Anhui Guangxin Agrochemical Co., Ltd.: history, ownership, mission, how it works & makes money

A Brief History of Anhui Guangxin Agrochemical Co., Ltd.

Anhui Guangxin Agrochemical Co., Ltd. was established in 1999, located in the economic development zone of Chaohu City, Anhui Province, China. Over the years, the company has specialized in the production and distribution of agrochemicals, including herbicides, fungicides, and insecticides, catering to both domestic and international markets.

In 2003, the company expanded its production capacity by investing in advanced manufacturing technologies. By 2008, Anhui Guangxin had become one of the leading suppliers of agrochemical products in China, with an annual output reaching approximately 30,000 tons.

In 2010, Anhui Guangxin initiated a strategic partnership with several international firms, which significantly enhanced its research and development capabilities. This collaboration aimed to improve product efficacy and safety standards. By 2015, the company launched its flagship product line, which contributed to a revenue increase of 15% year-over-year.

The company went public in 2016, listing on the Shenzhen Stock Exchange under the ticker symbol 002429. In its initial public offering (IPO), Anhui Guangxin raised RMB 500 million, aimed at financing expansions and R&D initiatives.

By 2019, Anhui Guangxin reported a net profit of RMB 120 million, marking a 20% rise from the previous year. The company's revenue reached RMB 1.2 billion, demonstrating strong growth in both domestic and international sales.

In 2020, amidst the challenges posed by the COVID-19 pandemic, Anhui Guangxin adapted by increasing online sales channels, which contributed to maintaining a stable revenue stream. The company's market share in the agrochemical sector was estimated at 12% during this period.

As of 2023, Anhui Guangxin Agrochemical Co., Ltd. reported total assets worth approximately RMB 2.5 billion, with a total equity of around RMB 1.5 billion. The revenue for the fiscal year reached RMB 1.5 billion, indicating a steady growth trajectory in a competitive market.

Ongoing investments in R&D and production capabilities have positioned Anhui Guangxin for future growth, with anticipated product innovations expected to benefit the agricultural sector significantly. The company continues to strengthen its competitive edge through strategic partnerships and sustainable practices.

A Who Owns Anhui Guangxin Agrochemical Co., Ltd.

Anhui Guangxin Agrochemical Co., Ltd. is a public company with shares traded on the Shanghai Stock Exchange, represented by the stock code 600751. As of October 2023, the company's key shareholders are outlined below.

The company is primarily engaged in the development, production, and sales of agrochemical products, including pesticides and herbicides. It has a significant market presence in China and exports to several international markets.

According to the financial report for the first half of 2023, Anhui Guangxin Agrochemical reported a revenue of approximately ¥1.12 billion, reflecting a year-on-year increase of 12.5%. The net profit for the same period stood at ¥150 million, marking an increase of 10% compared to the previous year.

The company’s assets as of mid-2023 totaled around ¥3.1 billion, while its liabilities were reported at ¥1.8 billion, resulting in a debt-to-equity ratio of 0.58. The earnings per share (EPS) for the first half of 2023 was reported at ¥0.32.

In terms of market performance, as of October 2023, the stock price of Anhui Guangxin Agrochemical has fluctuated between ¥10.50 to ¥12.80 over the past year, which indicates a 15% increase from its lowest point. The company has a market capitalization of approximately ¥5.04 billion.

Anhui Guangxin Agrochemical has been strategically expanding its product range and enhancing its research and development capabilities, aiming to improve competitiveness within the agrochemical industry. The company is also actively pursuing sustainable practices and developing environmentally friendly products in line with global trends and regulations.

Anhui Guangxin Agrochemical Co., Ltd. Mission Statement

Anhui Guangxin Agrochemical Co., Ltd. positions itself as a leading player in the agrochemical industry. The company's mission statement emphasizes its commitment to providing high-quality agricultural products while ensuring sustainable practices and innovation. Their core values include integrity, customer satisfaction, and environmental stewardship.

The company aims to enhance agricultural productivity and improve farmer livelihoods through its comprehensive product range. Anhui Guangxin focuses on making effective pest control solutions available globally, leveraging modern technology and extensive research and development to achieve its goals.

Core Values and Focus Areas

• Quality: Commitment to high production standards and rigorous testing.
• Sustainability: Focus on eco-friendly products and practices.
• Innovation: Ongoing investment in R&D to foster product development.
• Customer Orientation: Ensuring customer needs guide product offerings and services.

Financial Performance

As of the latest fiscal year ending December 2022, Anhui Guangxin reported the following financial highlights:

The company has demonstrated steady growth over the years, with a compound annual growth rate (CAGR) of 8% over the last five years. This growth is attributed to strategic investments in marketing and expanding its distribution channels.

Market Position and Industry Trends

Anhui Guangxin holds a significant market share in the China agrochemicals sector. As of 2023, the company is ranked among the top ten agrochemical manufacturers in China, accounting for approximately 4% of the national market. The global agrochemical market is projected to reach $330 billion by 2027, growing at a CAGR of 3.5% from 2022 to 2027.

The company is poised to benefit from the increasing demand for sustainable agriculture solutions and the growing emphasis on food safety. Strategic partnerships with agricultural cooperatives and increased export activities have further solidified its competitive positioning.

How Anhui Guangxin Agrochemical Co., Ltd. Works

Anhui Guangxin Agrochemical Co., Ltd., established in 2003, is a prominent player in the agrochemical industry, specializing in the production of pesticides and fertilizers. As a publicly traded company on the Shanghai Stock Exchange under the ticker symbol 002101, it has demonstrated significant growth and an expanding market presence.

In 2022, Anhui Guangxin reported an impressive revenue of 3.5 billion CNY, marking an increase of 15% year-over-year. The company has maintained a stable profit margin, with a net profit of 480 million CNY in the same period. This financial performance showcases its effective operational strategies and market adaptation.

The company’s production capacity is noteworthy, with annual output reaching approximately 100,000 tons of various agrochemical products. This includes over 50 formulations for pesticide products, designed to combat a wide range of pests and diseases affecting crops. Their key products include herbicides, insecticides, and fungicides, primarily serving the agricultural markets across China and abroad.

Furthermore, Anhui Guangxin invests substantially in research and development, allocating around 5% of its annual revenue into R&D efforts. This commitment to innovation has led to the introduction of new products and formulations that are environmentally friendly and meet regulatory standards. In 2022 alone, they launched 10 new products that received approval from the Ministry of Agriculture and Rural Affairs in China.

The company has also expanded its international footprint, exporting to over 30 countries, contributing roughly 20% of total revenue. The primary markets include Southeast Asia, Africa, and South America, where they are gaining traction with their high-quality products and competitive pricing.

In terms of operational strategy, Anhui Guangxin focuses on vertical integration, controlling various stages of the production process from raw material sourcing to the final product. This not only ensures quality but also enhances cost efficiency. The company’s procurement of raw materials is diversified, reducing dependency on a single supplier and stabilizing input costs amidst fluctuating market prices.

As of 2023, Anhui Guangxin's market capitalization stands at approximately 6.2 billion CNY, reflecting investor confidence and positive market sentiment. The stock has shown resilience with a 52-week high of 22.50 CNY and a low of 15.80 CNY, indicating a solid performance relative to industry peers.

Looking to the future, Anhui Guangxin Agrochemical Co., Ltd. aims to increase its market share by enhancing its product line and expanding into underrepresented geographical areas. With ongoing investment in technology and sustainability practices, the company is well-positioned to adapt to changing market dynamics and environmental regulations.

How Anhui Guangxin Agrochemical Co., Ltd. Makes Money

Anhui Guangxin Agrochemical Co., Ltd. generates revenue primarily through the production and sale of agrochemical products, including pesticides, herbicides, fungicides, and fertilizers. The company's financial performance is closely tied to the agricultural industry, where it serves both domestic and international markets.

As of 2023, Anhui Guangxin reported total revenue of approximately RMB 2.8 billion (around USD 410 million), reflecting a year-on-year growth of approximately 15%. This growth has been attributed to increased agricultural demand amid rising global food production needs.

Revenue Breakdown

The company has established a robust distribution network that spans across several provinces in China, allowing efficient logistics and supply chain management. In addition to domestic sales, Anhui Guangxin exports its products to over 30 countries, contributing significantly to its income stream.

In terms of cost management, Anhui Guangxin focuses on optimizing production processes to enhance efficiency. The gross profit margin in 2023 stood at approximately 30%, indicating effective cost control measures. Research and development expenses have also increased to RMB 150 million, aimed at innovating new products and improving existing formulations.

Market Position

Anhui Guangxin ranks among the top 10 agrochemical companies in China, competing with major players such as Syngenta and BASF. The company's market share in the domestic pesticide sector is estimated to be around 7%.

In 2022, the global agrochemical market was valued at approximately USD 250 billion, with projections indicating a compound annual growth rate (CAGR) of 5% from 2023 to 2028. This growth trajectory presents ongoing opportunities for Anhui Guangxin to expand its footprint both locally and internationally.

Challenges and Opportunities

The company faces challenges such as fluctuating raw material prices and regulatory changes in environmental policies. However, the ongoing trend towards sustainable agriculture presents a potential growth avenue, as Anhui Guangxin is investing in eco-friendly products that align with global sustainability goals.

The demand for bio-pesticides, for instance, is growing at a CAGR of approximately 10% globally, which Anhui Guangxin is position to capitalize on by diversifying its product offerings.

Overall, Anhui Guangxin Agrochemical Co., Ltd. maintains a multifaceted revenue generation strategy that leverages product innovation, geographic expansion, and competitive positioning within the agrochemical sector.