Good Oilseed Crushing Profits, Increasing Product Sales Helped Cofco’s Listed Companies Make Profits in 2016

By CnAgri2017-04-12 16:33:57 Print

In 2016, the profit of two listed grain & oil companies of Cofco reached hk $2.5 billion (RMB 2.2 billion) but the loss was RMB 260 million in 2015.

The revenue of China Foods Limited reached hk$ 27.986 billion, an increase of 0.5% year on year; the profit from operations was hk$ 425 million, down 28.4% year on year; the net profit grew 815.2% to hk$ 500 million. The sales of Fulinmen brand oil in medium and small package rose 16.2% and 14.3% respectively year on year.

The business income of China Agri-Industries Holdings Limited reached hk$ 89.162 billion in 2016, up 8.0% year on year; the profit from operations was hk$ 2.087 billion which rose sharply and turned losses into gains. The oilseed processing income was hk$ 50.434 billion, up 22.9% year on year, the profit was hk$ 1.046 billion. The sales of vegetable oil was 3.788 million tons, up 29.2% year on year; the oilseed meal sales was 7.87 million tons, a year-on-year increase of 18.5%.

Overall, Cofco could turn losses into gains due to two reasons:

A. The high domestic oil crushing profits: the soybean theoretical benefit averaged at 182 RMB/ton in 2016, the imported rapeseed theoretical benefit averaged at 260 RMB/ton.

B. The terminal product sales and prices increased significantly.