Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player



    

  



Email This Print This Location : Home -> Investor Relations -> Corporate Information -> Industry Prospects

Our Directors believe that the corn refining industry will continue to enjoy growth in the coming years based on the following factors:-

Modernisation And Rising Living Standards In The PRC
The modernisation and rising living standards in the PRC has increased demand for higher quality consumer goods. Due to their functional properties and nutritive elements, corn-derived products serve as important additives or ingredients for manufacturers and processors from various industries in improving the quality of their products, in particular the food and beverage processing and fermentation industries. Old production systems which relied on chemical synthesis are increasingly being replaced or supplanted by corn-derived additives or ingredients which contain important nutritional supplements such as vitamins C and E, and amino acids. The more commonly known corn bioproduct is sweeteners, the main product of our Group, which is widely used by various manufacturers and processors from the food, beverage, fermentation, medical and pharmaceutical industries as ingredients or raw materials for their production.

The PRC Government's Continual Emphasis On Developing Their Agricultural Industry
Agriculture has traditionally played an important role in the growth of the PRC economy and will continue to contribute to the future growth of the PRC economy. In addition, our Directors have observed that the production output in the agricultural industry had not been able to achieve optimal potential due to the undeveloped logistical infrastructure and the lack of suitable technologies as compared to the more advanced countries such as the USA and European countries. Hence, the PRC government continues to place great emphasis on the development of the PRC's agricultural sector and had in the recent years implemented plans, initiatives and policies to improve and support the agricultural industry.

The plans, initiatives and policies include encouraging domestic companies to adopt new technologies, raise production and service quality and standards, and engage in advanced processing of agricultural products. Companies in the agricultural industry, especially those awarded with the Agriculture Industry Key Flagship Company status, will thus be able to reap various benefits as part of the PRC government support in promoting the industry. In view of the foregoing, our Directors foresee that more funds will flow into agricultural industry to improve growth, and facilitate agricultural technology and logistical infrastructure development within the next few years. We believe that with the PRC government's emphasis in the agricultural industry, we will continue to benefit from the initiatives introduced by the government.

Development Potential Of The Corn Refining Industry In The PRC
Over the years, new technology and research has significantly expanded the corn refining industry's product portfolio. Advances in process engineering and biotechnology have enabled corn refiners to become low-cost suppliers of basic food and chemical ingredients, opening new markets in the food and industrial sectors. Major developments in the industry include the use of corn-derived sweeteners for the food and beverage industry; nutritional supplements such as vitamins, organic acids for industrial and food use; ingredients for pharmaceutical products; and the use of ethanol as an environmentally friendly alternative motor fuel.

Use Of Corn-Based Feed Products
In the recent years, the outbreak of animal related diseases such as the bird flu and mad cow disease in the PRC and the neighbouring countries had affected the domestic agricultural market, in particular, the consumption and export of poultry products. To prevent future outbreaks of such diseases which will have adverse effect on the PRC agricultural industry, the PRC government implemented stringent management and supervision on the usage of feed products that require the said products to meet international safety standards. As part of the PRC government's twentyfirst century plan, it aims to develop and produce safe, nutritious and non-contaminated feed products. Given the aforesaid, we believe that we will be able to benefit from the demand for high quality feed products.

On the basis of the above, we are optimistic about our future prospects.