Huapont-Nutrichem's pesticide business performs well in H1 2013
Huapont-Nutrichem's pesticide revenue witnessed a significant growth in H1 2013,reaching approximately USD270.60 million, up 20.60% year on year. On the whole, in H1 2013,the company's total revenue increased by 19.63% but its net profit went down 30.27% year onyear.
Huapont-Nutrichem, semi-annual report, pesticides, revenue, net profit, metamitronOn August 14, 2013, Huapont-Nutrichem Co., Ltd. (Huapont-Nutrichem) announced its 2013semi-annual report, showing that the company's pesticide business achieved double-digit risesboth in revenue and net profit, according to Herbicides China News issued by CCM.
As disclosed in Huapont-Nutrichem's 2013 semi-annual report, the company's revenue of pesticide products reached approximately USD270.60 million, with a year-on-year increase of 20.60%, accounting for 77.10% of the total revenue. Notably, the pesticide business hasbecome the largest business of Huapont-Nutrichem at present. Besides, the gross profitmargin of the company's pesticide products was 16.19%, up 23.19% year on year, which alsomade a significant contribution to the company's net profit in H1 2013. The year-on-year growth rate of the gross profit margin of the company's pesticide products took the first placeof all its major businesses.It is worth noting that, as main products of the company's pesticide business, herbicides havecontributed a lot for the good performance of Huapont-Nutrichem in H1 2013. Specifically, therevenue of metamitron products sharply increased by 90.82% year on year to USD33.33million, accounting for 12.32% of the total revenue of the company's pesticide business in H12013, with a relatively high gross profit margin of 32.24%. Also, the revenue of 2,4-Dwitnessed a year-on-year growth rate of 57.39% during the period, reaching USD10.00 million.On the whole, in H1 2013, Huapont-Nutrichem's total revenue reached about USD350.99million, increasing by 19.63% compared with that in the same period of last year. Its net profitwas USD25.95 million, with a sharp year-on-year decline of 30.27%. The decline was mainlyattributed to the non-recurring items. The net profit excluding the non-recurring gains or lossesshould be USD27.64 million, with a year-on-year increase of 11.42%. In H1 2012, thecompany earned a profit of USD15.36 million (RMB94.80 million) from the company'sinvestment on the shares of Western Securities, while it got no profit from this investment in H12013.Huapont-Nutrichem predicts that the company's net profit is likely to be USD30.04million-USD45.07 million (RMB185.45 million-RMB278.18 million) in the first three quarters of 2013, down 10.00%-40.00% compared with that in the same period of last year. The reason of the decline is that the company will earn no profit on the investment of holding shares of Western Securities in Q1-Q3 2013 but in Q1-Q3 2012 it did. However, the company alsoexplained that its net profit excluding the non-recurring items may enjoy a year-on-year growth