Noposion to plan an asset reorganization in July 2013

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 15^th, 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, and Consultancy Service. 

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

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17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Tel: 86-20-37616606

Email: econtact@cnchemicals.com

List of 2011 China Top 100 Pesticide Manufacturers Released

On 19 Oct. 2011, the high-profile list, namely 2011 China Top 100 Pesticide Manufacturers, has been released by China Crop Protection Industry Association at the 11th National Agrochemical Exchange Meeting during 19 Oct. to 21 Oct. 2011, based on CCM’s latest issue of Crop Protection China News.

The top 100 pesticide manufacturers in China are ranked according to the companies' revenue in 2010 from domestic market. Zhejiang Wynca Chemical Industry Group Co., Ltd. (Zhejiang Wynca), a large listed pesticide company in China mainly engaged in glyphosate and anosilicon business, ranks first with its total revenue of USD294.96 million in 2010. The second place and the third place respectively go to Jiangsu Yangnong Chemical Co., Ltd. and Zhejiang Jinfanda Biochemical Co., Ltd. with their revenues of USD235.59 million and USD229.13 million in 2010 respectively.

Among all the listed pesticide manufacturers, there are 82 pesticide technical manufacturers, among which Zhejiang Wynca ranks No. 1. The rest 18 companies are pesticide formulation players, among which Shenzhen Noposion Agrochemical Co., Ltd. (Noposion, the largest pesticide formulation player in China), ranks first with its revenue of USD225.83 million in 2010.

Some listed pesticide companies didn't perform well in 2010. Shandong Huayang Technology Co., Ltd. (now is changed into a mining company after being merged) ranks 80th with its revenue of USD36.22 million in 2010. There are 21 listed pesticide companies appeared on the list of Top 100 Pesticide Manufacturers. However, only ten of them rank as the first twenty manufacturers.

It is calculated that there are ten pesticide manufacturers whose revenue in 2010 surpassed USD157.48 million (RMB1 billion). The total revenue of the top ten pesticide manufacturers adds up to USD2.05 billion, accounting for 26.3% of the total revenue of the top 100 pesticide manufacturers, about USD7.8 billion.

There are 24 pesticide manufacturers who gained revenue between USD78.74 million (RMB500 million) and USD157.48 million (RMB1 billion) with total revenue of USD2.64 billion in 2010, accounting for 33.80% of the total revenue of the top 100 pesticide manufacturers.

The revenue of 66 pesticide manufacturers among the 100 pesticide manufacturers is less than USD78.74 million (RMB500 million) in 2010. Their total revenue adds up to USD3.11 billion, accounting for 39.87% of the total revenue of the top 100 pesticide manufacturers.

As one of the largest pesticide markets and pesticide production countries in the world, China is believed to own great potential in pesticide industry. However, the reasons like chaotic pesticide market, inefficient pesticide production technology, pesticide companies lacking strong competitiveness, etc. all drag down the development of domestic pesticide industry. The companies which are shown as the top 100 pesticide manufacturers in China may own good strength in pesticide business. However, they still lack good competitiveness while facing international pesticide giants. It can be easily seen from the total revenue of the top domestic 100 pesticide manufacturers which did not exceed USD7.87 billion (RMB50 billion) in 2010.

Source: Crop Protection China News 1120

http://www.cnchemicals.com/Newsletter/NewsletterDetail_16.html

(Guangzhou China, November 3, 2011)

Content of Crop Protection China News 1120:

List of 2011 China Top 100 Pesticide Manufacturers released

Development direction of domestic EC formulations set

ChemChina and MAI: takeover completes

Zhejiang Wynca witnesses deficit in Q3 2011

Jiangsu Changqing: net profit downs in Q3 2011

Jiangsu Tianrong relocation to be completed

Government to increase support for registration and use of pesticides for small crops

Jiangsu Province to enhance environmental governance of chemical industrial parks

Research progress on southern rice black streaked dwarf virus

Crop Protection China News, a semimonthly publication issued by CCM International on 15th and 30th(31st) of every month, aims to gain a deep insight into Chinese market, supply the latest market data and strategy support, analyze the newest legislation and policy and grasp the future market trend.

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

Chinese Farmers Become More Rational on Pesticide Purchasing

CCM has launched the latest issue of Glyphsoate China Monthly Report, showing Chinese farmers are more rational in choosing products, and cost-performance ratios has become the first important factor to make purchasing decision.

Shenzhen Noposion Agrochemicals Co., Ltd. (Noposion), China's first listed pesticide formulation producer, found that their market share of glyphosate in China is shrinking. The reason is that prices of Noposion's glyphosate products are very high, but the actual efficiency is not significantly superior to other brands with medium price, according to CCM’s investigation.

The selling point of Noposion's glyphosate 41% IPA, which could turn blue when diluted by water used to attracted thousands of farmers in the past, although the price is much higher. However, many professionals and market insiders have pointed out that Noposion's "formulation color change" has no contribution to the glyphosate's actual weed control efficiency. And farmers also find that Noposion's glyphosate product has no significant superiority over others, but it costs more money. Therefore, the selling point of magic color change can't build up good reputation among farmers.

In fact, the pesticide purchasing habit of Chinese farmers has changed. They don’t highly depend on retailer's recommendation and product's famous brand any longer. They are more intellectual, and they choose product with best cost-performance ratios. With the increasing efficiency of domestic glyphosate product, more and more Chinese farmers choose domestic glyphosate product with low price and comparable performance rather than famous brands.

The following highlights are covered in Glyphsoate China Monthly Report 1109:

-Yangnong Chemical saw ugly performance in glyphosate business in H1 2011, due to the depressed glyphosate market and the lack of overseas channels.

-Zhejiang Wynca suffers from operating profit loss in H1 2011, reflecting the dreadful glyphosate market.

-Asia is expected to be the largest growth point of global glyphosate consumption, due to the increasing potential of approval of planting GMO food crops and the increasing ratio of chemical weeding in these developing countries.

-Cost-performance ratio becomes the key factor for Chinese farmers' purchasing decision.

-Porter's five forces model is applied in China's glyphosate technical industry.

-Yellow Phosphorus price skyrockets in September 2011 because of the heavy drought in Southwestern China and the increasing phosphorus ore price.

-Increasing glyphosate formulation export drives up MIPA demand in China.

-Application of CWAO technology in glyphosate waste water treatment is introduced.

-Glyphosate price slightly increases in Sept. 2011, driven by the raw material price and recovering overseas demand.

-Glyphosate export kept an uptrend in July 2011, driven by the recovering demand in American countries.

For more information about Glyphsoate China Monthly Report, please feel free to contact us at econtact@cnchemicals.com

 (Guangzhou China, September 22, 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.

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Cost-performance Ratio Becomes Key Factor for Chinese Farmers' Purchasing Decision

Chinese farmers are more rational in choosing products, and cost-performance ratios has become the first important factor for making purchasing decision, according to CCM’s September issue of Glyphsoate China Monthly Report.

Recently, CCM International visited Shenzhen Noposion Agrochemicals Co., Ltd. (Noposion), China's first listed pesticide formulation producer, knowing that Noposion's glyphosate business has faced stalled growth and Noposion is puzzled by its marketing strategy. "We know glyphosate is the herbicide enjoying the largest consumption volume in China, but the market share of our glyphosate in China's market is very small and the sales volume witnessed stalled growth in recent two years. We wonder whether farmers' pesticide use habit and other factors impact on farmers' purchasing decision," non-selective herbicide product manager said.

After a comprehensive analysis and investigations from market insiders, CCM International has found that prices of Noposion's glyphosate products are very high, but the actual efficiency is not significantly superior to other brands with medium price.

Noposion has registered glyphosate 41% IPA and 68% glyphosate ammonia salt, and glyphosate 41% IPA is the main glyphosate product as China consumes the overwhelming proportion of liquid glyphosate formulations. One of the key selling points of Noposion's glyphosate 41% IPA is that "the formulation could turn blue when diluted by water." The similar "magic" of pesticide products have been attracted many farmers in the past, but, of course, prices of these "magic products" are much higher than others'.

Many professionals and market insiders have pointed out that Noposion's "formulation color change" has no contribution to the glyphosate's actual weed control efficiency. "The formulation has been added acidity indicator and some other chemicals. The acidity will be changed when the formulation is diluted and the acidity indicator changes the color of diluted formulation." Professionals have disclosed the general principle of magic color change.

At present, more and more Chinese farmers become more rational, and these "magic products" with higher price will not attract them any longer. When using it the first time, farmers find that Noposion's glyphosate product has no significant superiority over others, but it costs them more money. Therefore, the selling point of magic color change can't establish good reputation among farmers, but the high pricing of Noposion's glyphosate 41% IPA will become an factor impacting its market extension.

In fact, Chinese farmers pesticide purchasing decision doesn't highly depend on retailer's recommendation and product's famous brand any longer. They are more intellectual and choose product with best cost-performance ratios. With the increasing efficiency of domestic glyphosate product, more and more Chinese farmers choose domestic glyphosate product with lower price and comparable performance rather than famous brand Roundup. The decreased market share of Roundup and Noposion's stalled growth of high price glyphosate 41% IPA are good proofs.

 (Guangzhou China, September 21, 2011)

Source: Glyphsoate China Monthly Report 1109

http://www.cnchemicals.com/Newsletter/NewsletterDetail_14.html

Content of Glyphsoate China Monthly Report 1109:

Yangnong Chemical:Ugly performance in glyphosate business in H1 2011

Zhejiang Wynca suffers operating profit loss in H1 2011

Asia to be largest growth point of global glyphosate consumption

Cost-performance ratio becomes the key factor for Chinese farmers' purchasing decision

Porter's five forces analysis for China's glyphosate technical industry

Yellow Phosphorus price skyrockets in September 2011

Increasing glyphosate formulation export drives MIPA demand in China

Application of CWAO technology in glyphosate waste water treatment

Glyphosate price slightly increases in Sept.2011

Glyphosate export keeps uptrend in July 2011

Glyphosate China Monthly Report, a monthly publication issued by CCM International on 20^th of every month, will keep track of latest dynamics, hotspots and competitiveness analysis, and forecasts on market trends of China’s glyphosate 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 about Glyphosate China Monthly Report, please feel free to contact us at econtact@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