Lier Chemical (002258) 钛媒体APP·2025-03-28 06:52Core Viewpoint - Lier Chemical's 2024 annual report reveals a significant decline in revenue and profit, attributed to falling product prices, leading to a drop in stock price [1][4]. Financial Performance - In 2024, Lier Chemical reported revenue of 7.311 billion yuan, a decrease of 6.88% year-on-year, and a net profit of 215 million yuan, down 64.34% [1]. - The company's earnings have reverted to levels seen eight years ago due to a sharp decline in the prices of its main products [1]. - The sales volume of pesticides and intermediates increased to 149,000 tons, up 23.94% from 2023, with raw pesticide sales at 59,300 tons and formulated pesticide sales at 69,900 tons, reflecting growth of 7.72% and 16.14% respectively [2]. Product Pricing and Margins - The average selling prices for raw pesticides and formulated pesticides fell by 20.57% and 21.97%, respectively, leading to a revenue drop for raw pesticides to 4.101 billion yuan and a gross margin of 16.90% [5]. - Formulated pesticides generated 1.500 billion yuan in revenue with a gross margin of 16.80%, both figures down from the previous year [5]. - The only product category showing revenue growth was pesticide intermediates, which contributed 779 million yuan, a 42.49% increase, although the gross margin decreased to 18.23% [5]. Market Conditions - The global pesticide market is experiencing weakness and intensified competition, with raw material prices continuing to decline [4]. - For instance, the price of glyphosate fell from 63,000 yuan per ton at the beginning of the year to 47,000 yuan per ton by year-end, marking a decline of over 25% [4]. Strategic Moves - Lier Chemical announced plans to acquire a controlling stake in Shandong Huimeng Biotechnology to expand its industrial chain [1][7]. - Shandong Huimeng, established in May 2023, specializes in the research, production, and sales of pesticide intermediates and raw materials, and has advanced production technologies [7]. - The acquisition is still in the planning stage and has not yet been formalized with any agreements [7][8].