CCM: Weifang Rainbow: over 23.08 percent YoY in herbicide revenue in H1 2016 09-29-2016

On 26 Aug., 2016, Shandong Weifang Rainbow Chemical Co., Ltd. (Weifang Rainbow) released its financial figures for H1 2016, which showed that Weifang Rainbow's herbicide business performed very well in H1 2016:

  • Revenue: USD262.48 million (RMB1.75 billion), up 23.08% YoY, 91.05% of the total revenue
  • Gross profit margin: up 2.41 percentage points YoY


Source: Baidu


Weifang Rainbow successfully entered the New Third Board (=National Equities Exchange and Quotations, the pilot national share transfer system for small and medium-sized enterprises) on 13 July, 2016.

 

                                    Weifang Rainbow's financial figures by product, H1 2016, million USD

Product

Revenue

YoY change (%)

Cost of sales

YoY change (%)

Gross profit margin (%)

YoY change (percentage point)

Herbicide

262.48

+23.08

218.15

+19.62

16.89

+2.41

Insecticide

10.85

-35.46

8.76

-35.9

19.32

+0.55

Fungicide

11.79

+8.73

9.34

+7.58

20.77

+0.85

Source: Shandong Weifang Rainbow Chemical Co., Ltd.

                                                

According to the major financial figures, Weifang Rainbow achieved large YoY increases in both total revenue and net profit in the depressed agrochemical industry in H1 2016:


  • Total revenue: USD288.28 million (RMB1.93 billion), up 18.77% YoY
  • Net profit: USD17.35 million (RMB115.85 million), up 21.55% YoY (USD3.08 million – RMB20.54 million higher)

 

According to the company, the rise in total revenue was mainly because of large orders and a significant YoY in sales volume during the reporting period. Weifang Rainbow's orders mainly come from overseas market. The company further exploited markets in Argentina and Brazil, which helped boost its revenue from primary business by USD454,780 (RMB3.04 million, up 18.83%) YoY to USD287.01 million (RMB1.92 billion).


What's more, the company's export sales amounted to USD271.56 million (RMB1.81 billion), 94.62% of the total revenue. Export volumes of all products hit 77,200 tonnes, 12,000 tonnes higher (up 18.45%) over H1 2015.

 



Regarding the large YoY rise in net profit, Weifang Rainbow believed that it was mainly thanks to the YoY increase of 2.44 percentage points in gross profit margin, increased orders and well controlled production costs. According to financial figures, the company's cost of sales rose by 15.36% YoY, which was 3.41 percentage points less than the growth in total revenue.

 

"Smooth implementation of our strategic transformation also contributed to the growths in total revenue and net profit," said Weifang Rainbow.

 

In H1 2016, the company's sales were greatly impacted by food safety problems and grim situation of environmental protection at home, high production costs of self-produced pesticide technical, slowly-progressed project construction due to regional restrictions as well as serious currency devaluation in many countries like Argentina, Brazil, Columbia and Mexico.

 

In this context, Weifang Rainbow kept carrying out the strategic plan of constructing the "global fast market entry platform", and actively initiated local business operation in target countries where construction of the platform was basically finished. In this way, Weifang Rainbow upgraded from a simple pesticide raw material manufacturer to a high quality pesticide formulations producer, an operator of the "global fast market entry platform", and a service provider concerning international crop protection.

 

                                         Weifang Rainbow's financial performance, H1 2016, million USD

Item

H1 2016

YoY change

H1 2015

Total revenue

288.28

18.77%

242.73

Gross profit margin

17.43%

2.44 percentage points

14.99%

Net profit

17.35

21.55%

14.27

-

As of 30 June, 2016

Change over 31 Dec., 2015

As of 31 Dec., 2015

Total assets

538.60

17.25%

459.35

Net assets

174.46

3.32%

168.84

                                                        Source: Shandong Weifang Rainbow Chemical Co., Ltd.


This article comes from Herbicides China News 1609, CCM

 



About CCM:

CCM is the leading market intelligence provider for China’s agriculture, chemicals, food & ingredients and life science markets. Founded in 2001, CCM offers a range of data and content solutions, from price and trade data to industry newsletters and customized market research reports. Our clients include Monsanto, DuPont, Shell, Bayer, and Syngenta. CCM is a brand of Kcomber Inc.

 

For more information about CCM, please visit www.cnchemicals.com or get in touch with us directly by emailing econtact@cnchemicals.com or calling +86-20-37616606.

 

Tag: pesticide  herbicides

 

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