Gelonghui July 14?When receiving a survey of institutional investors recently, 001231.SZ said that pesticides serve crops and mainly play the role of weeding, insecticidal and sterilization in the process of crop growth, so as to ensure or increase the yield of crops. Judging from the current situation, the agricultural acreage at home and abroad will not be greatly reduced, which means that in a certain stage, the demand for pesticides is rigid and pesticides are irreplaceable. The pesticide industry will still be a growing industry in the future.
Enterprises in the pesticide preparation industry have the characteristics of "small and scattered". With the stricter regulatory situation and intensified market competition in recent years, enterprises in the industry have been urged to develop in an intensive direction, and at the same time, it has also led to mergers and acquisitions in the industry. in the future, investment opportunities in the industry will expand upstream with the development needs of some enterprises to obtain the bargaining power of crude drugs (raw materials), or carry out horizontal mergers and acquisitions. To achieve greater market share, better technology or higher capacity reserves.
As a traditional preparation enterprise, conforming to the general trend of the development of the industry, the company has also begun to explore and extend to the upstream crude drug market of the industry. we disclosed the situation of foreign investment in our annual report in 2022. One of the key projects in the construction phase is the R & D base of green pesticides and intermediates with a design capacity of 3000 tons per year. The project is built and operated by our holding subsidiary, Shaanxi Yianyi Bio-Engineering Co., Ltd., and the completion and operation of the project is expected to become a new business segment and performance growth point of the company in the future. but at the same time, it may also be affected by market fluctuations and other factors, there is uncertainty.