CCM's September Issue of Herbicides China News has come out recently. The top story of this issue is that Shandong Qiaochang may put off its listing process due to suspension of the assets reorganization towards SFH.
Shandong Qiaochang plans to get listed by assets reorganization towards SFH, a listed real estate company, which means that the assets exchange and stock issue will be achieved between Shandong Qiaochang and SFH, and Shandong Qiaochang's agrochemical businesses, including dominant herbicide, will be injected into SFH.
Unfortunately, the integration plan failed finally due to the suspension of SFH's stock trade. According to SFH's announcement, the suspension is because of the sharp influence made by Chinese government's real estate regulations. Therefore,the two companies hung up the reorganization and SFH restored transaction in the share market on Aug. 9th, 2011, thirty five days after its stock suspension. What's more, SFH declared in the announcement that it wouldn't plan the reorganization within the future three months.
Except the influence of the governmental real estate regulations, there are also many difficulties that hinder the listing plan of Shandong Qiaochang, if Shandong Qiaochangadopts current method of assets reorganization towards listed real estate companies. For example, weak R&D, overcapacity in domestic market and overwhelming competition from overseas agrochemical giants all force Chinese pesticide companies to enhance their competitiveness constantly.
It requires domestic pesticide companies including Shandong Qiaochang, must explore new ways to arm themselves immediately, such as integration, getting listed or cooperation. Moreover, Chinese pesticide companies also need strong competitiveness to face challenges.
The following highlights are covered in Herbicides China News:
-Jiangsu Changqing witnessed increase of 10.04% and 31.44% year on year in total revenue and net profit to USD77.40 million and USD9.96 million respectively in H1 2011.
-Jiangsu Huifeng slowed its performance down during the first six months of 2011.
-Sanonda's net profit jumped by 58.6% year on year to USD3.07 million in H1 2011.
-Shandong Qiaochang's listing plan by reorganizing towards SFH is put off.
-Jiangsu Changqing plans to establish a new production base and a new subsidiary in Yangkou Chemical Park of Rudong County, Nantong City.
-Taihe Group (Fujian Sannong) modified its commercial registration to be a real estate company.
-Worries about paraquat prospect is aroused in Chinese herbicide market due to its fatal poisoning trait.
-Florasulam meets relatively blank market in China nowadays.
-Pesticide marketing still see flagging in China due to the limited marketing influence on terminal consumers.
-Diflufenican market share in China still keeps relatively small nowadays.
-Fengshan Group will launch a new 5,000t/a trifluralin technical production line in Sept. 2011.
-Tangshan Chenhong can supply pyridine products now.
-China's herbicide export volume and value reached 136,000 tonnes and USD348 million respectively in Q2 2011, witnessing increase over the corresponding period of 2010.
-Influence of Pesticide Industry Policy on Chinese pesticide market witnesses growth, according to CCM International's questionnaire survey.
-In the past twelve months (Aug. 2010 –Aug. 2011), Chinese metolachlor technical price saw sharp fluctuation.
(Guangzhou China, September 14, 2011)
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