China Nanjing Red Sun's pesticide sales up 10% in 2013

Chinese agrochemical Nanjing Red Sun Co., Ltd recorded pesticide sales increase of 9.55% to Yuan 2.985 billion ($477.4 million at current rate) in 2013. The Group’s total revenue in 2013 reached Yuan 7.241 billion ($1.158 billion). The gross margin was up by 6.07% compared to last year to 26.62%. The company attributed the growth to the high product prices last year driven by positive market demand for their main products, tighter national environmental protection policies and increased prices of intermediate materials caused by pyridine anti-dumping case. Red Sun ranked no. 4 in sales of AgroPages’ Top 20 Chinese Agrochemical Companies Ranking List .

Nanjing Red Sun sales result (Yuan million)
Year ended 31st December	2013	2012	change%
Pesticide sales	2,985.4	2,725.2	+9.55
Group sales	7,241.3	7,175.4	+0.92

Last year, China's Ministry of Commerce ruled that from 21, November 2013, it will impose five-year anti-dumping tariffs (from 24.6 percent to 57.4 percent) on Indian and Japanese imports of pyridine, a raw material for making pesticides. Nanjing Red Sun, as the major initiator of this anti-dumping case, benefited greatly from the win of the lawsuit. The company owns many pyridine-based pesticides.

Nanjing Red Sun sales result by region (Yuan million)
Year ended 31st December	2013	2012	change%
Domestic sales	6,323.1	6,767.5	-6.57
Export	918.2	407.9	+125.1
Group total sales	7,241.3	7,175.4	+0.92

In 2012, Chinese government announced prohibition of paraquat AS in effect from 1 July 2016. Paraquat is one of the most important pesticides of Red Sun, after the prohibition law announced, the company intensified their R&D investment to develop new formulation for paraquat and finally obtained full registration of the paraquat 20% GW from ICAMA in 2013, which brings new vitality to paraquat.

Outlook

Nanjing Red Sun expects continued growth in 2014 by increasing presences and market shares of their own brand products all over the world. It will accelerate the marketing model transformation from traditional trade marketing to international marketing, increase efforts in oversea markets expansion and products registration aboard.

The company also plans to increase input in environmental protection, speed up the research and development of technical innovation to produce more resource-conserving and environment-friendly products.