According to the announcement, 2009 was the most difficult year for the company since its establishment. In the past year, the company has actively responded to the challenges of various unfavorable factors and tried hard to minimize the impact of the financial crisis. In 2009, the company achieved a total sales revenue of 1.544 billion yuan, a year-on-year decrease of 26.58%; a total profit of 188 million yuan and a net profit of 158 million yuan, a year-on-year decrease of 10.88% and 18.33% respectively.
The decrease in sales revenue of the company during the reporting period directly affected the level of profit, but the company deepened its strategic cooperation with customers and maintained a reasonable price range. On the other hand, it purchased some low-priced raw materials at the beginning of the period and the company passed the reform during the reporting period. To tap potentials, improve quality and reduce consumption, continuously reduce production costs, so that the decline in total profit and net profit during the reporting period is lower than the decline in sales revenue. As the company enjoyed preferential tax policies for exemption of domestically-produced equipment during the previous year, it increased the net profit at the end of the previous year. The difference in the impact of the policy resulted in a decrease in the total profit during the reporting period that was lower than the decrease in net profit.
In 2009, the company adjusted its business strategy in a timely manner in response to unfavorable factors in the three markets of domestic health, agricultural use and international trade. In the domestic health market, the company actively responded to the challenges of infringing products, fully carried out market research, and successfully started sales of new drugs. In the whole year, the market share of 426 million yuan in sanilicide was sold at the same level as last year, and the profit rate increased significantly. In the domestic pesticide market, the company faced the dilemma of anomalous climate conditions that led to a drop in market demand, increased market development efforts, deepened cooperation with well-known pharmaceutical suppliers, and focused on sales of key products such as high-chlorinated phenyl oil (27%). The sales volume of 291 million yuan was completed in the whole year, which was down 11.5% year-on-year due to the downturn in the pesticide market. In the international market, the company firmly grasps the traditional market in Southeast Asia, and strives to increase the market research in Japan and South Korea, maintain the stable export of fenthrin, increase the market development of new products such as fungicides, and cultivate new bright spots for growth; at the same time, continue to deepen With strategic cooperation with multinational companies, we will do our best to export key products such as glyphosate. The self-operated export of 734 million yuan was completed in the whole year, which was affected by the sharp drop in the sales price of glyphosate, which was a drop of 40.5% year-on-year.
According to the announcement analysis, after the financial crisis, trade protection in the international market has risen. Many countries have conducted anti-dumping investigations on multiple products originating in China. Glyphosate experienced an over-expansion of domestic production capacity after soaring in 2008. During the reporting period, the market price of glyphosate continued to operate at a low level and there was a risk of anti-dumping investigations. The company insists on reasonable pricing and will actively respond to changes in the international market.
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