Agrochem income of Wynca Chemical up 30% in H1 2012

In the first half year of 2012, Chinese agrochemical company Zhejiang Wynca Chemical Group Co., Ltd (“Wynca Chemical”),  achieved an operating income of Yuan 2.969 billion, 22.11% up year on year; loss for total profit was Yuan 29.42 million and net profit attributable to listed company shareholders declined by Yuan 27.74 million, suffering losses compared with last year.

Among the above, agrochemical operating income amounted to Yuan1.459 billion, 29.98% up year on year; in the first half year, glyphosate, the company’s leading product was still suffering from a market depression at the year-beginning following to the downturn over last 3 years. As the product cost of production rose higher than that of product selling price, there was a loss in the first quarter of the year. Nevertheless, market demand since this April started to turn for the better with product selling price and profit margin gradually going up, resulting in a 3.06% increase of the glyphosate gross profit over that of last year.

A preliminary calculation reveals the company’s profit in the third quarter 2012 to be around Yuan 27 million and accumulated net profit attributable to listed company shareholder January to September 2012 to break even by and large.

Wynca Chemical has acquired 51% stake in Shandong Xinfeng Seed Co., Ltd via share transfer and capital increase in June, becoming the controlling shareholder of Xinfeng Seed, which demonstrates Wynca Chemical’s entry to the seed business market.