BSM: Generic has obtained multiple pesticide registrations in Brazil and has begun to contribute revenue and profit

On July 31, Shaoxing BSM accepted the investigation of many institutions, and responded to the relevant issues of concern to investors. Details are as follows:

I. Company profile 

At present, the company's main products are the technicals, intermediates and formulations of environmental protection, high efficiency and low toxicity pesticide Pendimethalin, which is the only subdivision leading enterprise with the production and research capability of the whole industrial chain of technicals, intermediates and formulations of Pendimethalin in China.

Q1. What is the current situation of the company's main business? 

A: At present, the company's business is in good condition, the business of Pendimethalin sector is normal, the market supply and demand are more balanced, and the product price tends to be normal. The third quarter is the traditional off-season of pesticides, the company on the one hand to promote the business in an orderly manner, on the other hand to promote the annual output of 6,000 tons of Pendimethalin expansion project, has completed the project record, review and other government approval procedures. After the completion of this expansion, the company's Pendimethalin production capacity will reach 18,000 tons/year, which can better undertake the technical production capacity of overseas agrochemical giants.

In the future, the company will further deepen the cooperation with existing customers, while combining the advantages and influence of Generic in developing countries in Asia, Africa and Latin America, actively expand the Pendimethalin market in these countries and regions, and achieve new profit growth points for the company's business.

Q2. How is the company's "annual output of 12,100 tons of Cyclopentane series green new material project’s progressing? 

A: The company's "annual output of 12,100 tons of Cyclopentane series green new material project" is currently in the construction stage, and the project is progressing smoothly. After the completion of the project, the company will add Cyclopentane products to effectively extend the company's carbon five industry chain.

Cyclopentane is synthesized by hydrogenation process with Cyclopentene as the main raw material, and its downstream application is the production of refrigerants and blowing agents. The product has a wide range of uses and high added value, which can significantly improve the company's profitability after the project is put into operation. The technical reform is expected to be completed in September to October, and normal supply can be achieved in the fourth quarter.

Q3. How is the company's COC project progressing? 

A: The company's COC project is currently in the experimental stage, and is currently actively communicating with downstream customers, and will deliver samples to customers in the near future, seeking to establish a long-term and stable strategic cooperative relationship, and is expected to achieve phased results.

Q4. What is the recent business development of Ningbo Generic? 

A: Ningbo Generic is a professional enterprise engaged in the international trade of pesticide products, the main business is the international export registration and sales of pesticides. Generic is committed to the global pesticide circulation service business, taking independent registration as the entry point, and has created a sales model combining the traditional export model and the independent registration model of pesticides.

The company completed the acquisition of Generic in December 2023, bringing synergies in industrial business development, customer and market development (products or services can enter new markets), reducing costs, increasing pricing power, accelerating product iteration and other aspects. The company is actively exploring the business model of combining superior products with overseas marketing networks to promote the strategy of pesticide going to sea and help the development of modern agriculture in target countries and regions.

The Brazilian market is an important profit growth point for Generic in the future. Generic currently has a number of pesticide registrations in Brazil, and the Brazilian market has begun to contribute to revenue and profit, and a number of new pesticide registrations are expected to be approved during the year, providing momentum for subsequent growth.