2016 Chinese pesticide industry maintained stable with slow rebound of profit

 

Currently, the pesticide industry has entered a stabilization period while profitability seems to be heading for some sort of stagflation.

 

The main indicators of the Chinese pesticide industry operations reveal a stabilized state. The first 10 months of 2016 saw a business income of 300.819 billion yuan, a 6.3 percent year-on-year rise, as well as a profit of 19.037 billion yuan, a 6.5 percent year-on-year rise. Both business income and profitability increased. 

 

Compared with the same period of last year, several indicators improved to a certain degree. The number of enterprises that accrued losses, and the amount of loss, remained the same as last year (Table1) while the profit margin in case of main business was restored back to 7 percent. This indicated that the business operation of the Chinese pesticide industry has stabilized. 

 

The business income of chemical pesticide technical registered a slight increase of 5.2 percent, while that of bio-pesticides increased significantly by 15.8 percent. In case of chemical pesticide technical, profits increased by a slight margin of 4.4 percent while in case of bio-pesticides, the profit increase was significant, accounting for 23.4 percent. 

 

Table 1: 2016 Chinese Pesticide Industry Operation Indicators (in 1,000 yuan and %) 

Industry Sector	Change %	Pesticide Production	Chemical Pesticide Technical Production	Bio-pesticide & Microbial Pesticide Production
Number of Enterprises	-	819	680	139
Number of Enterprises at Loss	1st 10 months of 2016	82	72	10
	Same period of last year	82	69	13
	YOY±%	0	4.3	-23.1
The Amount of Loss	1st 10 months of 2016	78462	74449	4013
	Same period of last year	73276	70571	2705
	YOY±%	7.1	5.5	48.3
Major Business Income	1st 10 months of 2016	27051979	24043788	3008191
	Same period of last year	25451452	22853338	2598114
	YOY±%	6.3	5.2	15.8
Total Profit	1st 10 months of 2016	1903685	1663272	240413
	Same period of last year	1788265	1593511	194754
	YOY±%	6.5	4.4	23.4