(Yicai) Feb. 27 -- Shares of Limin Group surged by the exchange-imposed daily trading limit after the Chinese agricultural fungicide supplier received a CNY1.6 billion (USD230 million) order from Bayer Crop Science, the agricultural solutions unit of German multinational corporation Bayer.

Limin [SHE: 002734] closed 10 percent up at CNY22.48 (USD3.27) today. The Shenzhen Component Index fell 0.1 percent.

Limin will supply agricultural chemical products worth no less than CNY800 million (USD116 million) to Bayer SA, the operator of Bayer Crop Science's Latin American business, headquartered in São Paulo, Brazil, over the next three years, the Xinyi-based firm announced today, citing a cooperation agreement signed yesterday.

Once the order is fulfilled, the contract will automatically extend for three more years, with the same product value, if the parties have no objections, Limin noted.

The deal is expected to have a positive impact on Limin's financial and operating results for this year and in the future, as the procurement amount for the first three years is nearly 19 percent of the audited revenue from its main business operations in 2024, the company said.

The announcement did not mention the types and quantities of the agricultural chemicals Limin will supply to Bayer SA. But the company's main products include fungicides, insecticides, herbicides, and veterinary drugs, with fungicides accounting for half of its revenue in 2024. About 34 percent of Limin's revenue in 2024 came from overseas markets.

Limin and Bayer Crop Science have a long-standing supply partnership. According to the Chinese company's website, it received a medal of gratitude from Bayer for ensuring supply under extremely tight market conditions in 2018.

Editor: Futura Costaglione