Jiangsu Yangnong Chemical Co., Ltd. (600486.SS) Bundle
A Brief History of Jiangsu Yangnong Chemical Co., Ltd.
Founded in 1996, Jiangsu Yangnong Chemical Co., Ltd. has established itself as a key player in the agrochemical industry in China. Headquartered in Nanjing, Jiangsu, the company specializes in the production of pesticides and herbicides, serving both domestic and international markets.
In 2009, Jiangsu Yangnong Chemical underwent significant expansion, increasing its production capacity to meet growing demand. The company invested over ¥500 million (approximately $80 million) to enhance its facilities and incorporate advanced technologies. This expansion resulted in an annual production capacity of approximately 50,000 tons of various agrochemical products.
By 2015, Jiangsu Yangnong Chemical was recognized as one of the leading suppliers of herbicides in China, achieving a market share of around 10%. The company’s flagship products, including glyphosate and glufosinate ammonium, gained popularity not only in China but also in markets like Southeast Asia and South America.
In 2020, the company reported revenues of ¥4.25 billion (approximately $640 million), marking a year-on-year growth of 15%. The net income during the same period was approximately ¥620 million (around $93 million), reflecting a net profit margin of 14.6%.
| Year | Revenue (¥ Billion) | Net Income (¥ Million) | Market Share (%) | Production Capacity (Tons) |
|---|---|---|---|---|
| 2015 | 3.70 | 550 | 10 | 50,000 |
| 2016 | 3.80 | 570 | 11 | 50,000 |
| 2019 | 3.70 | 600 | 12 | 50,000 |
| 2020 | 4.25 | 620 | 12.5 | 50,000 |
Throughout the years, Jiangsu Yangnong Chemical has remained committed to research and development. In 2021, the company allocated approximately ¥300 million (around $46 million) for R&D investments, focusing on developing environmentally friendly products and enhancing production efficiency.
As of October 2023, the company’s stock is listed on the Shenzhen Stock Exchange, and its market capitalization stands at around ¥35 billion (approximately $5.4 billion). Jiangsu Yangnong Chemical continues to innovate and expand its global reach, maintaining a strategic focus on sustainable agricultural practices.
A Who Owns Jiangsu Yangnong Chemical Co., Ltd.
Jiangsu Yangnong Chemical Co., Ltd. is a publicly traded company predominantly operating in the agricultural chemical sector, primarily focused on the production of pesticides and herbicides. As of the latest data, the company's stock is listed on the Shenzhen Stock Exchange under the ticker symbol 002149.SZ.
Ownership structure is integral to understanding the dynamics of Jiangsu Yangnong. As of the most recent filings, the company's shareholding is composed of various institutional and individual investors. The significant shareholders include:
| Shareholder Name | Ownership Stake (%) | Type of Ownership |
|---|---|---|
| Yangnong Group | 24.87 | Majority Shareholder |
| China National Chemical Corporation | 10.03 | Institutional Investor |
| Qin Ling | 6.25 | Individual Investor |
| Shanghai Chuangyi Investment Center | 5.61 | Institutional Investor |
| Public Float | 53.24 | Various Individual and Institutional Investors |
The top five shareholders collectively control approximately 56.76% of the company, with the Yangnong Group being the largest stakeholder, reinforcing its influence over corporate strategies and direction. This concentration of ownership is crucial as it allows these entities to shape the company’s policies and governance.
Financially, Jiangsu Yangnong has shown considerable growth over the years. For the fiscal year ending December 2022, the company reported revenues of approximately RMB 5.18 billion, which marks a year-on-year increase of 12.5%. The net profit for the same period was around RMB 820 million, reflecting a profitability margin of about 15.8%.
Market performance is also noteworthy. The stock price of Jiangsu Yangnong has seen fluctuations, starting at around RMB 45.00 at the beginning of 2023 and peaking at approximately RMB 55.30 in May 2023, before adjusting to around RMB 50.80 by October 2023. This performance provides insights into investor sentiment and market conditions associated with the agricultural chemicals market.
In summary, understanding who owns Jiangsu Yangnong Chemical Co., Ltd. provides a window into its operational dynamics, financial health, and strategic direction as it continues to navigate the competitive landscape of the agricultural chemicals sector.
Jiangsu Yangnong Chemical Co., Ltd. Mission Statement
Jiangsu Yangnong Chemical Co., Ltd. aims to be a leading provider of agricultural chemicals, focusing on quality and sustainability. Its mission emphasizes innovative development in pesticide production, ensuring consistent growth and value creation for stakeholders. The company is committed to enhancing agricultural productivity while minimizing environmental impact.
As of 2022, Jiangsu Yangnong reported a total revenue of RMB 10.5 billion, marking a year-on-year growth of 12%. The company's operating profit reached RMB 1.8 billion, reflecting an operating margin of 17.14%.
In alignment with its mission, Jiangsu Yangnong has invested significantly in research and development. In 2022, R&D expenditure accounted for 6.5% of total revenue, equating to approximately RMB 682 million. This investment supports the company's commitment to product innovation, environmental sustainability, and comprehensive agricultural solutions.
| Financial Metrics | 2021 | 2022 | 2023 (Projected) |
|---|---|---|---|
| Total Revenue (RMB) | 9.35 billion | 10.5 billion | 11.2 billion |
| Operating Profit (RMB) | 1.6 billion | 1.8 billion | 2.0 billion |
| Net Profit (RMB) | 1.2 billion | 1.4 billion | 1.5 billion |
| R&D Expenditure (RMB) | 600 million | 682 million | 750 million |
| Operating Margin (%) | 17.14% | 17.14% | 17.86% |
Jiangsu Yangnong's commitment to sustainability is evident in its production processes and product offerings. In 2022, the company launched a new line of bio-pesticides, projected to reduce chemical usage by 30% and improve crop yield by 15%. This initiative aligns with global trends toward sustainable agriculture and addresses regulatory demands.
As of 2023, the company holds a market share of approximately 5.2% within China's pesticide industry. Additionally, Jiangsu Yangnong has established collaborative partnerships with various agricultural research institutions to further its mission of sustainable growth and innovation.
Furthermore, Jiangsu Yangnong is working to expand its international presence. In recent years, the company has exported products to over 30 countries, contributing to an international sales revenue of approximately RMB 2 billion in 2022.
How Jiangsu Yangnong Chemical Co., Ltd. Works
Jiangsu Yangnong Chemical Co., Ltd. is a leading player in the agrochemical industry, primarily focusing on the production of pesticides and herbicides. As of 2023, the company operates with a production capacity of over 120,000 tons annually, which supports its extensive portfolio in crop protection products.
In 2022, Jiangsu Yangnong recorded a revenue of approximately RMB 4.5 billion (around USD 670 million), showcasing a year-over-year growth of 15%. The net profit attributed to shareholders for the same year was about RMB 800 million (around USD 120 million), translating to a profit margin of 17.8%.
| Financial Metric | 2021 | 2022 | 2023 (Projected) |
|---|---|---|---|
| Revenue (RMB) | RMB 3.9 billion | RMB 4.5 billion | RMB 5.0 billion |
| Net Profit (RMB) | RMB 700 million | RMB 800 million | RMB 900 million |
| Profit Margin (%) | 17.9% | 17.8% | 18.0% |
| Production Capacity (tons) | 110,000 | 120,000 | 130,000 |
The company's product lines include herbicides, insecticides, and fungicides, with a strong emphasis on research and development. In 2022, approximately 10% of its total revenue was reinvested into R&D, amounting to RMB 450 million (approximately USD 67 million).
Jiangsu Yangnong operates through a diversified sales model, reaching more than 30 countries across Europe, Asia, and North America, which reduces its dependence on the domestic market. International sales accounted for nearly 35% of total revenue in 2022.
The company's exports increased by 20% in 2022, reflecting its strategic initiatives to penetrate emerging markets. This is supported by robust partnerships with local distributors and a strong marketing presence in targeted regions.
In terms of sustainability, Jiangsu Yangnong has invested significantly in environmentally friendly production processes. In 2023, the company reported that 45% of its chemical formulations are considered low-risk to human health and the environment, a substantial increase from 30% in 2021.
Financially, Jiangsu Yangnong has maintained a strong liquidity position with a current ratio of 2.5 as of 2022, indicating solid short-term financial health. Its debt-to-equity ratio stands at 0.4, which is well below the industry average of 0.7, suggesting a conservative approach to leveraging.
Overall, Jiangsu Yangnong Chemical Co., Ltd. exemplifies a model of growth through innovation, strategic expansion, and a commitment to sustainability within the agrochemical sector.
How Jiangsu Yangnong Chemical Co., Ltd. Makes Money
Jiangsu Yangnong Chemical Co., Ltd. is recognized as a significant player in the agricultural chemicals sector, specializing in the production of pesticides and herbicides. The company leverages its comprehensive research and development capabilities to introduce innovative products to the market, driving revenue growth. In 2022, Jiangsu Yangnong reported a total revenue of approximately RMB 6.2 billion (approximately USD 910 million), marking a year-over-year increase of about 12%.
Additionally, the company's gross profit margin stands at around 25%, indicative of efficient cost management and pricing strategies. The primary segments of its revenue generation include:
- Agrochemicals - accounting for around 85% of total revenue.
- Intermediates and other specialties making up the remaining 15%.
One notable product category is the insecticide sector, which has witnessed demand fluctuations. In 2022, insecticides contributed approximately RMB 3 billion to total sales. This category has been bolstered by the rise in global agricultural practices that prioritize pest control.
| Product Category | 2022 Revenue (RMB) | Percentage of Total Revenue |
|---|---|---|
| Insecticides | 3,000,000,000 | 48.39% |
| Herbicides | 2,000,000,000 | 32.26% |
| Fungicides | 800,000,000 | 12.90% |
| Other Products | 400,000,000 | 6.45% |
Jiangsu Yangnong also benefits from favorable market dynamics, particularly in China, where the government actively promotes modern agricultural practices. The increasing adoption of biotechnology and genetically modified crops has further fueled demand for specific chemical products.
The company's strategic moves in mergers and acquisitions have also enhanced its market position. In late 2022, it acquired a smaller competitor, which contributed an additional RMB 500 million to the top line in 2023, showcasing the impact of organic growth coupled with strategic expansion.
In terms of exports, Jiangsu Yangnong has diversified its market presence, selling products to over 60 countries worldwide. Export revenues accounted for approximately RMB 1.5 billion in 2022. This international footprint is crucial in mitigating risks associated with domestic market fluctuations.
Production capabilities are critical to Jiangsu Yangnong's profitability. The company operates multiple manufacturing plants that boast a combined capacity exceeding 50,000 tons annually. This robust production capability allows for economies of scale, enhancing profit margins.
Furthermore, continuous investment in R&D has been a cornerstone of Jiangsu Yangnong's strategy. In 2022, the company allocated approximately RMB 400 million to R&D, representing around 6.5% of total revenue, focused on developing environmentally friendly products compliant with international standards.
Jiangsu Yangnong's financial health is also evident in its balance sheet. As of Q3 2023, the company reported total assets of approximately RMB 8 billion with a debt-to-equity ratio of 0.4, suggesting a strong leverage position.
Overall, Jiangsu Yangnong Chemical Co., Ltd. continues to adapt to market demands while focusing on innovation and sustainable practices, thereby securing its financial success in the competitive agrochemical landscape.
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