On 26 Aug., 2016, Shandong Weifang Rainbow
Chemical Co., Ltd. (Weifang Rainbow) released its financial figures for H1
2016, which showed that Weifang Rainbow's herbicide business performed very
well in H1 2016:
-
Revenue: USD262.48 million (RMB1.75
billion), up 23.08% YoY, 91.05% of the total revenue
-
Gross profit margin: up 2.41 percentage
points YoY
Source: Baidu
Weifang Rainbow successfully entered the
New Third Board (=National Equities Exchange and Quotations, the pilot national
share transfer system for small and medium-sized enterprises) on 13 July, 2016.
Weifang Rainbow's financial figures by
product, H1 2016, million USD
|
Product
|
Revenue
|
YoY
change (%)
|
Cost
of sales
|
YoY
change (%)
|
Gross
profit margin (%)
|
YoY
change (percentage point)
|
|
Herbicide
|
262.48
|
+23.08
|
218.15
|
+19.62
|
16.89
|
+2.41
|
|
Insecticide
|
10.85
|
-35.46
|
8.76
|
-35.9
|
19.32
|
+0.55
|
|
Fungicide
|
11.79
|
+8.73
|
9.34
|
+7.58
|
20.77
|
+0.85
|
Source: Shandong Weifang Rainbow Chemical Co., Ltd.
According to the major financial figures,
Weifang Rainbow achieved large YoY increases in both total revenue and net
profit in the depressed agrochemical industry in H1 2016:
-
Total revenue: USD288.28 million (RMB1.93
billion), up 18.77% YoY
-
Net profit: USD17.35 million (RMB115.85
million), up 21.55% YoY (USD3.08 million – RMB20.54 million higher)
According to the company, the rise in total
revenue was mainly because of large orders and a significant YoY in sales
volume during the reporting period. Weifang Rainbow's orders mainly come from
overseas market. The company further exploited markets in Argentina and Brazil,
which helped boost its revenue from primary business by USD454,780 (RMB3.04
million, up 18.83%) YoY to USD287.01 million (RMB1.92 billion).
What's more,
the company's export sales amounted to USD271.56 million (RMB1.81 billion),
94.62% of the total revenue. Export volumes of all products hit 77,200 tonnes,
12,000 tonnes higher (up 18.45%) over H1 2015.
Regarding the large YoY rise in net profit,
Weifang Rainbow believed that it was mainly thanks to the YoY increase of 2.44
percentage points in gross profit margin, increased orders and well controlled
production costs. According to financial figures, the company's cost of sales
rose by 15.36% YoY, which was 3.41 percentage points less than the growth in
total revenue.
"Smooth implementation of our
strategic transformation also contributed to the growths in total revenue and
net profit," said Weifang Rainbow.
In H1 2016, the company's sales were
greatly impacted by food safety problems and grim situation of environmental
protection at home, high production costs of self-produced pesticide technical,
slowly-progressed project construction due to regional restrictions as well as
serious currency devaluation in many countries like Argentina, Brazil, Columbia
and Mexico.
In this context, Weifang Rainbow kept
carrying out the strategic plan of constructing the "global fast market
entry platform", and actively initiated local business operation in target
countries where construction of the platform was basically finished. In this
way, Weifang Rainbow upgraded from a simple pesticide raw material manufacturer
to a high quality pesticide formulations producer, an operator of the
"global fast market entry platform", and a service provider
concerning international crop protection.
Weifang Rainbow's financial performance, H1
2016, million USD
|
Item
|
H1
2016
|
YoY
change
|
H1
2015
|
|
Total
revenue
|
288.28
|
18.77%
|
242.73
|
|
Gross
profit margin
|
17.43%
|
2.44
percentage points
|
14.99%
|
|
Net
profit
|
17.35
|
21.55%
|
14.27
|
|
-
|
As
of 30 June, 2016
|
Change
over 31 Dec., 2015
|
As
of 31 Dec., 2015
|
|
Total
assets
|
538.60
|
17.25%
|
459.35
|
|
Net
assets
|
174.46
|
3.32%
|
168.84
|
Source: Shandong Weifang Rainbow Chemical Co.,
Ltd.
This article comes from Herbicides China News 1609, CCM
About CCM:
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Tag: pesticide herbicides