China丨Net profit of Jiangshan Agrochemical in the first half of 2022 increased nearly three times

In the first half of 2022, Jiangshan Agrochemical realized an operating revenue of 5.231 billion yuan, a year-on-year increase of 65.87%, a net profit attributable to owners of the parent of 1.213 billion yuan, a year-on-year increase of 295.10%, and a net profit after recurring gains and losses of 1.237billion yuan, a year-on-year increase of 314.41%.

In terms of profit composition, gross profit of 1.817 billion yuan was achieved in the first half of the year, an increase of 1.195 billion yuan over the same period of the previous year, and the average gross profit margin increased to 34.75% from 19.73% in the same period of the previous year. Among them, pesticide products achieved a gross profit of 1.43 billion yuan, an increase of 1.008 billion yuan or 239.09% year-on-year. Chemical products achieved a gross profit of 282 million yuan, anincrease of 170 million yuan or 153.56% year-on-year.

The reason for the substantial increase in revenue and profits is the rise in product prices. The announcement shows that the COVID-19 epidemic continues to affect global economic and socialactivities, and the tension in the supply chain is getting worse. With the impact of the Russia-Ukraine war, the global bulk commodities such as energyand food are facing a huge supply gap, which further aggravates global inflation and exchange rate fluctuations. Influenced by supply and demand relations and other factors, the prices of main products and key raw materials of Jiangshan Agrochemical have fluctuated in different ranges. Jiangshan Agrochemical seized market opportunities, scientifically organized the epidemic prevention andcontrol and production management, accurately studied market trends andflexibly adjusted its business strategies to achieve double growth in mainbusiness revenue and operating profit.

With a history of more than 60 years inpesticide production, Jiangshan Agrochemical is one of the leading enterprises in glyphosate production in China. The production capacity of glyphosatetechnical is 70000 tons / year, including 30000 tons / year of glycine route and 40000 tons / year of IDNA route. The company's clean production of dichlorvos and trichlorfon products is leading in China.

In addition, Jiangshan Agrochemical intends to terminate the Energy Management Service Fram work Agreement for TechnicalTransformation Contract signed with Sichuan Leshan Fuhua Tongda Agro-Chemical Technology Co., Ltd. and transfer the fixed assets involved in the contracted energy management project to Sichuan Leshan Fuhua Tongda Agro-Chemical Technology Co., Ltd., with a transaction consideration of 137 million yuan (tax included).