AgroPages-Lianhe Chemical released drop in net profit: USD37.1 million in H1 2016, down 18.6% YoY-Agricultural news

By Think Real - On 26 July, 2016, Lianhe Chemical Technology Co., Ltd. (Lianhe Chemical) released the company’s annual report of H1 2016. In the first half of 2016, the company’s revenue was USD267.4 million, down 7.8% YoY; the net profit attributable to shareholders was USD37.1 million, down 18.6% YoY.

Revenue and gross profit margin both dropped in H1 2016

The main businesses of Lianhe Chemical are intermediates, pesticides and pharmaceuticals. In 2016, the company’s pharmaceuticals business kept increasing steadily while the pesticide business suffered from loss due to continuous impact by the gloomy market. The revenue from pesticide business was USD168.8 million in H1 2016, down 19.8% YoY, achieving a gross profit margin rate of 39.9%, down 3.0% YoY. As pesticide business takes up a comparatively large proportion of the company’s revenue, it directly influenced Lianhe Chemical’s performance.

Table : Revenue and gross margin of main business of Lianhe Chemical, H1 2016

Item		Revenue, million USD	YoY change	Gross margin	YoY change, percentage points
By product	Pharmaceutical and intermediates	44.3	12.9%	38.5%	1.4
	Pesticide and intermediates	168.8	-19.8%	39.9%	-3.0
	Fine/functional chemicals	8.4	-17.3%	10.2%	-2.8
	Other industrial products	6.2	3.1%	35.0%	5.16
	Trading	38.9	71.9%	1.3%	-2.0
By region	Domestic (industry)	58.4	-32.2%	40.6%	-1.8
	Overseas - Europe (industry)	64.8	-11.4%	31.0%	-1.9
	Overseas - America (industry)	84.1	-2.7%	43.2%	-4.5
	Overseas - Asia (industry)	20.4	0.91%	36.0%	4.9
	Domestic (trading)	4.6	-21.7%	4.0%	-1.9
	Overseas (trading)	34.3	104.6%	0.97%	-1.5