2024 China Sugar Manufacturing Industry Research Report

Moreover, international trade risks cannot be overlooked. As global trade tensions intensify, uncertainties surrounding tariffs and trade barriers pose clear risks to China’s sugar industry—both in terms of exports and raw sugar imports. This not only hampers enterprises’ expansion into international markets but may also drive up raw material costs. Additionally, regulatory policy risks are becoming increasingly prominent. To safeguard food safety and public health, the government may impose stricter regulations on the sugar industry—including raising food quality standards and restricting the sale of high-sugar products—thereby setting higher compliance thresholds for sugar manufacturers. A lack of technological innovation is another major constraint hindering the development of China’s sugar industry. Compared with international best practices, domestic sugar enterprises still lag behind in technological innovation and production efficiency—undoubtedly weakening their competitiveness in global markets. Environmental pollution and resource waste are also serious concerns. Traditional sugar manufacturing processes can generate substantial volumes of wastewater and solid waste; increasingly stringent environmental laws and regulations compel enterprises to invest more resources to mitigate pollution. Finally, rising labor costs exert mounting pressure on sugar enterprises. As the demographic dividend gradually fades, labor costs continue to climb—posing a significant challenge to enterprises’ long-term development. 3.4 Competitive Analysis Under globalization, the competitive landscape facing China’s sugar industry has grown increasingly complex. Applying Porter’s Five Forces model, we can conduct an in-depth analysis of the industry’s competitiveness across five dimensions: • Threat of Rivalry Among Existing Competitors: Competitive pressure among domestic sugar producers is intensifying. Competition—both with international and domestic peers—is growing fiercer. Although China ranks mid-to-high globally in sugar production capacity, it still lags significantly behind major sugar-exporting countries such as Brazil, Australia, Thailand, South Africa, and Guatemala. Key gaps lie in production scale, technological level, production efficiency, product quality, and product diversification. • Threat of Substitutes: Competition from other foods and sweeteners constitutes a threat of substitution. With heightened consumer health awareness, buyers may increasingly opt for low-sugar or sugar-free alternatives. Competition among firms often stems from product substitutability and struggles for market share. • Threat of Buyers: Sugar and its by-products serve broad application areas—including food, beverages, and pastries. Given the large number of downstream users, the sugar industry holds relatively strong bargaining power over its downstream customers; however, it must also remain attentive to diversified consumer demands and evolving health trends. • Threat of Suppliers: Raw materials for Chinese sugar enterprises rely heavily on both domestic and international supply sources. Sugarcane and sugar beet cultivation are highly climate-sensitive, while imported raw sugar is subject to policy constraints and volatility in global market prices. High barriers exist in raw material supply, presenting major challenges for new entrants seeking stable sourcing. • Threat of New Entrants: New entrants could introduce additional production capacity and intensify competition—particularly in securing raw materials and capturing market share. Incumbent firms must monitor how new entrants might reshape market structure and impact industry profitability. We believe that competitiveness in China’s sugar industry is shaped by multiple interrelated factors. Enterprises must continuously innovate, optimize their supply chains, and enhance production efficiency to cope with increasingly fierce market competition.

Top Ten Loss-Making Companies in Mid-Year Reports Released! One Firm Lost RMB 947 Million in First Half—Is Yours on the List?

Beijing New Building Materials Co., Ltd. (BNBM) recently released its 2019 semi-annual report. In the first half of 2019, the company achieved operating revenue of RMB 6.038 billion, representing a 0.84% year-on-year increase; net profit stood at -RMB 691 million, compared to RMB 1.299 billion in the same period last year; and net profit attributable to shareholders after excluding non-recurring gains and losses amounted to RMB 1.098 billion, down 11.61% year-on-year. This marks BNBM’s first-ever loss since its listing. The company attributed this result to its settlement of the U.S. multi-district litigation involving its subsidiary, Taishan Gypsum Co., Ltd., and U.S. drywall plaintiffs. BNBM allocated USD 248 million (approximately RMB 1.705 billion) toward the settlement. During the reporting period, the company continued implementing its Marketing 2.0 initiative, upgrading marketing operations and strengthening cooperation with major real estate groups and decoration companies. It established an integrated industrial development platform combining “end-to-end solutions + material integrated supply + design and construction consulting support.” Its newly redesigned official website and e-commerce platform officially launched, and it assembled a market-oriented, professional marketing team to expand into new retail business. Guosen Securities believes that, as the leading gypsum board manufacturer, BNBM enjoys evident advantages in technology, scale, distribution channels, and brand recognition. With ongoing capacity expansion, its market share is expected to rise further. Considering the comprehensive resolution of the litigation, the worst is now behind the company, and future profitability is poised to stabilize gradually. The firm remains optimistic about BNBM’s long-term growth prospects. NO. 5 *ST Nantang (000911) H1 Net Profit Loss: RMB 498 million *ST Nantang recently released its 2019 semi-annual report, which shows that during the reporting period, it generated operating revenue of RMB 1.665 billion, up 0.02% year-on-year; net profit attributable to shareholders was -RMB 498 million, versus -RMB 496 million in the same period last year; and basic earnings per share were -RMB 1.54, compared to -RMB 1.53 last year. As of June 30, 2019, *ST Nantang’s net assets attributable to shareholders stood at -RMB 460 million—a 1,311.21% decline from the end of the previous year; net cash flow from operating activities totaled -RMB 975 million, versus -RMB 1.203 billion in the same period last year. The company’s H1 2019 operating cost reached RMB 1.64 billion, up 1.3% year-on-year, while gross margin declined by 1.3 percentage points. Its operating expense ratio stood at 19.6%, down 1.9 percentage points year-on-year—indicating sound expense control. From a business-structure perspective, “mechanically refined sugar” constituted the company’s primary source of operating revenue. Specifically, mechanically refined sugar generated RMB 1.29 billion in revenue, accounting for 77.8% of total revenue, with a gross margin of -1.5%. According to disclosures, in response to persistently weak domestic sugar prices in the first half of 2019, the company strictly adhered to sales policies set by management, flexibly combining flexible pricing and price-following strategies across different phases to minimize adverse impacts from sharp sugar price fluctuations on its sales performance. NO. 6 Jia Kai City (000918) H1 Net Profit Loss: RMB 378 million On the evening of August 22, Jia Kai City disclosed its financial report for the first half of the year. During the reporting period, the company achieved operating revenue of RMB 799 million, up 21.99% year-on-year; total profit amounted to -RMB 372 million; and net profit attributable to shareholders was -RMB 377 million, down 56.56% year-on-year.

Südzucker posts stable first-half sales as biofuel demand offsets low sugar prices

17 hours ago

Südzucker reported stable half-year revenue of €4.19 billion, with strong biofuel demand compensating for lower sugar and starch prices. The company noted declining beet yields due to drought while EU white sugar prices hit their lowest since August 2022.

reuters

2026-10-07

Südzucker posts stable first-half sales as biofuel demand offsets low sugar prices

Südzucker posts stable first-half sales as biofuel demand offsets low sugar prices

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