China Agricultural Joint IPO: The advantages of the whole industry chain realize the coordinated development of pesticide intermediates, technical medicines and preparations

In recent years, with the continuous increase of the world's population and food demand, as well as the increase of diseases, insects and weeds, the rigid demand of the global pesticide market is continuously expanding
.
According to the statistics of the National Bureau of Statistics, China's chemical pesticide technical output in 2019 was 2.
254 million tons, and the export volume of pesticides was 1.
468 million tons
.
As the world's largest producer and exporter of pesticides, China is playing an important role in the global pesticide market, and the domestic industry is developing rapidly in the direction of scale and intensification
.
On April 6, 2021, Shandong Zhongnong United Biotechnology Co.
, Ltd.
(Zhongnong United, 003042) officially landed on the A-share market
.
As a whole-industry chain pesticide manufacturer mainly engaged in the research and development, production and sales of pesticide intermediates, technical and preparation products, the company has set out to establish technological innovation, product development and production management that can adapt to the characteristics of the domestic and foreign pesticide markets since its establishment.
System
.
After years of intensive cultivation in the field, Sino-agricultural United has gradually formed the advantage of a complete industrial chain of "intermediate + technical drug + preparation", and is now able to provide safe, environmentally friendly, efficient and low-toxic pesticide raw materials for domestic and foreign agrochemical industries and users.
Pharmaceuticals and preparation products occupy a leading position in the domestic neonicotinoid pesticide and pesticide technical field
.
The scale of revenue continues to grow.
R&D advantages.
Establish a leading position in segmented fields.
The main products of China-Agriculture Alliance include imidacloprid, acetamiprid, nitenpyram and other environmentally friendly, high-efficiency, low-toxic pesticide raw materials and intermediates, as well as insecticides and fungicides , Herbicide and other pesticide preparation products
.
According to wind data, from 2016 to 2020, the company's revenue increased from 952 million yuan to 1.
568 billion yuan, with a compound growth rate of 13.
29%.
The revenue scale has maintained steady growth for five consecutive years
.
In 2020, the company's original drugs, preparations, intermediates and other three categories of products will achieve revenues of 920 million yuan, 522 million yuan, and 122 million yuan, respectively, an increase of 6.
11%, 17.
30% and 144.
00% from last year.
The revenue of these products has increased compared with last year
.
The pesticide industry has always had the characteristics of large overall market capacity and more product categories in market segments
.
As a leading company in the industry, Zhongnong United has been following industry development trends since its establishment
.
According to the prospectus, by accurately positioning market segments, China Agricultural United has accumulated rich experience in the development, production and sales of neonicotinoid products such as imidacloprid, acetamiprid, and nitenpyram.
Strong competitiveness has been formed in terms of product quality, market brand, technical services, and field applications
.
At present, the company has obtained 39 invention patents.
It has successfully developed a pesticide creation product "flufenoxamide" with independent intellectual property rights and put it on the market.
It was assessed as the "10th China Pesticide Industry Association" by the China Pesticide Industry Association.
The first prize of "Pesticide Innovation Contribution Award"
.
At the same time, the company has successively participated in the formulation of 14 industry standards including Acetamiprid soluble powder (HG/T5117-2016) and Nitenpyram technical (HG/T5438-2018)
.
The product "Liannong Brand" imidacloprid and acetamiprid original drugs were identified as "Shandong famous brand products"; the original drug products such as imidacloprid and acetamiprid have successfully entered Southeast Asia, South Asia, the Middle East, Europe, America, and Africa by virtue of their quality and cost advantages.
In the pesticide market, we have established stable cooperative relations with well-known pesticide companies such as Adama and AUGUST
.
At present, China Agricultural United has become the vice chairman unit of China Pesticide Industry Association and the chairman unit of Shandong Pesticide Industry Association, ranking 35th in the "Top 100 Sales of China's Pesticide Industry in 2019".
Its wholly-owned subsidiaries Shandong United and Weifang The middle farmers are all designated national pesticide production enterprises
.
Industrial chain advantage to realize the coordinated development of the three major products.
The entire industrial chain of the pesticide industry means that the main chemical raw materials are used to produce key pesticide intermediates by the intermediate manufacturers, and then the synthetic pesticide technicals are produced by the pesticide technical manufacturers, and the final preparation manufacturing enterprises.
Complete preparation processing and production and supply preparation products to the market
.
Limited by many factors such as the progress of intermediate synthesis technology, the guidance of national access policies, and the increasingly stringent safety and environmental protection, China Agricultural United has become one of the few companies that can produce the entire industry chain in the field of neonicotinoid pesticides.

.
According to the prospectus, the company’s stable supply of intermediates has been able to effectively guarantee the stable production and product quality of the company’s original drug products, which will help the company control the production cost of original drugs; and pesticide original drugs are in the middle of the pesticide industry chain.
Since its establishment, the company has seized the commanding heights of the industry and focused on the production of technical raw materials with high technical content and high market thresholds, ensuring the company's core income in the industry chain
.
Research shows that the company currently has the relevant pesticide registration certificates for imidacloprid, acetamiprid, and nitenpyram, which can fully meet the demand for neonicotinoid insecticides in the domestic and foreign markets
.
Relying on the synergistic advantages of the industrial chain, the company makes full use of the quality and cost advantages of the original drug business to improve product competitiveness; on the other hand, it gives full play to the brand and channel advantages of the preparation business and continues to expand profitability
.
In this listing, China Agricultural United is expected to raise funds of 59.
074 million yuan
.
Fund-raising will mainly be invested in the project with an annual output of 3,300 tons of pesticide technical, 10,000t/a dichloropentachloromethyl pyridine and 5000t/a acetamiprid technical construction project
.
The company said that after the project is completed and put into production, the production scale of the enterprise will be further expanded, and the market share and overall competitiveness are expected to rise to a higher level
.