Dec. 25, 2018
China’s leading fungicide manufacture, Limin Chemical
, recently published its third quarter report for 2018, which revealed that its business income from January to September totalled Yuan1.078 billion, 7.94% up from last year, as well as a net profit attributable to shareholders of Yuan150 million, or 34.89% up.
The report also showed a net profit minus non-recurring profit and loss of Yuan144 million, which is 59.64% up from last year.
Increased sales and the rising prices of chlorothalonil and mesotrione assisted the rapid growth of the company. Xinhe Agrochemical, of which Limin Chemical holds a 34% stake, has a chlorothalonil production capacity of 20,000 tons. After being affected by the shutdown of overseas production and environmental regulations in China, chlorothalonil saw an imbalance in supply and demand, at an average price of Yuan50,000 per ton between January and September 2018, which is 39% up from last year.
Limin Chemical launched new productions in October, which will ensure the future growth of the company. Xinhe Agrochemical’s production capacity of chlorothalonil increased to 10,000 tons in October, which enabled its monthly sales to reach 2,500 tons. The price of chlorothalonil was affected by its increased production capacity, rising to Yuan54,000 per ton.
The new 10,000-ton production capacity of mancozeb is expected to be approved by the end of 2018, and the construction of a 500-ton difenoconazole plant began at the end of October, which is scheduled for completion during the third quarter of 2019. The construction of a production facility that can produce 1,000 tons of pyraclostrobin is expected to begin early next year.
According to its announcement on the 11th October, Limin Chemical will acquire a 100% stake in Hebei Veyong Bio-Chemical, by spending Yuan750 million to 800 million in cash. Veyong is a leading Chinese company that produces abamectin, glufosinate and azoxystrobin.
The acquisition is scheduled for the close of the first quarter of 2019. During the first half of 2018, the business income and net profit of Veyong reached Yuan1.329 billion and Yuan109 million respectively. After the merger, the profitability of Limin Chemical is predicted to increase dramatically.