Q3 2025: Steady revenue growth in a highly competitive environment impacting profit margin

Zhigang HAO, Chairman and CEO of Adisseo, said: “The Q3 2025 results demonstrate progress and challenges.

The performance remains steady with yoy revenue growth and gross profit at the same level as last year. The profit margin was adversely impacted by sharp price decrease of vitamins and tarriffs.

Adisseo is monitoring prices carefully, while further improving reliability and operational performance. As an illustration, Adisseo has reached lowest cost record in September at Nanjing plant.

We are also progressing on our dedicated competitiveness improvement programs in our less performing businesses.”

Bluestar Adisseo Company (“Adisseo” or “the Company”) Board of Directors disclosed its Q3 2025 results.

I. Business Review: Revenues & Net Profit Attributable to Shareholders

Safety is and will remain Adisseo’s priority. As of 30 September 2025, the YTD 2025 TRIR landed at 0.05 and process safety is on good track.

Adisseo pursues its path towards its sustainability ambition. GHG emission and energy intensity are reducing according to plan, while the actions undertaken to reduce water consumption are bringing positive results.

Nanjing plant wastewater treatment project is undergoing trial production.

In Q3 2025, revenue recorded a steady yoy growth of +7% to reach CNY4.42 billion and gross profit was nearly stabilized (-1%, CNY1.19 billion), driven by:

§ Continued penetration of liquid OH-Methionine

§ Double-digit growth in Specialties

§ Offsetting negative impact from higher raw material prices and tariffs, as well as sharp drop in vitamin prices

In Q3 2025, methionine business achieved continued growth driven by:

§ Continued liquid OH-Methionine penetration across regions

§ Excellent plant reliability and optimized distribution costs

§ Limited contribution from powder methionine due to raw material cost especially caustic soda

On the new 150KT powder methionine plant in Quanzhou, CAPEX expenditure and schedule are on track.

The 40KT debottlenecking project in European liquid OH-Methionine plant in Burgos Spain is on track to complete by the end of 2025. It is further demonstrating the high reliability of the plant, which celebrated its 50th anniversary in September.

For Vitamins, gross profit has been negatively impacted by the sharp price decrease particularly in Vitamin E & A. Adisseo is managing volumes with agility to protect margins.

In Q3 2025, the specialties business delivered yoy +13% growth in revenue (CNY1.14 billion), thanks to:

§ Strong Ruminant sales in North America and European markets, notably on Smartamine® (+26%)

§ Positive trend in Palatability

§ Continuous growth in Feed digestibility, despite the arrival of new competitors and the resulting price pressure

This is offsetting lower-than-expected contribution from animal resilience and mycotoxin products, negative impact from tariffs, raw material costs and challenging but recovering China dairy market.

The project to internalize the esterification process to produce the key ruminant product also in Burgos plant is ongoing with start-up expected in 2026.

One-China Strategy progressed successfully and recorded strong revenue growth in Q3 2025 thanks to:

§ Continued double-digit volume growth in liquid OH-Methionine with obvious pricing pressure in late September

§ Strong double-digit growth in monogastric business

§ ^{Steady contribution from FeedKind® business}

§ Recovery of ruminant business

Nanjing plant is running at full speed with excellent reliability.

6 additional new tailor-made products have been launched in China market, thanks to brand-new Specialties Blending facility in Nanjing.

2025 Cost competitiveness plan has been pursued with CNY200mil recurring saving expected for the full year.

Several initiatives contributed to the success of this plan, such as:

- Top-down company-wide engagement in operational excellence

- Bottom-up proactive initiations from operator level on process optimization, supported by the successful application of digital tools such as advanced process control

EBITDA ratio landed at 18% in Q3 2025, as Adisseo continues to invest in future growth and innovation.

Net profit in Q3 is at CNY250mil, leading to a YTD result of CNY0.99bn, representing 8% net margin.

Calysseo, the 50/50 joint venture established with Calysta Inc., and its Feedkind® plant in Chongqing is still contributing losses. The plant is temporarily shut down till the implementation of technical upgrades to reach design capacity. Thus, necessary valuation adjustment on the long-term investment of Calysseo and Calysta has been made based on scenario modeling assessment.

Remaining proportionate financing (USD4.5mil per shareholder) is expected to be implemented when joint venture partner financing will be confirmed. Meanwhile, external financing opportunities are being actively explored by all stakeholders.

II. Cash-flow and Net Debt

Cash position as of 30 September 2025 landed at CNY1.76 billion, increased compared to 30 June 2025, driven by:

§ Positive cash flow generated from operating activities

§ Strict working capital management

§ Increase of the leverage in China to finance the new powder methionine plant in Quanzhou at very attractive condition

§ Offset by accelerated CAPEX investment notably in this plant

III. Major Financing Activities Update

^{The private placement refinancing plan to raise up to CNY3bn has obtained its approval from Shanghai Stock Exchange on 7th of August 2025 and from CSRC on 9th of September 2025.}

It is entering its final issuance phase. Adisseo is planning to complete the financing in the shortest appropriate time frame.

IV. FY2025 Outlook

Sustainability and safety will remain Adisseo’s top priorities.

Volatility and uncertainty are prevailing in the context of increasing geopolitical pressure on trade.

Market demand is expected to remain solid in a highly competitive environment with new capacities entering the market for both methionine and vitamins.

Thanks to its global leadership position, Adisseo is fully engaged in delivering growth, optimizing margins and pursuing strategic investments for the future.

Solid operational dynamics is being pursued with:

§ Strong operational performance across plants allowing to pursue volume growth in methionine

§ Production platforms in China and Europe allowing to optimize agile global supply costs including tariffs.

§ Competitiveness enhancement program particularly in less performing plants and business

§ Acceleration of specialties dynamics with proactive price portfolio management to drive profitability

§ Continuous operational excellence and cost control measures leveraging digital capabilities

^{Adisseo is also exploring all possible solutions and implementing the defined action plans in a swift and agile way to mitigate headwinds which could arise from longer than expected full-scale industrialization of disruptive FeedKind® technology.}

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About Adisseo

Adisseo is one of the world's leading experts in feed additives. The group relies on its 5 research centers and its production sites based in Europe, the U.S., China and Thailand to design, produce, and market nutritional solutions for sustainable animal feed. With more than 2,900 employees, it serves around 4,200 customers in over 110 different countries and regions through its global distribution network. In 2024, Adisseo recorded an operating revenue of CNY15.53 billion.

Adisseo is one of the main subsidiaries of China National BlueStar, a leader in the Chinese chemical industry with more than 12,000 employees and a turnover of CNY39.7 billion in 2024.

Adisseo is listed on the Shanghai Stock Exchange.

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

Adisseo’s press contact

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