to continue to upgrade research and development and technological innovation of new strains in 2013, without the need to invest heavily in building facilities to increase production In order to consolidate the leading position, the company will also invest in research and development of new extended new product chains and optimize output 33t
Progress in tort litigation: 33t litigation in a patent infringement case related to lysine products in Europe In these proceedings, on 22 August 2007, the Hague District Court issued a judgment finding that the Group's L-Lysine products infringed the patents of two third parties and issued an immediate ban on further infringement by the Group and the submission of the sale, import or sale of any infringing L-Lysine products in the Netherlands; The Group has appealed against the decision and has upheld the provisional decision of the Hague Court of Justice of 29 March 2011 In September 2011, the Group filed an appeal with the Supreme Court of the Netherlands on the decision of the Court of The Hague and issued an appeal writ In addition, the Group has developed another strain for the production of its L-Lysine product, which is not a judgment target and has therefore discontinued the production of L-Lysine products using the strain of the judgment target 33t