Tuesday, September 4, 2012

Lianhe Technology achieves USD25.7 million in net profit of H1 2012

Lianhe Chemical Technology Co., Ltd. (Lianhe Technology) issued its semi-annual report by the end of July 2012, which showed the company's nice performance in the first half of 2012. It's detailed in the report that Lianhe Technology gained about USD25.7 million (RMB163.3 million) in net profit of H1 2012, achieving a year-on-year growth of 26.17%. And the total revenue touched USD232.9 million (RMB1,481.9 million) with the year-on-year growth of 20.15% in the meantime, according to CCM’s August Issue of Herbicides China News.

It can be said that Lianhe Technology achieved the growth plan smoothly in H1 2012, and the company also confirmed this itself. With current promising development, Lianhe Technology expects to maintain a continuous growth in net profit of Q3 2012, and then to complete the growth plan of 20%~50% year on year in the first three quarters of 2012.

In a move to meet the sustainable growth in net profit of the whole 2012, Lianhe Technology expressed early in its 2011 annual fiscal report that the company will still keep aggressive behavior and sensible strategy in 2012. In the reporting period of 2011 annual report, Lianhe Technology witnessed a growth of 45.01% and 30.13% year on year in net profit and revenue to USD46.3 million (RMB294.3 million) and USD403.7 million (RMB2,568.0 million) respectively.

It's observed actually that Lianhe Technology's core competitiveness and profit growth points focus on intermediate manufacture covering pharmaceuticals and pesticides, especially the customized manufacture. And Lianhe Technology's rapid development these years is primarily driven by the intermediate manufacture. According to the semi-annual 2012 report, the accumulative revenue of two intermediate manufacture businesses accounted for approximately 61.1% of the total revenue in Lianhe Technology of H1 2012. Besides, two intermediate manufactures of pharmaceuticals and pesticides could meet gross margins of 37.67% and 41.94% respectively in the first half of 2012.

Meanwhile, Lianhe Technology expects to expand its industrial chain to downstream sectors such as pesticide technical manufacture all the time for the sustainable growth. Thus Lianhe Technology puts continuous efforts to establish new manufacture these years in pesticide technical, which cover mostly herbicides such as clomazone, cyhalofop-butyl, fomesafen and so forth. In the recent past, Lianhe Technology pushed the establishment of 300t/a carfentrazone-ethyl technical manufacture. (Herbicides China News 1106: Lianhe Technology's carfentrazone-ethyl capacity runs smoothly)

And it's noteworthy that the manufacture of these new herbicides aims at novel herbicides such as cyhalofop-butyl. It's understandable that these novel herbicides and even the patented products can provide relatively high added value and profit margin for Lianhe Technology's manufacture. It's predicted further that the company will continue to develop new manufacture in novel pesticides. In Lianhe Technology's herbicide registration list, it's observed that three new breed herbicides were registered by the company in recent two years, namely aminocyclopyrachlor, fluthiacet-methyl and metamifop.

In addition, Lianhe Technology also endeavors to expand raw material manufacture nowadays. In other words, stable material supply will cut down manufacture cost directly. Hence, Lianhe Technology accomplished the 100% acquisition of Shandong Pingyuan Yongheng Chemicals Co., Ltd. in H1 2012 so as to grab 20,000t/a phosgene capacity. According to Lianhe Technology's semi-annual 2012 report, the phosgene plant is under construction at present.

It's analyzed in terms of sales region that Lianhe Technology is always inclined to export business. Among its export destinations, it's observed that the regions where the developing countries centralize play a key role. In H1 2012, the revenue in Asia approached USD22.5 million (RMB143.0 million), toping over that in other regions.

Coupled with macro economy thriving gradually in the developing countries such as Brazil and India, Lianhe Technology will be able to meet the promising markets of pesticides and intermediates undoubtedly. Of course, Lianhe Technology also needs to grab relevant chances and avoid probable risks regarding environmental problems, market fluctuation, global economic changes and so forth.

Lianhe Chemical, listed in 2008, is mainly engaged in chemical production such as intermediates of medicine and pesticides. Especially, Lianhe Chemical's customized manufacturing services for various industries including pharmaceuticals, pesticides and other fine chemicals are the company's remarkable characteristics. The company maintains rapid development these years with the improving performance.

Source: Herbicides China News 1208

Content of Herbicides China News 1208:
Lianhe Technology achieves USD25.7 million in net profit of H1 2012
Good Harvest-Weien seeks new growth in herbicides
Jiangsu Changqing plans 2,000t/a dicamba technical construction
Limin Chemical pushes mesotrione business
Hefei Xingyu prepares oxadiazon technical expansion
Jiangsu Yunfan enhances oxyfluorfen production
Glyphosate arouses investors' expectation in stock market in H2 2012
2,4-D dwarfs MCPA in China
Propisochlor approaches deadline in EU
Domestic manufacturers keep optimistic about trifluralin
Nantong Jiangshan meets flat phosphorus trichloride manufacture
Shandong Dehao maintains atrazine production
Jiangsu Luye taking the trial run of 300t/a propyzamide production line
Yancheng South plans to launch 100t/a orthosulfamuron technical project
Zhejiang Bosst tops clodinafop-propargyl manufacturers

Herbicides China News, a monthly publication issued by CCM International on 15th 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.

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