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Jingbo Agrochemicals applies for IPO in China

Report

China Insecticide Trade Flows 2016

By Think Real - In Jan. 2017, the China Securities Regulatory Commission (CSRC) published the IPO (Initial Public Offerings) and listing of Jingbo Agrochemicals Technology Co., Ltd. (Jingbo Agrochemicals), who plans to issue no less than 40.1 million regular RMB shares on the Shenzhen Stock Exchange Market to raise USD79.2 million.

In its prospectus, Jingbo Agrochemicals says that its raised fund will be used in five projects, including the construction of science and technology service station, the expansion of production lines for indoxacarb technical and new building of pesticide formulation production lines.

Table 1: Construction content of fund raising projects of Jingbo Agrochemicals

Project	Main content	Investment, mln USD
Marketing of pesticide formulations and construction of science & technology service network	Construction of 200 technology service stations	14.0
	Supporting personnel and technology preparation for science & technology service stations	3.3
	Increase of 10 logistics and storage centers	1.8
	Construction of marketing, operation and management platform	3.0
	Others	0.44
500 t/a green and highly-effective insecticide technical	500t/a indoxacarb technical production lines	12.8
10,000 t/a environmentally-friendly pesticide formulations	SC (capacity: 2,670t/a)	15.8
	WG (capacity: 1,180t/a)
	GR (capacity: 5,500t/a)
	DF (capacity: 200t/a)
	WP (capacity: 450t/a)
Technology center	Construction of R&D center and GLP analysis center	14.2
Technology center	Expenses for new product development, registration and patent application	14.2
Supplement for cash flow	/	13.8
Total		79.2

Source: Jingbo Agrochemicals

Established on 31 May, 2011, Jingbo Agrochemicals is mainly engaged in the R&D, production and sale of pesticide technical, pesticide formulations and intermediates featured with high effect, low toxicity, low residue and environmental-friendliness. In 2015, its revenue and net profit reached USD109.8 million and USD7.6 million, decreasing by 5.5% and 29.4% year on year respectively. By the end of June 2016, the company’s assets hit USD146.5 million.

Jingbo Agrochemicals’ main pesticides include quizalofop-P-ethyl, nicosulfuron, kresoxim-methyl and indoxacarb. According to its published reports, in 2013, 2014, 2015 and Jan.-June 2016, the subtotal revenue from the company’s main product series including quizalofop-P-ethyl, nicosulfuron, kresoxim-methyl, emamectin benzoate, tebufenozide and indoxacarb accounted for 69.9%, 70.0%, 60.6% and 59.1% of its total revenue from main businesses respectively, contributing the most.

Table 2: Main products of Jingbo Agrochemicals

Category	Product
Herbicides	Quizalofop-P-ethyl, nicosulfuron
Fungicides	Kresoxim-methyl
Insecticides	Emamectin benzoate, tebufenozide, indoxacarb
Others	Pesticide intermediates, plant nutrients, soft pesticide packages