According
to Herbicides China News
1307 issued by CCM, On July
8, 2013, Shenzhen Noposion Agrochemicals Co. Ltd. (Noposion) announced that its
stocks (stock No. 002215) would be suspended from trading from that date
onwards due to a significant asset reorganization planned by the company.
According to the announcement, Noposion is committed to lay out the proposal of
the asset reorganization before August 6, 2013. After the proposal is approved
by the company's board of directors and announced to the public, its stock will
resume trading.
After
the announcement came out, many market participants suspect that the
significant asset reorganization refers to the acquisition of Jiangsu Changlong
Chemicals Co, Ltd. (Jiangsu Changlong), which is a pesticide technical supplier
for Noposion. Jiangsu Changlong is one of the large-scale manufacturers of
pesticide technical, ranking in the top ten of technical manufacturers in
China. Market participants speculate that the sudden suspension of Noposion's
stocks is probably due to Noposion's acquisition of Jiangsu Changlong.
Insiders
from Noposion's Securities Department said that the company has been
negotiating with Jiangsu Changlong about a possible acquisition. However, they
were not at liberty to disclose the real reason for the suspension.
On
March 26, 2013, Noposion announced that the company intended to acquire Jiangsu
Changlong's shares. At that time, the company stated that the acquisition was
still in the early stages, and that it had not yet signed any letter of intent.
However, the company has not released any announcement regarding the details of
the acquisition.
Some
experts believe that Noposion will ensure stability in the source of raw
materials especially for pesticides technical, diversify its product categories
and enhance its marketing ability if it is successful in acquiring Jiangsu
Changlong. It is no doubt that at present, Noposion's pesticide
formulation varieties and marketing channels are far more advanced
than its competitors. However, Noposion's competitive disadvantage is that it
has no production bases for pesticide technical, which is the main upstream
source. Acquiring Jiangsu Changlong could address this disadvantage.
Noposion,
a listed company of producing pesticide formulation in China, engages in
production, R&D and marketing of pesticide formulation. Its headquarters is
located in Shenzhen City, Guangdong Province and its manufacturing base is in
Dongguan City, Guangdong Province. Its products are mainly sold in the domestic
market, especially East China, South China and Central China.
Currently,
Noposion is one of the biggest agrochemical enterprises in China, with a
pesticide formulation capacity of over 100,000t/a. In Q1 2013, Noposion's
revenue was USD80.27 million (RMB505.71 million) with a net profit of USD7.61
million (RMB47.93 million). Its revenue and net profit increased by 11.43% and
13.26% year-on-year respectively. The company's net profit was predicted to
increase by 10%-40% in H1 2013, reaching USD20.34 million-USD25.89 million
(RMB128.15 million-RMB163.10 million).
Table of Contents of Herbicides
China News 1307:
Editor's
notes
Company
Dynamics
Good
Harvest-Weien continues to strengthen its sugarbeet herbicide business
Noposion
to plan an asset reorganization in July 2013
Supply
and demand
Jiangsu
Institute of Ecomones obtains six herbicide registrations in H1 2013
Market
Analysis
Overview
of amide herbicides' market situation in China in May 2013
Diuron
market remains weak in the first half of 2013
Corn
herbicides to enjoy a bright prospect in the near future
Ex-works
price of tribenuron-methyl 95% TC soared in early July 2013
Output
and sales volume of paraquat TK declined in May 2013
Policy
MOA
to strengthen risk monitoring of 2,4-D butylate
Hunan
Province issued eight prohibitions on pesticide production in June 2013
Registration
Overview
of China’s herbicide registration in H1 2013
Price
Monitoring
Price
Review in July 2013
News
in Brief
Paraquat
remains short supply in late June 2013
CCPIA
set up Pesticide Additives Commission formally in June
Organic
phosphorus herbicides maintain high sales ratio in May 2013
Hubei
Sanonda’s net profit to increase by 420%-470% YoY in H1 2013
China
to prohibit three long residual herbicides
China
exports 32,264 tonnes of herbicides for retail in May 2013
Lier
Chemical's net profit soared with YOY growth of 54.82% in H1 2013
Lanfeng
Bio-chemical to set up a subsidiary
Herbicides China News, a monthly publication
issued by CCM on 15th, 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.
CCM is dedicated to market research in China
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