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
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Tag: herbicides insecticides