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Limin Chemical achieved over 90% interim net profit increase in 2019 after acquiring Veyong’s pesticide businessesqrcode

Jul. 12, 2019

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Jul. 12, 2019
After acquisition of 60% in Veyong’s equity assets (Veyong Pesticide, Veterinary Drugs and Inner Mongolia New Veyong) this June, China's Limin Chemical announced its 2019 semi-annual report on the 1stJuly predicting 1H net profit attributable to shareholders to reach Yuan196 – 206 million, 90%-100% up year on year.

It is reported that the 1H business increase of Limin Chemical is mainly attributable to the continued sales growth of the products of the company, the equity-participating companies and equity-controlled companies both in quantity and price, as well as the profit increase brought by consolidation of Veyong’s assets. After taking over Veyong, Limin Chemical and Veyong could better supplement product portfolio of each other and complement product advantages of each other. In the meantime, Limin Chemical could hold competitive products covering the full range of fungicide, insecticide and herbicide products.
 
In 2018, Limin Chemical’s equity-participating company Xinhe Agrochemical achieved a significant growth, having arrived at a net profit of Yuan271 million. Xinhe Agrochemical is the world’s largest chlorothalonil manufacturer, as supported by its globally advanced synthesis process, which enables the company to be the Chinese national standard drafter for the product. Limin Chemical’s annual 20,000-ton chlorothalonil production line is just completed early this year, which is now put into production. In light of the good results on the market, Xinhe Agrochemical completed its newbuild of an annual 10,000-ton chlorothalonil production line already in the 4th quarter of 2018, which allowed for extension of its product capacity to 30,000 tons. 
 
In 2019, Limin Chemical began to speed up new project constructions, among which the 500-ton difenoconazole project initiated since end of 2018 is expected for completion at the end of this year, the pyraclostrobin project is presently under the process of environmental impact assessment, the water-based formulation project has passed environmental impact assessment and currently stays in its design stage, which is scheduled for beginning of construction still within this year. 
 
Veyong’s pesticide portfolio contains a variety of insecticide products including emamectin benzoate and abamectin. Meanwhile, the company is in possession of advanced continuous gas phase synthesis technique for production of glufosinate. The merger between Veyong and Limin Chemical enables product and technology complementarities to each other. At the same time, the veterinary drugs of Veyong, which covers tiamulin, ivermectin and eprinomectin, will fill up the gap of Limin Chemical in veterinary drugs. 
 
Limin Chemical says that biopesticide has great potentials but is not able to replace chemical pesticide and therefore the future trend of pesticide application will be the combined development of chemical pesticide and biopesticide. After the acquisition of Veyong, Limin Chemical is also prepared to increase research and development of biopesticide so as to achieve an intensified growth of the biopesticide business of the company. 
 
Source: AgroNews

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