AgroPages-Nanjing Redsun witnesses fall in sales revenue and net profit in H1 2016: respectively down 34.4% and 67.4% YoY-Agricultural news

By Think Real - In Aug. 2016, Nanjing Redsun Co., Ltd. (Nanjing Redsun) released its semi-annual report of 2016. During the reported period, Nanjing Redsun’s sales revenue was USD328.0 million, down 34.4% YoY; the net profit attributable to shareholders was USD8.6 million, down 67.4% YoY.

Nanjing Redsun’s main products include pyridine, hydrocyanic acid and pyrethroids. In H1 2016, the company’s sales revenue from pesticides was USD326.7 million, up 3.9% YoY, with gross profit margin 14.0%, down 4.3 percentage points YoY.

The reason for the drop in Nanjing Redsun’s sales revenue mainly lies in the company’s stock transfer. In 2015 Nanjing Redsun transferred its stocks in Jiangsu Zhenbang Crop Technology Co., Ltd. (Jiangsu Zhenbang) and Nanjing Zhenbang Investment Development Co., Ltd. (Nanjing Zhenbang) to Nanjing First Pesticide Group Co., Ltd. As a result, Jiangsu Zhenbang and Nanjing Zhenbang’s fertilizer and agricultural materials business were no more included in the report.

According to Nanjing Redsun, in H1 2016, under the influence of production capacity surplus, insufficient market demand and fierce competition, prices of pesticides remained at a low level and therefore the prices of the company’s main products hit a historic low record and maintained a bottom level, which brought pressure to the company to some extent.

Table : Revenue and gross margin of main business of Nanjing Redsun, H1 2016

Item		Revenue, million USD	YoY change	Gross margin	YoY change, percentage points
By product	Fertilizer	/	/	/	/
	Pesticide	326.7	3.89%	14.0%	-4.3
	Agricultural inputs	/	/	/	/
	Others	/	/	/	/
By region	Jiangsu Province	117.4	-30.9%	26.7%	1.9
	Fujian Province	0.76	23.8%	10.8%	-1.1
	Guangxi	4.53	-27.3%	12.0%	-1.4
	Anhui Province	31.4	-40.2%	8.5%	5.3
	Hubei Province	6.9	-40.2%	1.7%	-13.7
	Shaanxi Province	4.5	338.8%	11.2%	-1.8
	Others in China	69.7	-1.2%	7.9%	-0.28
	Overseas	91.6	-46.8%	5.3%	-0.55