The subsidiary of the leading pesticide company Bestway was convicted of environmental pollution in the first trial, fined 150k yuan, and has completed rectification in 2024.

Economic Daily Reporter｜Wen Duo    Economic Daily Editor｜Chen Junjie

After the market closed on April 2, Besime (SZ300796, share price 9.08 yuan, market cap 3.279 billion yuan), a leading company in the subdivided sector of dimethyl pentyl spirit, released an announcement. It said that its wholly owned subsidiary, Jiangsu Yong’an Chemical Co., Ltd. (hereinafter “Yong’an Chemical”), was sentenced by the People’s Court of Guannan County, Jiangsu Province in the first instance for the crime of polluting the environment and was fined 150,000 yuan. The announcement shows that the above 150,000-yuan fine has already been paid in full.

An employee of the environmental protection department of Yong’an Chemical, who was a defendant in the same case, was sentenced to criminal detention for five months, with a suspended sentence of six months, and was fined 50,000 yuan (already paid).

The company said that the case will have no material impact on profit for the current period or after this period, and does not involve any circumstance of major illegal compulsory delisting.

Has re-obtained a pollutant discharge permit

On January 7, 2026, Besime released an announcement stating that its wholly owned subsidiary Yong’an Chemical received an “Indictment” issued by the People’s Procuratorate of Lianshui County, Jiangsu Province. The procuratorial authorities believed that an employee of Yong’an Chemical’s environmental protection department, Guo Moubiao, interfered with the automatic pollutant discharge monitoring facilities, causing the monitoring data to be seriously distorted. The defendant entity Yong’an Chemical should be held criminally liable for the crime of polluting the environment.

According to the announcement, during the prosecution process, the procuratorial authorities found that Yong’an Chemical and the individuals involved had clear circumstances for lighter and broader punishment, and suggested that they could be handled with lighter and broader consideration.

On April 2, 2026, the People’s Court of Guannan County, Jiangsu Province rendered a first-instance judgment: Yong’an Chemical committed the crime of polluting the environment and was sentenced to a fine of 150,000 yuan; the employee involved committed the crime of polluting the environment and was sentenced to criminal detention for five months, with a suspended sentence of six months, and was fined 50,000 yuan, and was prohibited from engaging in activities related to pollutant discharge during the period of the suspended sentence.

Regarding the subsequent issues involved in this lawsuit, Yong’an Chemical had completed rectification in 2024. According to the announcement, the Lianshui Ecological Environment Bureau conducted an inspection of the rectification. The renovation of Yong’an Chemical’s flue gas treatment facilities and online flue gas equipment meets the relevant rectification requirements. In its announcement dated January 7, 2026, the company clearly stated that Yong’an Chemical re-applied for a pollutant discharge permit on February 25, 2025 and obtained approval after review by the Huai’an Municipal Ecological Environment Bureau.

Yong’an Chemical’s net profit in the first half of 2025 fell year on year

Besime’s 2025 interim report shows that Yong’an Chemical was included in the provincial list of “specialized, innovative, and ‘new’” small and medium-sized enterprises. Its main businesses are the production and sales of the dimethyl pentyl spirit technical-grade raw drug and formulations.

In 2024, Yong’an Chemical achieved operating revenue of about 423 million yuan. However, the company faces challenges in terms of profitability. Its net profit for the full year was a loss of about 571.3 thousand yuan. Judging from the balance sheet, as of the end of 2024, the company’s total assets were about 819 million yuan, including net assets of about 689 million yuan, indicating that the company’s asset base is relatively solid, but its profitability needs to be improved.

In the first half of 2025, Yong’an Chemical achieved total operating revenue of about 245 million yuan, with net profit of about 7.44 million yuan. However, compared with the first half of 2024, these figures also showed year-on-year declines.

In addition, a reporter from the Economic Daily noted that Besime’s 2021 annual report shows that Yong’an Chemical had been punished twice. The specific reasons were as follows:

It was fined 70,000 yuan for acts in which the storage methods, means, or storage quantities of hazardous chemicals did not comply with national standards or relevant national regulations.

Yong’an Chemical had already approved construction projects’ safety facilities design, but there was a major change. It carried out work and construction without obtaining approval from the original approving department, contrary to regulations; before the construction projects were put into production or use, its safety facilities had not been completed and accepted as qualified, and it formed a written report. Yong’an Chemical was therefore fined 28.5 thousand yuan.

Besime’s 2021 annual report states that during the reporting period, Yong’an Chemical completed rectification in a timely manner and drew lessons.

Cover image source: Liu Guomei

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