China Starch Holdings Limited issued a profit warning indicating an estimated loss before taxation of about RMB20.00 million for the five months ended 31 May 2026, reversing from a profit before taxation of RMB267.00 million in the same period of 2025. Loss attributable to shareholders is projected at roughly RMB4.00 million, compared with a RMB137.00 million profit a year earlier.
The downturn stems mainly from deteriorating conditions in the lysine segment. Geopolitical disruptions have pushed export freight rates well above prior-year levels and restricted certain shipping routes, eroding the price competitiveness of Chinese lysine overseas. Domestically, oversupply and muted demand from the animal breeding sector continued to depress selling prices and volumes.
Higher input costs compounded the pressure. Corn kernel prices stayed elevated during the period, while selling prices of lysine and cornstarch lagged, compressing margins across the portfolio. Management notes that both lysine and cornstarch industries are experiencing a prolonged phase of saturation and intensified oversupply, with the current cyclical downturn expected to persist longer than historical fluctuations.
To reinforce competitiveness, China Starch is advancing previously announced capacity-enhancement measures, including a cornstarch expansion project and construction of a thermal power plant at its Linqing production complex. The initiatives, disclosed in announcements dated 20 February 2025, 26 May 2025 and 19 November 2025, aim to improve production efficiency and reduce costs.
The figures are based on unaudited management accounts for the period; final results for the six months ending 30 June 2026 will be released in August 2026. Shareholders and potential investors are advised to exercise caution when dealing in the company’s shares.
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