Setback of Restructuring of Sugar Manufacturing Enterprises in Guangxi

(1) Guangxi Xianggui Sugar, Nanhua Sugar and Donta Group invest to consolidate and restructure Ouya Sugar. Ouya Sugar used to be one of the Top 20 sugar producers in China, but it has been running in losses year after year due to the sluggishness of the industry. From December 2016 to July 2019, Ouya Sugar negotiated with a number of sugar conglomerates for restructuring, but there was no success due to its own heavey debt. Ouya Sugar finally reached agreement with Xianggui Sugar, Nanhua Sugar and Donta Group thanks to the great support from the city government.
 
(2) Production production stood at 398,800 tons in October, up 32.45% YoY; the sales amount was 136,300 tons, up 21.91% YoY; the sales ratio was 34.18% and industrial stock 262,500 tons.
 
(3) Sugar price grew 1.18% MoM. Sugar price still maintained the upward turn during the month, the growth slowed down as compared with the previous month, the price could fall slightly in next month.
 
(4) Sugar import in October was 34.99% higher YoY. The import amount during the month was 453,300 tons, up 8.38% MoM or up 34.99% YoY. Till the end of October, the national total sugar import had recorded 2.8464 million tons, up 24.15% YoY. Profit from processing raw sugar imported within the quota was 2,642 yuan/ton in October, sugar producers started to operate, sugar import in December shall decline when new sugar is put on market and there is release of the national reserve.