Lier Chemical (SZ:002258)2022-12-07 09:36Company Overview - Lier Chemical Co., Ltd. was established in 1993 and is a high-tech enterprise in Sichuan Province, responding to the national military-civilian integration initiative [1] - The company is located in Mianyang, Sichuan, with production bases in Mianyang, Nantong, and Guang'an, employing over 2,000 people [2] Product and Production Capacity - The company focuses on developing safe pesticides, including herbicides, fungicides, and insecticides [2] - Current production capacity for glyphosate is 10,000 tons/year, while the capacity for other products includes 1,800 tons/year for Bika grass and 3,000 tons/year for Diquat [3] - The company has a production capacity of 600 tons/year for glufosinate and has achieved commercial production with advanced domestic technology [2][3] Financing and Shareholder Support - The company has chosen a rights issue as a method of refinancing, which aligns with its current situation [2] - Major shareholders have committed to fully subscribing to the rights issue according to their shareholding ratios, demonstrating confidence in the company's development [4] Market Position and Competition - The company maintains a competitive advantage in its main products, although it faces increased market competition affecting profit margins [3][5] - The market for glufosinate remains strong, with rapid growth, but the production technology is complex, limiting large-scale production to a few companies [2][3] Future Development Plans - The company plans to establish a production line for 1,000 tons/year of glufosinate intermediates at its Mianyang base, contingent on obtaining project environmental assessments [3] - Future strategies include maintaining the competitive edge of existing products while actively developing glufosinate and domestic formulations [5]