China Starch (03838.HK): Profit Warning, Expected Pre-Tax Loss of Approximately RMB 20 Million for Five-Month Period

NewTimeSpace News: On June 22, 2026, China Starch (03838.HK) released a profit warning. Based on preliminary review of the Group’s unaudited consolidated management accounts for the five-month period ended 31 May 2026, the Group is projected to register a pre-tax loss of approximately RMB 20 million and a loss attributable to shareholders of about RMB 4 million. By comparison, it posted a pre-tax profit of RMB 267 million and a profit attributable to shareholders of RMB 137 million in the same period last year.

The Board attributes the sharp earnings decline to combined adverse market conditions. For the lysine business, geopolitical disruptions have pushed up export shipping costs and undermined the overseas competitiveness of Chinese-produced lysine. Oversupply in the domestic market and sluggish demand from the breeding industry have exerted downward pressure on selling prices and sales volumes. Meanwhile, corn kernel prices remain elevated while finished product prices have failed to adjust accordingly, resulting in sustained pressure on profit margins.

NewTimeSpace Disclaimer: All content herein is the original work of NewTimeSpace. Any reproduction, reprinting, or use of this content in any other manner must clearly indicate the source as "NewTimeSpace". NewTimeSpace and its authorized third-party information providers strive to ensure the accuracy and reliability of the data, but do not guarantee the absolute correctness thereof. This content is for reference only and does not constitute any investment advice. All transaction risks shall be borne by the user.