China Starch Holdings Limited released its unaudited results for the six months ended 30 June 2026, moving from a profit to a net loss amid persistent market weakness and rising raw-material prices.
Revenue and profitability • Revenue edged down 1.8% year on year to RMB5.02 billion. • Gross profit fell 68.8% to RMB133.69 million as elevated corn-kernel costs and price competition compressed margins; gross margin contracted to 2.7% from 8.4%. • The Group recorded an operating loss of RMB55.44 million versus a RMB279.73 million profit a year earlier. • Net result turned to a loss of RMB36.80 million (2025: profit of RMB225.64 million), with basic EPS at –RMB0.0025 (2025: RMB0.02542). • Finance income slid to RMB18.79 million (-23.5%), while finance costs decreased to RMB5.94 million (-17.0%).
Segment performance Upstream products (cornstarch and by-products) – Revenue inched up 1.3% to RMB3.19 billion; gross margin narrowed to 2.5% (2025: 2.9%) on higher corn prices. – Cornstarch sales volume declined 4.2% to 0.82 million tonnes; average selling price rose 2.2% to RMB2,519 per tonne.
Fermented & downstream products – Segment revenue fell 6.8% to RMB1.83 billion, while gross profit plunged 83.7% to RMB55.01 million; gross margin contracted sharply to 3.0% (2025: 17.2%). – Lysine revenue dropped 11.1% to RMB1.38 billion, driven by a 18.4% decline in average selling price to RMB4,607 per tonne despite a 8.9% volume increase to 299,605 tonnes. – Starch-based sweetener revenue was flat at RMB220.07 million; a 10.9% rise in volume was offset by a 10.8% price cut. – Modified starch revenue climbed 21.6% to RMB134.11 million as production normalised. – New biobased materials and other products contributed RMB96.54 million, up 21.8%.
Cost dynamics • Cost of sales rose 4.3% to RMB4.89 billion, reflecting an 5.2% increase in average corn-kernel procurement cost to RMB2,175 per tonne. • Lower electricity and steam tariffs provided partial relief, but overall cost escalation outweighed these savings.
Balance-sheet and liquidity • Total assets reached RMB7.12 billion (+4.4% versus end-2025). • Cash and cash equivalents stood at RMB1.99 billion; pledged deposits were RMB478.52 million. • Total borrowings grew to RMB1.28 billion, lifting the borrowings-to-assets ratio to 18.0% (31 Dec 2025: 15.8%). • Current and quick ratios moderated to 1.8 and 1.4 respectively (31 Dec 2025: 2.1 and 1.7). • No interim dividend declared; the group repurchased 104.47 million shares in 1H26 for HKD17.57 million and an additional 49.54 million shares in July.
Operational updates • Expansion of the Linqing production complex remains on schedule, with a new cornstarch line slated for trial run by end-2026. • The lactic acid esters joint venture with Musashino Chemical Laboratory is under re-evaluation amid changed market conditions. • Management continues to prioritise efficiency gains, cost control and prudent capital allocation to navigate ongoing oversupply and trade headwinds.
Outlook China Starch anticipates continued market challenges in 2H26 but highlights its strong liquidity and operational discipline as key buffers against volatility.