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Top 20 Pesticide Enterprises of China in 2016qrcode

−− With the environmental policies stimulating the prices, pesticide enterprises are poised for a new wave of growth

Oct. 20, 2017

Favorites Print Oct. 20, 2017
单东丽-AgroPages Mickey Shan
Mickey Shan

Mickey Shan, Editor of AgroPages. Email: mickey@agropages.com

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Top 20 Pesticide Enterprises of China in 2016

 Amid the stringent environment policy of China in 2016, paraquat was officially banned for use. In July, the environmental inspectorates kicked off several inspection tours across the provincial regions forcing pesticide companies in the country to suspend production. This resulted in supply shortages and price hikes of the intermediate and some upstream resources. The demand side, however, appears to have blossomed. In the second half of 2016, the steadily increasing demand from overseas agrochemical giants boosted the year-round performance of the domestic players.

Sales of top 20 Chinese agrochemical companies in 2015
20162015Ranking
Company
Sales of 2016Million Yuan
Sales of 2015Million Yuan
Change%
1(3)
4,558
3,889
17.20
2(5)
3,751
2,912
28.81
3(3)
3,664
3,357
9.14
4(1)
3,496
3,545
-1.38
5(6)
3,178
2,854
11.35
6(2)
3,014
3,398
-11.30
7(4)
2,876
3,050
-5.70
8(8)
Sinochem International Crop Care
2,837
2,630
7.87
9(9)
Shandong Binnong Technology
2,537
2,372
6.96
10(14)
2,090
1,789
16.83
11(-)
Hubei Trisun Chemical
2,011
1,391
44.57
12(19)
1,979
1,468
34.81
13(-)
Lianyungang Liben
1,966
1,350
45.63
14(10)
1,965
2,007
-2.09
15(7)
1,942
2,756
-29.54
16(13)
1,833
1,815
0.99
17(12)
1,759
1,899
-7.37
18(16)
1,688
1,631
3.49
19(-)
1,501
1,325
13.28
20(11)
1,494
1,922
-22.27
Note: The actual sales of Fuhua-Tongda in 2015 is adjusted to 3,357 million from 1,495 million and the ranking is adjusted to the 3nd from the18th accordingly.














































Judging from the overall performance of the top 20 domestic companies, the levels of China's pesticide players remained on the rise. The top three in the list changed spots, with Nutrichem jumping from the third place in the previous year to the top with sales revenue of Yuan4.549 billion. Rainbow Chemical and Fuhua Tongda ranked second and third, with Yuan3.751 billion and Yuan3.664 billion sales revenues, respectively.
 
  Lier Chemical saw its sales revenue surge by 34.81% to Yuan1.979 billion, which pushed its ranking from the 19th place a year ago to the 12th spot this year. Lier successfully capitalized on the opportunity presented by the rise of glufosinate in the wake of the ban on paraquat. In 2016, with the completion of its technical upgrading and the capacity expansion project for a glufosinate technical production line with an annual output of 5,000 tons, Lier unlocked its capacity in glufosinate, ensured stable supply, and aggressively expanded its base in the domestic glufosinate formulations market.
 
 Continuing to maintain the growth momentum with its “fast market access” global marketing network, Rainbow Chemical moved up three spots and ranked second in 2016, with an annual sales revenue of Yuan3.751 billion and a growth rate of 28.81%. In 2016, Rainbow Chemical survived an overall sluggish market, benefiting from its wealth of self-registered pesticide assets, flexible sales models and services. In the meantime, the company’s subsidiaries in Uruguay, Bolivia, Myanmar and Paraguay were put into operation one after another.
 
 Huifeng Agrochemical clocked up an 11.35% increase in sales revenue last year, moving one spot higher and joining the top five club with sales revenue of Yuan3.178 billion. Huifeng Agrochemical established its new strategic direction of “reinforcing two pillars domestically and pursuing innovation internationally.” Riding on its advantage of being strategically located in a petrochemical storage terminal, Huifeng Agrochemical has built a highly influential chemical materials trading market in China. Moreover, in partnership with AMVAC, Huifeng Agrochemical has set up in Hong Kong an innovation-based joint venture, which will first apply AMVAC’s precision agriculture application technology — SIMPAS (Smart Integrated Multi-product Prescriptive Application System).
 
Reeling from the increasingly strict environmental inspections in 2016, some pesticides — most notably glyphosate — saw their capacity plummet and the prices of their intermediate and raw materials soar. At the same time, during the fourth quarter of 2016, overseas agrochemical giants started their re-stocking cycle, and major pesticides also experienced price hikes. This boosted the year-round performances of large, compliant producers.
 
  Lianyungang Liben Crop Science made it to the top 20 list for the first time with sales revenue of Yuan1.966 billion and a growth rate of 45.63%. The company also registered the greatest sales increase among the 20 players. In 2016, the company's major products, such as atrazine, saw an increase in both the sales volume and price, which, coupled with the uptrend in the price quotations of glyphosate toward the year-end, boosted the overall performance of the company. In addition to this, other products such as paraquat and chlorpyrifos also registered a steady increase in sales. Going forward, products such as azoxystrobin will also become the points of strength for the company.
 
  Hubei Trisun Chemical (Hubei xingfa Chemicals holding company)was also a new entrant in the list, ranking 11th with sales revenue of Yuan 2,011 billion, which soared 44.57% year on year. Hubei Trisun Chemical has a theoretical glyphosate annual capacity of 130,000 tons. Throughout 2016, the company saw its gross profit margin from glyphosate increase by 5.43% to 20.33%, thanks to which it achieved a net profit of Yuan0.178 billion, jumping by 42.4% year on year.

  Nantong Jiangshan Agrichemical & Chemicals experienced a sharp decline in its net profit during the first three quarters. However, driven by the uptrend in the price quotations of glyphosate in the last quarter, the company's annual sales revenue saw a decent growth, moving up four spots and ranking among the top 10 with sales revenue of Yuan2.090 billion and a growth rate of 16.83%. Jiangshan boasts of an annual capacity of 70,000 tons in the production of glyphosate technical. In 2016, the company's revenue from glyphosate was Yuan1.53 billion.
 
Crippled by the diminished orders from multinationals, intermediate production and customized processing, a few enterprises did not perform well in 2016.
 
 In 2016, Lianhetech witnessed its sales revenue plunge by nearly 30% to Yuan1.942 billion, as a result of which it moved down to 15th this year from 7th last year. In 2016, agrichemical giants reduced their production to decrease the stock along their global supply chains, which directly impacted the performance of the company. It is estimated that the global agrichemical market will return to an uptrend track, while the performance of the company is projected to recover as well.
 
 Owning to the industry downturn and the ongoing asset restructuring, Sanonda reported dissatisfactory performance in 2016. Its ranking plummeted from 11th last year to the bottom in the list. In 2016, the losses incurred from shutdowns of the company as a result of environmental pressure was estimated at Yuan57.40 million. Moreover, the company paid significant commissions while advancing its takeover of ADAMA.
 
In 2016, the pesticide market still suffered from lack of demand. Rigid policies, after all, cannot serve as a driving force for long-standing growth. Additionally, China's pesticide sector remains in large part dependent on the export business, which makes it highly susceptible to international procurement. Nonetheless, as pesticide companies continue to implement and advance their transformation strategies, and as a new industry pattern takes shape through M&As, looking to the future, we expect to see heavyweight and compliant pesticide producers diversify their business. Besides this, along with takeovers among several industry giants, the domestic market, already carved up by multinationals, will undergo a reorganization process, where strong, forward-thinking domestic players will have the opportunity to catch up.
 
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