As of September 8, 2025, all 35 pesticide-listed companies on the A-share market have disclosed their semi-annual performance reports for the year. The industry demonstrates a notable trend of differentiated recovery following a cyclical adjustment. Among these firms, 27 reported year-on-year revenue growth, while 25 achieved an increase in net profit. Impressively, 11 companies saw net profit growth exceeding 100%, with Xianda Chemical, Lianhe Chemical Technology, and Suli Co., Ltd. each recording a surge of over 1000%.
The remarkable performance can be attributed to four major drivers: recovery in overseas market demand, rising prices of certain products, improved operational efficiency, and the successful commercialization of proprietary products.
01 Demand Recovery Boosts Export Growth
With the conclusion of the overseas destocking cycle, inventory levels have declined, and demand has not only normalized but grown robustly. This resurgence has opened new opportunities for Chinese pesticide exporters.
As a standout example, Rainbow Chemical reported a 14.94% year-on-year increase in revenue to RMB 6.53 billion and a 205.62% surge in net profit to RMB 556 million in H1. By June, the company had secured over 600 new pesticide registrations, bringing its global total to more than 8,400 across over 100 countries. Supported by its overseas production bases, its “Fast-Market Entry Platform” model has matured considerably. Overseas revenue accounted for 82% of its total revenue, serving as the core engine of its growth.
Lianhe Chemical Technology also benefited from stable international demand. In the first half of the year, its crop protection business contributed RMB 1.70 billion in revenue, representing 54.03% of total income. By deepening collaboration with key clients, implementing on-demand production, optimizing inventory and cash flow management, and leveraging overseas bases to provide integrated supply chain solutions, the company successfully expanded into new markets. It achieved a total operating revenue of RMB 3.15 billion, up 5.76% year-on-year, and a net profit attributable to shareholders of RMB 224 million—a staggering increase of 1,481.94%.
02 Price Increases Drive Profit Growth
Due to supply-side constraints and renewed demand, prices of several pesticide products rose significantly. Key varieties such as clethodim, glyphosate, mancozeb, and chlorothalonil contributed substantially to the profit margins of relevant companies.
Xianda Chemical, a leading global supplier of clethodim, delivered an outstanding performance in H1. The average price of clethodim increased by 30.08% year-on-year to RMB 96,000 per ton in the second quarter, directly boosting the company’s gross margin. It reported revenue of RMB 1.42 billion, up 11.82% year-on-year, and a net profit of RMB 136 million—a dramatic increase of 2,561.58%.
Suli Co., Ltd. also benefited from rising product prices. Strong demand and a rebound in prices for certain agrochemical products led to sales of 23,200 tons of pesticides and intermediates, a year-on-year increase of 41.49%. The company achieved total revenue of RMB 1.30 billion, up 25.04%, and a net profit attributable to shareholders of RMB 79.79 million, soaring by 1,128.33%.
Lier Chemical achieved growth in both volume and price. By strengthening compliance, safety, environmental protection, quality, and cost control—along with optimizing production processes—the company increased both the sales volume and price of certain products. Revenue reached RMB 4.51 billion, a 35.36% increase, while net profit rose 191.21% to RMB 271 million.
03 Lean Management Enhances Cost Efficiency
Many pesticide companies improved profitability through optimized capacity structures, cost reduction, efficiency enhancements, and stricter cost control.
Yangnong Chemical, an industry leader, adopted a strategy of “increased production, accelerated sales, and cost reduction” to offset price fluctuations and achieve steady growth. The company reported revenue of RMB 6.23 billion, up 9.38%, and a net profit of RMB 806 million, an increase of 5.60%. It also responded flexibly to tariff challenges, implemented lean production, reduced costs across multiple segments, and advanced technological innovation. Key projects such as the Huludao facility were commissioned rapidly, ensuring timely production and returns.
Fengshan Group enhanced operational efficiency through vertical integration. Its Hubei Fengshan parachlorotoluene project increased the self-sufficiency rate of trifluralin raw materials from 30% to 70%. The company reported revenue of RMB 619 million, up 18.74%, and a net profit of RMB 30.31 million, a 235.40% increase. This integrated approach demonstrated strong risk resilience during industry fluctuations, effectively mitigating the impact of raw material cost volatility.
Noposion and Guoguang Agrochemical achieved growth through optimized product portfolios and market strategies. Noposion reported revenue of RMB 3.68 billion, up 8.20%, and a net profit of RMB 648 million, up 17.35%. Guoguang Agrochemical posted revenue of RMB 1.12 billion, a 7.33% increase, and a net profit of RMB 231 million, up 6.05%, while maintaining a leading position in the plant growth regulator market.
04 Technological Breakthroughs Foster Innovation
Several companies achieved growth through the launch of proprietary innovative products.
Bessman reported revenue of RMB 776 million in H1, up 16.57%, and a net profit of approximately RMB 34.71 million, a 109.7% increase. This strong performance stemmed from the company’s strategic emphasis on strengthening and complementing its supply chain. It achieved full in-house control over the production chain of the environmentally friendly pesticide pendimethalin—from intermediates to technical material and formulations—resulting in lower costs and higher quality. Additionally, the company expanded into the C5 new materials sector, producing import-substitute products and establishing a new growth driver.
Guangkon Biochemistry achieved steady growth with revenue of RMB 399 million, up 25.55%, and a net profit of RMB 29.01 million, up 32.13%. This was largely due to the successful commercialization of its nano-formulated bifenazate, which uses microencapsulation technology to extend efficacy and reduce application rates by 30%. Sales of this product increased by 40% in H1, and its premium pricing—25% higher than traditional formulations—significantly enhanced market competitiveness.
Limon Chemical reported revenue of RMB 2.45 billion, up 6.69%, and a net profit of RMB 269 million, a remarkable increase of 747.13%. This surge was driven by the commercial breakthrough of “Green Thorn,” an RNA-based bio-pesticide developed by its associate company Xinhe Chemical. After completing field trials and achieving mass production, the product achieved a market penetration rate of over 10% in key crops such as soybeans and cotton. Its precise gene-targeting mechanism allowed for premium pricing, contributing to a 5-percentage-point increase in the company’s overall gross margin.
Conclusion
The first half of 2025 highlighted a clear trend of differentiated recovery within the pesticide sector. The four core growth drivers—overseas demand recovery, product price increases, operational efficiency improvements, and innovative product commercialization—played pivotal roles. Going forward, leading companies with proprietary technology, comprehensive regulatory registrations, global operational capabilities, and integrated supply chains are expected to continue benefiting from increasing industry consolidation.
