StockCode:000553(200553) Stockabbreviation:SanondaA(B)
AnnouncementNo.:2018-45
HubeiSanondaCo.Ltd.
Q1-Q32018PerformanceEstimation
TheCompanyandallthedirectorsconfirmthattheinformationdisclosedistrue,accurate,completeandwithnofalserecording,misleadingstatementormaterialomission.
I.PerformanceEstimation
1.Estimationperiod:Firstninemonthsandthirdquarterof2018
2.Estimatedperformance:Continuinggrowth
Item Currentreportingperiod Sameperiodlastyear
JanuarytoSeptember JanuarytoSeptember
2018 2017
aspreviouslyreported
Netprofitattributabletothe Profit:2,512.4–2,580.4 Profit:1,599.5
shareholdersofthelisted
company(RMBinmillions)
Basicearningspershare(RMB) Profit:1.0269–1.0547 Profit:0.6830
Item Currentreportingperiod Sameperiodlastyear
JulytoSeptember2018 JulytoSeptember2017
aspreviouslyreported
Netprofitattributabletothe Profit:149.6–217.6 Profit:282.5
shareholdersofthelisted
company(RMBinmillions)
Basicearningspershare(RMB) Profit:0.0611–0.0889 Profit:0.1206
II.Pre-auditoftheestimatedperformance
TheestimatedresultsofthisperiodarethepreliminaryestimationoftheCompanyandhavenotbeenauditednorreviewedbycertifiedaccountants.
III.ExplanationsforPerformanceVariation
Thesignificantincreaseinestimatedprofitsintheconsolidatedpreliminaryreportinthefirstninemonthsof2018comparedtothesameperiodin2017isduetothefollowingreasons:
1. Therecognitionoftheone-timeprofitduringthefirstquarterof2018onthe
divestitureofseveralcropprotectionproductsinEuropeinconnectionwiththe
approvalbytheEUCommissionoftheacquisitionofSyngentabyChemChina.
Theproceedsofthisdivestiture,netoftaxesandtransactionexpenses,werepaidto
SyngentainreturnforthetransferofaportfolioofproductsinEuropeofsimilar
natureandeconomicvalue.
2. TheCompanyhasachievedstrongsalesgrowth,notwithstandinganexceptionally
severedroughtinEuropeinthethirdquarter,whichstarted,aspreviouslyreported,
towardstheendofthesecondquarter,reducinghighlyprofitablesales.The
Companycontinuedincreasingsellingpricestooffsethigherprocurementcostsand
lowercurrencies.
IV.OtherRemarks
1. Duetothereasonsmentionedabove,onacombined,adjustedbasis,excluding
mainlytheimpactoftheone-timedivestitureprofitandrelatednon-cashexpenses,
andexcludingthefirst-halfEuropehedgeimpact,thenetincomeoftheCompany
inthefirstninemonthsof2018isestimatedtobeonlysomewhatlowerthanlast
year’sall-timehigh.
2. Theestimatedresultsaboveareonlypreliminarycalculationsperformedbythe
financeteamoftheCompanybasedonpreliminaryfinancialdataavailabletothe
CompanyandhavenotbeenauditedorreviewedbytheCompany'sindependent
auditors.Theseestimationsmaychange,interalia,asaresultoftheprocessingand
analysisofthefinancialdatathattheCompanywillperformforthepreparationof
itsfinancialstatementsforthefirstninemonthsandthirdquarterof2018.Please
refertotheReportforthefirstninemonthsandthirdquarterof2018tobeduly
disclosedbytheCompanyforspecificandaccuratefinancialinformation.
3. MediaforInformationDisclosureoftheCompany:ChinaSecuritiesJournal,
SecuritiesTimes,TaKungPao,andCninfo(www.cninfo.com.cn).Investorsare
remindedtoexercisecautionwhenmakinginvestmentdecisions.
ByorderoftheBoard
HubeiSanondaCo.Ltd.
