Chongqing Huapont purchased 58.26% shares of Hangzhou Qingfeng on Sept. 6, 2012.

1. Chongqing Huapont acquires Hangzhou Qingfeng
Summary: Chongqing Huapont purchased 58.26% shares of Hangzhou Qingfeng on Sept.
6, 2012.
Tag: Chongqing Huapont, Herbicides, pesticide, Investment, oxyfluorfen technical, metolachlor,
propisochlor, metamitron technical
On Sept. 6, 2012, Chongqing Huapont Pharmaceutical Co., Ltd. (Chongqing Huapont) acquired
58.26% shares of Hangzhou Qingfeng Agro-chemical Co., Ltd. (Hangzhou Qingfeng). Hangzhou
Qingfeng is a company mainly engaged in amide herbicides. Through this acquisition, Chongqing
Huapont can enhance its herbicide production strength with Hangzhou Qingfeng's resource
production base, according to CCM’s October Issue of Herbicides China News.
In detail, Chongqing Huapont purchased 58.26% shares of Hangzhou Qingfeng, a subsidiary of
Hangzhou Industrial Asset Management Investment Group Ltd. (Hangzhou Industrial) with about
USD9.17 million (RMB 58.08 million).
At present, Chongqing Huapont has several main pesticide products—metamitron technical,
oxyfluorfen technical, bifenthrin technical and picloram technical. After the acquisition, Chongqing
Huapont can produce a series of amide herbicides including alachlor, acetochlor, pretilachlor,
butachlor, metolachlor, propisochlor and also can produce prochloraz (a kind of fungicide), which
are originally owned by Hangzhou Qingfeng.
It's predicted that after the acquisition of Hangzhou Qingfeng, Chongqing Huapont will integrate
complementary resources of Hebei Wanquan Kaidi Chemical Imp. & Exp. Co., Ltd. (Wanquan
Kaidi), Nutrichem Company Limited (Nutrichem) and Hangzhou Qingfeng for sensible use of
resources, which can reduce the cost of sales sharply.
From 2011, Chongqing Huapont has aggressively developed pesticide business by way of
acquiring pesticide companies. In detail, in July 2011, Chongqing Huapont acquired 100% shares
of Nutrichem; in May 2012 , the company acquired 31.24% shares of Wanquan Kaidi whose main
products are metamitron and clethodim; Also in this May, the company acquired 49% shares of
Hebei Wanquan Hongyu Chemical Co., Ltd. (Wanquan Hongyu). (Herbicides News 1107:
Huapont acquires Nutrichem; Herbicides News 1205: Huapont invests in Wanquan Hongyu and
Wanquan Kaidi)
On Aug. 8, 2012, Chongqing Huapont issued its H1 2012 semi-annual report. It shows a good
performance of Chongqing Huapont, especially in pesticide business. After Nutrichem was
acquired by Chongqing Huapont, Chongqing Huapont has been congruously developing the

2. businesses of pharmaceuticals and pesticides. And Nutrichem pushed Chongqing Huapont's
business forward in H1 2012.
In H1 2012, the total revenue of Nutrichem was about USD220.7 million (RMB1.4 billion) with
gross profit margin of 13.56%. As to the company's products, the revenue of metamitron technical
and oxyfluorfen technical were about USD20.9 million (RMB132.3 million) and USD11.0 million
(RMB69.7 million) with gross profit margin of 28.41% and 11.65% respectively.
Now, Chongqing Huapont further develops its pesticide business by acquiring Hangzhou
Qingfeng whose business is in deficit. In an estimate, one of the reasons why Hangzhou
Industrial sold its shares in Hangzhou Qingfeng is that Hangzhou Qingfeng suffered a net profit
loss of about USD8.12 million (RMB51.43 million) in 2011. As of March 31, 2012, the total assets
of Hangzhou Qingfeng was about USD83.2 million (RMB554.5 million) and its net assets was
about USD-21.3 million (RMB-134.9 million).
As indicated by Chongqing Huapont, the deficit of Hangzhou Qingfeng is mainly due to the
unwise operation of its mother company, Hangzhou Industrial. After the acquisition, Chongqing
Huapont will enhance the management ability of Hangzhou Qingfeng and Hangzhou Qingfeng
will recover in 2013 in an estimate.
As expressed by Chongqing Huapont, in the acquisition, there are still some potential risks that
the company should pay attention to. According to the acquisition proposal, new industrial park
has higher requirements on environment protection, especially on waste gas. Therefore, it wasn't
sure that Hangzhou Qingfeng could successfully relocate into new industrial park, as Chongqing
Huapont estimated. Although Hangzhou Qingfeng has a good foundation, Chongqing Huapont
needs to put more efforts to get rid of the malpractice in Hangzhou Qingfeng after the acquisition.
At present, Hangzhou Qingfeng's production base is in Hangzhou Xiaoshan Linjiang Industrial
Zone, Zhejiang Province. After the acquisition, Hangzhou Qingfeng will be relocated, though the
exact relocation place has not been settled, according to the proposal of Chongqing Huapont.
At any rate, under the direction of Pesticide Industry Policy in China, Chinese pesticide market is
experiencing an integration revolution. Accompanied with the current trend, acquisition in different
industries will gain Chinese government's support and the acquisition of Chongqing Huapont
makes the company an early bird to grasp expansion chance.
Besides, at the end of 2011, Chongqing Huapont purchased 7.5% shares of CCAB Agro S.A.
(CCAB), a company who is mainly engaged in pesticide business in Brazil. By cooperating with

3. CCAB, it's convenient for Chongqing Huapont to export pesticides to Brazil through setting up a
sales channel and the company can further develop its pesticide export business. (Herbicides
News 1202: Huapont plans to invest in Brazilian market)
Source: Herbicides China News 1210
http://www.cnchemicals.com/Newsletter/NewsletterDetail_11.html
Content of Herbicides China News 1210:
Chongqing Huapont acquires Hangzhou Qingfeng
Jiangsu Tenglong manufactures glyphosate in Inner Mongolia
Jiangsu Agrochem Laboratory gains formal florasulam TC registration
CAC Nantong prepares 2,000t/a thiobencarb and 300t/a cyhalofop-butyl production lines
China sets anti-dumping investigation on pyridine import
Three coming off-patent herbicides in China
Mild fluroxypyr market in China in H1 2012
Pendimethalin heats in China in Q3 2012
Anhui Meiland to supply clodinafop-propargyl EW
Anhui Zhongshan's 1,000t/a metamitron project proceeds
PMIDA supply intense in Sept.
Clethodim grows quietly in China
No flumioxazin supply in China
APVMA to finalize diuron review in Nov. 2012
Dicamba price floats upward in Oct. 2012
Chongqing Huapont Jiangsu Tenglong Jiangsu Agrochem Laboratory CAC Nantong anti-
dumping pyridine fluroxypyr Pendimethalin clodinafop-propargyl metamitron PMIDA Clethodim
flumioxazin diuron Dicamba

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you with the latest occurrences, exclusive analysis on the market trend as well as professional
reviews on competitiveness of companies, products and relative industries in China’s herbicide
industry.
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