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Lier Chemical: net profit up by 50%+ in 2016

By Think Real - Lier Chemical Co., Ltd. (Lier Chemical) released its full-year 2016 financial figures. Specifically, it made revenue of USD287.3 million and net profit of USD30.2 million, up by 33.1% and 50.5% YoY.

Table : Financial performance of Lier Chemical, 2015, 2016 (million USD)

Index	2016	2015	YoY change
Revenue	287.3	215.8	33.1%
Cost of sales	252.0	193.0	30.6%
Net profit	30.2	20.1	50.5%
Distribution expenses	10.3	9.0	15.1%
Administrative expenses	22.2	18.6	19.2%
Financial expenses	-0.56	1.2	-
R&D investment	10.2	8.7	17.5%
-	Closing balance	Opening balance	YoY change
Total assets	451.7	370.5	21.9%
Debts	118.9	145.7	-18.4%

Source: Lier Chemical

In 2016,

1. Lier Chemical basically finished the technological reconstruction of a 5,000 t/a glufosinate ammonium technical production line, the construction of a 1,000 t/a aminopyralid production line (which was running at full capacity and achieved largescale sales), and the technological reconstruction of a 3,000 t/a picloram production line.

2. Subsidiary Guang’an Lier Chemical Co., Ltd. was constructed step by step – construction of the principle part of infrastructure and utilities was completed.

3. Lier Chemical continued increasing its registrations in foreign countries – registrations in 30 countries/regions such as the US, South America and Southeast Asia were made.

4. Subsidiary Sichuan Lier Crop Science Co., Ltd. (Lier Crop Science) actively carried out brand oriented marketing activities and expanded the glufosinate ammoniums formulations business in domestic market, and meanwhile launched other pesticides such as fungicides.

5. Subsidiary Jiangsu Kuaida Agrochemical Co., Ltd. finished the relocation of its 10,000 formulations project and the equipment installation accordingly – it is going to be put into trial operation.

6. The cost control in each link such as purchase and production was enhanced.

In 2017,

1. Lier Chemical will start the constructions of 10,000 t/a glufosinate ammonium, 1,000 t/a flumioxazin and 1,000 t/a epoxiconazole projects in Guang’an base (Guang’an Lier Chemical Co., Ltd.).

2. Lier Chemical will enlarge the international market exploitation by increasing the foreign registrations and actively expanding the overseas market.

3. Lier Chemical will improve the integration of R&D resources, and step up the research on new products and new production processes.

4. Subsidiary Lier Crop Science will accelerate the development of formulations business.

5. Lier Chemical will steadily make investments and carry out M&A.