According to Zhitong Financial App, Sinochem Fertilizer (00297) announced its 2023 interim results, with a turnover of RMB 13.128 billion, a year-on-year decrease of 14.23%; profit attributable to the company's shareholders was RMB 1,004 billion, an increase of 0.6% over the previous year. Basic profit per share was RMB 0.1,429.
The announcement stated that the decline in turnover was mainly due to the Group's initiative to adjust the product structure and cut low margin products.
The sales volume for the first half of 2023 was 3.97 million tons, a year-on-year decrease of 15.71%. Affected by the easing of supply and demand in the product market, prices of fertilizer products continued to decline, and market competition further intensified. The Group continues to implement policies to reduce weight loss and increase efficiency, and drastically cut the low-margin nitrogen fertilizer and sulfur business. Make every effort to promote the implementation of the “Bio+” and “Houpu” soil health strategies, adhere to crop demand as the guide, continuously upgrade technology and products, optimize the transformation of the product structure to environmentally friendly and efficient fertilizers, form a differentiated product hierarchy, and enhance market competitiveness.
Furthermore, on the basis of integrating biotechnology at home and abroad, the Group has successfully launched a series of leading biofertiliser products, including Lan Lin, Yaxin, Mei Linmei, Youcuilu, Wegersch, and Huanwo. In the first half of 2023, the group's total sales volume of various differentiated products was 1.15 million tons, up 6% year on year. Among them, sales volume of differentiated compound fertilizer was 960,000 tons, up 7% year on year; sales volume of specialty fertilizer was 58,300 tons, up 53% year on year.