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Jiangsu Huifeng Agrochemical Co., Ltd. (Jiangsu Huifeng) maintained strong profitability, achieving a YoY increase of 46.23% in net profit, to USD7.99 million (RMB49.08 million) in Q3 2014. According to Jiangsu Huifeng's Q3 2014 report, in the first three quarters of 2014, the company accumulated a net profit of USD25.46 million (RMB156.47 million) with a year-on-year growth of 43.10%. In Q4 2014, Jiangsu Huifeng expects to make profit . Then it will achieve a net profit growth of 30%-50% year on year in the whole year (Its net profit was USD26.54 million – RMB163.13 million in 2013) , according to Fungicides China News 1411 on November by CCM.
Compared with net profit, the revenue of Jiangsu Huifeng had a slower increase in the first three quarters of 2014. In this period, Jiangsu Huifeng recorded a YoY increase of 14.08% in revenue (USD0.28 billion – RMB1.75 billion), merely one third of that of its net profit. This can be attributed to the increased gross profit margin of the company.
Cost control was regarded as a main work target by Jiangsu Huifeng. According to its 2014 semi-annual report, the company's cost of sales in the first half year of 2014 increased only by 3.73% year on year while its operating profit increased by 7.93% year on year.
In detail, Jiangsu Huifeng controlled its cost of sales actively in the aspects of administration, production and distribution.
First of all, its complete production chain ranging from material to end-user improved the company's cost control. It was purchased from Jiangsu Jialong Chemical Co., Ltd. who has phosgene resources in May 2014. As a result, now Jiangsu Huifeng owns more material supply for its pesticide production such as prochloraz, bromoxynil octanoate, epoxiconazole. Currently, pesticide is Jiangsu Huifeng's premier business with an annual revenue taking up over 98% of the total.
Secondly, reasonable management also backs up Jiangsu Huifeng's cost control effectively in 2014. The company strengthens inside management to make every step better in the business operation.
Thirdly , the company also optimizes sales mode to improve cost control and sales performance. As released by Jiangsu Huifeng, the company has already invested in Nonyi E-commerce Co., Ltd., who is specialized in agricultural e-commerce in China.
Of course Jiangsu Huifeng considers that marginal cost is one of its competitive advantages as well. Additionally, the complete production chain, innovative products and reasonable management are also Jiangsu Huifeng's competitiveness. The company doesn't only establish production capacities, but also set up a series of infrastructure such as GLP laboratory, research center, sales network, marketing center. Jiangsu Huifeng is putting more effort in the domestic market.
In fact, more and more Chinese agrochemical players pay attention to the domestic market in recent years with China's economy rocketing up. In the first half of 2014, the revenue of Jiangsu Huifeng reached about USD104.40 million (RMB641.63 million), around 60% of which comes from the domestic sales performance.
Table of Content: Fungicides China News 1411
Jiangsu Huifeng witnesses YoY increase of 46.23% in net profit in Q3 2014
Market prices of some fungicide formulations in China, mid-Nov. 2014
Market conditions of corn fungicides in China in 2014
Agricultural e-commerce appears in China
China's fungicides against bacterial diseases
Advice from experts to pesticide enterprises from different perspectives
Enterprises find inspiration in Chinese fungicide market
China's new registrations of fungicide TC, Oct. 2014
Overview of China's fungicide export in Q1-Q3 2014
Import volume of fungicide increases by 20.43% year on year in China, Q1-Q3 2014
With the development of Chinese agriculture andtheimprovement of China growers' living standard, China's fungicide market prospect is quite promising; the import value has exceeded USD117 million in 2009, increasing withaCAGR of 14.03% in the past 9 years. China's fungicide industry is now starving for capital, advanced technology, and high-quality fungicides. As a big agricultural country with anarea needing pests prevention of over 4,670 billion m2 each year, China's demand for fungicide keeps increasing witha CAGR of 3.18% in the past 8 years. The demand is constantly increasing, due to the frequent occurrences of diseases and the expanding area stricken by diseases in recent years. The Fungicides China News brings you the latest information on the competitiveness analysis of China's fungicide market, including new legislations, company strategy, investment opportunities, advanced technologies and quality fungicides that China longs for, crops planting situation and diseases stricken area, facilitating yoursearch for commercial opportunities in China's huge market.
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