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Limin Chemical: 1H profit up 34%, moving towards global EBDCs leader

A few days ago, Limin Chemical issued its 2017 semi-annual report, disclosing that its business income in the first half reached Yuan661 million, up 22.87 percent and net profit attributable to shareholders reached Yuan78.9719 million, up 33.98 percent.

The company’s strong results and high growth may help it become a global EBDCs leader.

As a Chinese fungicide industry leader, the net profit of Limin Chemical has achieved a growth rate of more than 30 percent since its listing on January 27, 2015. The significant growth of the company in the first half of this year is attributable to both internal and external causes, which have enabled the company to move into an accelerated stage of growth.

In the first half of this year, Limin Chemical closed the acquisition of Hebei Shuangji Chemicals, which contributed to its increased sales of EBDCs. The higher selling price of EBDCs has increased the profitability of the company.

Also, during the prosperous business period, the profit margin of major products of the company has appeared to grow. The optimized product structure and the price rise of some varieties of the company has promoted an increase in the sales and profitability of the company. Furthermore, the complete chlorothalonil industry chain of equity participation has brought about an expansion in its businesses due to the price rebound in the industry sector.

Additionally, the overseas development of Limin Chemical has moved on to a fast track, where purchase orders from Venezuela and the growth in investment income have played an important role in its business increases.

Limin Chemical specializes in exports, and also engages in marketing, research and environmental projects. Chlorothalonil is expected to maintain a high degree of prosperity among the major product portfolios of the company. Its traditional advantage product Mancozeb has started to rebound after touching the bottom while Propineb and Metham sodium projects have been completed and put into production, which are expected to contribute to the growth of businesses of the company.

After the acquisition of Hebei Shuangji Chemicals, its EBDCs capacity has reached 40,000 tons and following the acquisition of Shandong Damin Chemicals, a 3,000-ton propane Diamine (basis material for production of propineb) will be achieved. Hence, Limin Chemical is moving towards becoming a global EBDCs leader.