China Starch Holdings reports profit decline in challenging first half

China Starch Holdings Limited reported profit before taxation of RMB297,133,000 for the six months ended June 30, 2025, a decrease from RMB355,294,000 in the same period last year. Profit after taxation also fell to RMB225,636,000 from RMB267,482,000. Revenue for the period declined by 9.4% to RMB5,114,852,000, down from RMB5,645,514,000 in 2024, primarily due to lower average selling prices and reduced sales volumes, coupled with a significant increase in corn kernel prices.

Gross profit for the Group was RMB428,756,000, compared to RMB507,180,000 in the prior year. Upstream products saw a 10.6% revenue decrease to RMB3,149,725,000, with cornstarch sales volumes dropping to 856,500 tonnes and the average selling price decreasing to RMB2,465 per tonne. The fermented and downstream products segment also experienced a 7.4% revenue decline to RMB1,965,127,000.

Basic and diluted earnings per share for the period were RMB0.0254, a decrease from RMB0.0360 in the previous year. The board did not recommend an interim dividend for the six months ended June 30, 2025. The company maintains a strong financial position with ample liquidity, with all borrowings as of June 30, 2025, being short-term.