AgroPages-BSM listed at NEEQ：strengthens the "1+3" business model, further expands overseas market-Agricultural news

The National Equities Exchange and Quotations announced on July 19 that the listing application from BSM Chemical Co., Ltd. (BSM) had been approved.

BSM was founded on March 31, 2003, as a high-tech joint venture between Chinese and foreign companies, focusing on research, development, manufacturing, and marketing. The company has a wholly owned subsidiary, Lianshui Sanyuan Technology Co., Ltd. and a holding subsidiary Jiangsu Yongan Chemical Co., Ltd..

BSM is located in Hangzhou Gulf Fine Chemical Industry Park, in Shangyu City, Zhejiang Province, and is mainly engaged in researching, manufacturing and selling agrochemical and pharmaceutical intermediates, agrochemical technicals, and formulations. Its core products are 4-Nitro-O-Xylene, 3-Nitro-O-Xylene, N-(1-Ethyl Propyl)-3,4-Xylidine, Pendimethalin Tech, and EC. The main characteristics and uses of these products are listed in the table below.

No.	Products	Usage
BSM(intermediates)
1	4-Nitro-O-Xylene	Key intermediate of herbicide Pendimethalin; important raw materials for the production of feed-grade vitamin B2 (riboflavin)
2	3-Nitro-O-Xylene	Raw materials of 2,3-Xylidine, 3-Nitro-2-Methyl Benzoic Acid, and 3-Nitrophthalic acid; the intermediate of anti-inflammatory analgesic Mefenamic Acid
3	N-(1-Ethyl Propyl)-3,4-Xylidine	Key intermediate of herbicide Pendimethalin
4	2,3-Xylidine	Organic intermediate that is widely used in the synthesis of dyes and medicine; the main raw material of anti-inflammatory analgesic Mefenamic Acid
Jiangsu Yongan (Technicals and formulations)
1	Pendimethalin TC	One of the top 10 herbicides: high efficiency, low toxicity, low residual, selective pre-emergency herbicide for broad spectrum and broadleaf weeds, cannot be used directly
2	Pendimethalin EC	Made from Pendimethalin technical; can be used directly

BSM successfully realized the whole industrial chain operation of Pendimethalin by utilizing its own technological advantages, becoming the leading supplier of Pendimethalin TC in 2015. Meanwhile, BSM continues to invest in research, forming the "1+3" industry chain layout and creatively developing three novel high-efficiency, low-toxicity pesticides, such as methoxyfenozide, and one selective post-emergency herbicide. At present, methoxyfenozide and the key intermediate, using the Pendimethalin by-product as the raw material, have passed the pilot plant test. The domestic registration will be approved in 2017 before the product finally enters the market. Two other products are undergoing testing in the lab and are expected to have domestic registration completed for entry into the market in 2018 and 2019.

BSM is currently leading the industry for the nitration of O-Xylene and possesses the largest capacity for 4-Nitro-O-Xylene; N-(1-Ethyl Propyl)-3,4-Xylidine; and 2,3-Xylidine. Its subsidiary, Jiangsu Yongan, has the largest capacity of Pendimethalin Tech and EC in China, producing European and American standard products. It is the leading supplier of Pendimethalin in the domestic and Asia-Pacific market.

The announcement revealed the company's revenue was RMB239 million and RMB277 million in 2015 and 2014, respectively. At present, BSM's main products, such as agrochemical and pharmaceutical intermediates, Pendimethalin Tech, and EC, are sold in the domestic market. Its overseas business has been gradually improving as well. BSM's main export products include 4-Nitro-O-Xylene, agrochemical and pharmaceutical intermediates, Pendimethalin Tech, and EC. The destination countries and regions include Europe, the Americas, Pakistan, and India. The company is also actively exploring new markets abroad, including Australia and other countries and regions in Asia. BSM has established a stable supply and marketing relationship with overseas customers by directly selling its products to overseas agrochemical manufacturers for further processing or OEM.

The company's main domestic customers are Zhongnong Lihua, Shandong Huayang, and Zhejiang Xinnong, among others, while its overseas customers mainly include Finchimica S.P.A. and Adama Agan Ltd. Finchimica S.P.A. was one of its main Pendimethalin Tech customers in 2015.

BSM intends to continue focusing on research, development, and the manufacture of agrochemical and pharmaceutical intermediates, agrochemical technicals, and formulations in the future and will increase investment in the research and development of low value O-Xylene by-products, gradually completing its “1+3”business strategy: using 4-Nitro-O-Xylene--Pendimethalin as its core product, along with 3-Nitro-O-Xylene–Methoxyfenozide and two other products.

BSM will further increase its production capacity through technology innovation to strengthen its competitiveness in the international market and endeavors to become a major global supplier of Pendimethalin within three years. Meanwhile, BSM will actively promote agrochemical technical registrations in foreign countries, especially in the southern hemisphere, to reduce the impact of seasonal sales in the northern hemisphere.