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Fengle Seed: agrochemical revenue up 33.3% YoY to USD138.3 million in 2017

In 2017, Hefei Fengle Seed Co., Ltd. (Fengle Seed) made revenue of USD209.8 million, up by 18.8% year on year, and net profit of USD1.7 million, down by 45.5% year on year.

 

Fengle Seed is mainly involved in the business of seeds, agrochemicals and perfumes.

l   Seeds mainly including hybrid rice seeds, hybrid corn seeds, common rice seeds, wheat seeds, melon & vegetable seeds;

l   Agrochemicals mainly including dryland herbicides and insecticides;

l   Perfumes mainly including natural menthol and dementholized peppermint oil.

 

In 2017, Fengle Seed made sales of USD138.3 million from its agrochemicals, up by 33.3% year on year. This can be mainly attributed to its incentive system for marketing and expansion of sales channels based on the market demand. During this period, the company completed its construction and installation of 3 workshops respectively for powders, seed coatings and microcapsules. The production of its 3 projects for the synthesis of pesticide technical is to be resumed soon also.

 

Table : Financial performance of Fengle Seed, 2016, 2017 (million USD)

Index

2017

2016

YoY change

Revenue

209.8

176.6

18.8%

Cost of sales

224.0

184.3

21.6%

Net profit

1.7

3.1

-45.5%

Distribution expenses

20.1

17.9

12.4%

Administrative expenses

14.6

16.4

-11.0%

Financial expenses

1.28

0.25

422.5%

R&D investment

5.1

5.1

-0.7%

-

Closing

balance

Opening

balance

YoY

change

Total assets

318.0

300.6

5.8%

Debts

118.1

99.0

19.3%

Source: Fengle Seed

 

Table : Revenue and gross margin of main business of Fengle Seed, 2017

Item

Revenue,

million USD

YoY change

Gross margin

YoY change,

percentage points

By product

Seed Products

42.9

-11.9%

33.5%

-0.35

Agrichemical

products

138.3

33.3%

11.6%

0.24

Spice products

47.0

22.6%

7.8%

0.09

By region

Domestic

184.5

13.8%

16.3%

-2.0

Overseas

43.8

45.7%

9.1%

1.9

Source: Fengle Seed