BRIEF: Rising corn prices undermine China Starch

Corn processor China Starch Holdings Ltd. (3838.HK) said on Monday that it expects to report revenue of about 10.06 billion yuan ($1.45 billion) for 2025, down 11.9% from 11.42 billion yuan in 2024, while its pre-tax profit plunged around 64% year-on-year to roughly 302 million yuan from 838 million yuan a year earlier.

The company attributed the profit slump to multiple factors. It said its profit was unusually strong in 2024 due to falling corn costs, but then corn prices rose for three consecutive quarters in 2025, significantly squeezing its margins. At the same time, oversupply in China’s corn starch and lysine markets continued to weigh on prices, with lysine recording a notable decline in the second half of the year.

In addition, several countries launched anti-dumping investigations into Chinese lysine exports, leading to weaker overseas orders and forcing some products back into the domestic market, further exacerbating local oversupply. Operationally, the company also temporarily dismantled one production line during an expansion project at its Linqing facility, affecting its short-term capacity. Demand for starch sugar during the traditional peak season also fell short of expectations, dragging on sales.

Headquartered in Shandong province, China Starch mainly produces corn starch, modified starch, lysine and starch sugar, and also operates supporting power and steam supply businesses. The company was listed on the Hong Kong Stock Exchange in 2007.

China Starch shares opened lower on Tuesday and closed at HK$0.176 by the midday break, down 4.86%. The stock has fallen 26.4% over the past 52 weeks.

By Lee Shih Ta

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