On 29th October, 2019, Chinese agrochemical company Flagchem
issued its 2019 third quarter report, which highlighted the fact that the company obtained a total operating revenue of Yuan1.204 billion, a year-on-year increase of 2.11%, and a net profit attributable to parent companies of Yuan121 million, a year-on-year decrease of 8.91%.
The company also obtained a single quarter revenue of Yuan316 million, a year-on-year decrease of 17.51%, and a net profit attributable to parent companies of Yuan23 million, which is a year-on-year decrease of 55.10%.
With regards to the intensive environmental compliance inspections of chemical industrial parks in Jiangsu conducted since March, the company performed quite well in terms of environmental compliance but the operational capacity of its plant inevitably became restrained. Since the second quarter of 2019, the company’s actual production output failed to reach its initial production target, affecting business performance. However, its business performance stayed in line with previous expectations.
Among the company’s fundraised projects, its research and development center was recently completed and is operational. Its new projects include include a 400-ton HPPA and 600-ton HPPA-ET projects in Huai'an Guorui, a 300-ton novaluron technical and 300-ton spiromesifen technical projects, and a 500-ton imazamox and 500-ton imazapic projects. Environmental regulations delayed the launch of these new projects, but as soon the short-term effects of these regulations are over, these projects are expected to immediately contribute to the company’s business performance.
In March, the company announced its plan to launch a cyhalofop-butyl technical expansion project and a 5,700-ton technical material upgrading project in Huai’an Guorui. Upon completion, these projects will further enhance the company’s business performance and increase its profitability.
Although the company’s production capacity has been affected, it has continued investing in research and development. Since the third quarter of 2019, the company announced the approval of three patent certificates, including five independently developed synthesis methods for pesticides and intermediates. At the time of the report’s issuance, the company and its subsidiaries have obtained 105 pesticide registration certificates and 55 production licenses in China.