Huayang Technology and Shandong Dacheng Meets *ST

However, Huayang Technology's rescue plan can't alleviate the worry about its dangerous situation, especially without the support from the assets exchange with Zibo Hongda Mining Industry Co., Ltd. (Hongda Mining). Because Hongda Mining participates two assets reorganizations at the same time and in the same industry, the assets exchange between Huayang Technology and Hongda Mining wasn't approved by CSRC in consideration of business independence and fair competition (Herbicides China News 1203: Assets exchange of Huayang Technology blocked). That is to say, Huayang Technology has to risk its future to drive its performance in 2012, the critical year for the company, according to CCM International’s April Issue of Herbicides China News.

In comparison with Huayang Technology, Shandong Dacheng has more potential for its performance rescue because the assets exchange between Shandong Dacheng and Shandong Hualian Mining Co., Ltd. (Shandong Hualian) is still in process at present. If the mining assets are injected into Shandong Dacheng successfully, Shandong Dacheng will probably overturn its deficit in 2012. But there are still many uncertain factors in this assets reorganization and it's hard to predict now whether this assets exchange can be approved smoothly by the Chinese government.

It's noteworthy that Shandong Dacheng's deficit value in 2011 was especially huge, almost six times larger than that in 2010. To some degree, this huge deficit value will stimulate Shandong Dacheng to push its assets exchange aggressively. As expected by Shandong Dacheng, the company has to put more efforts to enhance its profitability through the assets exchange with Shandong Hualian.

No matter which way the two companies will choose to rescue their performance, it's believable that current major businesses such as pesticides in Huayang Technology and Shandong Dacheng are very weak. Hence, whether pesticide business can recover the two companies' performance in a short term is still a puzzle now.

In the past history, Huayang Technology and Shandong Dacheng were dragged down to a different extent by weak major businesses (Herbicides China News 1102: Huayang Technology's share auctioned publicly and Shandong Dacheng suspends share trade for the reorganization). It's rumored that, in a large manner, the heavy deficit of Shandong Dacheng last year was because of its thermoelectricity investment, one of Shandong Dacheng's major businesses at present.

Source: Herbicides China News 1204

http://www.cnchemicals.com/Newsletter/NewsletterDetail_11.html

Content of Herbicides China News 1204:

Sulfonylurea herbicide regulation impacts little on China

Huayang Technology and Shandong Dacheng meets *ST

Pesticide business being enhanced in Huapont

Sanonda killed USD8.4 million in 2011 net profit

Tianrong group relocates-Jiangsu Ruihe & Jiangsu Zhongyi under relocation now

Diquat keeps weak in China

Oxadiazon weak in China

Herbicide registration of OD formulation in China

Wanquan Hongyu did 1st domestic formal metamitron registration

Acetochlor meets easy supply in Q1 2012

… …

Herbicides China News, a monthly publication issued by CCM International on 15^th of every month, provides you with the latest occurrences, exclusive analysis on the market trend as well as professional reviews on competitiveness of companies, products and relative industries in China’s herbicide industry.

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 all through its new proprietary product ValoTracer.

For more information, please visit http://www.cnchemicals.com.

CCM International Ltd.
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: econtact@cnchemicals.com

Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_w_1035.html

Investors Question Huaxing Chemical for its Weak Performance

On Nov. 23, 2011, Anhui Huaxing Chemical Industry Co., Ltd. (Huaxing Chemical) announced that it would close one of its subsidiary. The constantly weak performance of Huaxing Chemical makes investors concern about its unadvisable and mutable strategies, and the company was criticized and blamed by investors. CCM’s December Issue of Herbicides China News shares with you the detailed story.

Huaxing Chemical lost USD20.1 million (RMB127.7 million) in net profit in the whole year of 2010, and witnessed continuously net profit loss of USD4.3 million (RMB27.6 million) in the first three quarters of 2011. As a result, Huaxing Chemical's stock price in the exchange market always appears sluggish and unstable after 2008.

Although current pesticide market is unfavorable, the investors doubt that the poor operation and management of Huaxing Chemical are the major reason why the company performed so badly. Take this subsidiary liquidation for example, Huaxing Chemical claimed that the liquidation of its subsidiary Anhui Huaxing Chemical Industry Chongqing Co., Ltd. (Huaxing Chongqing) is due to the current unsuitable situation. But some rumors indicated that the liquidation of Huaxing Chongqing is mainly attributed to the company's unsuccessful investment resulted from the unadvisable decision.

Specifically speaking, Huaxing Chemical's investment of 20,000t/a glyphosate technical transformation initiated in 2009 with accumulative amount of USD4.3 million (RMB27.7 million) is being delayed in the long term. The construction still stays at the installation stage of main equipments due to the weak glyphosate market. These vain investments even withdraw Huaxing Chemical's performance instead of enhancing company competitiveness. Moreover, Huaxing Chemical might probably encounter the problem of deficit in two consecutive years (2010–2011).

What’s worse, the recent suspended reorganization of Huaxing Chemical puts further stresses on investors. On Nov. 7, 2011, Huaxing Chemical suspended stock trade for laying out company reorganization. The company resumed stock trade on Nov. 11, 2011, and declared not to map out the reorganization in the future three months for it isn't at the proper time.

Coupled with industrial integration in Chinese pesticide, Huaxing Chemical will choose reorganization to boost its performance in an estimate. But it can't be predicted who will be the next cooperator of Huaxing Chemical. It can be sure that investors expect Huaxing Chemical to adjust its management and strategy on the right track. However, in fact, Huaxing Chemical's management team witnessed changes of personnel twice in the past eleven months of 2011.

Headline News of Herbicides China News 1112:

-Jiangsu Lanfeng is favored by investors in Chinese stock market.

-Huaxing Chemical is oppugned by investors due to the weak performance.

-Shenyang Sciencreat doesn't run any capacity constructions about haloxyfop-R-methyl and diflufenican.

-Jiangsu Huifeng removes capital in two IPO projects for stronger overseas business.

-Vertellus launched 10,000t/a 3-cyanopyridine production unit around early Dec. 2011.

-Bifenox meets a weak situation in production and market in China.

-Thaihot Group establishes an organofluorine project to take place of weak pesticide business.

-Fengshan Group runs trial production of 3,000t/a trifluralin technical which belongs to the first stage of the 5,000t/a trifluralin technical transformation.

-Tianrong group's whole relocation will go into the stage of Jiangsu Ruihe and Jiangsu Zhongyi's relocation in a short term.

-Hubei Huida runs plant relocation to meet governmental regulation for safe production.

-Five main herbicides such as glyphosate, paraquat, acetochlor, atrazine and quizalofop-P-ethyl all meet price hike at a slow pace in 2011.

-Glyphosate price keeps relatively stable in 2011.

… …

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 all through its new proprietary product ValoTracer.

For more information, please visit http://www.cnchemicals.com.

CCM International Ltd.
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: econtact@cnchemicals.com

Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_c_931.html

Huaxing Chemical Oppugned

Triggered by an announcement about subsidiary liquidation issued on Nov. 23, 2011, Anhui Huaxing Chemical Industry Co., Ltd. (Huaxing Chemical) encountered a trouble of being blamed and questioned by investors. In detail, Huaxing Chemical is criticized for acting with unadvisable and mutable strategies. Although the criticism seems subjective to some extent, it's observed that Huaxing Chemical has witnessed constantly weak performance indeed these years, according to CCM’s DecemberIssue of Herbicides China News.

Clouded by the shrinkage of company performance in 2009, Huaxing Chemical lost USD20.1 million (RMB127.7 million) in net profit in the whole year of 2010, and witnessed continuously net profit loss of USD4.3 million (RMB27.6 million) in the first three quarters of 2011. As a result, Huaxing Chemical's stock price in the exchange market always appears sluggish and unstable after 2008, and the global stock market is also impacted by some severe social events such as the European Debt Crisis.

As to the responsibility behind such a weak performance, the investors' fire burns toward Huaxing Chemical's operation and management rather than current unfavorable pesticide market. Take this subsidiary liquidation for example, Huaxing Chemical put its subsidiary, Anhui Huaxing Chemical Industry Chongqing Co., Ltd. (Huaxing Chongqing), into liquidation because of current unsuitable situation, according to Huaxing Chemical's explanation in the announcement. But some rumors indicated that the liquidation of Huaxing Chongqing, who runs a 34,000t/a IDAN project (initiated in 2009) valuated at USD5.6 million (RMB35.5 million), is mainly attributed to the company's unsuccessful investment resulted from the unadvisable decision.

As Huaxing Chemical indicated, owing to the depressed glyphosate market, the whole glyphosate production chain is trapped in dilemma at present. Intense competition and overcapacity lead to many suspensions and stops of the relative productions such as IDAN in China.

In Huaxing Chemical's investments, a 20,000t/a glyphosate technical transformation initiated in 2009 with accumulative investment of USD4.3 million (RMB27.7 million) is being delayed in the long term. In detail, the construction still stays at the installation stage of main equipments due to the weak glyphosate market.

These vain investments even withdraw Huaxing Chemical's performance instead of enhancing company competitiveness. Huaxing Chemical will probably encounter the problem of deficit in two consecutive years (2010–2011), implying that the company will meet special treatment in stock market if the loss happens again in 2011.

Although Huaxing Chemical acquired local government's subsidy of USD11.8 million (RMB75 million) in total last month, the reduction of deficit risk can't alleviate investors' worries. What's more, recent suspended reorganization of Huaxing Chemical tenses the investors' nerve further.

According to Huaxing Chemical's bulletin issued on Nov. 11, 2011, Huaxing Chemical resumed stock trade on that day, and declared not to map out the reorganization in the future three months for it isn't at the proper time. On Nov. 7, the company suspended stock trade for laying out company reorganization.

Coupled with industrial integration in Chinese pesticide, Huaxing Chemical will choose reorganization to boost its performance in an estimate. But it can't be predicted who will be the next cooperator of Huaxing Chemical.  It can be sure that investors expect Huaxing Chemical to adjust its management and strategy on the right track. However, in fact, Huaxing Chemical's management team witnessed changes of personnel twice in the past eleven months of 2011.

Source: Herbicides China News 1112

http://www.cnchemicals.com/Newsletter/NewsletterDetail_11.html

Content of Herbicides China News 1112:

Jiangsu Lanfeng favored in weak stock market

Huaxing Chemical oppugned

Shenyang Sciencreat clarified confusion about new constructions

Jiangsu Huifeng pushes overseas business

Vertellus launches 10,000t/a 3-cyanopyridine production

Only two bifenox registrations in China

Thaihot Group: Pesticide production to fluorinated-chemicals business

Fengshan Group runs trifluralin trial production

Acetochlor supply shortage alleviates in Nov.

Lier Chemical's glufosinate-ammonium construction always late

Fire pushes relocation in Shandong Zhongshi

Tianrong group to meet new stage of relocation

Hubei Huida runs plant relocation

Review of five popular herbicide prices in 2011

Glyphosate price in the first eleven months

Herbicides China News, a monthly publication issued by CCM International on 15^th of every month, provides you with the latest occurrences, exclusive analysis on the market trend as well as professional reviews on competitiveness of companies, products and relative industries in China’s herbicide industry.

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 all through its new proprietary product ValoTracer.

For more information, please visit http://www.cnchemicals.com.

CCM International Ltd.
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: econtact@cnchemicals.com

Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_w_904.html