Events:

The company's total operating income in the first half of the year was 486 million yuan, up 12.31% from the same period last year; the operating profit was 2.2518 million yuan, down 95.39% from the same period last year; the total profit was 3.0904 million yuan, down 936900 yuan from the same period last year; the net profit belonging to shareholders of listed companies was 2.3893 million yuan, down 93.90% from the same period last year; the net profit belonging to shareholders of listed companies was 1,676,500 yuan after deducting non-recurrent profits and losses, down 95.71% from the same period last year. The basic earnings per share is 0.01 yuan.

Conclusion:

The company expects the net profit attributed to shareholders of listed companies from January to September 2010 to be-1500 to-20 million yuan, with a neutral investment rating.

Text:

Affected by the disastrous weather such as the sustained low temperature in a large area of China in the first half of the year, drought in five southwestern provinces, and floods in ten southern provinces, as well as the continued low price of glyphosate in the international market, the profitability of the leading products of glyphosate and pesticides is weak.

In the first half of the year, the gross profit margin of the main business was 10.53%. In the same period last year, the gross profit margin of the main business was 5.49%. After the asset impairment was prepared to be reversed, the gross profit margin was 22.01%, down 11.48 percentage points from the same period last year. The gross profit margin of glyphosate products in the first half of the year was 10.04%, compared with-5.17% in the same period last year, and the gross profit margin after asset impairment preparation was reversed was 27.00%, down 16.96 percentage points from the same period last year.

The company's annual output of 20, 000 tons of glyphosate technical renovation project is currently in the slow construction period, 300000 tons of ionic membrane caustic soda phase of the 100000-ton project is in the construction period. The company is canceling Anhui Huaxing Chemical Chongqing Co., Ltd., a wholly-owned subsidiary with imine diacetonitrile from natural gas as its main business. Xingnuo Chemical Co., Ltd. has a stake in the 20, 000-ton diglyphosate project and 10000-ton 2mai 4murd acid project to be built.

The future is worth looking forward to, the company has a large area of industrial land in the Wanjiang demonstration area, the construction of upstream projects such as caustic soda and phosphorus trichloride will enhance the company's cost advantage, and the glyphosate preparation registered in the United States will enhance the profitability of the herbicide business. the rising price of agricultural products has led to an increase in the demand for agrochemical products.