Suli: 2022 1H operating income and net profit up 68.68% and 105.44%

On August 19, Chinese agrochemical company Suli Co., Ltd announced its 2022 semi-annual report, revealing Suli’s consolidated operating income of RMB1.643 in the first half of the year, which is an increase of 68.68% year on year and the net profit attributable to the shareholders of the listed company of RMB199 million, an increase of 105.44% year on year.

Suli’s major pesticide product portfolio covers chlorothalonil technical, azoxystrobin technical, pesticide formulations and other pesticide products including diflubenzuron, fluazinam, flutolanil, cymoxanil and pesticide intermediates such as 4-Chloro-2-pyridinecarbonitrile and Tetrachloroterephthalonitrile.

In the first half of 2022, Suli almost achieved the business objective and financial target for the year, with profitability rising steadily. According to the semi-annual report, Suli achieved performance growth both in the consolidated operating income and net profit in the first half of 2022, mainly attributable to the following drivers:

(1) The impact of the increase in the raw materials prices resulting from China’s energy control policy lasted till the first half of this year. The selling prices of the company’s major products azoxystrobin technical, 1,2-Bis(2,3,4,5,6-pentabromophenyl)ethane and hydrobromic acid rose sharply over last year.

(2) Production of the company’s azoxystrobin technical, chlorothalonil technical and the retardant material 1,2-Bis(2,3,4,5,6-pentabromophenyl)ethane could remain stable. In contrast, the sales of azoxystrobin technical and chlorothalonil technical increased significantly over last year due to deepening cooperation with customers.

(3) Suli Pharmaceutical, Suli’s wholly-owned subsidiary, continued its market development improving the production and sales, contributing to Suli’s performance growth.

Concerning the new project development, the construction of Suli Ningxia Phase I Project has begun as planned, which is currently advancing smoothly. Regarding R&D, Suli has continued its spending on research and development of the primary products for many years, thus, enabling the company to take a leading position in the market of these products for a long time. In particular, Suli has an obvious advantage in pesticide formula screening and development of formulation as well as fire-retardant mixtures. In addition, Suli has been making continuous improvement to the company’s R&D capability and operation efficiency via industry-school-research collaboration and technical exchanges among manufacturers.