The annual report of Chinese agrochemical company Hailir Pesticides and Chemicals Group
for 2019, published on April 27, has revealed that the company has achieved operating revenue of Yuan2.467 billion which is an increase of 12.56% year-on-year, with the net profit attributable to shareholders of Yuan316 million which is a decrease of 14.03% year-on-year.
The decrease in profits is attributed to the significant fall in prices of imidacloprid and acetamiprid, which are the main products of the company, as a result of the weak market demand, the report said.
According to the first quarter report published by the company at the same time, the company achieved revenue of Yuan792 million and net profit attributable to shareholders of Yuan83.6609 million, which are respectively 31.61% and 22.27% higher year-on-year. The main reason for the improved performance lies in the satisfactory production and sales of pyraclostrobin. Besides, the business performance of KYX Chemical, which was acquired by the company in 2019, is consolidated in the financial statement of Hailir, having included the new product emamectin benzoate, leading to an enhanced advantage of business integration of the company.
Hailir also said that to enhance the company's core competitiveness and profitability, there is a plan to raise Yuan897 in funds, of which Yuan700 million will be spent on the establishment of an annual 40,000-ton agrochemical technical material and intermediate production facility in Qingdao Hengning Biotechnology Ltd.
The project is located in Qingdao Pingdu Xinhe Ecological Chemical Industrial Base. The main contents of the project include an annual 3,000-ton difenoconazole technical and intermediate, 2,600-ton phenylate ketone, 2,000-ton propiconazole technical and intermediate, 2,000-ton 2,4-dichoroacetophenone, 2,000-ton chlorfenapyr technical and intermediate, 2,200-ton 4-bromo-2-(4-chlorophenyl)-1-methyl-5-(trifluoromethyl)-1H-pyrrole-3-carbonitrile, 2,000-ton diafenthiuron technical and intermediate, 2,200-ton 4-phenoxy-2, 6-diisoproyl phenyl thiourea and intermediate, 1,800-ton benzene, 2-isothiocyanato-1,3-bis (1-methylethyl) -5-phenoxy, including utilities and supportive works.
Hailir has managed to maintain its rapid business growth over recent years. From 2017 to 2019, its operating revenue reached respectively Yuan1.589 billion, Yuan2.191 billion and Yuan2.467 billion, of which the revenue of technical material and intermediates reached respectively Yuan533 million, Yuan894 million and Yuan946 million. It is expected that, upon completion, the project will further improve the profitability of the company.