Jiangsu Yangnong: net profit down by 15.2% YoY to USD32.1 million in H1 2016

 Revenue: USD240.7 million, down by 11.5% YoY

 Net profit: USD32.1 million, down by 15.2% YoY

 

Jiangsu Yangnong is the largest hygienic insecticide manufacturer in China, also involved in producing herbicides such as dicamba and glyphosate. In H1, impacted by the overall sluggish pesticide market, the company showed declines in sales. Specifically, the domestic sales of hygienic insecticides were down by 10.3% YoY, however still in the lead regarding the item of “market share”. By contrast, the foreign figure went up by 19.0% YoY.

 

Domestically, Jiangsu Yangnong achieved a rise of 24.0% YoY in sales of pesticide formulations. However, it recorded a fall of 22.4% in sales of pesticides (incl. both formulations and technical), set back by the languishing domestic agrochemical market, which further was impacted by many factors such as decreased price of agricultural produce.

 

In January-June, Jiangsu Yangnong made great efforts in the export business of key products such as glyphosate, lambda-cyhalothrin and bifenthrin. However, due to the price falls, its export value (self-run) was down by 4.3% to USD150.5 million.

 

Table 2: Revenue and gross margin of main business of Jiangsu Yangnong, H1 2016

Item		Revenue, million USD	YoY change	Gross margin	YoY change, percentage points
By product	Insecticides	140.1	2.6%	29.8%	2.4
	Herbicides	82.2	-21.9%	23.5%	-1.4
	Others	14.4	-45.5%	13.3%	-1.9
By region	Domestic	86.3	-22.4%	/	/
	Overseas	150.5	-4.3%	/	/

Source: Jiangsu Yangnong