Chinese Agchem Losses Up Sharply in First-Half 2015

Data from China’s National Bureau of Statistics shows that in the first half of 2015, the country’s agrochemical industry‚Äôs revenue was RMB154.783 billion, up 7.2% year on year; the total profit was RMB10.787 billion, up 5.7% year on year, according to the China Crop Protection Industry Association. The total profit of chemical pesticides grew 4% year on year, while that of biochemical and microbial pesticides grew 24% year on year, sharply higher than chemical pesticides.

Agrochemical indicators in H1 2015; source: Source:China Crop Protection Industry Association

Agrochemical indicators in H1 2015; source: Source:China Crop Protection Industry Association

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However, despite strong growth in overall profit in the first half, the number of companies recording losses grew 11.3% year on year, with losses totaling RMB588 million, up 145.6% from a year ago. The percentage of companies posting losses increased by 1.1 percentage point year on year. The number of loss-making companies, the total loss and the percentage of technical manufacturers posting losses all increased significantly year on year, while those of biochemical and microbial pesticide manufacturers all decreased relatively.

Losses in agrochemical industry in H1 2015; source: China Crop Protection Industry Association

Losses in agrochemical industry in H1 2015; source: China Crop Protection Industry Association