Chinese starch manufacturer reports growth
China Essence Group Ltd., one of the largest, leading integrated producers of potato starch products in the People's Republic of China, yesterday announced its financial results for the third quarter and nine months ended 31 December 2010.
The Group's latest quarter's results show a continuous recovery in earnings performance. In line with better economic performance and recovery in overall market demand, the Group's revenue increased 11 per cent Q-o-Q to RMB347.7 million in 3Q FY2011 while net profit grew by a healthy 13 per cent Q-o-Q to RMB77.7 million in 3Q FY2011.
Gross profit for the quarter increased by 6 per cent to RMB134.1 million, as compared to RMB126.9 million in the previous corresponding quarter.
Commenting on the latest results, Mr Zhao Libin, Chairman and CEO of the Group, said: "We are very pleased to deliver healthy top and bottom line results for this quarter, in line with the global economic recovery. Leveraging on our leading market position, we have so far been able to maintain our gross margin. Nonetheless, margin pressure is a real risk and we are monitoring the situation closely and will react accordingly by making adjustments to our pricing strategy and production schedule to weather potential fluctuations in supply of raw materials."
