Jiangshan plan to invest nearly ￥800 million to build a new herbicide project

On August 18, Jiangshan announced that it planned to invest 795 million yuan to build a new herbicide project, and to this end, the company intends to increase the capital of its subsidiary by 160 million yuan.

According to the announcement, in order to further optimize the industrial structure, promote transformation and upgrading, and achieve high-quality development, Jiangshan intends to invest 795 million yuan in the construction of "New green herbicide technicals and formulations Project" in Yaojiagang Chemical Park, Zhijiang, Hubei Province, with its wholly-owned subsidiary Jiangshan (Yichang) Crop.

The specific content of the project is to build 500 tons of (JS-T205) equipment, formulations production equipment and other supporting equipment and auxiliary facilities. 

On the same day, another announcement of Jiangshan said that according to the company's strategic development planning and the actual needs of project construction, the company intends to increase the registered capital of Jiangshan Yichang by 160 million yuan, after the completion of the capital increase, Jiangshan Yichang's registered capital increased from 90 million yuan to 250 million yuan, and Jiangshan Yichang is still a wholly-owned subsidiary of the company. The capital increase is also to meet the industrialization needs of the company's new products such as JS-T205.

The landing of the JS-T205 project can be traced back to June last year. Jiangshan said at the time that the company signed an investment agreement with the People's Government of Zhijiang City in Hubei Province, and the company intends to purchase land in Yaojiagang Chemical Park in Zhijiang City for the production and sales of new innovative green herbicides and intermediates.

According to the agreement, the company intends to set up a wholly-owned subsidiary, Jiangshan Yichang, in Yaojiagang Chemical Park, Zhijiang City, as the main body of the implementation and operation of the project. The project plans a total investment of 2 billion yuan, covers an area of about 243 acres, of which fixed assets investment of 1.6 billion yuan, the project is fully completed and put into operation is expected to achieve an annual output value of 3 billion yuan.

Jiangshan disclosed the semi-annual report of 2023 on the same day, during the reporting period, the company achieved a net profit of 194 million yuan, a year-on-year decrease of 84.03%; Operating income of 2.673 billion yuan, decreased by 48.91% year-on-year; Non-net profit was 197 million yuan, down 84.08% year-on-year. Jiangshan said that during the reporting period, the market price and sales volume of glyphosate, the company's main pesticide product, fell significantly.