High glyphosate price boosted Wynca’s sales by 26% in 2013

Date:04-30-2014

Chinese pesticide company Zhejiang Xinan Chemical Industrial Group Co., Ltd. (Wynca Group) achieved pesticide sales of Yuan 3,554.2 million ($568.3 million at the current rate) in 2013, up by 25.5% compared with last year, accounting for 54% of the Group’s total income. Total sales of the Group rose by 10.7% to Yuan 6,765.3 million ($1,081.8 million) in 2013, pesticide and organic silicon are the company’s main businesses. Wynca ranked no. 2 in 2012 with pesticide sales of Yuan 2,832.1 million in AgroPages’ Top 20 Chinese Agrochemical Companies Ranking List.

Wynca Group sales result (Yuan million)
Year ended 31st December	2013	2012	change %
Total sales	6,765.3	6,111.1	+10.7
- Pesticide	3,554.2	2,832.1	+25.5
- organic silicon	2,470.4	2,664.5	-7.3
net profit attributable to listed company shareholders	435.3	131.3	+231.5

Glyphosate is the largest and most important product of Wynca. According to the company, in 2013, growth in pesticide sector came largely from higher glyphosate price. And the high price was driven by increasing market demand for glyphosate, larger planting area of GM crops and stricter environmental protection policies in China.

Wynca Group sales result by region (Yuan million)
Year ended 31st December	2013	2012	change%
Domestic sales	3,499.5	3,497.4	+0.1
Export	3,085.3	2,433.6	+26.8
Group total sales	6,765.3	6,111.1	+10.7

Domestic sales of Wynca Group were flat compared with last year, reaching Yuan 3,499.5 million ($559.6 million), while foreign sales steadily increased by 26.8% to Yuan 3,085.3 million ($493.3 million).

Last year, Wynca invested total Yuan 14.12 million on the manufacturing project of green pesticide formulations, some facilities of this project have been completed and have put into use for trial production.

Outlook

Wynca expects full year sales of the Group in 2014 to reach Yuan 8 billion. However, the increasing cost of raw materials and currency movements may cause adverse effects on sales growth, the company points out.