Forge Ahead Together in Pursuit of Excellence

2009 was an extremely difficult year for the global fertilizer industry, during which Sinofert experienced severe adversities in our development. There was a sharp fall in global fertilizer demand due to the impact of the financial crisis. As the world’s largest fertilizer producing country, China was confronted with a severe oversupply of fertilizers, extremely intense market competition, and continuously falling fertilizer prices. The industry entered its most difficult time in over a decade. Many companies suspended or cut their production, and an increasing number of companies suffered losses.
Despite such challenges and difficulties, Sinofert’s management responded in a calm manner and pushed forward the strategy of “centering on marketing and distribution, and expanding into both production and network distribution” for integrated development, which minimized the negative impact of the severe market conditions and enhanced the Company’s capability to manage the crisis and pursue sustainable development. The sales volume for the year was 15.23 million tons, and the turnover was RMB 27,011 million. Even though the Company experienced a downturn in its financial performance, it still maintained its leading status as the largest fertilizer distributor and service provider in China. The Company’s ability to deploy resources globally and the influence of its brand image allowed us to maintain a cutting edge in market competition.
Through overcoming the difficulties in 2009, we gained a deeper understanding that the development of an enterprise is closely related to its stakeholders such as shareholders, the state, customers, etc. Therefore, in order to manage such a crisis and overcome the difficulties, all parties should work together to achieve integration of our economic responsibility, social responsibility and environmental responsibility, which will continuously create values for our shareholders, the state and society, and achieve harmonious and sustainable development.
Looking forward into 2010, we see both challenges and opportunities, as well as both responsibilities and development. Sinofert will continue to implement the scientific concept of development and take concrete steps to transform its economic development approach to create a better future with a more forward-looking vision and stronger growth. 

Mr. Liu Deshu
Chairman, Sinofert Holdings Limited