In H1 2016, Sichuan Hebang Biotechnology
Co., Ltd. (Sichuan Hebang)'s gross profit margin of PMIDA increased despite the
depressed pesticide market, mainly thanks to its self-sufficient raw materials
and well-controlled production costs. According to the company's financial
report of H1 2016 (Jan.-June), the revenue from PMIDA amounted to USD58.12
million (RMB388.14 million), down 34.44% YoY. Cost of sales of PMIDA decreased
by 40.94% YoY, which boosted the gross profit margin by 7.29 percentage points
YoY.
Source: Baidu
It is known that Sichuan Hebang's PMIDA was
developed through enriching its product line of sodium carbonate and ammonia
chloride. Up to now, Sichuan Hebang is one of the major PMIDA suppliers (135,000
t/a) in China.
At present, Sichuan Hebang's pesticide products mainly include chemical pesticides and intermediates, biological
pesticides, as well as other biological products. In terms of chemical
pesticides, the main products are glyphosate and its intermediate, PMIDA.
Notably, Sichuan Hebang's H1 2016 financial
figures also included the financial statement of S.T.K.Stockton Group Ltd.
(S.T.K.), which was acquired by Sichuan Hebang in H2 2015. During the report
period, S.T.K. achieved a revenue of USD22.81 million (RMB152.34 million) and a
gross profit margin of 30.83%. This, to some degree, has promoted the growth of
Sichuan Hebang's total revenue. Sichuan Hebang's 50,000 t/a glyphosate project
was put into trial production at the end of June 2016, but has not yet begun to
contribute to the company's financial performance. Therefore, Sichuan Hebang's
pesticide revenue mainly came from S.T.K.
"In regard to our pesticide business,
we kept expanding PMIDA markets in H1 2016. We confirmed major supplying
regions of global downstream manufacturers and realized expected earnings.
Besides, S.T.K helped us open the international pesticide market by actively
promoting biological pesticides," said Sichuan Hebang.
Regarding the development plan of the H2
2016, Sichuan Hebang claimed that it will continue to:
-
Expand S.T.K's biological pesticide
business
-
Keep a balance in the production and sale
of PMIDA
-
Improve production techniques, reduce
consumption cost, and increase profitability
-
Ensure that its 50,000 t/a glyphosate
project will run at full capacity
-
Seek new collaborating partners, expand
sales channels, and improve business layout
-
Stick to professional segmentation
management, further control production cost, and maintain competitiveness of
its products concerning cost and quality
Sichuan Hebang's financial figurers of
agrochemical business, H1 2016, million USD
|
Product
|
Revenue
|
YoY
change
|
Cost
of sales
|
YoY
change
|
Gross
profit margin
|
YoY
change
|
|
PMIDA
|
58.12
|
-34.44%
|
38.55
|
-40.94%
|
33.68%
|
+7.29
percentage points
|
|
Pesticide
|
22.81
|
/
|
15.78
|
/
|
30.83%
|
/
|
Source: Sichuan Hebang Biotechnology Co.,
Ltd.
This article comes from Glyphosate China Monthly Report 1609, CCM
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Tag: pesticide glyphosate