Share This

Public company info - Sinofert Holdings Ltd. , 00297.HK

Input the stock code or the company name     Search  
 
 Profile   Information   Data   Financial Ratios   Profit Loss   Cash Flow   Balance   Earnings   Dividend 

Sinofert Holdings Ltd., 00297.HK - Company Profile
Chairman ZHANG Wei
Share Issued (share) 4,294,967,295
Par Currency Hong Kong Dollar
Par Value 0.1
Industry Fertilisers & Agricultural Chemicals
Corporate Profile Business Summary: The principal activities of the Group include the production, import and export, distribution and retail of fertilizer raw materials and finished products, the provision of technical research and development and services relating to the fertilizer business and products, exploration and exploitation of phosphate mine, and production of monocalcium/monodicalcium phosphate. Performance for the year: • The Group’s turnover was RMB14,959 million, decreased by 42.73% year on year • Loss attributable to owners of the Company for the year was RMB4,636 million (2015: Profit attributable to owners of the Company: RMB221 million) • Basic losses per share for the year was RMB0.6600 (2015: basic earnings per share: RMB0.0314) Business Review: Resource Guarantee In 2016, Sinochem Yunlong Co., Ltd. (“Sinochem Yunlong”), a subsidiary of the Group, continued to take advantage of its high-quality phosphate rock resource, optimized its phosphate mine development plan and extracted 350,000 tons of phosphate rock. For mine construction, Sinochem Yunlong initiated the extraction of the 600,000 tons/year Mozushao project, built a mechanized, automated and intelligent mine with information technology by introducing advanced equipment such as underground scrapers, ensured the sustainability of the resources, and constantly expanded the advantages in phosphate resources in order to further support the sustainable development of the Group’s phosphate and phosphoric chemical industries. The Group holds 20.52% equity interest in the largest potash producer in China – Qinghai Salt Lake Industry Co., Ltd. (“Qinghai Salt Lake”), which has the exploration rights in China’s biggest potash mine – Qarhan Salt Lake. Qarhan Salt Lake is the biggest soluble potassium and magnesium salt mine in China, with over 60 billion tons of total reserves of various salts, including more than 540 million tons of potassium chloride. Besides, with the implementation of the zero growth policy regarding fertilizer consumption in China, the Group also paid close attention to investment and acquisition opportunities in compound fertilizers as well as new type fertilizers with big growth potential. Manufacturing In 2016, the total annual fertilizer production capacity of the Group’s subsidiaries, associates and joint ventures exceeded 15 million tons. By continuing to promote the basic work in production enterprises, carrying out cost management, lean management, centralized procurements and quality management, promoting technical reform, process optimization, scientific innovation and automation building, implementing cost reduction and efficiency increase, further tapping the potential of the existing equipment, the production and operation efficiency of the subsidiaries was enhanced. Sinochem Chongqing Fuling Chemical Fertilizer Co., Ltd. (“Sinochem Fuling”), a subsidiary of the Group, produced 1.12 million tons of phosphate, compound fertilizers and other products in 2016. Sinochem Fuling actively increased income and reduced expenditures, reduced cost and increased efficiency, adjusted the product mix, paid high attention to internal management, implemented environmental protection management and lowered the corporate management cost in order to ensure its steady production and operation. Due to the unstable operation of its equipment, Sinochem Jilin Changshan Chemical Co., Ltd. (“Sinochem Changshan”), a subsidiary of the Group, produced only 190,000 tons of urea and compound fertilizers in 2016. Sinochem Changshan adjusted the product structure, promoted the upgrading and reform of the process, equipment and technology, tapped into its own potential, improved the competitiveness of the equipment and pushed forward the operation of compound fertilizers by taking into consideration its locality advantages. Sinochem Yunlong produced a record high of 306,200 tons of Monocalcium/Dicalcium Phosphate (MDCP) in 2016. Sinochem Yunlong adhered to internal management improvement, enhanced quality and efficiency, continued to push forward cost and consumption reduction and increased production efficiency. At the same time, Sinochem Yunlong strengthened process management, promoted quality enhancement and intensified the whole-process quality management. The average first acceptance rate in 2016 was above 99.6% and the product quality reached an internationally advanced level. Marketing Services Adapting to the characteristics of China’s agriculture and through system reform and mode innovation, the Group continuously consolidated the operation foundation. The product sales for the year 2016 reached 9.13 million tons, and the Group still maintained its market position and influence. Potash Operations: Sales volume of potash fertilizer amounted to 2.07 million tons in 2016. The Group strengthened strategic cooperation with core suppliers and acquired highquality products from both at home and abroad; deepened the channel marketing of potash for agriculture, built self-owned brands of potash for agriculture, enriched the product operation system, actively streamlined the customer base, tapped the potential demand of end users and stablized the sales of potash for agriculture; expanded the core customer system for industrial potash, coordinated with large and medium-sized customers in various regions, strengthened market analysis, boosted the sales of industrial potash and enhanced the market influence; continued to step up strategic cooperation with Qinghai Salt Lake and enhanced the influence of domestic potash in regions where the Group is the exclusive agency; constantly strengthened innovation in the product management model, explored new core competitiveness and consolidated the Group’s leading position in the potash trading area. Nitrogen Operations: Sales volume of nitrogen fertilizer amounted to 2.51 million tons in 2016. The overall scale of nitrogen operation was maintained. The Group continued to strengthen the supplier system building and consolidated cooperation with core suppliers, improved resources supply capacity, and strengthened the foundation of cooperation; controlled risks and achieved stable profit by controlling open-end products and accelerating direct sales when the market continued to be sluggish; improved the contribution of sales volume and profit of industrial nitrogen, and maintained a stable sales volume and profit in ammonium chloride; and sped up new products development and cultivation and further improved the contribution of sales volume and profit of urea coated with seaweed polysaccharides. Phosphate Operations: Sales volume of phosphate fertilizer amounted to 1.80 million tons in 2016. Through scale operation and centralized procurement, the Group ensured steady supply of high-quality products and gained sound profit from procurement. The Group also received profit from sales through marketing services and market analysis, enhanced the brand influence and realized steady profit and the improvement of customer value. Compound Fertilizer Operations: Sales volume of compound fertilizers amounted to 1.65 million tons in 2016. The Group continued to push forward the improvement of the compound fertilizer business operation, the creation of flagship products, channel expansion and service upgrading. Through further structural adjustment and optimization, the Group strengthened the coordination on production and marketing and increased the operation and management efficiency of the supply-chain system; through successful transformation of several technological achievements resulted from constant research and development, differentiated flagship products such as chelated fertilizer were launched and the core competitiveness of the products was continuously enhanced; while continuing to consolidate the distribution network, the Group effectively integrated and optimized the existing brands and channels, strengthened the carrying capacity of marketing in existing channels and attracted more and more high-quality customers in the industry; the Group upgraded the means of agricultural services, strengthened the ability to serve the whole process of planting and had a relatively big influence on new agricultural operation entities. Monocalcium/Dicalcium phosphate (MDCP) Operations: Sinochem Yunlong strengthened production and sales coordination, explored domestic and international markets, carried out sea-rail combined transportation, optimized logistics, reduced the transportation cost, enhanced the competitiveness of its products and better served the demand of customers both at home and abroad. Sales volume of MDCP amounted to 300,000 tons in 2016, a constant increase year on year. Meanwhile, the brand switch was successful and independent management was realized. In 2016, the Group continued to develop the distribution network, cooperated with highquality customers, increased the number of its outlets at the township level, introduced product portfolio and marketing services and gradually built an efficient agricultural distribution system. At the same time, the Group also promoted the upgrading of marketing services in its branches, centred on potash for agriculture, agricultural DAP and compound fertilizers, constantly optimized the structure of distribution network, enhanced the marketing and service capability of business personnel, increased the number of service providers for the distribution network and built a professional and efficient service team. Besides, the Group made full use of governmental and social resources, actively participated in the implementation of China’s agricultural strategy, maintained long-term cooperation with the Department of Crop Production, Ministry of Agriculture, signed agreements with the National Agricultural Technology Extension and Service Center, jointly built pilot demonstration fields, strived to provide strong technological support for the agricultural restructuring, income increase of farmers and agricultural efficiency improvement so as to open up a new path for China’s fertilizer industry. Prospects: Against the background of a prolonged global economic slump and frequent occurrence of political and economic “black swan” events, China’s economic trend will be “L-shaped” for quite some time to come. The Chinese government will continue with the policy of making progress while ensuring stability, persistently push forward the supply-side reform, maintain the continuity and stability of macro policies and realize sustainable and steady economic and social development. The No. 1 Document of the Chinese central government in 2017 continues to focus on agriculture, rural areas and farmers and considers the promotion of agricultural supplyside structural reform as the main track of the agriculture and rural work at the new historic stage. Great changes have taken place in the current internal and external environment for agricultural development, new conflicts and new problems have emerged, the major conflict has transformed from insufficiency in total amount to structural conflict and the conflict mainly lies in the supply side. The Chinese government requires active exploration in mode transfer, structure readjustment and further reform of agriculture so as to lay a solid foundation for further promotion of agricultural transformation and upgrading. Agriculture should transform from the current overdependence on resource consumption and mainly meeting the quantity requirement to the pursuit of green, ecological and sustainable development and mainly meeting the quality requirement and the goal of more efficiency for agriculture, better income for farmers and more green areas for rural areas should be achieved. China’s modern agriculture is still in the early stages of development, the oversupply situation on the fertilizer market still persists and the depression of the fertilizer market has brought heavy pressure on fertilizer enterprises. However, with the implementation of agricultural supply-side reform, there will be great room for improvement in soil testing and formula fertilization, the integration of water and fertilizer and the application of new fertilizers. As a Chinese leading fertlizer enterprise, the Group will take on the heavy task of promoting China’s modern agriculture and the sound development of the fertilizer industry. While consolidating and improving the basic fertlizers distribution, the Group will rely on the differentiated compound fertilizers and specialty fertilizers, speed up and strengthen the building of distribution capacity, create a strong distribution system, enhance the comprehensive service capability for end-users and provide high-quality agrichemical products and service for farmers in China. Meanwhile, the Group will also further create value for the shareholders through structural reform, resource integration, internal control optimization, operation efficiency enhancement and overall competitiveness reinforcement.

Information from the financial statements of listed companies

Mobile | Full
Forum rule | About Us | Contact Info | Terms & Conditions | Privacy Statment | Disclaimer | Site Map
Copyright (C) 2020Suntek Computer Systems Limited. All rights reserved
Disclaimer : In the preparation of this website, 88iv endeavours to offer the most current, correct and clearly expressed information to the public. Nevertheless, inadvertent errors in information and in software may occur. In particular but without limiting anything here, 88iv disclaims any responsibility and accepts no liability (whether in tort, contract or otherwise) for any direct or indirect loss or damage arising from any inaccuracies, omissions or typographical errors that may be contained in this website. 88iv also does not warrant the accuracy, completeness, timeliness or fitness for purpose of the information contained in this website.