Hubei Sanonda witnesses continuous growth in Q3 2014

Hubei Sanonda Co., Ltd. (Hubei Sanonda) maintains profit gaining in Q3
with year-on-year growth of 117.99% in net profit, which reached USD22.85
million (RMB140.42 million). Meanwhile, the company's total revenue increased
by 17.66% year on year to USD141.02 million (RMB866.67 million), according to
its Q3 report in 2014. Added by the excellent performance in Q3 2014, according to Herbicides
China News 1411 on November by CCM.

                           

Hubei Sanonda's net profit in the first three quarters of 2014 reached
USD69.78 million (RMB428.83 million) in total, with year-on year growth of
123.48%. It's observed that not all of the year-on-year three-digit growth in
net profit come from Q3 2014. According to Hubei Sanonda's semi-annual report
in 2014, the company's semi-annual net profit has already increased by 126.25%
year on year to USD46.93 million (RMB288.41 million). And it's predicted that
the company will witness continuous performance growth in the full year because
of the solid gaining basis in the first three quarters of 2014, as well as the
coming peak season for Chinese pesticide market in the last quarter of 2014.

As explained by Hubei Sanonda itself, the brilliant profit gained in the
first three quarters was mainly attributed to several key reasons:

1. The company received more export orders on the basis of stable domestic
sales. It's disclosed in the semi-annual reported that Hubei Sanonda's gross
profit margin in export expanded by 13.45% year on year, and the gross profit
margin in domestic sales

witnessed year-on-year growth of only 6.73% in the first half year of
2014.

2. The market quotations of main products of Hubei Sanonda, such as
paraquat, acephate, 2,4-D and so forth, were stable due to the calm
agricultural market. According to the price monitoring in 2014, the prices of
these pesticides except glyphosate were all stable. Coupled with continuous
industrial integration and stricter environmental protection, Hubei Sanonda
will show more obvious advantage in price bargain.

3. The reasonable cost control. It's released incompletely by Hubei
Sanonda that the price of materials in the company's pesticide productions
maintain stable at a low level in the first three quarters of 2014, mainly
because of correct prediction and large-volume purchase. And the complete
facilities contributed to energy saving.

A series of measures for performance improvement in Hubei Sanonda have
worked finally, and the company's stock price ascended accordingly in 2014.
Especially in March and Oct. 2014, the stock price jumped twice to meet the top
of RMB14.94 in Oct. 9 2014. And this happened after China National Agrochemical
Corporation had transferred its holding of 100% share equity of Sanonda Group
Co., Ltd. to ADAMA (ADAMA agricultural solutions Ltd., original Maksim Agam
Industrial Company) on 9 Oct. 2014, which lead to ADAMA directly and indirectly
holding a total of 30.75% share equity of Hubei Sanonda. It means that Hubei
Sanonda will cooperate with ADAMA.

As for Hubei Sanonda, ADAMA's large sales network and resources in
overseas market will help it improve export business. And the diverse product
lines and overseas registrations in ADAMA will also push Hubei Sanonda develop
OEM business in the future, which can improve Hubei Sanonda's gross profit
margin. Of course all of these prediction will not appear until the two
company's equity transference finished. The exact date is unclear at present.

Table of Content:  Herbicides
China News 1411

Hubei Sanonda witnesses continuous growth in Q3 2014

Lier Chemical's recent state and further strategy in 2014

Market conditions of corn herbicides in China in 2014

Characteristics of herbicide resistance of weeds in China

Herbicide market meets developing peak

China's demand for sunflower herbicides to further grow

Overview of China's herbicide export in Q1-Q3 2014

China's import volume of herbicide products up by 14.22% year on year,
Q1-Q3 2014

China's dicamba registration in Nov. 2014

China's new registrations of herbicide TC, Oct. 2014

China's herbicides industry witnessed a great development in the past few
years and China has become one of the top herbicide a.i. suppliers in the
world. Nevertheless, theherbicide business will still be the key growth point
in the whole pesticide industry in the next 5 years. It is expected that the
output of China's herbicides will increase with a CAGR of 6.2%, reaching
2,000,000 tonnesand that the export volume will exceed 800,000 tonnes in 2014.
Therefore, most Chinese herbicides manufacturers are starving for advanced
technologies and professional enterprise management.Many of them are looking
forward to cooperating with overseas companies and explore China's huge
herbicide market together. From the issues of Herbicides China News, keeping
track of China's herbicide industry will help you know what market China will
explore and when. Knowing the current market dynamics of China's herbicides
will facilitate your search for great commercial opportunities in China's huge
market.

About CCM

CCM
is dedicated to market research in China, Asia-Pacific Rim and global market.
With 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

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

This article was provided by CCM, a leading
provider of data and business intelligence on China's chemicals market. Contact
us:      

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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
performance.

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.

About CCM

CCM
is dedicated to market research in China, Asia-Pacific Rim and global market.
With 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

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

This article was provided by CCM, a leading
provider of data and business intelligence on China's chemicals market. Contact
us:      

-          LinkedIn: http://cn.linkedin.com/pub/kcomber-inc/9a/964/2b2/

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China Reaches Free Trade Deal with Australia

On 17 November, talks between Chinese President Xi Jinping and Australian
Prime Minister Abbott in Canberra saw the two countries finished their free
trade agreement (FTA) negotiation. The agreement contains 2 parts. In the 1st,
all the products covered will enjoy zero-tariff status when exported to
Australia from China. In the 2nd, over 85% of the products covered will be
zero-tariff when exported to China from Australia, this proportion rising to
93% within 4 years and after this 95%, according to Dairy
Products China News 1411 on November by CCM.

Tariffs on Australian dairy products entering China run up to 20%, but are
now to be removed completely over 4-11 years, dependent on the specific
commodity.

Naturally there has been a positive reception in Australia. In a Melbourne
paper on 20 November one local dairy company - Vi Plus Dairy, operating from
the old Bonlac Toora factory - took out a major front page advertorial offering
their congratulations on the achievement of the FTA!

The FTA will influence trade in several ways:

    Tariff-free trade seems likely
to attract more Chinese dairy enterprises to invest in Australia, where milk
prices are lower and quality higher, a pattern familiar through other
food-security driven investments by the industry in New Zealand and Europe

    Australia will expand milk
output: this has been at a severely reduced level ever since the peak years
either side of year 2000.  As a side
effect, growth in dairy exports to China has the potential to reduce the
country's reliance on the export of rocks and minerals. Gary Helou at Murray
Goulbum, suggests higher payouts to dairy farmers can take the country from 10
billion litres to 20 billion litre. Many in the industry have doubted this
vision for a country which never quite reached 12 billion litres at its peak to
date, but the potential could be there IF wider issues such as water supply
allow; what does appear certain is that Australia will supply more dairy
products to China going forward than in the past.

    New Zealand will face more
competition in exporting dairy products to China. A notable aspect of the deal
which Australian negotiators have been quick to highlight is the absence of the
special safeguard terms present in the New Zealand FTA, which have contributed
to the rush to import early each year in recent times. Likely there will be
moves now by New Zealand to better its deal: a clause in the 2008 agreement
makes legal provision for improvements in trading terms extended by China in any
new trade deal to be automatically applied to its agreement with New Zealand.

    European countries will also
face stepped up competition at a time when milk production is rising and
expected to expand further after the quotas are gone.

Table of Content: 
Dairy
Products China News 1411

South Korea to Expand Exports of Infant Formula to China

Challenges for Chinese UHT Milk Processors

Goat Milk Products Enjoy Huge Potential in China

Dairy Industry's Prosperity Index Increases Slightly in Q3

China Reaches Free Trade Deal with Australia

Danone Becomes Second Biggest Shareholder of Yashili

New Competitors in Infant Formula Market

Royal Dairy Cooperates with Irish Dairy Board

Price of Raw Milk in China Continues to Drop

Vitasoy Launches Premium Soy Milk

Three Infant Formula Processors Acquire Production License

Nanshan Animal Husbandry Builds Dairy Farms and Milk Powder Production
Lines

Guangxi Imports Large Numbers of Cows

Yantang Dairy's IPO Approved

Royal Dairy Sees Growth in Net Profit in Q3 2014

Jiangsu Province Streamlines Test Efficiency on Fresh Milk Imports

Subsidiary of Junlebao Dairy Cooperates with Ireland's Keenan

Milk Deluxe Launch New Product Series

Shaanxi Province Issues Merger and Consolidation Plan of Dairy Industry

Bright Dairy to Take over Tnuva by January

The Dairy Products China News is a monthly newsletter jointly published by
CCM and Orrani Consulting - an overseas dairy expert and a leading consultancy
specialized in the food/drink and ingredient sectors. It combines CCM
International's extensiveknowledgeoftheChinese dairy industry with Orrani's
specialization inthe global dairy sector. Dairy Products China News has an
In-depth and insightful analysis from CCM's experts, accurate market data and
first-hand information and a forecast on the development trend of the dairy
market. It brings you the latest information on new market and company
dynamics, new dairy products and consumption trend, new legislations and
policies and raw milk supply dynamics that are shaping the market.

About CCM

CCM
is dedicated to market research in China, Asia-Pacific Rim and global market.
With 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

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

This article was provided by CCM, a leading
provider of data and business intelligence on China's chemicals market. Contact
us:      

-          LinkedIn: http://cn.linkedin.com/pub/kcomber-inc/9a/964/2b2/

-          Facebook: https://www.facebook.com/ccmkate

-          Twitter: https://twitter.com/CCM_Kcomber

China’s high-quality phosphorus ore outflows to overseas seriously

Aug. 2014 – CCM gave special attention to a phenomenon existing in China's phosphate fertilizer industry that most phosphate fertilizer enterprises export their high-quality phosphate fertilizers abroad to alleviate the overcapacity, which to a great degree brings about serious outflow of China's high-quality phosphorus ore indirectly.  

In recent years, the international phosphate fertilizer giants taking the Mosaic Company as representative, have accelerated their investment in Morocco, Tunisia, Jordan, Saudi Arabia and other countries with abundant phosphorus ore, obviously intending to raise their influences in the global market through controlling the phosphorus ore as the starting point. However, in contrast to the trend mentioned above, Chinese enterprises still export their phosphate fertilizers made from the high-quality phosphorus ore overseas on the basis of China’s large proportion of medium- and low-grade phosphorus ore and the low utilization rate, which indirectly accelerating the loss of China’s high-quality phosphorus ore.   

According to the statistics from the United States Geological Survey (USGS), the global economic reserves and basic reserves of phosphate rocks (phosphorus ore is the general term for the available phosphate minerals in economy) are 18 billion tonnes and 50 billion tonnes respectively (economic reserves refer to the phosphorus ore with mining cost less than USD35/t and basic reserves refer to those with mining cost less than USD100/t). In fact, over 80% phosphate rocks are clustered in Morocco, the US, South Africa, Jordan and China. Of this, China’s phosphorus ore reserves and basic reserves are 4.1 billion tonnes and 10 billion tonnes, accounting for 27.14% and 21.28% of the global volume respectively. However, there are few high-grade phosphorus ore but rich low-grade phosphorus ore in China and the average grade only reaches 17% phosphorus pentoxide ( P₂O₅). The high-grade phosphorus ore with over 30% P₂O₅ only accounts for 8.5% of the total. What's worse, over 90% of medium- and low-grade phosphorus ore cannot be used directly. In view of the analysis conducted by related experts, the current Chinese phosphorus ore may run out within about 20 years.

Phosphorus ore are mainly used in producing phosphate fertilizers and phosphoric acid. With the increasing population worldwide, more and more phosphate fertilizers are in demand to guarantee the food supply. In 2012, the global consumption of phosphate fertilizer was 41.9 million tonnes and it is predicted that the figure will reach 45.3 million tonnes by 2016. According to the preliminary statistics summarized by the China Phosphate Fertilizer Industry Association, China totally output around 16.5 million tonnes of phosphate fertilizers in 2013, of which about 11.88 million tonnes were consumed in the planting industry. Additionally, about 80% phosphorus ore are adopted to manufacture phosphate fertilizers directly or indirectly in China. In recent years, exporting the high-quality phosphate fertilizer is the natural choice to solve China's overcapacity of phosphate fertilizers. It is disclosed that the average export volume of Chinese phosphate fertilizers is around 2.2 million tonnes and a great deal of high-grade phosphorus ore with low-content cadmium drain to the overseas markets. According to data from China Customs, in H1 2014, China exported 596,100 tonnes of monoammonium phosphate, up 201% year on year, 1.27 million tonnes of diammonium phosphate, up 146% year on year, and 493,900 tonnes of triple superphosphate, rising by 116% year on year.

Once China's high-grade phosphorus ore fail to meet the domestic needs of producing phosphate fertilizers, China has to import phosphorus ore or phosphate fertilizers from overseas. At that moment, China will suffer restrictions in the purchase volume and the price of phosphate fertilizers and most imported phosphorus ore or phosphate fertilizers are likely to contain much more cadmium than the Chinese phosphorus fertilizers does. In order to prevent such problems, the Chinese government and enterprises should exploit and utilize the precious phosphorus ore in a reasonable way from now on.

For the Chinese government, firstly, it should improve the access threshold for phosphorus ore exploitation and advance the large-scale and intensive development and utilization of phosphorus ore. Furthermore, it can carry out rational plans, regulate related measures to protect phosphorus ore and control and eliminate unqualified enterprises. Secondly, the Chinese government should intensify the resource exploration and excavate new phosphorus ore resources. The Ministry of Land and Resources of People's Republic of China and related departments should strengthen the exploration capacity for mines, especially for the surroundings and the deep of key mines with favorable phosphoric mineralization to excavate more high-grade phosphorus ore. Thirdly, the Chinese government should intensify supports to the comprehensive utilization technologies of phosphorus ore. China should input more spending to the new technologies, contributing to the energy conservation, emission reduction and consumption reduction in the phosphorus chemical industry so as to improve the level of comprehensively utilizing Chinese phosphorus ore. These new technologies include the technology of producing high-concentrated phosphate compound fertilizers directly based on the medium- and low-grade phosphorus ore and the technology of fully using sulfur and associated resources based on the chemical-process phosphogysum. Fourthly, the Chinese government should encourage enterprises to invest overseas so as to achieve more phosphorus ore with low prices. Through implementing related policies, the Chinese government can encourage large enterprises to take measures such as making investments, jointing capital and merger to establish their own phosphorus ore businesses overseas and participate in the phosphorus chemical asset integration with Morocco, Saudi Arabia and other countries in North Africa and the Middle East in order to collect more cheap phosphorus ore.  

For enterprises, Chinese phosphorus ore enterprises and phosphate fertilizer enterprises should rationally utilize their resources and appropriately export their products abroad. Besides, they should enhance the recovery of phosphorus ore mining and ore dressing, rationally exploit and fully utilize China's limited phosphorus with low-content cadmium and consider to export appropriate volume of phosphate fertilizers under the precondition of ensuring the sustainable supply in the domestic market.  

-          This article was provided by CCM, a leading provider of data and business intelligence on China’s chemicals market. For more information on CCM and China Li-ion Battery E-News, please visit www.cnchemicals.com or contact econtact@cnchemicals.com

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