--- title: "Limon Chemical: Demonstrating Operational Resilience, Strategic Leadership Driving High-Quality Development" type: "Topics" locale: "en" url: "https://longbridge.com/en/topics/43472879.md" description: "Recently, Limin Holdings Group Co., Ltd. (002734.SZ) released its H1 2026 report. Amidst multiple challenges including falling agrochemical prices, rising costs, and slowing demand, the company maintained a steady approach, achieving operating revenue of RMB 2.463bn (+0.47% YoY); net profit attributable to shareholders of RMB 274mn (+1.90% YoY); and non-GAAP net profit attributable to shareholders of RMB 278mn (+8.35% YoY). Against the backdrop of weak industry sentiment, Limin Chemical delivered a performance report demonstrating operational resilience and strategic resolve. Key business highlights: The fungicide engine continues to gain momentum..." datetime: "2026-08-19T03:19:21.000Z" locales: - [en](https://longbridge.com/en/topics/43472879.md) - [zh-CN](https://longbridge.com/zh-CN/topics/43472879.md) - [zh-HK](https://longbridge.com/zh-HK/topics/43472879.md) author: "[侃见财经](https://longbridge.com/en/profiles/3206955.md)" --- # Limon Chemical: Demonstrating Operational Resilience, Strategic Leadership Driving High-Quality Development Recently, Limin Holding Group Co., Ltd. (002734.SZ) released its H1 2026 report. Amidst multiple challenges including falling agrochemical prices, rising costs, and slowing demand, the company maintained steady progress, achieving operating revenue of RMB 2.463bn (+0.47% YoY); net profit attributable to shareholders of RMB 274mn (+1.90% YoY); and 扣 non-GAAP net profit attributable to shareholders of RMB 278mn (+8.35% YoY). Against a backdrop of weak industry prosperity, Limin delivered a performance report demonstrating operational resilience and strategic determination. **Core Business Highlights: Fungicide Engine Continues to Drive Growth, Gross Margin Steadily Improves** From a business structure perspective, the company's core fungicide products performed exceptionally well. Agricultural fungicides generated revenue of RMB 1.361bn in H1 (+9.75% YoY), increasing their share of total operating revenue to 55.24%. The gross margin reached 35.53%, up 176bps from the same period last year. The company's core single products, mancozeb and aluminum phosphonate, rank among the largest globally in scale. By the end of 2025, mancozeb technical grade capacity reached 45,000 tons, ranking first domestically with a market share of 70%–80%. Standards for three key products—mancozeb, aluminum phosphonate, and azoxystrobin—were recognized as FAO international standards, continuously strengthening competitive barriers. In the first half of the year, when industry prosperity was weak, the counter-cyclical growth of the fungicide segment became the core driver of the company's stable performance improvement. **Improvement in Operating Quality: Non-GAAP Net Profit Growth Significantly Outpaces Revenue, Cash Flow Substantially Improved** During the reporting period, the company's non-GAAP net profit attributable to shareholders was RMB 278mn, up 8.35% YoY. This growth rate significantly exceeded revenue growth, reflecting substantial improvement in the profitability of core operations. More notably, net cash flow from operating activities reached RMB 146mn, a sharp increase of 59.78% YoY. The significant improvement in cash flow demonstrates the company's strict control over operating quality and effective management of working capital in a complex market environment. The company achieved remarkable results in expense control. Total period expenses for H1 amounted to RMB 230mn, down 10.27% YoY. Specifically, selling expenses were RMB 51.44mn (-27.38% YoY); administrative expenses were RMB 150mn (-2.45% YoY); and financial expenses were RMB 27.78mn (-11.74% YoY). Effective contraction on the expense side further expanded the company's profit margins. **Strategic Upgrade: From "Turning Losses into Profits" to Implementing the "15th Five-Year Plan"** 2026 marks the opening year of Limin's "15th Five-Year" strategic plan. Management elevated the strategic tone to the implementation level of this plan, explicitly aligning with the overall goals of the "Company 2026-2030 Strategic Development Plan." The company is coordinating six special sub-plans: "Market Brand Building, Technology Innovation Drive, Organizational Capability Revolution, Green Low-Carbon Transition, Smart Operations Construction, and Comprehensive Risk Control." The strategic focus has shifted from "turning losses around" to structural development centered on "improving efficiency in existing assets and breaking through in incremental growth." Regarding green low-carbon transition, all five of the company's production bases are national or provincial green factories. Limin Chemical, Shuangji Chemical, and Xinwei Yuan were awarded "National Green Factory," while Wei Yuan Biochemistry and Wei Yuan Pharmaceutical were awarded "Provincial Green Factory." Intelligent manufacturing construction continues to break through, with Limin Chemical and Wei Yuan Biochemistry recognized as "Provincial Advanced Intelligent Factories." The company has initiated its carbon neutrality plan, and core products such as mancozeb, aluminum phosphonate, and pyraclostrobin have completed carbon footprint certification. **Deepening Global Layout: Signing RMB 1.6 Billion Long-Term Supply Contract with Bayer** In February 2026, Limin signed a long-term supply contract for agricultural chemicals with global agrochemical giant Bayer. The contract term can be up to 6 years, with a total value of approximately RMB 1.6 billion. This heavyweight cooperation not only highlights international top-tier enterprises' recognition of Limin's product quality and supply capabilities but also provides solid order guarantees for the company's performance growth over the coming years. Meanwhile, the market price of the company's core product chlorothalonil rose from RMB 18,000/ton in January 2024 to RMB 28,000/ton in February 2026. Prices for other products like emamectin benzoate and abamectin also increased significantly compared to previous lows. In March 2026, the global pesticide industry entered a dense price hike cycle, with Limin participating as a representative domestic agrochemical enterprise. The recovery in product prices and the restoration of industry prosperity lay a good foundation for the company's performance growth in the second half of the year. **Solid Industry Position: Head Advantages Continue to Expand** Limin currently ranks in the top 20 for sales in China's pesticide industry. It operates five production bases with differentiated layouts and synergistic production operations, all recognized as high-tech enterprises. In terms of capacity, the company has formed an annual technical grade capacity of 107,900 tons and a formulation capacity of 119,700 tons. Products are exported to over 130 countries and regions. Against the background of strong regulatory oversight in the industry and the accelerated exit of outdated capacity, the advantages of head enterprises with stable quality and global channels will further expand. Looking at the industry as a whole, the El Niño climate phenomenon continued to develop this year, causing frequent extreme droughts and floods in many parts of the world. Some major agricultural producing areas face the risk of crop failures. Extreme weather reduces plants' disease resistance, increasing the probability of pest outbreaks, which directly drives real-world demand for plant protection agricultural inputs. This constitutes a tailwind for the agrochemical industry, reversing the previously weak prosperity trend. Furthermore, the continuous advancement of China's food security strategy, along with the clear direction of reducing pesticide use while increasing efficiency and promoting green plant protection, has led to continuous optimization of the industry's supply side. Outdated capacity is being cleared out rapidly, and market share is gradually concentrating among head enterprises with advantages in R&D, capacity, and channels. Therefore, driven by strong policy regulation, global rigid demand for grain, and technological change, the future pesticide industry will develop towards high-quality growth in green, efficient, safe, intelligent, and low-carbon directions. In this process, if Limin implements the previously proposed strategies of "green manufacturing, AI-driven R&D, and global layout," its position as an industry leader will continue to be consolidated and expanded, and its investment value will be further realized. ### Related Stocks - [002734.CN](https://longbridge.com/en/quote/002734.CN.md) - [BAYZF.US](https://longbridge.com/en/quote/BAYZF.US.md)