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Recovering Fertilizer Industry and Improved Operating Management Made Xinyangfeng’s Operating Revenues Ascend Greatly

China Agriculture Report By CnAgri2018-04-10 11:29:09China Agriculture Report Print According to annual report released by Xinyangfeng recently, 2017 operating revenues stood at 9.032 billion RMB, up 9.14% year on year; net profits recorded 692 million RMB, up 19.36% year on year; P-fertilizer and NPK sales were 4.9182 million MT, up 10.93%. There are two main reasons for the bettering of operation performance mentioned as follows:
First, it benefits from the recovery of the whole fertilizer industry.
Xinyangfeng is a traditional P-fertilizer and NPK producer, whose MAP capacity ranks number one nationwide and P-fertilizer and NPK output is always around 4 million MT/year. Influenced by supply and demand, fertilizer price in the fourth quarter of 2017 ascended greatly, of which MAP ex-factory price reached 2,350 RMB/MT, with a growth of 500 RMB/MT; 45%S NPK ex-factory prices averaged 2,432 RMB/MT, with an increase of 120 RMB/MT, making P-fertilizer’s and NPK’s profits ascend.  
Second, it benefits from strong marketing networks and optimization of product structure.
Xinyangfeng adopts the marketing models such as agents, network distribution in villages and towns, direct selling to surrounding areas, franchised stores, direct supply to large growers, corporatization operation, wholesale and retail integration and third-party distributors. Currently, there have been 4,500 county-level agents, and 60,000 networks in villages and towns. Strong marketing networks in all corners of villages and towns are the basic guarantee for a year-on-year growth in turnovers and net profits.     
Among operating revenues in 2017, the proportion of P-fertilizer, common NPK and new-type NPK was 23.40%, 52.07% and 11.61% respectively, but the growth in operating revenues of new-type NPK was quickest, up 46.38%. The investment in product R and D has topped 100 million RMB for two consecutive years. 
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