Research Flash | Guoguang Co., Ltd. Receives Institutional Research from Orient Securities, Great Wall Fund, and Others; Detailed Explanation of "One Certificate One Product" Policy Impact and Market Expansion Opportunities

On March 20, 2026, Sichuan Guoguang Agrochemical Co., Ltd. (hereinafter referred to as “Guoguang Co., Ltd.”) held a targeted investigation via conference call at the company’s Longquan office area. Analysts from Orient Securities, including Wan Liyang, and representatives from institutions such as Great Wall Fund—Zhang Jian, Chen Liangdong, Yu Huan, Jiang Shuying—participated in the investigation. The company’s Secretary of the Board of Directors, Yan Ming, and Deputy Director of the Securities Investment Department, Xiang Yang, attended the meeting to engage in in-depth discussions with the institutions on core issues such as industry policy impacts, market potential for plant growth regulators, and operational strategies.

Core Focus on Industry Policies and Market Potential

During this investigation, the institutions mainly focused on topics such as the impact of the “One Certificate, One Product” policy on the industry, reasons for the low market penetration of plant growth regulators, the economic value of products, and the company’s revenue growth measures for 2026. Guoguang Co., Ltd. provided detailed responses to these questions.

Regarding the Ministry of Agriculture and Rural Affairs’ Announcement No. 925 issued on June 29, 2025 (the “One Certificate, One Product” policy), Guoguang Co., Ltd. stated that the policy requires consistent trademark labeling on pesticides with the same registration number, which helps standardize market order, ensure product quality, and protect the rights of growers. In the medium to long term, companies with high-quality registration certificates will have a competitive advantage.

On the issue of low market penetration of plant growth regulators, the company analyzed that this results from multiple factors such as product characteristics, market awareness, and industrial foundation. Specifically, the use of plant growth regulators requires high technical standards (e.g., strict application windows, sensitive dosage, significant environmental impact), the industry started relatively late leading to limited market awareness, many small and medium-sized enterprises with limited R&D investment, and applications are concentrated on economic crops with insufficient coverage of field crops—all of which restrict the increase in market penetration.

Product Economic Value Recognized; Three Major Initiatives for Growth in 2026

Regarding the economic benefits of their products, Guoguang Co., Ltd. pointed out that their crop full-process solutions centered on plant growth regulators generally achieve yield increases in grain and economic crops compared to control groups, with benefits exceeding additional input costs. In fruit and other economic crops, they can also create higher returns for growers by improving quality or enabling earlier harvests, resulting in high user loyalty.

For the revenue growth plan in 2026, the company outlined three key initiatives: First, “Expand New,” focusing on untapped regions and crops to broaden market space; second, “Focus on Fertilizers,” strengthening R&D of new green fertilizers and promoting integrated fertilization; third, “Focus on Compatibility,” accelerating the promotion of full-process crop solutions driven by market demand.

Additionally, the company introduced its product pricing adjustment mechanism, emphasizing that prices will remain relatively stable, with adjustments based on comprehensive factors such as costs, competitive environment, and raw material supply and demand. Products with strong competition will reference fluctuations in peer prices, while other products will have less frequent price adjustments. Regarding market expansion potential, Guoguang Co., Ltd. stated that the Crop Regulation Technology Research Institute, established in 2017, continues to strengthen product R&D and application technology research, with significant future growth potential.

Basic Information on Investor Relations Activities

Disclaimer: The market carries risks; investment should be cautious. This article is automatically published by an AI large model based on third-party databases and does not represent Sina Finance’s views. All information in this article is for reference only and does not constitute personal investment advice. Please refer to official announcements for accuracy. If you have questions, contact biz@staff.sina.com.cn.

Click here to view the original announcement>>