• Sales: USD78.68 million (RMB514 million), down by 19.31% YoY

• Net profit: USD11.52 million (RMB75.30 million), up by 80.96% YoY

The fall in sales can be mainly attributed to the decreased start-ups of BT projects (BT: build transfer, building business), one of its main business. However, as some works of the BT projects were finished and checked and accepted by clients, specific payments were made to the company, thus increasing the profit.

Accordingly, Guilin Layn made the sales of USD34.56 million (RMB226 million) from its building business, down by 36.35% YoY. Its corresponding gross profit margin was 38.94%, up by 18.26 percentage points.

Notably, Guilin Layn performed well in its plant extract business.

• Sales: USD43.38 million (RMB284 million), up by 4.52% YoY

• Gross profit margin: 24.20%, up by 3.60 percentage points YoY

This is mainly because its natural sweeteners, Luo Han Guo extracts (mainly mogroside mix) and stevia leaf extracts (mainly stevia sweetener), recorded rises in sales. “Particularly the sales of Luo Han Guo extracts witnessed a significant growth,” stated Guilin Layn.

Regarding its stevia sweetener, the company has been supplying most of this product to the US-based Cargill Incorporated (Cargill), since it signed the Outsourcing Processing and Supply Agreement with this foreign company in 2011. In 2015, the orders were valued at about USD9.89 million in total, 23% of the sales from its plant extract business. 

 Guilin Layn's financial performance, 2011-2015

Source: Guilin Layn Natural Ingredients Corp.

In 2016, Guilin Layn will focus on developing natural sweetener business continuously. In total, it has already developed and produced nearly 200 kinds of plant extracts. Now the R&D is going on.

Unlike the previous strategy that the production was based on market demand and the production involved several different products, which made the company lack of competitive products, Guilin Layn in recent years has been gradually making natural sweeteners its knockout products, by giving full play to its geographical (located in Guangxi Zhuang Autonomous Region, main production region for Luo Han Guo) and its client (Cargill, a world-famous company) advantages and clarifying the market prospect.

In 2016, Guilin Layn will strategically:

• Construct raw material production bases: in order to ensure the sufficient supply of stevia leaf and Luo Han Guo, it will construct planting bases for these raw materials and meanwhile improve their quality and output

• Expand production capacity: it has already invested in the Project of Comprehensive Application and Industrialisation of Plant Resources, which is to be put into operation in Dec. this year, capacity designed to reach 1,155 t/a in total for varied plant extracts. Specifically, the capacity for stevia leaf extracts (mainly stevia sweetener) will be 500 t/a and mogroside mix 120 t/a

• Extend supply chain: it will continue advancing the private placement, to acquire 100% of shares in Guangzhou Niesheng Internet Science and Technology Co., Ltd. and to build a R&D centre for plant extract end products. This is aimed at vigorously expanding the applications of plant extracts in fields of cosmetics, healthcare products, functional food and beverages, by making full use of its cumulative capital and technology advantages. (Please see Guilin Layn to collect fund for plant extract end product development in Sweeteners China News 1511)

This article comes from Sweeteners China News 1603, CCM

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Tag: sweeteners  stevia

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