CCM: Henan HDF: net profit slumps affected by falling glyphosate price in H1 2016 10-14-2016

Henan HDF Chemical Co., Ltd. (Henan HDF) released its financial figures for H1 2016:

  • Total revenue: USD15.71 million, down 31% YoY
  • Net profit: USD120,000, down 75% YoY


 

Source: Baidu


Fortunately, although the company experienced a fall in financial performance, it still remained profitable.

 

"The glyphosate industry is depressed, leading to falls in the revenue and profit margin of glyphosate, our leading product. This ultimately caused slumps in our total revenue and net profit," explained Henan HDF. Henan HDF's business consists of three sectors, namely pesticide technical & formulations, fine chemicals and others.


During the reporting period, the company achieved USD11.22 million from pesticide technical & formulations business, 71% of the total revenue. Notably, glyphosate business, belonging to pesticide technical & formulations business, took up 70%+ of revenue to the total revenue in the past few years. However, the revenue from glyphosate only amounted to USD10.88 million in H1 2016, down 34% YoY.

 

In China, many pesticide enterprises whose main business is glyphosate have suffered net losses in H1 2016, such as Zhejiang Wynca Chemical Industry Group Co., Ltd. As of now, China's glyphosate price still keeps low. CCM predicted that Henan HDF's total revenue and net profit in year 2016 will report large YoY falls, but it is still very likely to remain profitable.

 

Henan HDF's financial figures, H1 2016, million USD

Item

H1 2016

H1 2015

YoY change

Total revenue

15.71

22.85

-31%

Cost of sales

15.47

22.27

-31%

Operating profit

0.16

0.58

-72%

Total profits

0.16

0.55

-71%

Net profit

0.12

0.49

-75%

Gross profit margin

10.68%

12.54%

-1.86 percentage points

Note: Total profits = operating profit + non-operating profit - non-operating expenses; net profit = total profits - income tax expense.


Source: Henan HDF Chemical Co., Ltd.



 

Henan HDF's revenue by business, H1 2016, million USD

Item

H1 2016

H1 2015

Revenue

Cost of sales

Revenue

Cost of sales

Pesticide technical & formulations

11.22

10.98

19.95

19.49

Fine chemicals

4.49

3.05

2.90

0.49

Others

/

/

0.002

0.003

Total

15.71

14.03

22.85

19.98

Source: Henan HDF Chemical Co., Ltd.

 

This article comes from Glyphosate China Monthly Report 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: glyphosate

 

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