Lvxin Hydrophilic Colloid (01084) announced interim results. Profit attributable to shareholders of RMB 2.3086 million decreased by 7.69% year-on-year

According to the Zhitong Finance App, Lvxin Hydrophilic Colloid (01084) announced interim results for the six months ended June 30, 2024. The group obtained revenue of RMB 459 million (same unit), a year-on-year decrease of 21.25%; profit attributable to the company's owners was RMB 2.3086 million, a year-on-year decrease of 7.69%; and profit per share was 0.028 yuan.

The decline in the Group's sales revenue was mainly due to the main determining factor in the sales price of the Group's carrageenan products. The market price of seaweed materials declined, leading to a decrease in carrageenan sales revenue. As stated in the company's annual report for the year ended December 31, 2023, the sales price of carrageenan rose sharply after experiencing a sharp rise in the sales price of seaweed materials in 2022. Due to adjustments in safety inventory levels and a decline in demand due to economic slowdown in most European countries in the year in question, sales prices for both declined throughout 2023. Total sales revenue of agar and carrageenan products accounted for 78.8% of the Group's total sales revenue, down 6.6% from the first half of 2023. This was mainly due to a decrease in sales revenue of carrageenan products and an increase in sales revenue of konjac products and blends in the first half of 2024.