HK Stock Market Move | CHINA STARCH(03838) falls nearly 10%, expected to lose about 4 million yuan in the first five months, turning from profit to loss year-on-year.

CHINA STARCH (03838) fell by nearly 10%, as of the time of writing, it decreased by 9.82% to 0.147 Hong Kong dollars, with a turnover of 1.5467 million Hong Kong dollars. On the news front, CHINA STARCH announced yesterday after trading hours that the group is expected to record a pre-tax loss of approximately 20 million yuan for the five-month period ending on May 31, 2026, compared to a pre-tax profit of 267 million yuan in the same period last year. At the same time, the group is also expected to record a shareholder loss of approximately 4 million yuan, compared to a shareholder profit of 137 million yuan in the same period last year. The announcement mentioned that the group's business performance during this period was adversely affected by unfavorable market conditions. In the lysine business, continued geopolitical disturbances have pushed up export freight rates and restricted several shipping routes, resulting in export freight rates in 2026 still significantly higher than last year. As a result, the overall landed cost increase has weakened the competitiveness of Chinese lysine in overseas markets. In the domestic market, oversupply in the local lysine market and stagnation in the animal breeding industry demand continue to exert downward pressure on prices and sales volume.