CSI Roadshow Replay丨Nongshim Technology: Focus on providing crop solutions to help crops grow healthily

On August 8th, the online roadshow of nongshim crop technology co., ltd. (hereinafter referred to as "nongshim technology") was successfully held in China Securities News and China Securities Network.

Founded in 2006, as a green pesticide enterprise, Nongshim Technology has formed a scientific drug use program by in-depth study of pests and diseases that endanger the healthy growth of crops, combined with regional crop characteristics, to provide growers with accurate, efficient, green and environmentally friendly pesticide preparation products, as well as systematic technical guidance and services. In recent years, Nongshim Technology closely follows the general trend of pesticide development in the world, develops accurate and efficient green environmental protection pesticides, and runs through the research and development and marketing links with the concept mode of crop solutions, and on the basis of following the logic of crop science growth, through continuous iteration, forms professional crop solutions to help crops grow healthily.

Zheng Jingmin, chairman and general manager of Nongshim Technology, Yuan Jiang, director, deputy general manager and secretary of the board of directors of the company, Liu Yongxiao, director and financial director of the company, Pu Guiyang, director of huatai united securities investment banking business line, and Gu Peipei, executive general manager of huatai united securities investment banking business line, participated in the roadshow and exchanged views with investors.

Group photo of the guests at the roadshow

Roadshow Q&A highlights

Leading market position

Q: Please tell us about the company's market share?

A: Since its establishment, the company has adhered to the market demand-oriented, technological innovation as the core drive, and developed hundreds of pesticide preparation products for the pest control needs of farmers, which have been widely recognized by the market. One of the company's core products is Leiluo (75% pyrazine spirant ester water dispersible granule), which won the "Plant Protection Product Contribution Award" issued by the Chinese Plant Protection Society. In April 2020, the project "Research on The Resistance of Pathogenic Bacteria of Important Fruit and Vegetable Crops and the Application of Key Technologies for Resistance Control" participated in by Shangge Road, a wholly-owned subsidiary of the Company, was awarded the "First Prize of Science and Technology Progress of Shaanxi Province" by the People's Government of Shaanxi Province. In October 2021, the project "Key Technologies and Applications of Wheat Aphid Precision Control" participated in by Shangge Road was awarded the "First Prize for Scientific Research Achievements of the 2020-2021 Shennong China Agricultural Science and Technology Award" by the Ministry of Agriculture and Rural Affairs. In February 2022, the project "Research and Application of Vegetable Tobacco Whitefly Disaster Mechanism and Key Technologies for Prevention and Control" participated in by Shangge Road was awarded the "Second Prize of the 2020 Fujian Provincial Science and Technology Progress Award" by the Fujian Provincial People's Government. In March 2022, the company's product "0.06% sterenool microemulsion" entered the "list of the first batch of green high-quality pesticide products" evaluated by the China Pesticide Industry Association. According to the selection data released by the China Pesticide Industry Association, the companies in each period during the reporting period ranked among the top 30 in China's pesticide preparation sales list, and their revenue in 2020 ranked 21st in China's top 100 pesticide formulation sales list.

Q: Please tell us about the advantages of the company's customer resources.

A: The end customers of the pesticide preparation industry have the characteristics of wide geographical distribution, scattered demand and high technical guidance requirements, and the products are mainly sold through distributors. Over the years, the company attaches great importance to the construction and maintenance of distribution channels, and the product distribution network covers 31 provinces, autonomous regions and municipalities directly under the Central Government in addition to Hong Kong, Macao and Taiwan horizontally, and vertically covers distributors at all levels such as provinces, cities, districts, counties and even townships. The issuer's products have established a good brand image among the majority of farmers with the advantages of excellent quality and stable quality, and provided farmers with the latest products and comprehensive drug technology guidance through in-depth cooperation with dealers, so as to achieve mutual benefit and win-win results with dealers and farmers. The company's mature and stable distribution network and good brand advantages are the driving force for the company's sustainable development and an important embodiment of the company's core competitiveness.

The core competitiveness is remarkable

Q: What is the core competitiveness of the company? In order to maintain this core competitiveness, what efforts has the company made?

A: The company's core competitiveness mainly lies in the formation of R & D advantages through continuous technology accumulation, adhere to customer demand-oriented, targeted design of products, with a sound quality control system to ensure product quality and stability, with good product quality and mature and stable distribution network to create brand advantages, to achieve mutual benefit and win-win results, focus on creating a high-quality image of the "Shangge" brand, and bring good synergy to the whole series of products. In the next two to three years, the company will further expand the domestic and international preparation business, while laying out the upstream characteristic original drug business, with pesticide preparations and raw drug business two-wheel drive, to help the company achieve leapfrog development. The smooth implementation of the stock listing plan can provide the company with the funds needed for future business development, which is conducive to improving the production capacity and research and development strength of the company's products and promoting the development of existing business. At the same time, the offering will provide sufficient financial support for the company to cultivate new profit growth points and lay the foundation for achieving business objectives.

Q: What are the core technical achievements mastered by the company?

A: With a deep understanding of the field of agricultural pest control and a grasp of market demand, the company has formed a series of technological innovations around the core links of pesticide formulation research and development and production. The company successfully applied the innovative compound sterenool to the field of pesticide preparations, and at the same time explored and innovated a variety of patented formula pesticide preparations, innovated and optimized the preparation process of multiple dosage forms, and developed a variety of efficient and green pesticide preparation products.

Raise funds to help business expansion

Q: What is the impact of the fundraising project on the company's operating results?

A: The use of the raised funds is around the company's main business, the successful implementation of the raised funds investment projects on the company's positive impact is mainly reflected in: the completion of the investment projects, will further expand the company's pesticide preparation products production capacity, bring stable cash flow and investment returns to the company, enhance the company's industry status and competitiveness. Supplementary working capital will effectively meet the company's new liquidity needs in seasonal procurement, production and operation activities, lay the foundation for the rapid expansion of the company's future business, and enhance the company's core competitiveness and profitability. After the funds are raised, the company will introduce a large proportion of social public shareholders, realize the diversification of investment entities, and further improve the corporate governance structure of the company. In the long run, the fund-raising project will effectively expand the company's development space, enhance the company's medium- and long-term development capabilities, and enhance brand awareness and market influence.

Q: What is the company's future focus and research direction?

A: In the next two to three years, the company will further expand the domestic and international preparation business, and at the same time lay out the upstream characteristic original drug business, with pesticide preparations and original drug business two-wheel drive, to help the company achieve leapfrog development. The company will take the prevention and control needs of crops as the fundamental starting point for product research and development and production, continue to increase investment in the research and development of preparation products, and create more explosive products with greater market influence. Continue to maintain high standards of product quality requirements, strengthen brand publicity, increase resource investment, and enhance the influence of the "Shangge" brand in the hearts of farmers. With one simple and one to one as the main body of the construction of pesticide raw drug production line, focusing on the original drug with great market potential, the first phase of the pesticide original drug production line will be built within one to two years, bringing new performance growth points to the company, and creating a stable supply chain advantage for the preparation products.