Lanfeng Biochemical sales dipped 13% in Q3

Chinese pesticide company Lanfeng Biochemical sales dipped 12.9% to Yuan 296 million in the third quarter of 2012 ended 30th September due to lower incidences of diseases, domestic demand for fungicides fell. The net profit attributable to shareholders of listed companies reached Yuan 3.97 million, slumped by 82.2%.

For the first nine months, sales reached Yuan 924 million, down by 0.8% and net profit attributable to shareholders of listed companies reached Yuan 42.59 million, dipped by 44.7%. The company stated that sales of Lanfeng’s main fungicide product carbendazim fell considerably due to low demand. This year concerns were raised after reports from the United States that authorities had suspended some imports after trace amounts of carbendazim were found in orange juice imported from Brazil. Brazil authorities plan to ban the use of carbendazim on citrus crop. Low demand lead to the company’s insufficient operating rate, stock increasing and lower price, although price of raw material fell, company’s gross margin still reduced.

It is expected to see profit between Yuan 41.73 million to Yuan 83.46 million attributable to shareholders of listed companies this year, down 50%-0%.