Tuesday, December 23, 2014

Jiangsu Huifeng witnesses YoY increase of 46.23% in net profit in Q3 2014

Jiangsu Huifeng Agrochemical Co., Ltd. (Jiangsu Huifeng) maintained strong
profitability, achieving a YoY increase of 46.23% in net profit, to USD7.99
million (RMB49.08 million) in Q3 2014. According to Jiangsu Huifeng's Q3 2014
report, in the first three quarters of 2014, the company accumulated a net
profit of USD25.46 million (RMB156.47 million) with a year-on-year growth of
43.10%. In Q4 2014, Jiangsu Huifeng expects to make profit . Then it will
achieve a net profit growth of 30%-50% year on year in the whole year (Its net
profit was USD26.54 million – RMB163.13 million in 2013)
, according to Fungicides
China News 1411
on November by CCM.

Compared with net profit, the revenue of Jiangsu Huifeng had a slower
increase in the first three quarters of 2014. In this period, Jiangsu Huifeng
recorded a YoY increase of 14.08% in revenue (USD0.28 billion – RMB1.75
billion), merely one third of that of its net profit. This can be attributed to
the increased gross profit margin of the company.
Cost control was regarded as a main work target by Jiangsu Huifeng.
According to its 2014 semi-annual report, the company's cost of sales in the
first half year of 2014 increased only by 3.73% year on year while its
operating profit increased by 7.93% year on year.
In detail, Jiangsu Huifeng controlled its cost of sales actively in the
aspects of administration, production and distribution.
First of all, its complete production chain ranging from material to
end-user improved the company's cost control. It was purchased from Jiangsu
Jialong Chemical Co., Ltd. who has phosgene resources in May 2014. As a result,
now Jiangsu Huifeng owns more material supply for its pesticide production such
as prochloraz, bromoxynil octanoate, epoxiconazole. Currently, pesticide is
Jiangsu Huifeng's premier business with an annual revenue taking up over 98% of
the total.
Secondly, reasonable management also backs up Jiangsu Huifeng's cost
control effectively in 2014. The company strengthens inside management to make
every step better in the business operation.
Thirdly , the company also optimizes sales mode to improve cost control
and sales performance. As released by Jiangsu Huifeng, the company has already
invested in Nonyi E-commerce Co., Ltd., who is specialized in agricultural
e-commerce in China.
Of course Jiangsu Huifeng considers that marginal cost is one of its
competitive advantages as well. Additionally, the complete production chain,
innovative products and reasonable management are also Jiangsu Huifeng's
competitiveness. The company doesn't only establish production capacities, but
also set up a series of infrastructure such as GLP laboratory, research center,
sales network, marketing center. Jiangsu Huifeng is putting more effort in the
domestic market.
In fact, more and more Chinese agrochemical players pay attention to the
domestic market in recent years with China's economy rocketing up. In the first
half of 2014, the revenue of Jiangsu Huifeng reached about USD104.40 million
(RMB641.63 million), around 60% of which comes from the domestic sales

Table of Content: 
Fungicides China News 1411
Jiangsu Huifeng witnesses YoY increase of 46.23% in net profit in Q3 2014
Market prices of some fungicide formulations in China, mid-Nov. 2014
Market conditions of corn fungicides in China in 2014
Agricultural e-commerce appears in China
China's fungicides against bacterial diseases
Advice from experts to pesticide enterprises from different perspectives
Enterprises find inspiration in Chinese fungicide market
China's new registrations of fungicide TC, Oct. 2014
Overview of China's fungicide export in Q1-Q3 2014
Import volume of fungicide increases by 20.43% year on year in China,
Q1-Q3 2014

With the development of Chinese agriculture andtheimprovement of China
growers' living standard, China's fungicide market prospect is quite promising;
the import value has exceeded USD117 million in 2009, increasing withaCAGR of
14.03% in the past 9 years. China's fungicide industry is now starving for
capital, advanced technology, and high-quality fungicides. As a big
agricultural country with anarea needing pests prevention of over 4,670 billion
m2 each year, China's demand for fungicide keeps increasing witha CAGR of 3.18%
in the past 8 years. The demand is constantly increasing, due to the frequent
occurrences of diseases and the expanding area stricken by diseases in recent
years. The Fungicides China News brings you the latest information on the
competitiveness analysis of China's fungicide market, including new
legislations, company strategy, investment opportunities, advanced technologies
and quality fungicides that China longs for, crops planting situation and
diseases stricken area, facilitating yoursearch for commercial opportunities in
China's huge market.

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