Potato Starch manufacturer China Essence Group reports 39.1% increase in 1H FY2009 Revenue

Chinese Potato Starch Manufacturer China Essence Group reports:

Revenue increases 39.1% to RMB359.7 million for 1H FY2009 thanks to stronger potato starch sales and a higher average selling price of potato starch.

Gross profit surges 26.1% to RMB151.4 million

Profit attributable to equity holders increases 8.5% to RMB80.2 million

Plans to increase production capacities of potato starch, potato protein and potato fibre well on track:

The Group has commenced construction of facilities for its new plants at Nenjiang, Heilongjiang Province and Zhalantun, Inner Mongolia, each with capacities of 40,000 tonnes per annum. In addition to existing facilities in Daqing and Sui Ling, the Group will have a total of five potato starch production facilities with annual production capacity of 250,000 tonnes by 2Q FY2010.

In 1Q FY2009, the Group disposed two potato starch production lines at the Daqing plant, each with a capacity of 5,000 tonnes per annum, to make way for the installation of production lines for potato protein (with capacity of 4,000 tonnes) and potato fibre (with capacity of 40,000 tonnes), bringing its current production capacity for potato starch from 180,000 tonnes per annum to 170,000 tonnes per annum.