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In the First Three Quarters of 2017, Urea and P-fertilizer Companies Saw an Increase in Profits, but Potash and NPK Com

China Agriculture Report By CnAgri2017-11-13 13:47:12China Agriculture Report Print According to reports on third-quarter-performance from listed fertilizer companies, the operating revenues and profits from urea and P-fertilizer companies increased, for example: Luxi Chemical’s, Yuntianhua’s and Xinyangfeng’s P-fertilizer business; the profits of NPK and potash companies went down, for example: Kingenta, Wintrue Holding, Batian Ecological Technique and QingHai Salt Lake Industry Group.  
An increase in operating revenues and profits of urea and P-fertilizer companies is mainly because of a growth in price difference resulting from urea and P-fertilizer prices far higher than the levels in the same period of last year. 
The main reason for a drop in NPK companies’ profits is a great increase in selling costs and management costs resulting from sluggish market and fierce competitiveness. For example, selling expenses of Kingenta in the first three quarters of 2017 reached 1.097 billion RMB, up 101.4% year on year; Wintrue Holding and Batian Ecological Technique both saw a relatively great increase in expenses for management and selling. 
QingHai Salt Lake Industry Group fell into serious loss: MOP sales decreased; the most import is that equipment didn’t resume production influenced by Haina Chemical’s fire disaster occurred on February 14th.
Table, Performance of Listed Fertilizer Companies in the First Three Quarters of 2017, 2016-2017
Name of Company Operating Income
(RMB 100 Million)
YOY Net Profits
(RMB 100 Million)
Luxi Chemical 110.65 43.64% 10.72 497.16
Xinyangfeng 72.36 7.32% 5.93 10%
Yuntianhua 459.7 66.5% 2101 101.43%
Wintrue Holding 56.49 2.34 0.84 -48.36%
Kingenta 189.18 8.62% 9.08 -19.48
Siert 18.37 -13.83 1.31 -36.37%
Batian Ecological Technique 14.67 -5.61% 0.1844 -60%
QingHai Salt Lake Industry Group 76.49 4.96 -8.59 -430.16%
Data Source: Reports from listed fertilizer companies
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