AgroPages-Shandong LUBACHEM profit up 85% in H1-Agricultural news

Shandong LUBACHEM profit up 85% in H1

Shandong LUBACHEM recently issued its H1 2017 semi-annual report. During the report period, Shandong Lvba reported business income of Yuan851 million, up 35.43 percent year-on-year (y-o-y), as well as net profit of Yuan116 million attributable to the listed company, which was up 84.79 percent y-o-y.

-	H1 2017 (yuan)	H1 2016 (yuan)	Change （%）
Operating income	851,046,459.52	628,399,005.99	35.43
Net profit attributable to shareholders	115,581,722.26	62,548,825.56	84.79

The company says the increase in business income is a result of price rise of Paraquat and Pyridine, of which the price of Paraquat 42% mother liquid rose from the roughly Yuan13,000 per ton at the beginning of the year up to around Yuan20,000 per ton, which reflected an increase of about 58.82 percent. The increase in net profit was a result of price rise of products, such as Paraquat, Pyridine, 3-Methylpyridine and Diquat.

Furthermore, Shandong LUBACHEM holds the view that due to strict safe and environment compliance inspection in most of the provinces of China, as required by the Chinese government, some manufacturers have been shut down or suspended for correctional action, which was followed by a rebound in the pesticide industry.

Meanwhile, the Paraquat market has gone through a consolidation as led by industry leaders. For these reasons, the prices of Paraquat and Pyridine of the company have rebounded quite strongly. Therefore, the sales and profit of the company both rose to a certain degree during this report period.