Financial Analysis of Chinese Listed Pesticide Enterprises in 2021

Financial Analysis of Chinese Listed Pesticide Enterprises in 2021

Since 2021, China's agrochemical industry has faced varied changes. Firstly, production of agrochemical products gets restricted or suspended, in part due to the tightened domestic policies of energy restriction; secondly, international trade becomes more difficult for Chinese producers with aggravating COVID-19 pandemic and geopolitical crisis; last but not least, concerns on food security have arisen, which boosted the demand for global agricultural products in bulks, as well as the use of pesticides and fertilisers. So the impacts have followed on the sales of agrochemical enterprises in China.

In this monthly newsletter, 26 major listed pesticide companies in China were sifted out, 42% of them are headquartered in Jiangsu Province. Their performances in 2021 reflect the general trend of China's pesticide industry. For instance, the 26 major listed companies gained the revenue increase of approx. 26% year on year on average in 2021; only one saw a negative growth. Encountering with the intensified policy supervision and unprecedented challenges on economic environment at home and abroad, etc., 26 major pesticide enterprises lean towards green adjustment and technological transformation with over 32% increase of R&D expense in general.

In this report, CCM will analyse 26 major listed pesticide companies in China in 2021 from the following aspects:

√ Total revenue

√ Net profit

√ Net cash flow

√ Total assets

√ Net assets attributable to equity holders of the listed company

√ R&D expenses