Insecticides China Monthly Report

The main Chinese domestic pesticide listing corporations successively released their third quarter sales reports in 2014. Half of these corporations, in the first three quarters, have achieved increase in the revenue from pesticide business and the total revenue of the company while the others' have downtrends. In order to better promote the company's total revenue, every corporations also develop a series of strategic policies.

Two cases will be introduced:

1. On 25 Oct., 2014, Shenzhen Noposion announced that it planned to purchase a 20% stake in Zhejiang Mitsuo with its own capital for USD3.09 million (RMB19 million). The acquisition is conductive to expand the company's business scope, to add production lines as well as to enhance service levels. These factors will enhance the company's competitiveness. It is another major step for Shenzhen Noposion in its goal to improve its strategic layout following its agreement to cooperate with Kingenta, a leading fertilizer company, in Sept. 2014.

2. On 1 Nov., 2014, Nongyi Net was officially launched at the Diaoyutai State Guesthouse in Beijing. The website was jointly established by Jiangsu Huifeng, which accounts for 50% of the capital stock, and other units including China Association of Pesticide Development and Application. This is the first agricultural e-commerce sales platform in China. Nongyi Net will provide opportunities for China's domestic pesticide market, brands, and products to develop and go global, as well as influencing the industry through the direct provision of pesticide information to enterprises, customers and the public.

Note: 1. All tables and figures in this issue are calculated by the same RMB/USD exchange rate (1USD=6.1457RMB); 2. Nuances in some data are mainly caused by rounding principle.