(28 March 2013, Hong Kong) Sinofert Holdings Limited ("Sinofert" or the "Company") (stock code: 00297) today announced the audited annual results of the Company and its subsidiaries (the "Group") for the twelve months ended 31 December 2012 (the “Period”).

During the Period, the Group achieved turnover of RMB 41.190 billion, up 12.28% year-on-year. Its gross profit advanced 13.78% year-on-year to RMB 2.378 billion. Profit attributable to shareholders of the Company surged 29.56% year-on-year to RMB 878 million. Basic earnings per share increased 29.40% year-on-year to RMB 0.125.

Turnover of phosphate fertilizers for 2012 soared 26.14% year-on-year to RMB 9.383 billion, while that of potash fertilizers and nitrogen fertilizers rose 6.2% and 13.68% year-on-year, respectively, to RMB 9.732 billion and RMB 14.149 billion. However, turnover of compound fertilizers declined 3.34%% to RMB 6.188 billion from a year ago. Profitability in all fertilizer products except compound fertilizers maintained a steady growth during the year.

Mr. Feng Zhibin, CEO of Sinofert, commented, “The prices of all fertilizers rallied in the first half of 2012, setting up a favourable external environment for the fertilizer industry. Nevertheless, their price reversals in the second half weighed down the sector. China continued to suffer from oversupply in nitrogen and phosphate fertilizers, leading to intensified competition in the market. Moreover, the government tightened the favourable policies for the fertilizer industry and stepped up efforts in environment and resources protection, driving up operating costs. Otherwise, the government carried out various measures to boost crop yields and farmers’ income and to transform the growth pattern of domestic agriculture, creating opportunities for the development of fertilizer sector. In the face of these challenges and opportunities, the Group pushed ahead with established strategies to reinforce its core competitiveness. It made significant breakthroughs in resources acquisition and industrial segment optimization, and it achieved steady growth in operating results.”

Performance of Sinochem Yunlong beat forecasts, while industrial segment was further optimized

The Group completed the acquisition of Lomon Phosphate Chemical Co. in Xundian, Yunnan (renamed as “Sinochem Yunlong”) in March 2012, thereby controlling 300 million tonnes of high-quality phosphate mine resources and becoming one of the largest phosphate resources owners in China. Sinochem Yunlong currently has annual phosphate mine exploration capacity of 600,000 tonnes and annual high-end Monocalcium / Monodicalcium phosphate (“MCP/MDCP”) production capacity of 300,000 tonnes, making it the largest feedstuff calcium manufacturer in Asia. In the first financial year immediately after this acquisition, Sinochem Yunlong generated revenue of RMB 542 million, with all of its key performance indicators surpassing forecasts set in the feasibility report for approval of the transaction. This acquisition lays a solid foundation for the Group to drive the vertical integration of its phosphate fertiliser and phosphorous chemical operations.

In order to further optimize its industrial segment, the Group’s proceeded with lean management and pursued technological upgrades and innovations to lower costs and to enhance operating efficiency. As a result, profit of industrial segment in 2012 improved remarkably when compared with the previous year. And the Group’s annual fertilizer production capacity increased to over 10 million tonnes. In addition, Yangmei Chemical was introduced as a strategic investor of Sinochem Pingyuan, ensuring a stable supply of coal resources. Meanwhile, the redevelopment and extension project for urea production facilities of Sinochem Changshan commenced last year. Due to be completed two years later, it will help Sinochem Changshan to save energy and reduce resources consumption. Upon its completion, the annual synthetic ammonia and urea production capacity in Sinochem Changshan will increase to 360,000 tonnes and 600,000 tonnes, respectively.

Sales volume grew steadily and distribution network was further enhanced

The Group further enhanced marketing capabilities and continued to explore basic-level customers. During the Period, it strengthened the position as China’s largest fertilizer distributor and achieved sales volume of 17.14 million tonnes, up 4.13% from a year ago.

Sales volume of potash fertilizers for 2012 was roughly the same as the previous year. And the Group concluded potash import agreements for the first half of 2013 at a competitive price with core international suppliers, laying a solid foundation for the development of its potash operations in 2013. Meanwhile, sales volume of nitrogen fertilizers for the Period grew 2.43% year-on-year amid a volatile market, as the Group secured stable and low-cost supply from its manufacturing subsidiaries. Sales volume of phosphate fertilizers in 2012 advanced 17.14% year-on-year, thanks to strengthened alliance with domestic and overseas suppliers, optimized distribution channels and improved customer loyalty. However, sales volume of compound fertilizers dropped 10.39% year-on-year due to a lackluster domestic market and the inversion between selling prices and costs in some areas. Equipped with self-owned phosphate resources, Sinochem Yunlong produced high-quality and cost-competitive feedstuff grade MCP / MDCP and sold 150,000 tonnes of MCP / MDCP in the Period.

The Group further optimized its distribution network in 2012 and drove the transformation of distribution centers from trading-based towards knowledge-based, intelligent-based, technology-based and service-based. It upgraded 112 distribution centers, with its marketing network commenced a comprehensive self-management program. The number of distribution centers was maintained at over 2,000.

Business Outlook and Strategies

Going forward, Mr. Feng Zhibin said, “The central government will step up efforts to support domestic agriculture and farmers in 2013. More resources will be invested in the agricultural sector to transform its operation models, to promote its sustainable development and to boost farmers’ income. The government’s policies will not only create a favourable environment for agricultural development, but also pave the way for the revival and brisk growth of domestic fertilizer sector. Moreover, as China’s plan to expand grain production capacity is implemented in different regions, it will give a strong boost to the fertilizer sector in the long run. On the other hand, the overcapacity problem will become more apparent due to a dramatic increase in production capacity in recent years. As a result, the consolidation and integration of domestic producers and distributors is expected to accelerate. As a leading enterprise in the fertilizer industry, the Group will enhance efforts in the following 7 areas, i.e., marketing, resources acquisition, optimization of industrial segment, technology, human resources, information technology and HSE. While focusing on the development of fertilizer operations, it will further promote the integration of resource and fertilizer operations, the integration of fertilizer and chemical operations, the integration of production and marketing operations and the integration of product sales and services, thereby creating a sustainable business and operating model. We strive to become a global leading provider of agricultural inputs and agrichemical services, aiming to realize sustainable development and to create greater value to shareholders.”

~ END ~

Background of Sinofert Holdings Limited

Sinofert Holdings Limited is the largest fertilizer distributor, the largest supplier of imported fertilizers and one of the largest fertilizer manufacturers in China. Based on its distribution services, it integrates production, supply and sales to achieve synergies between different operations. The Company produces and distributes nitrogen, phosphate, potash and compound fertilisers, offering customers the widest range of fertilizer products. It owns and operates the country’s largest fertilizer distribution and sales network and a comprehensive agrichemical services system. Moreover, it forges strategic alliances with major international suppliers for exclusive distribution of their products in China. As one of China’s leading phosphate resource owners, the Company is also the largest feedstuff calcium manufacturer in Asia. Sinofert is a flagship company of Sinochem Corporation specializing in fertilizer operations. Sinochem Corporation was established in 1950 and has been named one of the Fortune Global 500 for 22 consecutive years. Its ranking climbed to the 113th in 2012.

This press release is distributed by PRChina Limited on behalf of Sinofert Holdings Limited.

Investor and media enquiries:

David Shiu / Henry Chik / Camille Xiong

PRChina Limited

Tel: (852) 2522 1838 / 2522 1368 / 2521 2823

Fax: (852) 2521 9955

E-mail: dshiu@prchina.com.hk / hchik@prchina.com.hk / cxiong@prchina.com.hk

[點擊下載]