Summary: On 10 July, Hailir, LFBC, and Suli all forecasted significant declines in net profits for H1 2024, with LFBC expected a notable loss for this period.
On 10 July, 2024, Hailir, LFBC, and Suli released their financial performance forecasts for H1 2024, all anticipating significant profit declines. LFBC, in particular, expects a substantial loss during this period.
Hailir Pesticides and Chemicals Group Co., Ltd. (Hailir, stock code: 603639)
The company saw a 48.61%–57.68% YoY net profit drop in H1 2024, which was attributed to the decreasing price of its certain products influenced by macroeconomic and market changes.
Hailir's main products include insecticides and fungicides such as prothioconazole and pyraclostrobin, and the company currently has production capacity of 5,000 t/a prothioconazole TC. On 21 June, 2024, its subsidiary Qingdao Hengning Biotechnology Co., Ltd. and Qingdao Agricultural University jointly launched the "Key technology breakthrough in continuous flow preparation of prothioconazole and industrial demonstration project", aiming to advance cleaner production techniques for prothioconazole.
Jiangsu Lanfeng Bio-chemical Co., Ltd. (LFBC, stock code: 002513)
The company expected a net loss ranging from USD14.03 million to USD23.85 million (RMB100 million–RMB170 million) in H1 2024. The loss was primarily due to the declining prices of key products like thiophanate-methyl amid sluggish agrochemical market, though the company had divested low-efficiency agrochemical assets to focus resources on developing its headquarters-based agrochemical business. Besides, the intensified market competition in the photovoltaic segment had caused continuous declines in photovoltaic product prices and a significant decrease in gross profit, despite increased shipments of batteries and modules.
Suli Co., Ltd. (Suli, stock code: 603585)
The company forecasted that its net profit would slump by 81.36%–87.58% YoY, mainly due to industry cyclic fluctuations and market supply-demand changes. While sales and market demand for key products like chlorothalonil, decabromodiphenyl ethane, and brominated polystyrene showed some improvement in H1 2024, overall lower market prices for agricultural chemicals outpaced cost reductions in raw materials, leading to decreased profit margins for products like azoxystrobin and chlorothalonil. Consequently, the company's performance declined sharply compared to the same period last year, exacerbated by shifts in demand for pesticide intermediates.
Table Performance forecasts of Hailir, LFBC, and Suli, H1 2024
|
Company
|
Item
|
Performance forecast
|
YoY
|
|
Hailir
|
Net profit attributable to shareholders of listed company
|
USD19.64 million–USD23.85 million (RMB140 million–RMB170 million)
|
-48.61% to -57.68%
|
|
Net profit attributable to shareholders of listed company after deducting extraordinary profit and losses
|
USD21.05 million–USD25.26 million (RMB150 million–RMB180 million)
|
-52.34% to -60.29%
|
|
LFBC
|
Net loss attributable to shareholders of listed company
|
USD14.03 million–USD23.85 million (RMB100 million–RMB170 million)
|
9.10% to 85.47%
|
|
Net loss attributable to shareholders of listed company after deducting extraordinary profit and losses
|
USD11.23 million–USD21.05 million (RMB80 million–RMB150 million)
|
-18.72% to 52.40%
|
|
Suli
|
Net profit attributable to shareholders of listed company
|
USD0.70 million–USD1.05 million (RMB5 million–RMB7.50 million)
|
-81.36% to -87.58%
|
|
Net profit attributable to shareholders of listed company after deducting extraordinary profit and losses
|
USD0.63 million–USD0.95 million (RMB4.50 million–RMB6.75 million)
|
-83.51% to -89.00%
|
Source: Performance forecast announcements of Hailir, LFBC, and Suli
Source:CCM
More information can be found at CCM Fungicide China Monthly Report.
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