Crop Protection China news

Q3 financial reports of domestic listed pesticide enterprises were released before the end of Oct. 2012. Most of 19 listed pesticide enterprises enjoyed good growth in revenue and net profit in this period. Only two of them suffered deficits. The growing performance of these listed companies showed the continuous recovery of domestic pesticide industry in Q3 2012.

However, after analyzing the performances of these listed pesticide enterprises, a problem shows up, that is the low profitability of most of these enterprises. Take Zhejiang Wynca for example, its revenue in this period reached USD249 million, but its net profit, however, was just  USD5.64 million. The same thing happened to Nantong Jiangshan with revenue and net profit of USD112.67 million and USD0.93 million. Low profitability has suggested that the recovery of domestic pesticide industry may be just a superficial phenomenon. Driven by the rising price of raw materials, the prices of products in some pesticide enterprises have also risen and finally led to the growth of revenue. However, actually the net profit of the products still remained the same or even lower than before.