China Essence

Tight starch supply has allowed KMC to report another good FY results.
Starch price has already recovered in 2012. But for essence, it is a totally different picture. Why?

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Denmark, December 12, 2012 In this Item: KMC (Kartoffelmelcentralen)
Last month, Danish potato starch manufacturer KMC reported strong financial performance of the company.

At the annual general meeting on November 16, 2012 Mr. Peter C. Petersen, Chairman of the Board, was pleased to present yet another strong result.

The positive development, the company experienced last year has continued in the financial year 2011/12.

At the beginning of the financial year the demand for potato starch was high as stocks in Europe were almost empty. This meant that world market prices reached a level not seen before. KMC’s strong result can also be contributed to KMC's loyalty to the customers the previous year when the starch supply situation was very tight. Over the year a gradual normalization of the supply situation has been seen.

KMC’s strategy with a strong focus on increased added value through product development was followed in the financial year and has had a positive impact on the historically good result. This work will continue in the coming years and is considered essential to maintain attractive earnings in the company.

KMC has built a very strong strategic platform within this essential business area and also in the coming years we expect to see significant growth from our most specialized product offerings.

Source: KMC News

(14-04-2013, 01:20 PM)potatolover Wrote: Tight starch supply has allowed KMC to report another good FY results.
Starch price has already recovered in 2012. But for essence, it is a totally different picture. Why?

*****************
Denmark, December 12, 2012 In this Item: KMC (Kartoffelmelcentralen)
Last month, Danish potato starch manufacturer KMC reported strong financial performance of the company.

At the annual general meeting on November 16, 2012 Mr. Peter C. Petersen, Chairman of the Board, was pleased to present yet another strong result.

The positive development, the company experienced last year has continued in the financial year 2011/12.

At the beginning of the financial year the demand for potato starch was high as stocks in Europe were almost empty. This meant that world market prices reached a level not seen before. KMC’s strong result can also be contributed to KMC's loyalty to the customers the previous year when the starch supply situation was very tight. Over the year a gradual normalization of the supply situation has been seen.

KMC’s strategy with a strong focus on increased added value through product development was followed in the financial year and has had a positive impact on the historically good result. This work will continue in the coming years and is considered essential to maintain attractive earnings in the company.

KMC has built a very strong strategic platform within this essential business area and also in the coming years we expect to see significant growth from our most specialized product offerings.

Source: KMC News

I notice

I notice that as well. I was puzzled too. Was thinking maybe situation is different in China. Hope things turn out to be the better eventually.. Do not wish see another S-chip go bust story..

Other starch makers in china also doing badly ? Or is it just essence that is doing badly ?
Where has the demand for potato starch gone ?

Can anyone conversant with starch situation in China offer your views pls ?

(14-04-2013, 10:56 PM)Underdogger Wrote: Other starch makers in china also doing badly ? Or is it just essence that is doing badly ?
Where has the demand for potato starch gone ?

Can anyone conversant with starch situation in China offer your views pls ?

Interest to know.

I remember Essence said that potato price improves slightly but starch price remains depressed.

If potato price increases while starch price remains depressed, this will be worst outcome for company ....

(14-04-2013, 11:13 PM)happyharvest Wrote:

(14-04-2013, 10:56 PM)Underdogger Wrote: Other starch makers in china also doing badly ? Or is it just essence that is doing badly ?
Where has the demand for potato starch gone ?

Can anyone conversant with starch situation in China offer your views pls ?

Interest to know.

I remember Essence said that potato price improves slightly but starch price remains depressed.

A related point is when any S-chip goes busted, there is nothing Sporean investors can do...
Even casinos have great difficulties serving court orders to the PRCs who skipped town...

Why did Essence hold its AGM back in China last year?
to avoid angry crowd?

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More PRCs skip town & don’t pay losses in SG casinos
April 14th, 2013 | Author: Online Press
(10 Apr) – High-rollers get lavish treatment and hefty credit lines at Singapore’s two casinos, like any other gaming house in the world. But here, more of them skip town without paying their debt, a matter of increasing concern for investors.

Three years after Singapore allowed casinos to open, Genting Singapore PLC’s Resorts World Sentosa and Las Vegas Sands Corp’s Marina Bay Sands have become the world’s most profitable. Chinese nationals account for around half of the VIP gaming volume at their tables.

An examination of court documents by Reuters and a series of interviews with lawyers and industry executives reveal that several of the gamblers have run up millions of dollars in debt and then scampered back to China, where they are effectively untouchable.

Resorts World sued Chinese gambler Kuok Sio Kun in Singapore last year to recover S$2.2 million ($1.8 million). But more than six months on, the casino has not even managed to serve court papers to the Macau-based woman.

After several letters of demand went unanswered for months, it tapped a Singapore law firm to sue the 46-year-old, court documents show.

It then hired a Macau-based law firm, which advertised in a Chinese-language newspaper, posted the court documents at Kuok’s last known address and went there twice.

“I have made all reasonable efforts and used all due means in my power to serve the court documents on the defendant, but have not been able to do so,” the Macau lawyer said in the documents.

More in: http://www.reuters.com/article/2013/04/1...ws&rpc=401

.

does silence mean Good news or bad news?

Many lenders will be knocking on their doors........
a. CB
b. DBS
c. Local Govt

there is no where they can hide in China from the local govt...

any news of where the AGM will be ?

Dear Xlandjy

Do u think the company can collect enough A/R to repay and start the next potato-starch conversion cycle?

Or the company is already set to doom? (i.e. on death row)

Tks.

(23-02-2012, 09:25 PM)xlandjy Wrote: Why the need to use his own money? I thought the delay was caused by the unusual long time due to Chinese new year by the authorities to release his funds. Chinese New Year has been over for one full month, is he trying to say that modern China takes one month to clear just a couple of million sing dollars?

SGX has this ruling where companies racking up 3 straight years of losses will be placed on watch list. Companies on the watch list face a possible delisting if they cannot restore their financial health within 24 months of being on the list...

Is the clock ticking for Essence?

(04-05-2013, 10:24 AM)Stockerman Wrote: SGX has this ruling where companies racking up 3 straight years of losses will be placed on watch list. Companies on the watch list face a possible delisting if they cannot restore their financial health within 24 months of being on the list...

Is the clock ticking for Essence?

A quick check reveals there is only 1 years of full year losses in FY12, and currently in 3QFY13.

Still long way to reach the status quoted...

(not vested)