H1 result estimated landing around CNY33.40m despite continued volume growth and cost reduction starting to impact positively

The board of directors of Bluestar Adisseo Company (hereinafter referred to as "Adisseo" or "the Company") released the Company's performance for the first half of 2023 on 5^th August 2023.

Safety and Sustainability

• Safety is and remains Adisseo’s priority: 12-month rolling TRIR as of 30 June 2023 at 0.56

• Adisseo issued its 2022 Sustainability Report (CN version) during Chinese National Safety Month, echoing national promotion of ESG and illustrating the Company’s strong commitment to the sustainable development.

H1 2023: net profit attributable to shareholders estimated CNY 33.40 mil, given sharp price erosion, raw material costs still at a high level even though progressively reducing.

Continuous efforts of the dual-pillar strategy

• Strives to keep a leading position on methionine market:

  • +24% volume growth in liquid methionine

  • Raw material and energy cost decrease starts to impact positively variable and distribution costs and extra cost-cutting program on top of ongoing competitiveness program, starting to deliver savings in Q2.

  • Nanjing Plant operates at competitive cost and excellent safety performance. “Smart Plant” Digitalization Project in Nanjing plant accelerating its speed with promising return on yield improvement, energy consumption as well as higher-level safety and sustainability.

  • The total investment amount of the new powder Methionine plant in Fujian Province of China is approximately RMB 4.9 billion, with a designed annual capacity of 150,000 tons of powder methionine. The plant is planned to officially put into operation in 2027.

  • Adjustment measures, including the temporary shut-down of a European powder plant are being continued to optimize costs.

• Continuous expansion of Specialties:

  • Double-digit growth in specialties notably in ruminant

  • Nor-feed acquisition synergies in progress, especially in China
  • Specialty Expansion and Optimization project in Europe on track with expected start up in H1 2024
  • Innov’ia Capacity expansion project completed in June 2023
  • Calysseo: trial production progressing step by step, expected to launch FeedKind@ into Chinese market by the end of 2023
  • Chinese specialty capacity expansion project: land purchase completed, entering detailed design phase

One-China Strategy progressed successfully

• Double-digit revenue growth (+18%) in China driven by extraordinary penetration of liquid methionine in China market

• Joint Research & Innovation cooperations with several Universities to develop disruptive technologies and product development in bioengineering and new crystallization technology.

Cash position as of 30^th June 2023 increased by around CNY73 million compared to 31^st December 2022, reflecting tight working capital and cash management.

FY2023 outlook

• Safety and sustainability remain Adisseo’s top priorities

• Low visibility on market demand but pricing is starting to stabilize, and cost is going down. Throughout 2023, volume growth is expected to accelerate

• In this uncertain context, Adisseo is fully engaged to implement all necessary actions to protect margins and to pursue investment for future

About Adisseo

Adisseo is one of the world's leading experts in feed additives. The group relies on its 8 research centers and its production sites based in Europe, USA, Thailand and China to design, produce, and market nutritional solutions for sustainable animal feed. With more than 2,650 employees, it serves around 4,200 customers in over 110 different countries through its global distribution network.

Adisseo is one of the main subsidiaries of China National BlueStar, leader in the Chinese chemical industry with more than 20,000 employees and a turnover of CNY 73.5 billion in 2022.

Adisseo is listed on the Shanghai Stock Exchange.

Adisseo Corporate websites: www.adisseo.com; www.bluestar-adisseo.com

ADISSEO press contact

In China: Yun CAI, yun.cai@adisseo.com