Yangnong Chemical: Net profit in H1 2022 reached RMB1.515 billion, up 91.36% year-on-year

Yangnong Chemical recently released its 2022 semi-annual report, which showed that the company’s operating income during the reporting period was RMB9.565 billion, a rise of 43.14% year-on-year while the net profit attributable to shareholders of the listed company was RMB1.515 billion, an increase of 91.36% year-on-year. The net profit attributable to shareholders of the listed company net of non-recurring gains and losses was RMB1.583 billion, an increase of 105.68% year-on-year while the basic earnings per share were RMB4.887.

According to the report, the main reasons for the company’s performance improvement is firstly, the fact that the prices of major pesticides rose significantly over the same period last year, and, secondly, because Phase III of Jiangsu Youjia Crop Protection, Yangnong Chemical’s subsidiary, has been brought to full-load operation while Phase IV is also entering production. During the reporting period, the company was able to actively respond to the adverse effects of the COVID-19 pandemic in the first half of the year and maintain smooth production and marketing activities, which contributed to the significant improvement in its performance.

The report also showed that in the first half of 2022, the company seized opportunities created by growing market demand and sold certain products at higher prices, as well as balanced its efforts to control the effects of the pandemic and maintain production. Through these efforts, the company has been able to produce and sell quickly, greatly increasing the efficiency of its operations and maintaining steady, sustained and rapid performance growth.

With regards to the sale of technicals, the company focused on selling core product varieties, having proactively responded to customer needs. It has also worked hard to crack down on infringements, and expanded its sales in new markets through new channels, as well as deepened its cooperation with leading formulation manufacturers and foreign trade companies, to increase its sales of superior conventional varieties and science and technology-based products. The company also focused on selling key product varieties and continued its in-depth collaborations with third-party customers, to support the product registration processes of its main customers in the United States and Brazil.

In terms of crop protection, the company has focused on strategic product-oriented market development, optimized its sales strategy, and strengthened its brand development, achieving a synergistic effect and win-win foundation that contributed to the company’s performance improvement.

Regarding trading, the company has focused on its overseas marketing, strengthening its strategic sourcing of core products, increasing its internal collaborations and promoting global registration deployment, to establish a solid foundation for its future sustainable business growth.

During the reporting period, the sales of Yangnong Chemical’s technicals increased by 38.86% year-on-year, with Chinese crop protection product sales hitting RMB1.35 billion, an increase of 11% year-on-year, while its trade business value totaled RMB2.4 billion, an increase of 105% year-on-year.

During the reporting period, the Phase IV Youjia Project successfully entered trial operation, which was a significant progress in the establishment of the company’s northern product base, where the procedures for incorporation have been completed. Meanwhile, several other projects and technical upgrades are advancing as planned.