With the new plants in Xinjiang and Hebei completed and put into operation at the end of 2011, the company's processing capacity of cottonseeds reached 300,000 tons per year. There is a large area of ​​cotton planting around the company's new plant, and raw material procurement is not a problem. The purchase price of cottonseeds in the first half of the year was lower than last year. The decline was close to 40%, while the price of cottonseed meal fell recently was limited. In May, the price of cotton oil was affected by the fall in prices of other oils. The price fell from the highest of 8,980 yuan/ton during the year to 8,130 yuan/ton now, but taking into account the import soybean crush Losses of more than 200 yuan / ton, the strong willingness of oil plant prices, the future downward trend in the price of cotton oil is relatively small.

In 2012, the company's revenue growth momentum came from the successive production of new production capacity, especially the cottonseed processing business. This year's new production capacity is more. In the case of lower cottonseed costs and stable prices of cottonseed oil and cottonseed, the income of the cottonseed business There will continue to be high growth, and there will also be room for improvement in profits. The establishment of a new plant in India will facilitate the dispersion of company costs and will also expand the company's product sales channels.