Meibang: 4,100 tons of pesticide technical project is in progress

On November 29, Meibang held a performance briefing and answered the hot questions investors are concerned about, the details are as follows: 

Q:  For TPS’s project, when will it be completed and put into operation?

A: TPS's production line construction project with an annual output of 30,000 tons of new green pesticide formulation and water-soluble fertilizer is proceeding orderly in accordance with the plan. It is expected to enter the equipment commissioning period in the first half of next year and officially put into production in the second half of next year. If there is any significant progress during this period, the company will disclose the progress in time in strict accordance with the requirements of relevant laws and regulations. 

Q: According to the company's plan, when will the production line construction project of Nuozheng Biotechnology with an annual output of 4,100 tons of pesticide technical be completed and put into operation?

A: This project is an investment project to raise funds for the company's convertible bonds. Currently, the company is actively promoting it. The company will timely fulfill its information disclosure obligations according to the progress of the convertible bonds.

Q: What are the company's core technical advantages? Is it easy to be overtaken or replaced by the industry peer? How to continue to strengthen the core technical advantages?

A: The company's core advantages are reflected in the rich reserve of certificate resources, attention to product research and development and marketing management. 

The first advantage is the rich reserve of certificate resources. On the one hand, it should be able to better cope with emergencies such as natural disasters, and on the other hand, it is conducive to the comprehensive development of the company. 

The second advantage is that the company has invested a lot in the research and development of new formulations and promoting the comprehensive development of product lines, so the company has certain advantages over other enterprises in the same industry for technology development. 

The third advantage lies in sales management. The company adheres to the brand building strategy, establishes a new subsidiary, sets up a Marketing Department, provides plant protection technology training for business personnel, and strives to do a good job in technology application and user transmission, so as to improve the level of drug use and scientific.

In the future, the company will continue to increase the investment in R&D activities, keep up with the trend of technological development in the industry, vigorously carry out R&D investment guided by market demand, and strengthen the development of new product technology, process optimization, application and transformation of technological achievements. We will accurately grasp the market trend, increase the incremental market development of high gross profit, high profit and featured products. The output and sales of featured products will achieve double growth, and the market competitiveness of the company will be further improved.

At the same time, the company will accelerate the implementation of brand strategy, refine and strengthen the existing products, do a good job of core crop model market, improve the quality, really help customers and farmers to solve problems quickly, improve the company's market competitiveness in many aspects

Q: How does the company view the future development trend and growth space of the pesticide industry?

A: National emphasis on food security highlights the rigidity of pesticide products, pesticide industry in the future development space is large, the prospect is very good. The development of pesticide enterprises has opportunities, but also faces new challenges.

The future development trend of pesticide industry is as follows: First, the national demand for pesticide quality will increase with the improvement of living standards. In the future, pesticides will develop in the direction of high efficiency, low toxicity, green and environmental protection. Second, the state has increasingly strict supervision over pesticide enterprises, which is reflected in the strengthening of market supervision and annual spot checks, refining laws and standards, and striving to improve the safety and environmental protection level at the manufacturing end of the factory. Combined with the development momentum of the industry and the actual situation of the company, based on the core advantages of the product, the company has invested a lot of energy in product R&D and sales service to achieve product differentiation competition. The company also plans to improve the product system, constantly expand the competitive advantage of cash crops, expand the market area and fill the market vacancy.

Q: How much does the company currently invest in product development? What percentage? What are the innovations in the company's products?

A: As of September 30, 2022, the company's R&D expenses amounted to ¥52.03 million, accounting for 7.61% of the operating revenue. The technical innovation work of the company is as follows: In terms of personnel, the company always insists on cultivating and attracting innovative talents and reserves outstanding talents in various fields through internal training, external recruitment and competition.

In terms of technology, as a high-tech enterprise, the company has set up a professional R & D team and production team, forming a high technical level and mature process system.

In terms of production technology, the company's core technology solves the difficult problem of formulation processing and improves product quality and efficacy stability. At the same time, the company gives full play to the platform role of enterprise technology center and expert workstation, expands the cooperation channels with universities and research institutes, combines the market demand and policy guidance, focuses on the research and process improvement of pesticide formulations, actively develops high-efficiency, low-toxicity and environmental protection products, and realizes the strategic development and upgrading of the company in the field of pesticide technology.