Rainbow: Net profit of 1H 2022 increased 223.04% year on year

Date:08-30-2022

Recently, Rainbow (stock code 301035) released its 2022 semi-annual report. The company’s revenue in the first half of 2022 was RMB7.779 billion, an increase of 93.78% over RMB4.014 billion of the first half of 2021; the net profit attributable to the shareholders of the listed company was RMB888 million, an increase of 223.04% over the first half of 2021.

Focusing on crop protection, Rainbow provides global customers with crop protection products and related services while actively promoting its initiative of ″global brand to be made in China and Chinese brand to be globalized.″ Rainbow has established a complete industrial chain covering research and development, manufacturing of pesticide technicals and formulations, in conjunction with development of brand image, sales channel and service network worldwide.

 

The semi-annual report shows that the company’s satisfactory business operation in the first half of 2022, which has been quite good and well-aligned. The speed of establishment of global marketing network went faster than expected, with remarkable progress being made in respect of market deployment and optimization of business model. 

 

On the R&D and innovation side, as being based on a mid-term strategic planning, Rainbow has conducted a systematic, rigorous and targeted product screening, thus having determined the mid-term product planning. In terms of technicals, 7 important off-patent AIs and 3 important to-be off-patent AIs are placed into Rainbow’s R&D pipeline, which are being processed by respective work teams following the plan. 

So far, Rainbow’s R&D achievements include: Operation of the first full-scale continuous green process in China for 1 technical series; completion of detailed design of the first full-scale continuous green process in China for 1 technical, scheduled for production in early 2023; equipment development of the first full-scale continuous green process in China for 2 technicals, scheduled for completion by the second half of 2022 with readiness for production in 2023; 2 technicals are expected to be developed by the second half of 2023 with readiness for production in 2024; 1 technical is expected to be developed by the second half of 2024 with readiness for production in 2025.

In the first half of 2022, the company’s global marketing network was further improved. According to the semi-annual report, the number of Rainbow’s registration staffs has increased from 119 in 2021 to 149 at present time; the registration spending in the first half of this year increased by about $21 million year over year. New registration process has been initiated in Belarus, Iran, Rwanda, Botswana, Armenia and Bangladesh, whilst more registrations in countries already with registrations are being filed for. Through these efforts, Rainbow endeavors to form a complete product portfolio to fulfill the market demand of all countries. 

As of August 18, 2022, Rainbow owns a total of 267 Chinese domestic registrations and 4,459 overseas registrations, including 14 new registrations in Brazil, 3 new registrations in Argentina, 21 new registrations in Mexico, 6 new registrations in Australia, 3 new registrations in Russia, 9 new registrations in South Africa, 1 new registration in India, 4 new registrations in South Korea and 12 new technical equivalence registrations in the European Union. Moreover, for the first time, new registrations have been granted in Egypt, Serbia, Côte d’Ivoire, Tanzania, Armenia and Uzbekistan.

As regards market expansion, in the first half of the year, Rainbow completed its in-depth market research in Poland, Belarus, Iraq, Iran, Oman, Burkina Faso, Rwanda, Burundi, Namibia, Botswana, Mozambique and Algeria; new wholly-owned or joint venture, or representations offices have been or will be established in Russia, Kazakhstan, Rwanda, Angola and Botswana; In Brazil, Russia, Kazakhstan, Indonesia, Côte d’Ivoire, Nigeria, Rwanda and Angola, a local team has been set up to start Rainbow’s local brand development and sales channeling.