Chongqing huapont acquires hangzhou qingfeng


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Chongqing Huapont purchased 58.26% shares of Hangzhou Qingfeng on Sept. 6, 2012.

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Chongqing huapont acquires hangzhou qingfeng

  1. 1. Chongqing Huapont acquires Hangzhou QingfengSummary: Chongqing Huapont purchased 58.26% shares of Hangzhou Qingfeng on Sept.6, 2012.Tag: Chongqing Huapont, Herbicides, pesticide, Investment, oxyfluorfen technical, metolachlor,propisochlor, metamitron technicalOn Sept. 6, 2012, Chongqing Huapont Pharmaceutical Co., Ltd. (Chongqing Huapont) acquired58.26% shares of Hangzhou Qingfeng Agro-chemical Co., Ltd. (Hangzhou Qingfeng). HangzhouQingfeng is a company mainly engaged in amide herbicides. Through this acquisition, ChongqingHuapont can enhance its herbicide production strength with Hangzhou Qingfengs resourceproduction base, according to CCM’s October Issue of Herbicides China News.In detail, Chongqing Huapont purchased 58.26% shares of Hangzhou Qingfeng, a subsidiary ofHangzhou Industrial Asset Management Investment Group Ltd. (Hangzhou Industrial) with aboutUSD9.17 million (RMB 58.08 million).At present, Chongqing Huapont has several main pesticide products—metamitron technical,oxyfluorfen technical, bifenthrin technical and picloram technical. After the acquisition, ChongqingHuapont can produce a series of amide herbicides including alachlor, acetochlor, pretilachlor,butachlor, metolachlor, propisochlor and also can produce prochloraz (a kind of fungicide), whichare originally owned by Hangzhou Qingfeng.Its predicted that after the acquisition of Hangzhou Qingfeng, Chongqing Huapont will integratecomplementary resources of Hebei Wanquan Kaidi Chemical Imp. & Exp. Co., Ltd. (WanquanKaidi), Nutrichem Company Limited (Nutrichem) and Hangzhou Qingfeng for sensible use ofresources, which can reduce the cost of sales sharply.From 2011, Chongqing Huapont has aggressively developed pesticide business by way ofacquiring pesticide companies. In detail, in July 2011, Chongqing Huapont acquired 100% sharesof Nutrichem; in May 2012 , the company acquired 31.24% shares of Wanquan Kaidi whose mainproducts are metamitron and clethodim; Also in this May, the company acquired 49% shares ofHebei Wanquan Hongyu Chemical Co., Ltd. (Wanquan Hongyu). (Herbicides News 1107:Huapont acquires Nutrichem; Herbicides News 1205: Huapont invests in Wanquan Hongyu andWanquan Kaidi)On Aug. 8, 2012, Chongqing Huapont issued its H1 2012 semi-annual report. It shows a goodperformance of Chongqing Huapont, especially in pesticide business. After Nutrichem wasacquired by Chongqing Huapont, Chongqing Huapont has been congruously developing the
  2. 2. businesses of pharmaceuticals and pesticides. And Nutrichem pushed Chongqing Huapontsbusiness forward in H1 2012.In H1 2012, the total revenue of Nutrichem was about USD220.7 million (RMB1.4 billion) withgross profit margin of 13.56%. As to the companys products, the revenue of metamitron technicaland oxyfluorfen technical were about USD20.9 million (RMB132.3 million) and USD11.0 million(RMB69.7 million) with gross profit margin of 28.41% and 11.65% respectively.Now, Chongqing Huapont further develops its pesticide business by acquiring HangzhouQingfeng whose business is in deficit. In an estimate, one of the reasons why HangzhouIndustrial sold its shares in Hangzhou Qingfeng is that Hangzhou Qingfeng suffered a net profitloss of about USD8.12 million (RMB51.43 million) in 2011. As of March 31, 2012, the total assetsof Hangzhou Qingfeng was about USD83.2 million (RMB554.5 million) and its net assets wasabout USD-21.3 million (RMB-134.9 million).As indicated by Chongqing Huapont, the deficit of Hangzhou Qingfeng is mainly due to theunwise operation of its mother company, Hangzhou Industrial. After the acquisition, ChongqingHuapont will enhance the management ability of Hangzhou Qingfeng and Hangzhou Qingfengwill recover in 2013 in an estimate.As expressed by Chongqing Huapont, in the acquisition, there are still some potential risks thatthe company should pay attention to. According to the acquisition proposal, new industrial parkhas higher requirements on environment protection, especially on waste gas. Therefore, it wasntsure that Hangzhou Qingfeng could successfully relocate into new industrial park, as ChongqingHuapont estimated. Although Hangzhou Qingfeng has a good foundation, Chongqing Huapontneeds to put more efforts to get rid of the malpractice in Hangzhou Qingfeng after the acquisition.At present, Hangzhou Qingfengs production base is in Hangzhou Xiaoshan Linjiang IndustrialZone, Zhejiang Province. After the acquisition, Hangzhou Qingfeng will be relocated, though theexact relocation place has not been settled, according to the proposal of Chongqing Huapont.At any rate, under the direction of Pesticide Industry Policy in China, Chinese pesticide market isexperiencing an integration revolution. Accompanied with the current trend, acquisition in differentindustries will gain Chinese governments support and the acquisition of Chongqing Huapontmakes the company an early bird to grasp expansion chance.Besides, at the end of 2011, Chongqing Huapont purchased 7.5% shares of CCAB Agro S.A.(CCAB), a company who is mainly engaged in pesticide business in Brazil. By cooperating with
  3. 3. CCAB, its convenient for Chongqing Huapont to export pesticides to Brazil through setting up asales channel and the company can further develop its pesticide export business. (HerbicidesNews 1202: Huapont plans to invest in Brazilian market)Source: Herbicides China News 1210 of Herbicides China News 1210:Chongqing Huapont acquires Hangzhou QingfengJiangsu Tenglong manufactures glyphosate in Inner MongoliaJiangsu Agrochem Laboratory gains formal florasulam TC registrationCAC Nantong prepares 2,000t/a thiobencarb and 300t/a cyhalofop-butyl production linesChina sets anti-dumping investigation on pyridine importThree coming off-patent herbicides in ChinaMild fluroxypyr market in China in H1 2012Pendimethalin heats in China in Q3 2012Anhui Meiland to supply clodinafop-propargyl EWAnhui Zhongshans 1,000t/a metamitron project proceedsPMIDA supply intense in Sept.Clethodim grows quietly in ChinaNo flumioxazin supply in ChinaAPVMA to finalize diuron review in Nov. 2012Dicamba price floats upward in Oct. 2012Chongqing Huapont Jiangsu Tenglong Jiangsu Agrochem Laboratory CAC Nantong anti-dumping pyridine fluroxypyr Pendimethalin clodinafop-propargyl metamitron PMIDA Clethodimflumioxazin diuron Dicamba
  4. 4. Herbicides China News, a monthly publication issued by CCM on 15th of every month, providesyou with the latest occurrences, exclusive analysis on the market trend as well as professionalreviews on competitiveness of companies, products and relative industries in China’s herbicideindustry.About CCMCCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff ofmore than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis,Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its newproprietary product ValoTracer.For more information, please visit International Ltd.Guangzhou CCM Information Science & Technology Co., Ltd.17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou510070, ChinaTel: 86-20-37616606Email: