CCM: Yangnong Chemical: pyrethroid insecticides support H1 2016 financial performance 09-30-2016

In Aug. 2016, Jiangsu Yangnong Chemical Co., Ltd. (Yangnong Chemical) released its financial report for H1:



Source: Baidu


  • Total revenue: USD238.87 million (RMB1.60 billion), down 11.49% YoY
  • Net profit: USD31.83 million (RMB213 million), down 15.20% YoY


“During this period, revenue from insecticides rose slightly thanks to good sales. This also supported our overall performance. However, herbicides and other pesticides recorded falls over H1 2016,” disclosed the company.

 

Yangnong Chemical's financial performance, H1 2016, million USD

Item

H1 2016

H1 2015

YoY change, %

Revenue

238.87

269.86

-11.49

Net profit

31.83

37.53

-15.2

Net profit with extraordinary items deducted

26.56

34.38

-22.76

-

30 June, 2016

31 Dec., 2015

Change over 31 Dec., 2015, %

Total assets

707.58

697.38

+1.46

Net assets

481.90

469.66

+2.61

Source: Jiangsu Yangnong Chemical Co., Ltd.

 

- Insecticides


Yangnong Chemical is the largest domestic producer of pyrethroid insecticides and the only listed company with pyrethroids as its leading products. It has ranked as the top domestic producer in terms of revenue from pyrethroid insecticides for years.


Moreover, the company is also the only domestic company equipped with a complete supply chain of pyrethroids – from basic chemical raw materials and intermediates, to pyrethroid TC and pyrethroid formulations. Thanks to this systematic production line, it enjoys lower production costs than its competitors.


Thanks to this, H1 2016 saw growth in its insecticide business:


  • Revenue: USD139.04 million (RMB928.57 million), up 2.58% YoY, thanks to a stable sales price and volume of pyrethroids
  • Gross profit margin: 29.79%, up 2.37 percentage points YoY, due to the decreased production costs of raw materials

 



- Herbicides


Glyphosate and dicamba are the main herbicides produced by Yangnong Chemical. Low prices of both inflicted serious damage on the company’s H1 herbicide business performance:


  • Revenue: USD81.62 million (RMB545.11 million), down 21.91% YoY
  • Gross profit margin: 23.48%, down 1.38 percentage points YoY


“This was mainly due to decreases in both the trading volumes and sales prices of these two products over H1 2016,” explained Yangnong Chemical.

 

Yangnong Chemical's financial performance by industry and product, H1 2016

Item

Revenue, million USD

YoY change, %

Cost of sales, million USD

YoY change, %

Gross profit margin, %

YoY change, percentage point

By industry

Pesticides

234.98

-11.77

172.49

-13.4

26.59

+1.38

By product

Insecticides

139.04

+2.58

97.63

-0.78

29.79

+2.37

Herbicides

81.62

-21.91

62.46

-20.48

23.48

+1.38

Other pesticides

14.32

-45.48

12.41

-44.25

13.32

-1.91

Source: Jiangsu Yangnong Chemical Co., Ltd.

 

Notably, Yangnong Chemical announced significant profits from its Rudong pesticide project (Phase I, put into production at the end of 2014) in its H1 2016 financial report. The company has also accelerated the construction of infrastructure and buildings for the second phase of this project (including 3,550 t/a insecticides, 25,000 t/a herbicides and 1,200 t/a fungicides, with a total investment of USD449.21 million – RMB3 billion).


So far, the second phase has passed the Safety Assessment, Environmental Impact Assessment and Hygienic Assessment. It is expected to be able to contribute to the company’s financial performance in 2017.

  

This article comes from Insecticides 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.

 

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Tag: herbicides insecticides

 

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