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      Red Sun Releases 2016 Preliminary Earnings Estimate
      Source:China Crop Protection Industry Association  author: Ellie XU
        date: 2017-03-27  
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      On January 26, 2017, Nanjing Red Sun Co., Ltd. (stock abbreviation: Red Sun; stock code: 000525) released its 2016 Preliminary Earnings Estimate. According to the Estimate, in 2016 Red Sun realized a total operating revenue of 4.558 billion yuan, up 0.04% year on year (YoY); an operating profit of 135 million yuan, up 0.62% YoY; a total profit of 218 million yuan, up 13.24% YoY; a net profit attributable to listed company shareholders of 156 million yuan, down 14.11% YoY.
       
      In 2016 Red Sun successfully implemented innovation and transformation and became the first company in the Chinese pesticide industry to realize the historical transformation from a traditional pesticide company to a biochemical agricultural company, which is reflected in the five following aspects:
       
      First, Red Sun has successfully built the world’s only, largest and green biochemical VB3 industrial chain with proprietary intellectual property rights; second, it has successfully established the world’s only, largest and green fluochloropyridine, chloropyridines, chlorpyrifos, new diquat and paraquat JG industrial chains with proprietary intellectual property rights and international “say”; third, it has gained a favorable situation with strong response and a huge demand after it launched the world’s first, environmentally-friendly and resource-saving paraquat SJ with proprietary intellectual property rights; fourth, it has successfully developed the world’s only and green biochemical L-glufosinate-ammonium industrial chain with proprietary intellectual property rights that can replace toxic industrial chains; fifth, it is the only company in China to have completed the upsizing and industrializing research tasks for the innovative technology of new fungicide industrial chain products such as pyraclostrobin, prothioconazole and prochloraz and it can enter into the industrializing, upsizing and intelligentizing implementation stage.
      Last December, Red Sun acquired a 70% stake in Shangdong Kexin Biochemical Co., Ltd. that was founded by Mr. Li Dejun “The Father of Paraquat in China”. By allying its brother enterprises in the industry, it has successfully completed the first step to integrate the domestic paraquat industry and has gotten twofold results with half the effort.
       
      In the fourth quarter of 2016, especially in December, the company’s main products such as pyridine, 3-methylpyridine, 3-cyanopyridine, VB3, paraquat and chlorpyrifos took a sharp turn for the better with both production and sales booming, supply tightening and prices raising. In particular, paraquat JG is hard to buy for the first time.

       

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