Anhui Jinhe Industrial Co.,Ltd.: history, ownership, mission, how it works & makes money

A Brief History of Anhui Jinhe Industrial Co.,Ltd.

Anhui Jinhe Industrial Co., Ltd. was established in 1994, focusing on the production and development of food additives and agricultural chemicals. The company, headquartered in Hefei, Anhui Province, China, has grown into a significant player in the chemical industry.

As of 2022, Anhui Jinhe reported a revenue of approximately 2.3 billion CNY, reflecting a year-on-year growth of 10%. The net profit attributable to shareholders was around 300 million CNY, demonstrating effective cost control and operational efficiency.

The company specializes in producing amino acids, particularly L-lysine, a key ingredient in animal feed. In 2021, Anhui Jinhe's production capacity for L-lysine reached 300,000 tons per year, making it one of the largest producers in China. The increase in production was supported by a significant investment of 1.5 billion CNY in expanding their facilities.

Anhui Jinhe has made strides in technology by investing in R&D. In 2022, R&D expenditures accounted for 5.3% of total revenue, emphasizing their commitment to innovation. The company has also obtained more than 150 patents related to amino acid production processes and applications.

The company plays a significant role in the agricultural sector, providing products that enhance crop yield and quality. In 2021, Anhui Jinhe's agricultural products division achieved revenues of 800 million CNY, driven by increasing demand for sustainable agricultural practices.

In terms of market presence, Anhui Jinhe has expanded its international footprint, exporting products to over 40 countries as of 2022. The company's focus on sustainability and environmentally friendly production processes has enhanced its reputation globally.

Furthermore, Anhui Jinhe is listed on the Shenzhen Stock Exchange, with a market capitalization of approximately 15 billion CNY as of late 2022. This listing has provided the company access to capital for future expansions and technological advancements.

The company has established strategic partnerships with various agricultural research institutions to enhance its product offerings and engage in community sustainable development programs. This approach not only supports local farmers but also strengthens the company’s supply chain resilience.

A Who Owns Anhui Jinhe Industrial Co.,Ltd.

Anhui Jinhe Industrial Co., Ltd. is publicly listed on the Shanghai Stock Exchange under the stock code 603579. The company's ownership structure is characterized by a combination of institutional and individual shareholders.

According to the latest available data from the company's 2022 annual report, the ownership distribution is as follows:

The largest shareholder, as of the latest filing, is the Anhui Provincial State-owned Assets Supervision and Administration Commission, which holds a significant stake in the company, ensuring state influence in its operations.

Further breakdown indicates that institutional investors include a mix of domestic mutual funds and foreign investment entities, with assets under management in the range of CNY 150 billion collectively. These institutions typically play a crucial role in influencing corporate governance and strategic decisions.

Individual investors constitute a large segment of the ownership; however, their influence on corporate strategy tends to be limited compared to institutional players. This is reflective of the broader trend in Chinese public companies where institutional stakes are increasingly significant.

The trading volume of Anhui Jinhe Industrial Co., Ltd. fluctuated throughout 2022, with an average daily trading volume of approximately 2 million shares and a peak trading volume of over 10 million shares during particularly volatile market conditions.

As of late 2023, the market capitalization of Anhui Jinhe is estimated to be around CNY 8 billion, reflecting a price-to-earnings ratio of approximately 15.5. The recent earnings report indicated a revenue of CNY 1.5 billion for the fiscal year ending December 2022, with a net profit margin of 12.3%.

Overall, the ownership structure of Anhui Jinhe Industrial Co., Ltd. highlights a balanced mixture of state influence through major shareholders and the active presence of institutional investors, positioning the company for potential growth in its sector.

Anhui Jinhe Industrial Co.,Ltd. Mission Statement

Anhui Jinhe Industrial Co., Ltd., established in 2001, is a prominent player in the agrochemical sector, primarily focusing on the research, development, and production of pesticide products, including herbicides, insecticides, and fungicides. The company's mission statement emphasizes its commitment to innovation, sustainability, and customer satisfaction, with an overarching goal of contributing to modern agricultural practices.

The company's mission involves providing high-quality products that enhance agricultural productivity while minimizing environmental impacts. Anhui Jinhe aims to leverage advanced technologies and research capabilities to develop effective solutions for farmers, meeting their needs in an evolving agricultural landscape.

In 2022, Anhui Jinhe reported a total revenue of RMB 3.5 billion. This marks an increase of 15% compared to the previous year, driven by higher demand for crop protection products. The firm also allocated approximately RMB 200 million to research and development, reflecting its commitment to innovation. This investment accounts for 5.7% of total revenue, indicating a robust focus on enhancing product offerings.

The company has established a strong market presence, exporting its products to more than 30 countries. In 2021, the export revenue was around RMB 1.2 billion, contributing significantly to overall sales. The mission of Anhui Jinhe also underscores collaboration with agricultural stakeholders to promote sustainable farming practices.

Anhui Jinhe’s mission statement is further reflected in its goal to achieve a 20% market share in the domestic pesticide industry by 2025. The company also aims for a 25% increase in annual exports over the next five years, aligning its growth strategy with global agricultural demands.

Moreover, Anhui Jinhe is actively engaged in sustainable practices, focusing on developing bio-based pesticides as part of its innovation pipeline. The company reports that its eco-friendly product line has seen a growth rate of 30% over the past two years, which aligns with the global trend towards sustainable agriculture.

This commitment to sustainability is complemented by its corporate social responsibility initiatives, where Anhui Jinhe invests in community educational programs aimed at promoting safe pesticide usage among farmers. These activities reflect the company's dedication to not only enhancing agricultural productivity but also ensuring the safety and well-being of those who engage in farming activities.

How Anhui Jinhe Industrial Co.,Ltd. Works

Anhui Jinhe Industrial Co., Ltd. is a prominent player in the chemical industry, particularly known for its production of sodium glutamate and other food additives. The company operates primarily in the specialty chemicals sector, catering to both domestic and international markets.

As of the latest financial reports from 2022, Anhui Jinhe generated approximately ¥2.95 billion in revenue, marking a year-over-year increase of 12.5%. The net profit attributed to shareholders was about ¥480 million, an increase of 8% compared to the previous year.

The company holds a dominant position in the production of monosodium glutamate (MSG), supplying a significant share of the market demand. In 2022, they produced approximately 150,000 tons of MSG, with exports accounting for 20% of total production.

In terms of operational efficiency, Anhui Jinhe has focused on enhancing its production capabilities. In 2022, it invested around ¥100 million in upgrading manufacturing facilities and improving automation processes. This led to a reduction in production costs by approximately 5%.

The company has also been committed to sustainability practices. In 2022, Anhui Jinhe achieved a reduction in carbon emissions by 15% as a result of implementing eco-friendly technologies in its manufacturing process.

Market competition remains strong, particularly from other major producers like Ajinomoto and Meihua Holdings. However, Anhui Jinhe maintains competitive pricing due to its efficient supply chain management and economies of scale.

Furthermore, the company has been expanding its product line to include other food additives, which contributed to around 30% of total revenue in 2022. This diversification strategy is aimed at mitigating risks associated with market volatility in the MSG segment.

Geographically, Anhui Jinhe's market is centered in Asia, with an expanding footprint in Europe and North America. In 2022, exports to Europe increased by 25%, highlighting the growing demand for its products in international markets.

The company also places a strong emphasis on research and development, allocating approximately ¥50 million annually to innovate and improve product formulations, ensuring adherence to global food safety standards.

Overall, Anhui Jinhe Industrial Co., Ltd. operates with a strategic focus on quality, efficiency, and market expansion, positioning itself as a key player in the global food additives market.

How Anhui Jinhe Industrial Co.,Ltd. Makes Money

Anhui Jinhe Industrial Co., Ltd. is a prominent player in the agricultural sector, primarily engaged in the production and marketing of agrochemical products. The company generates revenue through several key business segments, primarily focusing on the production of herbicides, fungicides, and insecticides that cater to both domestic and international markets.

In the fiscal year 2022, Anhui Jinhe reported revenue of approximately RMB 1.45 billion, representing a year-on-year growth of 12%. The revenue breakdown by product categories is as follows:

The company's profitability is also a crucial factor. In 2022, Anhui Jinhe posted a net profit of approximately RMB 150 million, with a net profit margin of 10.34%. The company has maintained a steady profit margin over the years, largely driven by effective cost management strategies and an increase in sales volume.

Anhui Jinhe’s geographical market reach is extensive, with revenues derived from various regions:

The company invests heavily in research and development (R&D), making it a competitive player in the agrochemical sector. In 2022, Anhui Jinhe allocated approximately RMB 100 million, which accounts for about 6.9% of its total revenue, towards R&D initiatives. This investment is aimed at developing new formulations and improving existing products to comply with environmental regulations and meet increasing customer demands.

Furthermore, the gross profit margin in 2022 was reported at 25%, signaling effective cost control measures in production and procurement. The company also benefits from economies of scale due to its large manufacturing capacity.

The share price of Anhui Jinhe as of October 2023 stands at approximately RMB 18.90, with a market capitalization of around RMB 4.5 billion. The company is listed on the Shanghai Stock Exchange, and its stock has shown resilience, with a year-to-date return of approximately 15%.

In summary, Anhui Jinhe Industrial Co., Ltd. makes money through a well-structured revenue model focused on multiple product categories, leveraging regional markets, and investing in R&D to innovate and maintain a competitive edge.