1. Economic slowdown in overall pesticide market
In 2016, China’s output of pesticides increased slightly and the revenue growth accordingly slowed down. Due to the sluggish demand, prices of many pesticides stayed low and the market supply outweighed the demand.
In Jan. 2017, the National Agro-Tech Extension and Service Center (NATESC) updated the occurrence trend of rice diseases and pests in 2017, according to which the stricken area is estimated at 92.7 million ha. The accumulative occurrence areas of pests and diseases are 63.3 million ha and 29.3 million ha respectively.
On 10th January, 2017, Hubei Sanonda Co., Ltd. (Sanonda) issued a draft and said that it had issued shares to China National Agrochemical Corporation (CNAC) officially, in exchange for its 100% shares of ADAMA Agricultural Solutions Ltd. (ADAMA). The ADAMA’s 100% shares will be transferred to Sanonda or its subsidiary. Upon completion of the transaction, ADAMA will also become a subsidiary of Sanonda. Based on the evaluation of 100% equity in ADAMA and the results of negotiation, the 100% equity in ADAMA was valued at USD2.67 billion (RMB18,471,006,998.16).
On 10 January, 2017, Longzhixiang Intelligence Sci-Tech Co., Ltd. (Longzhixiang), a joint venture established by Jiangsu Rotam Chemistry Co. Ltd. (Rotam) and GEOSAT Aerospace & Technology Inc. (GEOSAT), opened business officially in Kunshan City, Jiangsu Province.
On 16th January, 2017, Jiangsu Province held the Expert Seminar of Pesticide Varieties with Subsidy in Fiscal Project of Wheat Head Blight of 2017 and the experts had discussed some aspects such as the province’s control effect of various types of wheat head blight control agents in recent years as well as the current status of the carbendazim resistance and the countermeasure to deal with it.
On 12 Jan., Hailir Pesticides and Chemicals Group Co., Ltd. (Hailir) held its IPO (Initial Public Offerings) ceremony on the Shanghai Stock Exchange with the code 603639. The company’s notice said that it plans to issue no more than 30 million shares, with the planned fund to raise valued USD97.6 million. Main investment targets are projects in relation to water-based formulations, water soluble fertilizers and expansion of R&D center.
On 25 Dec., 2016, the Standing Committee of the National People's Congress passed the China Environmental Protection Tax Law, which is about to be executed from 1 Jan., 2018 onwards. By then, the charging system for pollution discharge that has been implemented for around 30 years will exit from the historic stage. China’s tax revenue will be raised a lot after the environmental protection tax (predicted to reach USD7.2 billion each year) is collected.
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