Sanonda sales up 12% in H1 2012

In the first half year of 2012, Chinese company Hubei Sanonda Co., Ltd (Sanonda) achieved an operating income of Yuan 1.117 billion, 12.09% up compared with the same period of last year; net profit attributable to mother company was Yuan 23.98 million, down by 20.98%. The profit somewhat dropped due to increase of cost of energy, raw material, labor and impact of depreciation.

Sanonda estimates that the hindrance to achievement of business plan includes: 1) impact to company’s development caused by pressure to Chinese economy due to continuation of European debt crisis and the slow-down of US economic recovery; 2) tense competition in pesticide market caused by oversupply and accelerated presence of international pesticide enterprises in China; 3) adverse effect to the cost of production caused by continued higher prices of chemical crude and energy; 4) more stringent environmental compliance regulation adds up to the company’s cost of operation.