Insecticide Business Boosts Yangnong Chemical in 2011

Date:04-17-2012

The latest annual report of Jiangsu Yangnong Chemical, a Chinese pesticide manufacturer, reveals its 2011 sales of RMB1.843 billion Yuan, 17.61% up year on year, including primary income of RMB 1.815 billion Yuan, 21.33% up year on year; a total net profit up by 14.66% compared with previous year to RMB154 million Yuan in 2011.

Yangnong Chemical is a leading Chinese insecticide manufacturer, as well as the only pyrethroid insecticide-based listed company. Its insecticide sales in 2011 reached RMB1.195 billion Yuan which accounts for 66% of total sales income of the year, including RMB530 million Yuan pesticide pyrethrin and RMB523 million Yuan sanitary pyrethrin, respectively 4.2% and 18.7% up year on year.

Yangnong Chemical sales report in 2011 (in million Yuan)
Category	Primary Income	YOY Growth (%)	Gross Profit (%)	YOY Growth (%)
Insecticides	1,195.49	30.74	21.65	-2.52
Herbicides	542.59	8.60	5.82	-1.73
Others	76.91	-6.10	17.14	4.77
Total	1,814.99	21.33	16.72	-1.25

2011 Highlights

International Market Strategy

Pesticide consumption of 2011 experienced a slow growth while demand in international market in general exceeds supply; however the second-half year of 2011 saw a fast increase of demand. Yangnong Chemical seized the opportunity brought by the market changes and endeavored to grow its overseas market, resulting in a direct export amounting to RMB1.124 billion Yuan, which accounts for 62% of the total sales, 31.55% up year on year.

Diversified Product Range

In 2011 Yangnong Chemical focused on innovations to develop products of more varieties and formulations which further opened up its insecticide formulation market; effort was made to progress the application of meperfluthrin products toward higher market share.

2012 Outlook

Enhancement of Marketing Competence

For international market, whilst effort is made to grow existing market, development of new emerging markets will be strengthened; for home market, effort is made via various manners to strengthen marketing competence; improve service quality; consolidate marketing network; and open up small and medium customers.

Innovation-Based Competitive Edge

Targeting at the innovation-based competition, Yangnong is prepared to continue its effort in product, process and technological development, as well as to speed up development and application of new product, new technology and new equipment to continue enhancement of its competitive edge.