hailir(SH:603639) Zheng Quan Ri Bao·2025-04-29 12:38Core Viewpoint - The company reported a decline in revenue and net profit for the year 2024, primarily due to falling prices of pesticide products, despite an increase in production and sales volume [18]. Group 1: Company Overview - The company, Haier Pharmaceutical Group Co., Ltd., is engaged in the research, production, and sales of pesticide formulations, intermediates, and raw materials, with a focus on insecticides and fungicides [4][15]. - The pesticide industry is characterized by relatively inelastic demand, playing a crucial role in agricultural production and food security [2][3]. Group 2: Financial Performance - The company achieved operating revenue of CNY 3.91 billion in 2024, a decrease of 11.16% from CNY 4.40 billion in 2023 [18]. - The net profit attributable to shareholders was CNY 181.37 million, down 61.67% from CNY 473.20 million in the previous year [18]. - The net cash flow from operating activities was CNY 285.55 million, a significant decrease of 70.11% compared to CNY 955.35 million in 2023 [18]. Group 3: Market Dynamics - The global demand for pesticides is expected to grow due to increasing food security needs and agricultural efficiency [2]. - China's pesticide production capacity is shifting towards countries like China and India, driven by the expiration of patents and restructuring by multinational agrochemical giants [2][3]. Group 4: Product Development - The company has been diversifying its pesticide offerings, with several new products entering trial production in recent years, including various insecticides and fungicides [4][5]. - The company is focusing on high-efficiency, low-toxicity pesticides to meet the growing market demand [2][4]. Group 5: Industry Trends - The pesticide industry is experiencing a shift towards biopesticides and environmentally friendly products, with increasing market share for biological and chemical pesticides [7]. - The market for generic pesticides is expected to expand as patents expire, providing opportunities for companies with strong R&D capabilities [2][3].