Review of Anhui Huaxing’s performance in H1 2013

Keyword: herbicide, insecticide, pesticides, revenue, financial activities
Publish time: 9th September, 2013      Source: CCM
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  Anhui Huaxing, a listed herbicide and insecticide manufacturer in China, achieved a revenue increase of 38.08% YoY in H1 2013, reaching USD115.44 million. According to the company, the revenue growth was mainly due to its product promotion at home and aboard and the product structure adjustment. Another cause was that one of its wholly subsidiaries namely Anhui Linearfull Modern Agriculture Co., Ltd. witnessed an outstanding revenue growth, increasing to USD38.74 million in H1 2013, from USD11.38 million in H1 2012.
   
  Meanwhile, Anhui Huaxing's net profit turned loss into gain in the half year. In H1 2012, Anhui Huaxing suffered a loss of USD0.88 million. Owning to the price rise of glyphosate in H1 2013, the company's net profit in the half year turned to be positive—USD2.15 million.
   
  Pesticides, as Anhui Huaxing's major business, brought revenue of about USD84.24 million in H1 2013, up 6.77% YoY. The gross profit margin of it increased by 6.79 percentage points YoY as well, reaching 19.44% in the first half year. Among the company's sub-industries of pesticides, fungicides' YoY revenue growth and gross profit margin in H1 2013 were 29.22% and 27.91% respectively, much higher than the others, even though the proportion that fungicide products accounted in the total revenue was less than insecticide and herbicide products accounted.
   
  Sales performance of Anhui Huaxing gained improvement in both domestic market and overseas market in H1 2013, with a revenue growth of 29.33% and 24.54% YoY respectively. The revenue at home captured a bigger proportion, reaching USD81.98 million, compared with USD32.81 million from the overseas market.
   
  According to Anhui Huaxing, the pesticide projects it invests in currently mainly includes relocation projects of 5,000t/a glyphosate, 6,000t/a monosultap and 6,000t/a bisultap. As of the end of H1 2013, 60.06% of the relocation project process of glyphosate had been completed, and that of monosultap and bisultap had completed 7.69%.
   
  Last but not least, it is worth noting that cash inflow on Anhui Huaxing's financial activities in H1 2013 reached USD332.17 million, which was attributed to the additional new stocks issued for CEFC Shanghai Oil Group Co., Ltd. (CEFC Shanghai). Due to the financial activities, Anhui Huaxing's leadership had been adjusted and Anhui Huaxing has become a subsidiary of CEFC Shanghai. As a result, Anhui Huaxing's total assets increased by 98.87% on 30 June, 2013, compared with that in the beginning of 2013, and its total liability dropped 49.70% in the closing balance, compared with that in the opening balance.
   
  Source: Crop Protection China Monthly Report issued by CCM in August.
   
  Table of Contents of Crop Protection China Monthly Report:
  The rank of domestic listed pesticide enterprises by different indexes
  Jiangsu Changqing
  Jiangsu Huifeng
  Lianhe Chemical
  Hefei Fengle
  Sanonda
  Qianjiang Biochemical
  Noposion
  Nanjing Redsun
  ABA chemicals
  Shandong Shengli
  Huapont-Nutrichem
  Lier Chemical
  Hebei Veyong
  Shenghua Biok
  Nantong Jiangshan
  Zibo Wanchang
  Zhejiang Wynca
  Anhui Huaxing
  Jiangsu Lanfeng
  Jiangsu Yangnong
  Hunan Haili
   
  China Crop Protection Monthly Report, a monthly publication issued by CCM, will keep an eye on the most important or the latest occurrences or the hottest topics in China’s crop protection industry, and select one or two topics out of these news and information to compose an in-depth feature article. You can obtain professional and insightful intelligence, covering market dynamic, industry development, government policies and more by going through the features articles every month.
   
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