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Changzhou Niutang: export volume of aspartame up while that of sucralose down in Jan. -May 2013 Summary: The export volume of aspartame of Changzhou Niutang increased in the first five months of 2013 compared with the same period in 2012, while the export of its sucralose showed a downturn. Tags: export volume, aspartame, sucralose, Jiangsu Sinosweet, Changzhou Niutang, sucralose producers Changzhou Niutang Chemical Plant Co., Ltd. (Changzhou Niutang), a main sucralose and aspartame producer in China, experienced conflicting performance on its export business of aspartame and sucralose in Jan. -May of 2013. According to China Customs, the export volume of aspartame of the company increased by 8% YoY to about 1,900 tonnes in the first five months of 2013, while its export volume of sucralose decreased by 9% YoY to 105 tonnes in the same period, according to CCM’s latest issue, Sweeteners China News 1308. However, the export of both aspartame and sucralose was healthy in the first five months of 2013, especially sucralose. The export volume of China's aspartame was over 5,800 tonnes in Jan. May of 2013, with a YoY up of 2.5%. And the export volume of China's sucralose was over 710 tonnes in the same period, increasing by 27% YoY. It is estimated that the difference in demand between China's aspartame and China's sucralose is the most important reason for different performance of export business of aspartame and sucralose of Changzhou Niutang in the first five months of 2013. China's aspartame industry has begun to enter a relatively stable period of development, which provides an opportunity for Changzhou Niutang to experience a stable development. After several years of development, two leading aspartame producers in China, named Jiangsu Sinosweet Co., Ltd. (Jiangsu Sinosweet) and Changzhou Niutang, has high market shares not only in the domestic market but also in overseas markets. For example, the aspartame output of these two producers accounted for over 60% of the total domestic output in 2012 and their export volume of aspartame accounted for as high as 68% in the first five months of 2013. Meanwhile, because of the stable development of China's aspartame industry, investment enthusiasm on this industry was not high in the last two years. Thus, there was only a few new entrants in the last two years, which means Changzhou Niutang faced lesser pressure from new entrants. Based on these, though the demand of aspartame from overseas markets didn't increase sharply in Jan. May of 2013, Changzhou Niutang experienced a good performance on its aspartame export business. Unfortunately, unlike in domestic aspartame industry, Changzhou Niutang has faced intenser competition in the domestic sucralose industry. Due to the good prospect and high gross margin profit of sucralose, many enterprises are still trying to get a share of the domestic sucralose industry even though the industry is facing overcapacity issues (Please refer to Sweeteners China News Vol.3 July Issue, p4, Overheating investment in domestic sucralose

industry should be noticed). As a result, the competition on China's sucralose export grows intenser than China's aspartame export. According to China Customs there are 14 sucralose producers that export their products, while the number was just 7 in China's aspartame export. It is believed that the development of new sucralose entrants in China impacted on export business of Changzhou Niutang. For example, the export volume of Jiangsu Jubang Pharmaceutical Co., Ltd. (Jiangsu Jubang) and Jiangxi Bentian Food Technology Co., Ltd. (Jiangxi Bentian) and Hubei Yitai Pharmaceutical Co., Ltd. (Hubei Yitai), the three new sucralose entrants in China that appeared in recent two years, increased sharply to over 65,000 tonnes, over 27,000 tonnes and over 26,000 tonnes, with a YoY up of 466%, 308% and 436% respectively. In addition, it is also estimated that the sucralose of Changzhou Niutang is less popular in overseas markets compared with the one of JK Sucralose Inc.'s (Note: JK Sucralose, the export volume of sucralose of JK Sucralose and Changzhou Niutang ranked top two in China's sucralose industry), which may be another important reason for the poor performance of sucralose export of Changzhou Niutang in the first five months of 2013. Despite the same challenge from new sucralose entrants in China, the export volume of sucralose of JK Sucralose continued to show an uptrend, from 207 tonnes in Jan. -May of 2012 to over 270 tonnes in the same period of 2013. In 2012, Changzhou Niutang enjoyed good performance thanks to the excellent performance of its aspartame and sucralose (Please refer to Sweeteners China News Vol.3 January Issue, p9, Changzhou Niutang enjoys good performance in 2012). However, the poor performance of sucralose in the first five months of 2013 should draw the company's attention. It is necessary for the domestic sucralose industry to take advantage of the growing overseas demand to develop and survive in the future. As a leading sucralose and aspartame producers in China, Changzhou Niutang has the ability to enjoy more market shares of sucralose and aspartame in the world. Table Contents of Sweeteners China News 1308: Baolingbao predicts net profit decrease in H1 2013 Opinion solicitation for approving MOS as a new food material ongoing Both import and export volumes of sucrose in China decline in H1 2013 QHT obtains another letter patent in July 2013 Luzhou Bio-Chem establishs new subsidiary in July 2013 China's erythritol industry: facing more challenges than opportunities at present Two domestic GOS producers witness steady growth in 2011-2013 Opinion solicitation for Approved Feed Additives (2013) conducted Baolingbao acquires two letters patent Changzhou Niutang: export volume of aspartame up while that of sucralose down in Jan. -May 2013 Anhui Jinhe: revenue of acesulfame-K continues to decrease in H1 2013 Output of dried stevia leaves in China decreases in 2010-2012 Export business can not help solve oversupply of China's corn starch

Export overview of some sweeteners and raw materials in China, June 2013 Export volume of China's sorbitol: crystalline down while syrup up Xylitol producers in China mainly export crystalline products Capacity of raw sugar processing projects in China becoming larger Ex-factory prices of sweeteners in China in July 2013 Ex-works price of HFCS in China shows downtrend in H1 2013 Sweeteners China News, issued by CCM on 5th every month, offers timely update and close follow-up of market and company dynamics based on China’s sweeteners industry. It also releases the latest information on raw material supply, price update, import & export analysis as well as consumption trend & competitiveness. About CCM CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals, CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis, and Consultancy Service. For more information, please visit Guangzhou CCM Information Science & Technology Co., Ltd. 17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China Tel: 86-20-37616606 Email:

Export volume of aspartame up while that of sucralose down in jan may 2013(20130812)