Thursday, November 22, 2012

Q3 financial reports of domestic listed pesticide enterprises

Domestic listed pesticide enterprises in China gradually released their 2012 Q3 financial reports (July to Sept. 2012) before the end of Oct. 2012, showing the good performances made by most of them in this period, according to CCM’s November issue of Crop Protection China News.

So far, there are 19 listed enterprises which are mainly engaged in the business of pesticide in China (Actually there were 21 in 2011, but among which two successfully launched reorganization in H1 2012 and changed their main business into mining, namely Shandong Dacheng Pesticide Co., Ltd. and Shandong Huayang Technology Co., Ltd.). Summed up the Q3 performances of all the 19 listed enterprises, the total revenue in Q3 2012 reached over USD1.56 billion, up 31.19% over Q3 2011 and the total net profit gained a considerable growth of 118.13% over Q3 2011, reaching USD76.89 million.
Only two of these 19 listed enterprises suffered deficits in this period, namely Shandong Shengli Co., Ltd. and Zhejiang Qianjiang Biochemical Co., Ltd., with respective loss of USD4.36 million and 0.64 million.

The top three companies in terms of revenue: Nanjing Redsun, Zhejiang Wynca and Huapont Nanjing Redsun Co., Ltd. (Nanjing Redsun), Zhejiang Wynca Chemical Industry Group Co., Ltd. (Zhejiang Wynca) and Chongqing Huapont Pharm. Co., Ltd. (Huapont) still ranked as the top three by revenue in this period as what they did in H1 2012.

Nanjing Redsun's revenue and net profit in this period continued to surge, reaching USD253.53 million and USD12.06 million, up 41.87% and 14,868.33% over those in Q3 2011. The company kept announcing that this year's performance has no comparability with that of last year because of the reorganization with Nanjing First Pesticide Group Co., Ltd. (NFP Group) it successfully completed in Sept. 2011. The performances of the three subsidiaries of NFP Group, namely Nanjing Redsun Biochemicals Co., Ltd., Anhui Guoxing Biochemical Co., Ltd. and Nanjing Redsun International Trade Co., Ltd., have been counted into the total revenue and net profit of Nanjing Redsun in this period.

Zhejiang Wynca, as the pesticide enterprise which retained No. 1 with its pesticide revenue in 2011 in the list of 2012 China Top 100 Pesticide Manufacturers, was seen as the second largest revenue gainer in Q3 2012. By summing up the revenue in H1 2012, Zhejiang Wynca may lose the title of No. 1 domestic pesticide manufacturer in 2012.

Actually, Zhejiang Wynca has witnessed deficit in H1 2012, losing about USD4.38 million. However, as the price of its main pesticide product, namely glyphosate, continued to grow in Q3 2012, the company turned deficit into profit. The revenue and net profit of the company in this period reached USD249 million and USD5.64 million respectively. The company also predicted in its Q3 financial report that its net profit in 2012 may enjoy a 50% growth over that in 2011.
Huapont ever as a famous pharmaceuticals production company in China has earned its reputation in domestic pesticide industry by its pesticide subsidiary, namely Nutrichem Laboratory Co., Ltd. Although pharmaceuticals is still one of its main business, it should be counted in the list of domestic pesticide enterprise because of its expanding pesticide business. In H1 2012, the pesticide revenue of Huapont already surpassed the revenue of pharmaceuticals business, accounting for 77.3% of its total revenue in this period. Even though Huapont didn't reveal the detailed performance data of its pesticide business in Q3 financial report, it is still believed that pesticide business was also the largest contributor to its performance in this period.

Other listed pesticide enterprises also witnessed good growths in this period while comparing with its performance in the same period of last year, even though some of them gained little profit. The Q3 revenue from Nanjing Redsun is 27 times larger than that of ABA Chemicals Corporation, the listed pesticide enterprise in the last place of the list. However, the large growth of the adding up revenue and net profit of all these listed pesticide enterprises in Q3 2012 is still comforted and it has also shown the gradual recovery in domestic pesticide industry.

Source: Crop Protection China News 1221

Content of Crop Protection China News 1221
Q3 financial reports of domestic listed pesticide enterprises
New round of domestic soybean purchasing battle starts
Pesticide enterprises pay close attention to pesticide-fertilizers
Pesticide intermediates industry scale enlarging but profit slipping
China to largely promote biological crop protection technology
12th Five-Year Plan of Hazardous Waste Pollution Management released
Shandong takes lead in simplifying pesticides I&E procedures
Hubei Sanonda's reorganization aborts
Hebei Veyong's involving in coal chemical business denied

Crop Protection China News, a monthly publication issued by CCM on 15th&31th of every month, offers timely update and close follow-up of China’s Crop Protection industry dynamics, analyzes market data and finds out factors influencing market development

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