NeoAgro: The 20 thousand tons of green and environmental protection formulations project is progressing

The company expressed  in a recent investor survey that pesticide demand is resilient in the long term. With the continuous upgrading of the variety structure of pesticides, it is expected that the market size will maintain a stable growth. In the future, the environmentally friendly pesticides represented by high efficiency and low toxicity pesticides and biological pesticides will have more competitive advantages.

Q: How does the company view the demand for pesticides after the pandemic?

A:Pesticide is an important means of agricultural production, which plays a very important role in ensuring agricultural yield and harvest. The product demand has a certain rigidity, and it is one of the industries encouraged and supported by national policies. According to preliminary statistics from Phillips McDougall, with compound annual growth of 3% between 2018 and 2023 and the crop pesticide market expected to reach $66.703 billion in 2023, pesticide demand is resilient in the long term. With the continuous upgrading of the variety structure of pesticides, it is expected that the market size will maintain a stable growth. In the future, the environmentally friendly pesticides represented by high efficiency and low toxicity pesticides and biological pesticides will have more competitive advantages.

Q: Please introduce the company's 20,000 tons of green digital environmental protection formulations, biological formulations and supporting projects.

A: The company's 20,000 tons of green and environmental protection formulation digital manufacturing project is to further strengthen the company to take the formulation business as the leader and expand the product line of environmental protection formulation and biological formulation on the basis of grasping the new trend of green development of the industry; It is also the strategic layout of the company's intelligent factory construction. The project mainly involves the company's environmental protection formulations and microbial formulations. The project investment is not more than 300 million yuan. The construction is implemented in two phases and is being carried out in an orderly way.

Q: What new products are in the pipeline?

A: The company's product research and development is mainly carried out based on the industry development trend and market demand. On the basis of maintaining the existing advantages, the company increases the research and development of new technologies and new products to promote the long-term development of the company. The company's investment in research and development accounts for more than 5% of the operating revenue in the past three years. In 2022, the company's R&D investment will focus on bio-pesticides based on microorganisms, formulation research and development, and synthesis technology.

Q: The first quarter report said that the profit decline was due to product price fluctuations? By how much, exactly? Why did the price suddenly drop so much?

A: The products whose prices have fallen are mainly intermediates and technicals, while the prices of formulation products have remained stable. Intermediate and technical product prices fell because of the overall industry supply and demand changes, the price of specific products fell in different ranges. In view of this situation, our company has strengthened market research and the study and grasp of the dynamic change of upstream and downstream supply and demand relationship, strengthened cost control, improved the lean planning operation and production supply, and actively responded to market challenges.