In H1 2012, the export volume of glyphosate A. I. from Zhejiang Wynca, Nantong Jiangshan andJiangsu Yangnong has increased by 16%, 20% and 61% respectively, with export value increasingby 41%, 42% and 94% accordingly over that in H1 2011 (FIGURE 7). Because of themismanagement and shortage of operating funds, Anhui Huaxing didn't grab the sales opportunityin H1 2012, and its export volume and value of glyphosate A. I. decreased by 33% and 16%respectively. After the completion of acquisition by a strong company, namely CEFC Shanghai OilGroup Co., Ltd., Anhui Huaxing's problem of operating fund shortage and mismanagement wouldbe improved greatly, which would have a good effect on Anhui Huaxing's operating performance inH1 2012.The prices of yellow phosphorous, glycine, IDAN and PMIDA have increased little in Q3 2012, butthe prices of these raw materials except yellow phosphorous will not increase greatly in Q4 2012due to the overcapacity and limited demand under the situation of slow development in China'smanufacture industry. Besides, the price of glyphosate is still increasing in Q3 2012, and it's likelyto maintain at a high level in Q4 2012 mainly due to the strong demand for glyphosate and strictenvironmental protection policy, which will promote the situation of profit in the four companiesfurther. The development of China's manufacture industry was very low in H1 2012 and this situation islikely to last in H2 2012, which meant that the prices of raw materials for producing glyphosateincluding yellow phosphorous will not increase greatly in H2 2012. According to the announcementfrom National Bureau of Statistics of China, the Purchase Management Index (PMI) was 49.2% in Aug, 2012, down 0.9 percentage point over that in previous month, which was the first time todecrease below the gloom-boom index of 50 in China in 2012. Besides, the quantity of restarting production in small and medium-sized glyphosate producerswould not be too much due to the high cost in environmental protection, leading to the limitedincrease in glyphosate supply, and thus the price of glyphosate will stay at a high level in H2 2012.It's heard that China's Ministry of Environmental Protection will carry out a check in China'spesticide industry, and the companies which can't reach the waste treatment standard will beordered to stop production. Furthermore, in H1 2012, the operating rate and gross profit margin of glyphosate business of Zhejiang Wynca, Nantong Jiangshan and Jiangsu Yangnong in H1 2012 was about 100%, 90%,70% and 11%, 5%, 10% respectively, all increased over that in H1 2011. The operating rate of Anhui Huaxing in H1 2012 was about 39%, down 17 percentage points over that in H1 2011, but itsgross profit margin in glyphosate business was 9%, up seven percentage points over that in H12011. After solving the problem of operating fund shortage, it's estimated that the operating rate of Anhui Huaxing would increase in H2 2012.