Star Lake Science plans to invest no more than 3.3 billion yuan to construct a 450,000-ton amino acid and supporting engineering project

According to the announcement from Zhitong Finance APP, Star Lake Science (600866.SH) has released a statement that in order to better implement the company's strategic plan, optimize the business structure, and further enhance the synergy of large-scale production to reduce production costs, the company plans to consolidate its industry position by improving product competitiveness. The company intends to invest no more than 3.3 billion yuan in the construction of a 450,000-ton amino acid and supporting engineering project through its holding subsidiaries Heilongjiang Yipin Biotechnology Co., Ltd. (referred to as "Heilongjiang Yipin Biotechnology") and Heilongjiang Yipin Energy Co., Ltd. (referred to as "Heilongjiang Yipin Energy") as the main construction entities, using its own or self-raised funds. The project construction period is expected to be 22 months (subject to actual construction conditions).

Based on internal calculations, the company estimates that under the current market sales prices and production costs, the project is expected to achieve an annual sales revenue of approximately 3.9 billion yuan and a gross profit margin of about 10% under full production and sales conditions, with a total dynamic investment payback period of approximately 8.5 years (excluding the construction period). This economic benefit estimate is only an internal feasibility analysis of the project conducted by the company, based on the current market environment, and is an estimate based on the current sales prices of products, major raw material costs, etc., and does not constitute a commitment by the company regarding the future profitability of the project.

The company insists on focusing on its core business, continuously strengthening and optimizing the animal nutrition, food additives, and seasoning sectors, by expanding the production scale of major amino acid products to generate synergy, striving to enhance the competitiveness of the company's products and market share, and further consolidating its industry position in the face of fierce market competition. The implementation of the project is conducive to further enhancing the overall production capacity of the company's main products, optimizing the product structure, improving product quality, reducing comprehensive costs, and building a more competitive amino acid product system, which aligns with the company's strategic development plan and industrial layout, and is beneficial for the company to grow stronger and better in its main business