Glyphosate price fall creates 267 million yuan loss for Wynca in 2015

In Zhejiang Wynca's recently announced 2015 annual report, it noted the prices of its two main products, glyphosate and organosilicon, had fallen to historic lows, resulting in a 4.78% drop in the company's revenue to touch 7.347 billion yuan and a loss of shareholder profit amounting to 267 million yuan, down 636.69% year on year (y-o-y). 

 

During the report period, market demand for glyphosate slowed. The supply of glyphosate technical exceeded demand, causing the price of the product to drop to a record low. As a result, glyphosate technical manufacturers had to explore more options in the domestic market due to difficulties with export, leading to more intense local competition. Due to the impact of these losses, Wynca’s annual agrochemical sales income was 3.575 billion yuan, down 6.05% y-o-y, while its export sales income amounted to 2.607 billion yuan, down 9.65% y-o-y.

 

Wynca is currently working on a change to its traditional business model, moving toward a modern service-oriented business model. In the past, the company had concentrated on high supply to fulfill demand; now, the company will expand customer needs as well. During the report period, the company established the Nongfeike platform, stepping into the aerial crop protection space with the strategic concept of the “platform + internet + terminal + service” business model, combining information technology with internet applications.