At press time, all of the 19 listed pesticide companies have released their semi-annual reports. According to the released reports, “growth” is still the keyword to depict the market condition of the first half of the year 2014.
Performance of Listed Pesticide Companies of Released Semi-annual Reports during the First Half of 2014 (in term of business revenue, RMB 100 million)
Rank Company Name Main Business Revenue of Pesticides Net Profit Belonging to the Listed Company’s Shareholders Main Business Revenue YoY Change % Net Profit YoY Change % 1 Wynca Chemical 23.34 13.35 0.90 -61.49 2 Nanjing Red Sun 19.34 39.01 2.88 75.76 3 Huapont-Nutrichem 19.22 10.25 2.33 45.65 4 Sanonda (fertilizer included) 17.53 12.53 2.88 126.25 5 Jiangsu Yangnong 15.92 0.25 2.48 24.38 6 Noposion 15.28 25.40 2.05 41.89 7 Nantong Jiangshan 12.58 6.61 1.66 26.37 8 Lianhetech (pesticide intermediates) 11.08 18.81 2.41 24.27 9 Jiangsu Huifeng 10.66 7.45 1.07 41.72 10 Jiangsu Changqing 9.26 15.35 1.19 16.56 11 Lier Chemical 6.74 -9.29 0.72 4.53 12 Veyong 6.47 49.14 4.01 -9.78 13 Shandong Shengli 5.86 23.48 0.13 273.74 14 Hunan Haili 5.69 2.42 0.05 -8.01 15 Huaxing Chemical 4.91 -5.65 0.48 261.70 16 Lanfeng Bio-chemical 4.41 -23.07 0.02 -90.77 17 Shenghua Biok 2.67 -30.87 0.51 112.26 18 Qianjiang Bio Chemical 1.21 -12.37 0.30 69.83 19 Beihai Gofar 1.21 -20.82 -0.14 N/A During the first half of 2014, the market price of the main raw material of glyphosate rose up, which brought up a higher production cost and hence affected the profitability of the enterprises. Meanwhile, influenced by climate anomalies, slack foreign demand and other factors, the glyphosate market softened during the second quarter with a weak price trend. The business of key glyphosate manufacturers including Wynca Chemical, Jiangsu Yangnong and Nantong Jiangshan was affected to different degrees. But from the aspect of the international market, Wynca Chemical Industry Group performed better with its export sales exceeding that of last year during the same period by 12%, which played an important role in pushing up the companys pesticide business revenue. Yangnong Chemical also further deepened its strategic cooperation with multinational companies by focusing its effort on selling large-tonnage products. With the production capacity of new projects, Yangnong Chemical actively reached cooperative intents with multinationals and registered products in advance. On the other hand, Yangnong Chemical actively explored the emerging market of public health pesticides to strengthen its cooperation with generic multinationals. The price of paraquat remained at a high level during the first half of 2014, which exerted a positive influence on the substantial growth of Nanjing Red Suns business. On the long run, Nanjing Red Suns plan to invest in producing chlorpyrifos, imidacloprid and other products through chloration of pyridine base as well as its plan to invest in other herbicide, insecticide and fungicide varieties further promotes its long-term development. Furthermore, manufacturers including Sanonda, Jiangsu Huifeng, Lier Chemical, and Jiangsu Changqing, which provide pesticide TC to foreign pesticide suppliers over a long time made a good performance on other projects. This helped the business of the companies keep the growing trend. According to Sanonda, the business of acephate, spermine and other products showed a good growing momentum, which ensured the companys main economic indicators reached record high in history during the first half of the year. Jiangsu Changqing Agrochemicals project to convert its annual output of 3,000 tonnes of S-metolachlor TC and annual output of 1,000 tonnes of 2-benzofuran ketone intermediate to bonds to raise capital is in the construction stage; Nantong Jiangshan’s subsidiary companys annual output of 2,000 tonnes of dicamba TC is released and the project to convert the annual output of 1,000 tonnes acetamiprid TC to raise capital have been put into operation, which further enhanced the companys profitability and comprehensive competitiveness. Lier Chemicals commercialized production capacity of glufosinate TC is increasing steadily. To enhance its market competitiveness, Lier Chemical has started the technological transformation project to elevate its annual output of glufosinate to 2,000 t/a. As a leading formulator, Noposion did quite well during the first half of 2014. Noposion spared no effort in establishing product brand and carrying out product development, providing overall agricultural service, building multi-level interactive community among farmers (agriculture e-commerce and micro-marketing based on crop groups), etc. Noposions new strategies respond to the development trend of the times and have laid a solid foundation for its remarkable achievement.
Based on the above table, Wynca Chemical ranked the first with the main business revenue reaching 2.334 billion yuan, an increase of 13.35% compared to the same period of last year. However, under the influence of the falling price of glyphosate and a slack organosilicone market, its net profit dropped by over 60% compared to the same period of last year. Nanjing Red Sun and Huapont-Nutrichem’s pesticide business revenues were almost the same and respectively ranked second and third. The net profit of both has seen remarkable growth compared to the same period of last year. In terms of pesticide business revenue, benefiting from the rising price of avermectin and other pesticide products as well as the addition of new products such as glufosinate and azoxystrobin, the main business revenue of Veyong increased by 49.14% compared to the same period of last year, the biggest increase among its counterparts. The realized net profit belonging to the shareholders of the listed companies including Jiangsu Lanfeng and Beihai Gofar has dropped sharply. Lanfeng explained this was caused by two factors. First, sucrose growers’ enthusiasm has been dampened by the falling price of sucrose, so the sales of Lanfeng’s profitable product, hexazinone, which is mainly used for weeding sucrose field, have dropped and its inventory is hard to digest. Secondly, although the sales of Lanfeng’s acephate has gone up, the rising prices of acephate’s raw material spermine and acetic anhydride brought up a higher production cost, so the gross profit of acephate went down compared to the same period of last year. Under the influence of the oversea market demand fluctuations, the export sales of Hunan Gofar, a holding subsidiary of Beihai Gofar, has dropped sharply, so the latter’s net profit has seen a sharp fall compared to the same period of last year.
