Dacheng Biochemical Technology: Market supply and demand imbalance causes amino acid prices to plummet

SighingCashier · 2026-03-28T03:15:57+00:00

Dacheng Biochemical Technology reported a profit of HKD 156 million as of the end of last year, a year-on-year decrease of 79.69%; basic earnings per share were HKD 0.014, with no dividend declared. Revenue reached HKD 2.279 billion, an increase of 13.86%. Due to a decline in lysine prices and rising raw material costs, gross profit margin decreased. The company plans to strengthen market monitoring, promote capacity expansion and collaboration, and seek steady growth.

SighingCashier

2026-03-28 03:15:57

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Dacheng Biochemical Technology (00809) announced a profit of HKD 156 million for the year ended last December, a 79.69% year-on-year decline; basic earnings per share were HKD 0.014, with no dividend declared.

During the period, revenue was HKD 2.279 billion, an increase of 13.86% year-on-year.

The company stated that starting in the second half of 2025, China’s lysine products will be subject to a final anti-dumping tax, leading domestic suppliers to prefer exporting products to the local market, resulting in oversupply in the domestic market. The imbalance between supply and demand has caused a significant drop in amino acid prices. During the period, consolidated revenue and gross profit only recorded modest growth. Due to rising raw material costs and falling prices of lysine products, the gross profit margin was about 8.6%, down 0.9 percentage points year-on-year.

Looking ahead, the group will continue to closely monitor market dynamics and will prudently promote capacity expansion, striving for steady growth in a challenging environment. The group also plans to collaborate with various industry participants, universities, and biochemical companies to further broaden its product range, drive the full resumption of production at the Xinglongshan factory, and develop the pilot platform at Xinglongshan into a future incubation platform for diversified, high-value products, laying a solid foundation for sustainable development.

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