Summary: In Q1 2024, Jindan Technology achieved revenue of USD49.12 million (RMB350.08 million), representing a YoY increase of 7.96%, and its net profit attributable to shareholders of the listed company grew 9.99% YoY to USD2.40 million (RMB17.10 million).
Henan Jindan Lactic Acid Technology Co., Ltd. (Jindan Technology)'s production capacities for main products have remained stable since 2023, with the utilisation rate staying at a relatively high level; its lactic acid products recorded a slight decrease in output due to "Inventory Clearance" policy but a small increase in the sales volume; the company vigorously expanded lactate markets, driving an increase in production and sales; however, the production and sales volume of by-products dropped along with the reduction in lactic acid output, and due to the intensified market competition, Jindan Technology saw a decline in the prices of its main products in 2023.
Table Jindan Technology's sales and production of main products
|
Product
|
Item
|
2021
|
2022
|
2023
|
Q1 2024
|
|
Lactic acid
|
Capacity, t/a
|
155,000
|
155,000
|
155,000
|
155,000
|
|
Output, tonne
|
123,539
|
120,034
|
117,077
|
33,448
|
|
Sales volume, tonne
|
100,768
|
91,917
|
92,083
|
26,114
|
|
Price, USD/t
|
1,196
|
1,316
|
1,184
|
1,113
|
|
Lactate
|
Capacity, t/a
|
23,000
|
28,000
|
28,000
|
28,000
|
|
Output, tonne
|
28,343
|
30,164
|
35,198
|
9,964
|
|
Sales volume, tonne
|
28,172
|
31,835
|
34,889
|
9,338
|
|
Price, USD/t
|
1,179
|
1,311
|
1,208
|
1,178
|
|
By-products
|
Capacity, t/a
|
80,000
|
100,000
|
100,000
|
100,000
|
|
Output, tonne
|
84,381
|
77,878
|
75,123
|
16,710
|
|
Sales volume, tonne
|
87,011
|
77,314
|
73,631
|
14,847
|
|
Price, USD/t
|
297
|
349
|
313
|
201
|
Note: 1. The lactate production line is operating beyond its capacity, mainly due to the relatively short production process. Production efficiency is improved by increasing direct labor and improving workflow without adding major equipment.2. In addition to direct sales, a portion of lactic acid is also used internally as a raw material for the production of lactate, etc.
Source: Jindan Technology
Jindan Technology has a certain locational advantage, which helps reduce the cost of raw material transportation. In addition, the company also has a corn production capacity of approximately 15,000 t/a–17,500 t/a as of the end of March 2024.
Table Jindan Technology's raw material procurement
|
Raw material
|
Item
|
2021
|
2022
|
2023
|
Q1 2024
|
|
corn
|
Purchase quantity, tonne
|
278,900
|
219,500
|
275,300
|
52,600
|
|
Purchase price, USD/t
|
400
|
391
|
387
|
333
|
Source: Jindan Technology
Table Status of ongoing and proposed projects as of March 2024
|
Project
|
Budget, USD million
|
Proportion of Cumulative Invested Amount Against Budget
|
Estimated completion and operation time
|
|
60,000 t/a biodegradable polyester and its products project
|
65.42
|
96.74%
|
-
|
|
75,000 t/a polylactic acid biodegradable new material project
|
123.78
|
1.36%
|
Aug. 2025
|
|
50,000 t/a lactic acid production expansion project
|
43.92
|
2.24%
|
Dec. 2024
|
Source: Jindan Technology
Source:CCM
More information can be found at CCM Acidity Regulator China Quarterly Report.
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