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Sinofert Announces 2015 Interim Results

Date:2015-08-28     source:sinofert


Sinofert Announces 2015 Interim Results


(27 August 2015, Hong Kong) Sinofert Holdings Limited ("Sinofert" or the "Company") (stock code: 00297) today announced the interim results of the Company and its subsidiaries (the "Group") for the six months ended 30 June 2015 (the “Period”).

In the first half of 2015, with challenging economic situation both in China and abroad and fierce competition on the fertilizer market, the Company unswervingly promoted the various strategic agendas put forward at the beginning of the year, actively took various measures to mitigate the impact of unfavourable factors and achieved good business performance.

During the Period, total sales volume of the Group amounted to 8.12 million tons, slightly down by 1.58% compared to the corresponding period in 2014, as the Group scaled down marketing business to control risk. Revenue of the Group was RMB 16.70 billion, up 5.16% over the corresponding period in 2014, primarily attributable to increase of the average selling price by 6.85% year-on-year. Gross profit was RMB1.06 billion, up 43.63% compared to the corresponding period in 2014. Profit attributable to shareholders amounted to RMB342 million, surged by 147.83% compared to the corresponding period in 2014.

Operation and quality indicators in good condition

Regarding revenue by products in the first half of 2015, the Group achieved revenue of RMB3.69 billion from the sale of potash fertilizer, representing an increase of 8.55% year-on-year. Revenue of nitrogen fertilizer was RMB3.87 billion, down 15.99% from a year ago. Revenue of compound fertilizer and phosphate fertilizer was RMB4.06 billion and RMB4.25 billion, respectively, up 30.50% and 12.91% from a year ago. Meanwhile, revenue of Monocalcium (MCP) and Monocalcium Phosphate (MDCP) grew 21.69% year-on-year to RMB385 million.

As to potash fertilizer business, the sales volume of potash fertilizer amounted to 1.71 million tons in the first half of 2015 while the Group further strengthened the strategic partnerships with international suppliers. As for nitrogen fertilizer business, the Group continued to maintain the leading status in terms of market share of nitrogen in China with a sales volume of 2.67 million tons. In the first half of 2015, the Group effectively studied the market trend, adjusted the operational model and precisely identified good timing of procurement and sales to rapidly promote the marketing of new nitrogen products, especially UAN and alginates, to improve profit. For phosphate business, the sales volume amounted to 1.69 million tons. The Group coordinated and secured the supply of fertilizer for export and the export of monoammonium phosphate (MAP) set a new record. As to compound fertilizer business, the Group deeply promoted the integration and marketing transformation of compound fertilizers and established the mechanism of coordination on production and sales, which has effectively facilitated the operational efficiency. For MCP/MDCP business, both the output and quality of the products improved steadily due to the streamlined management. Meanwhile, in the aspect of market development, the Group maintained its market share in the international market, while at the same time strengthened the construction of domestic sales team and further enlarged the sales volume of MCP/MDCP in domestic market.

In the first half of 2015, the total fertilizer production capacity of the Group’s subsidiaries, associates and joint ventures exceeded 12 million tons. The controlling production enterprises of the Group centered on our established strategy with continuous cost reduction and technology upgrading. The production cost was reduced and the production efficiency was improved, which has been demonstrated in the substantially improved performance of business.

During the Period, Sinochem Yunlong Co., Ltd., a subsidiary of the Group, promoted the construction of Dawan phosphate mine as planned, and started mining and sales of phosphate rock. The Group would take proactive measures to constantly enlarge the value contribution of the phosphate mine resource in Sinochem Yunlong, with an objective of laying a solid foundation for the Group to integrate a complete industrial chain of phosphate and phosphoric chemicals.

 Integrate internal and external resources and constantly promote innovative services

The Group will continue to focus on the development of modern agriculture and the study of scientific and technological demand of farmers, deepen cooperation with the Chinese government, scientific institutions and colleges and universities, to work on key projects, including the soil testing and fertilization, the combination of agricultural machinery and agronomy, the integration of water and fertilizer, and the integrated solutions for crops. The Group will continue to provide high quality, professional and high-efficiency comprehensive services for farmers in China.

Looking ahead, Mr. Wang Hong Jun, Chief Executive Officer and Executive Director of Sinofert said, “The acquisitions in the production and distribution of fertilizer industry are increasing and the market environment is becoming more complex. The Group will continue to be highly dedicated to the mission of serving agriculture. The Group will continue to build modern agriculture on the cornerstone of reform & innovation and lean management with an objective of providing high quality fertilizer products and solutions for clients. As a leading fertilizer producer in China, the Group streamlined the internal structure to ensure highly coordinated operation of production and management, creating a sound environment for business growth and profit generation. The Group will strive for a market-oriented healthy growth of business with better synergies and economies of scale.”