AgroPages-Hubei Xingfa’s glyphosate business grows by 41.0% YoY in 2016-Agricultural news

By Think Real - In March, 2017, Hubei Xingfa Chemicals Group Co., Ltd. (Hubei Xingfa) published its 2016 annual report, according to which the company’s revenue and net profit reached USD2.1 billion and USD14.8 million, rising by 17.3% and 32.0% year on year respectively.

Moreover, the revenue from its glyphosate business was USD284.1 million in 2016, rising by 41.0% year on year; its gross profit margin of the business was 20.3%.

In 2016, the net profit of Hubei Taisheng Chemical Co., Ltd., a subsidiary of Hubei Xingfa, hit USD25.8 million, growing by around 42.4% year on year, which provided important support for the growth in its overall performance. The reason behind the net profit growth was the rising price of glyphosate in the second half of 2016, which enhanced its profitability.

During the report period, the 100% shares of the wholly-owned subsidiary of Hubei Xingfa, Xingshan County Xiakougang Co., Ltd., was transferred to its controlling shareholder, Yichang Xingfa Group Co., Ltd. The transaction increased its net profit by USD8.5 million.

Table: Revenue and gross margin of main business of Hubei Xingfa, 2016

Item		Revenue, million USD	YoY change	Gross margin	YoY change, percentage points
By product	Phosphate rock	142.7	3.2%	66.7%	0.3
	Fine phosphate	365.3	3.2%	17.7%	-1.2
	Fertilizers	196.8	-24.8%	3.3%	-10.2
	Organosilicon	140.2	142.6%	10.2%	11.2
	Chlor-alkali products	39.4	3.4%	11.8%	-17.7
	Glyphosate	284.3	41.0%	20.3%	5.4
	Trade	900.0	26.3%	1.3%	-1.5
By region	Domestic market	1,736.2	18.4%	12.1%	-2.1
By region	Overseas market	338.1	10.4%	14.4%	-1.7