fertiliser in china.pdf

China - Fertilizer 0099 - 2404 - 2011

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MarketLine Industry Profile

Fertilizer in China July 2012

Reference Code: 0099-2404

Publication Date: July 2012

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EXECUTIVE SUMMARY

Market value The Chinese fertilizer market grew by 1.9% in 2011 to reach a value of $80,231.2 million.

Market value forecast In 2016, the Chinese fertilizer market is forecast to have a value of $90,223.5 million, an increase of 12.5% since 2011.

Market volume The Chinese fertilizer market grew by 2% in 2011 to reach a volume of 55.8 million tonnes.

Market volume forecast In 2016, the Chinese fertilizer market is forecast to have a volume of 62.1 million tonnes, an increase of 11.3% since

2011.

Category segmentation Nitrogen (n) is the largest segment of the fertilizer market in China, accounting for 61.1% of the market's total value.

Geography segmentation China accounts for 75.8% of the Asia-Pacific fertilizer market value.

Market rivalry Rivalry in the Chinese fertilizer market is strong overall, primarily because of the high fixed costs and difficulty in exiting

the market, associated with fertilizer production.



TABLE OF CONTENTS

Executive Summary ....................................................................................................................................................... 2

Market value ............................................................................................................................................................... 2

Market value forecast ................................................................................................................................................. 2

Market volume ............................................................................................................................................................ 2

Market volume forecast .............................................................................................................................................. 2

Category segmentation .............................................................................................................................................. 2

Geography segmentation ........................................................................................................................................... 2

Market rivalry .............................................................................................................................................................. 2

Market Overview ............................................................................................................................................................ 6

Market definition ......................................................................................................................................................... 6

Market analysis .......................................................................................................................................................... 6

Market Data ................................................................................................................................................................... 7

Market value ............................................................................................................................................................... 7

Market volume ............................................................................................................................................................ 8

Market Segmentation ..................................................................................................................................................... 9

Category segmentation .............................................................................................................................................. 9

Geography segmentation ......................................................................................................................................... 10

Market Outlook ............................................................................................................................................................. 11

Market value forecast ............................................................................................................................................... 11

Market volume forecast ............................................................................................................................................ 12

Competitive Landscape ................................................................................................................................................ 13

Leading Companies ..................................................................................................................................................... 15

China Agritech, Inc. .................................................................................................................................................. 15

China BlueChemical Ltd. .......................................................................................................................................... 18

China XLX Fertiliser Ltd ........................................................................................................................................... 21

Macroeconomic Indicators ........................................................................................................................................... 24

Country Data ............................................................................................................................................................ 24

Appendix ...................................................................................................................................................................... 26

Methodology ............................................................................................................................................................. 26

Industry associations ................................................................................................................................................ 27

Related MarketLine research ................................................................................................................................... 27



LIST OF TABLES

Table 1: China fertilizer market value: $ million, 2007–11 .............................................................................................. 7

Table 2: China fertilizer market volume: million tonnes, 2007–11 .................................................................................. 8

Table 3: China fertilizer market category segmentation: $ million, 2011 ........................................................................ 9

Table 4: China fertilizer market geography segmentation: $ million, 2011 ................................................................... 10

Table 5: China fertilizer market value forecast: $ million, 2011–16 .............................................................................. 11

Table 6: China fertilizer market volume forecast: million tonnes, 2011–16 .................................................................. 12

Table 7: China Agritech, Inc.: key facts ........................................................................................................................ 15

Table 8: China Agritech, Inc.: key financials ($) ........................................................................................................... 16

Table 9: China Agritech, Inc.: key financial ratios......................................................................................................... 16

Table 10: China BlueChemical Ltd.: key facts .............................................................................................................. 18

Table 11: China BlueChemical Ltd.: key financials ($) ................................................................................................. 18

Table 12: China BlueChemical Ltd.: key financials (CNY) ........................................................................................... 19

Table 13: China BlueChemical Ltd.: key financial ratios .............................................................................................. 19

Table 14: China XLX Fertiliser Ltd: key facts ............................................................................................................... 21

Table 15: China XLX Fertiliser Ltd: key financials ($) ................................................................................................... 21

Table 16: China XLX Fertiliser Ltd: key financials (CNY) ............................................................................................. 22

Table 17: China XLX Fertiliser Ltd: key financial ratios ................................................................................................ 22

Table 18: China size of population (million), 2007–11 .................................................................................................. 24

Table 19: China gdp (constant 2000 prices, $ billion), 2007–11 .................................................................................. 24

Table 20: China gdp (current prices, $ billion), 2007–11 .............................................................................................. 24

Table 21: China inflation, 2007–11 ............................................................................................................................... 25

Table 22: China consumer price index (absolute), 2007–11 ........................................................................................ 25

Table 23: China exchange rate, 2007–11 .................................................................................................................... 25



LIST OF FIGURES

Figure 1: China fertilizer market value: $ million, 2007–11 ............................................................................................. 7

Figure 2: China fertilizer market volume: million tonnes, 2007–11 ................................................................................. 8

Figure 3: China fertilizer market category segmentation: % share, by value, 2011 ........................................................ 9

Figure 4: China fertilizer market geography segmentation: % share, by value, 2011................................................... 10

Figure 5: China fertilizer market value forecast: $ million, 2011–16 ............................................................................. 11

Figure 6: China fertilizer market volume forecast: million tonnes, 2011–16 ................................................................. 12

Figure 7: China Agritech, Inc.: revenues & profitability ................................................................................................. 16

Figure 8: China Agritech, Inc.: assets & liabilities......................................................................................................... 17

Figure 9: China BlueChemical Ltd.: revenues & profitability ........................................................................................ 19

Figure 10: China BlueChemical Ltd.: assets & liabilities .............................................................................................. 20

Figure 11: China XLX Fertiliser Ltd: revenues & profitability ........................................................................................ 22

Figure 12: China XLX Fertiliser Ltd: assets & liabilities ................................................................................................ 23



MARKET OVERVIEW

Market definition The fertilizer market volume (measured in tonnes) is the annual agricultural consumption of manufactured fertilizer

containing nutrients nitrogen (N), potash (K2O), and phosphates (P2O5). The market is valued at farmer's retail price,

taking into account any applicable taxes and subsidized price reductions. The currency conversions used in this report

have been calculated using constant 2011 annual average exchange rates.

For the purposes of this report, Asia-Pacific comprises Australia, China, India, Indonesia, Japan, New Zealand,

Singapore, South Korea, Taiwan, and Thailand.

Market analysis The Chinese fertilizer market is expected to experience slow growth in revenue and consumption volumes over the

forecast period 2011-2016, after a period of strong growth in 2009.

The Chinese fertilizer market had total revenue of $80.2 billion in 2011, representing a compound annual growth rate

(CAGR) of 21% between 2007 and 2011. In comparison, the Japanese market declined with a compound annual rate of

change (CARC) of -2.6%, and the Indian market increased with a CAGR of 9.6%, over the same period, to reach

respective values of $2.1 billion and $10.6 billion in 2011.

Market consumption volumes increased with a CAGR of 1.2% between 2007-2011, to reach a total of 55.8 million tonnes

in 2011. The market's volume is expected to rise to 62.1 million tonnes by the end of 2016, representing a CAGR of 2.2%

for the 2011-2016 period.

Nitrogen (N) sales proved the most lucrative for the Chinese fertilizer market in 2011, with total revenues of $49 billion,

equivalent to 61.1% of the market's overall value. In comparison, sales of Phosphate (P2O5) generated revenues of

$24.4 billion in 2011, equating to 30.4% of the market's aggregate revenues.

The performance of the market is forecast to decelerate, with an anticipated CAGR of 2.4% for the five-year period 2011

- 2016, which is expected to drive the market to a value of $90.2 billion by the end of 2016. Comparatively, the Japanese

and Indian markets will grow with CAGRs of 4.2% and 5% respectively, over the same period, to reach respective values

of $2.6 billion and $13.5 billion in 2016.



MARKET DATA

Market value The Chinese fertilizer market grew by 1.9% in 2011 to reach a value of $80,231.2 million.

The compound annual growth rate of the market in the period 2007–11 was 21%.

Table 1: China fertilizer market value: $ million, 2007–11

Year $ million CNY million € million % Growth

2007 37,385.5 241,300.8 26,872.7

2008 65,919.3 425,469.8 47,382.9 76.3%

2009 77,411.7 499,646.0 55,643.6 17.4%

2010 78,722.6 508,107.2 56,585.9 1.7%

2011 80,231.2 517,844.6 57,670.3 1.9%

CAGR: 2007–11 21.0%

SOURCE: MARKETLINE M A R K E T L I N E

Figure 1: China fertilizer market value: $ million, 2007–11




Market volume The Chinese fertilizer market grew by 2% in 2011 to reach a volume of 55.8 million tonnes.

The compound annual growth rate of the market in the period 2007–11 was 1.2%.

Table 2: China fertilizer market volume: million tonnes, 2007–11

Year million tonnes % Growth

2007 53.2

2008 50.8 (4.6%)

2009 53.7 5.7%

2010 54.7 1.8%

2011 55.8 2.0%

CAGR: 2007–11 1.2%


Figure 2: China fertilizer market volume: million tonnes, 2007–11




MARKET SEGMENTATION

Category segmentation Nitrogen (n) is the largest segment of the fertilizer market in China, accounting for 61.1% of the market's total value.

The Phosphate (p2o5) segment accounts for a further 30.4% of the market.

Table 3: China fertilizer market category segmentation: $ million, 2011

Category 2011 %

Nitrogen (N) 49,042.9 61.1%

Phosphate (P2O5) 24,423.4 30.4%

Potash (K2O) 6,765.0 8.4%

Total 80,231.3 100%


Figure 3: China fertilizer market category segmentation: % share, by value, 2011




Geography segmentation China accounts for 75.8% of the Asia-Pacific fertilizer market value.

India accounts for a further 10% of the Asia-Pacific market.

Table 4: China fertilizer market geography segmentation: $ million, 2011

Geography 2011 %

China 80,231.2 75.8

India 10,579.9 10.0

Japan 2,087.0 2.0

South Korea 895.5 0.8

Rest of Asia-Pacific 12,029.5 11.4

Total 105,823.1 100%


Figure 4: China fertilizer market geography segmentation: % share, by value, 2011




MARKET OUTLOOK

Market value forecast In 2016, the Chinese fertilizer market is forecast to have a value of $90,223.5 million, an increase of 12.5% since 2011.

The compound annual growth rate of the market in the period 2011–16 is predicted to be 2.4%.

Table 5: China fertilizer market value forecast: $ million, 2011–16

Year $ million CNY million € million % Growth

2011 80,231.2 517,844.6 57,670.3 1.9%

2012 82,107.8 529,956.3 59,019.1 2.3%

2013 84,046.4 542,469.1 60,412.6 2.4%

2014 86,097.1 555,705.4 61,886.7 2.4%

2015 88,026.2 568,156.5 63,273.3 2.2%

2016 90,223.5 582,338.3 64,852.7 2.5%

CAGR: 2011–16 2.4%


Figure 5: China fertilizer market value forecast: $ million, 2011–16




Market volume forecast In 2016, the Chinese fertilizer market is forecast to have a volume of 62.1 million tonnes, an increase of 11.3% since

2011.

The compound annual growth rate of the market in the period 2011–16 is predicted to be 2.2%.

Table 6: China fertilizer market volume forecast: million tonnes, 2011–16

Year million tonnes % Growth

2011 55.8 2.0%

2012 57.0 2.2%

2013 58.2 2.0%

2014 59.5 2.3%

2015 60.8 2.1%

2016 62.1 2.2%

CAGR: 2011–16 2.2%


Figure 6: China fertilizer market volume forecast: million tonnes, 2011–16




COMPETITIVE LANDSCAPE

The fertilizer market will be analyzed taking manufacturers of fertilizers containing nutrients nitrogen (n), potash (k2o),

and phosphate (p2o5) as players. The key buyers will be taken as wholesalers, retailers and distributors, and raw

material producers as the key suppliers.

Rivalry in the Chinese fertilizer market is strong overall, primarily because of the high fixed costs and difficulty in exiting

the market, associated with fertilizer production.

Buyer power is assessed as moderate, although an essential product with players capable of integrating forwards,

buyer’s ability to switch between market players without incurring significant costs and the undifferentiated nature of the

product offset these factors. Suppliers’ power is also moderate, with the commoditized nature of fertilizer reducing their

power. High fixed costs, a high degree of intellectual property and regulation are just some of the factors new entrants

have to consider when entering the fertilizer market. Substitutes pose a moderate threat: although offering many benefits

over mineral fertilizers, organic fertilizers are difficult to manufacture in the volumes required to pose a serious threat.

Distributors, wholesalers and retailers are the buyers in this market and tend to purchase directly from manufacturers of

fertilizers. These companies, which consist of medium to large agricultural suppliers and gardening centers, are

numerous and often tailored towards specific consumers. Primarily used in the agriculture industry, fertilizer is applied to

increase crop yields. This allows farmers to utilize land more efficiently producing higher yielding crops which increases

their earnings per acre. This also renders fertilizer essential to farmers and is an important product amongst buyers.

For the buyers that specialize in agricultural supplies, fertilizer is one of the key selling products and represents a large

proportion of their revenue. Buyers, such as wholesalers and retailers, are generally not tied to long term contracts. This

allows them to switch between different producers without incurring extra costs. Buyers’ purchasing decisions are based

on price with reduced emphasis on brand loyalty. This factor increases buyer power.

Medium to large size buyers with significant financial muscle increase their buyer power through the ability to negotiate

favorable prices when ordering in bulk. Some buyers have integrated backwards. As a good example of this, Carr’s

Milling Industries who operate in the UK and Germany, supply farming and rural communities with agricultural products

and services. Additionally, it manufactures its own fertilizer. Fertilizer manufacturers are also capable of integrating

forwards into the agricultural supplies market, which offsets the increase in buyer power gained through backward

integration. Overall, buyer power within the fertilizer market is assessed as moderate.

The raw materials used in the manufacture of fertilizer, such as nitrogen, phosphorus, potassium, calcium, sulfur and

other oil and natural gas derived products are usually procured under long term contracts, increasing switching costs and

supplier power. Furthermore, suppliers tend to be large multinational chemical, oil and gas companies, whose business

operations regularly encompass large scale forward integration to manufacture a variety of products, including fertilizer,

which serves to increase supplier power. Additionally, the likelihood of manufacturers integrating backwards into the

chemical, gas or oil industries is low, due to the high level of competition and exceptionally high start up capital required.

The fertilizer market, although important, is not essential to the operations of chemical, oil and gas companies. Their

products have many applications and are used across all industries, from energy supply to the sulfuric acid in car

batteries. This diversity means that the market players are quite dispensable and allows suppliers to exert influence over

the manufacturers of fertilizer.

Another issue that adds credence to supplier power in this market is the lack of substitutes for specific fertilizers.

Although there are a number of differing mineral fertilizers using different materials, they have specific roles. As a good

example of this, nitrogen fertilizer, which is one of the most commonly used fertilizers, cannot be substituted. Replacing

nitrogen based fertilizers for a substitute mineral fertilizer such as phosphate based fertilizers is difficult as they do not

have the same applications. Therefore, companies have to rely on specific materials from suppliers which hands the

supplier additional bargaining power. Overall, supplier power in the fertilizer market is assessed as moderate.



Entrance to the fertilizer market involves high fixed costs, due to the specialized nature of the equipment required to

operate fertilizer production. In addition, the cost of raw materials is high and prices are subject to fluctuations, with oil

and gas being particularly susceptible. This requires large economies of scale to achieve a return on investment along

with a high degree of intellectual property in order to produce an effective fertilizer. Additionally, there is a high degree of

regulation within the mineral fertilizers industry. These factors reduce the attractiveness of the market for new entrants.

Further off-putting factor is the strength of existing fertilizer brands to compete against and the level of aggressiveness

that large organizations respond with when confronted with new competitors. These circumstances create a very

unattractive prospect for new entrants.

The product is commoditized; although it can be differentiated to some extent, i.e. depending on crops and soil types.

Low switching costs for buyers lead to an increase in the threat from new entrants; however, this is negligible when

compared to the overriding factors discouraging entry into the market. Overall, the likelihood of new entrants is assessed

as moderate.

The production of fertilizers or traditional mineral fertilizers results in high energy consumption. Additionally, its

production cannot be continued indefinitely, as many raw materials are sourced from finite supplies. Organic fertilizers

are the main substitute to mineral fertilizers. Raw materials used in its manufacture are derived usually from plant, animal

waste, crop residues. Agriculture normally utilizes a combination of organic and traditional fertilizers. There are many

benefits to using organic fertilizers. They are widely available and relatively cheap to manufacture, with many farms

being able to produce their own by recycling the waste of their livestock. On a much smaller scale, individuals can

produce their own fertilizers through composting.

Buyers, such as wholesalers and retailers, are generally not tied to long term contracts. This allows them to closely

follow farmers’ demand in terms of organic or mineral fertilizer without incurring large extra costs. With organic fertilizer

being cheaper and, in the case of certain farm practices and non-industrial applications, even free, the threat from

substitutes in terms of cost is significant.

Benefits of organic fertilizers over traditional fertilizers include the assurance that food crops are free of harmful

chemicals. They are also bio-degradable which reduce pollution issues, such as eutrophication. Organic fertilizer offers

many benefits in terms of cost and performance over the mineral fertilizer. However, it would be extremely difficult to

produce the volumes required to meet worldwide demand of the agricultural industry. Overall, the threat of substitutes to

the traditional fertilizer market is assessed as moderate.

The fertilizer market is dominated by large companies, in particular, vertically integrated petrochemical companies, such

as Total SA, which increases the level of rivalry. However, this is offset to some extent by the relatively low numbers of

fertilizer manufacturers, a result of capital intensive start up costs amongst other factors.

The commoditized nature of the product means rivalry is intensified furthermore, as buyers make their buying decisions

primarily based on price. Additionally, the seasonal nature of fertilizers creates a competitive environment than can be

more intense during planting seasons. International manufacturers have an advantage over localized companies, as they

can access planting seasons throughout the year in varying countries.

The fertilizer market is difficult to exit due to the high fixed costs associated with its manufacturing. Storage costs adds

further issues that ensure rivalry is boosted, the storage of dangerous chemicals, gas and oil in addition to the finished

product can be costly not only in storage space but also the legally compliant storage units for the raw materials.

Many fertilizer manufacturers have diverse operations providing chemicals for many industries in addition to the oil and

gas product markets. Equally, the ability to expand production relatively ease due to the integrated nature of many

fertilizer manufacturers reduces rivalry somewhat. Overall, rivalry is assessed as strong.



LEADING COMPANIES

China Agritech, Inc.

Table 7: China Agritech, Inc.: key facts

Head office: Room 301 No 11 Building No 1, Zone of Future Business Center, 1st Street of Wuliqiao Road, Chaoyang District, Beijing 100024, CHN

Telephone: 86 10 5962 1278

Website: www.chinaagritechinc.com

Financial year-end: December

SOURCE: COMPANY WEBSITE M A R K E T L I N E

China Agritech manufactures and sells organic liquid compound fertilizers, organic granular compound fertilizers and

related agricultural products in China. The products include spray, water-flush, dip and granular fertilizer products and

other crop specific fertilizers. The liquid fertilizer products are applied on a widespread basis through spraying by

machine or aircraft. The company sells its products to farmers located in 28 provinces of China.

The company's products promote photosynthesis, root system growth and transmission of nutrients to seeds. The

products contain over 30 active ingredients comprised of organic elements, inorganic elements that are region specific

and other active and stimulative agents.

The company's four main product lines include the following: Lvlingbao III, Lvlingbao IV, Tailong I, and Green Vitality.

Lvlingbao III liquid fertilizer product line blends humic acid, nitrogen, phosphorus, potassium, microelements, amino acid,

active and stimulative agents and is formulated for fruits and vegetables.

The company's Lvlingbao IV liquid fertilizer line is produced using humic acid, nitrogen, phosphorus, potassium, and

microelements and is formulated for crops of fruits, vegetables and grains and suitable for jet spray application.

The product line, Tailong I is the liquid fertilizers product used for a variety of crops and plants that are tailored to local

soil conditions.

Green Vitality fertilizer product line is marketed in the central and southern regions of China and is applied to the yield in

a variety of crops.

Some of the subsidiaries of China Agritech include the following: China Tailong Holdings Company, CAI Investment,

Anhui Agritech Development Company, Agritech Fertilizer, Pacific Dragon Fertilizers, and Xinjiang Agritech Agricultural

Development.

Key Metrics

The company recorded revenues of $76 million in the fiscal year ending December 2009, an increase of 68.3%

compared to fiscal 2008. Its net income was $6 million in fiscal 2009, compared to a net income of $9 million in the

preceding year.



Table 8: China Agritech, Inc.: key financials ($)

$ million 2005 2006 2007 2008 2009

Revenues 25.3 29.5 38.0 45.2 76.1

Net income (loss) 3.7 5.3 8.5 8.6 5.7

Total assets 12.6 31.0 56.6 72.7 100.6

Total liabilities 1.4 2.0 3.1 4.9 23.3

SOURCE: COMPANY FILINGS M A R K E T L I N E

Table 9: China Agritech, Inc.: key financial ratios

Ratio 2005 2006 2007 2008 2009

Profit margin 14.5% 18.1% 22.4% 19.1% 7.5%

Revenue growth 59.8% 16.5% 28.7% 19.0% 68.3%

Asset growth 66.8% 145.4% 82.5% 28.3% 38.5%

Liabilities growth (38.8%) 48.1% 54.6% 58.5% 375.5%

Debt/asset ratio 10.7% 6.4% 5.5% 6.7% 23.2%

Return on assets 36.3% 24.5% 19.5% 13.4% 6.6%


Figure 7: China Agritech, Inc.: revenues & profitability




Figure 8: China Agritech, Inc.: assets & liabilities




China BlueChemical Ltd.

Table 10: China BlueChemical Ltd.: key facts

Head office: No 1, Zhu Jiang South Street, Dongfang City, Hainan Province, CHN

Telephone: 86 10 8452 7249

Fax: 86 10 8452 7254

Website: www.chinabluechem.com.cn


Ticker: 3983

Stock exchange: Hong Kong


China BlueChemical (China BlueChem), a subsidiary of China National Off shore Oil Corporation (CNOOC), is engaged

in the manufacture and sale of fertilizers including urea and phosphate fertilizers; and chemical products like methanol.

The company primarily operates in China. China BlueChem's production facilities are located in Hainan, Inner Mongolia

and Hubei, China. Its polyformaldehyde (POM) plant has an annual production capacity of 60,000 tones.

The company primarily operates through four business segments: urea, phosphorus fertilizers, methanol, and others

segment.

The urea segment is engaged in the manufacture and sale of urea. The phosphorus fertilizer segment is engaged in the

manufacture and sale of mono-ammonium phosphate (MAP) and di-ammonium phosphate (DAP) fertilizers. Methanol

segment is engaged in the manufacture and sale of methanol. The others segment is mainly engaged in manufacture

and sale of BB fertilizer, POM and woven plastic bags, trading of fertilizers and chemicals, port operations and provision

of transportation services.

Some of the company's subsidiaries include: CNOOC Fudao Limited; Hainan CNOOC Plastic Co., Ltd; Hainan CNOOC

Complex Fertiliser Co., Ltd; CNOOC (Hainan) E&P Gas Limited; CNOOC Jincheng Coal Chemical Industry Co., Ltd;

Hainan Basuo Port Limited; CNOOC Tianye Chemical Limited; and Hegang Huahe Coal Chemical Ltd.

Key Metrics

The company recorded revenues of $1,512 million in the fiscal year ending December 2011, an increase of 42.1%


preceding year.

Table 11: China BlueChemical Ltd.: key financials ($)

$ million 2007 2008 2009 2010 2011

Revenues 672.5 1,055.4 897.8 1,064.0 1,511.6

Net income (loss) 224.4 249.2 152.6 182.1 307.7

Total assets 1,502.5 2,043.7 1,959.3 2,250.7 2,551.5





Table 12: China BlueChemical Ltd.: key financials (CNY)

CNY million 2007 2008 2009 2010 2011

Revenues 4,340.4 6,811.8 5,794.6 6,867.3 9,756.3

Net income (loss) 1,448.3 1,608.5 984.7 1,175.3 1,985.8

Total assets 9,697.5 13,191.1 12,646.3 14,526.7 16,468.7

Total liabilities 1,611.4 2,907.7 2,960.2 2,604.7 2,901.1


Table 13: China BlueChemical Ltd.: key financial ratios

Ratio 2007 2008 2009 2010 2011

Profit margin 33.4% 23.6% 17.0% 17.1% 20.4%

Revenue growth 25.6% 56.9% (14.9%) 18.5% 42.1%

Asset growth 6.4% 36.0% (4.1%) 14.9% 13.4%

Liabilities growth (32.9%) 80.4% 1.8% (12.0%) 11.4%

Debt/asset ratio 16.6% 22.0% 23.4% 17.9% 17.6%

Return on assets 15.4% 14.1% 7.6% 8.7% 12.8%


Figure 9: China BlueChemical Ltd.: revenues & profitability




Figure 10: China BlueChemical Ltd.: assets & liabilities




China XLX Fertiliser Ltd

Table 14: China XLX Fertiliser Ltd: key facts

Head office: Xinxiang High-Technology Development Zone, Xiaoji Town, Henan Province, CHN

Telephone: 86 0373 559 2888

Fax: 86 0373 559 2527

Website: www.chinaxlx.com.hk


Ticker: B9R, 1866

Stock exchange: Singapore, Hong Kong


China XLX Fertilizer is engaged in the production and distribution of urea, methanol and compound fertilizers. The

company offers urea, a nitrogen-based fertilizer, which provides nitrogen to crops and serves as raw material for

industries such as agricultural fertilizers, plastic, resin, coating materials, and pharmaceuticals industries. The company

also manufactures and trade liquid ammonia and ammonia solution. The company primarily operates in China, where it

is headquartered in Henan and employs around 3,415 people.

Key Metrics

The company recorded revenues of $571 million in the fiscal year ending December 2011, an increase of 29.3%


preceding year.

Table 15: China XLX Fertiliser Ltd: key financials ($)

$ million 2007 2008 2009 2010 2011

Revenues 238.8 323.0 360.9 441.8 571.4

Net income (loss) 49.1 51.4 18.5 22.4 28.0

Total assets 283.9 384.5 450.9 495.1 648.8





Table 16: China XLX Fertiliser Ltd: key financials (CNY)

CNY million 2007 2008 2009 2010 2011

Revenues 1,541.4 2,084.9 2,329.6 2,851.4 3,688.2

Net income (loss) 317.2 331.7 119.2 144.6 180.5

Total assets 1,832.5 2,481.9 2,910.6 3,195.4 4,187.7

Total liabilities 676.3 1,031.0 1,435.9 1,605.9 2,126.0


Table 17: China XLX Fertiliser Ltd: key financial ratios

Ratio 2007 2008 2009 2010 2011

Profit margin 20.6% 15.9% 5.1% 5.1% 4.9%

Revenue growth 71.8% 35.3% 11.7% 22.4% 29.3%

Asset growth 216.5% 35.4% 17.3% 9.8% 31.1%

Liabilities growth 32.0% 52.4% 39.3% 11.8% 32.4%

Debt/asset ratio 36.9% 41.5% 49.3% 50.3% 50.8%

Return on assets 26.3% 15.4% 4.4% 4.7% 4.9%


Figure 11: China XLX Fertiliser Ltd: revenues & profitability




Figure 12: China XLX Fertiliser Ltd: assets & liabilities




MACROECONOMIC INDICATORS

Country Data

Table 18: China size of population (million), 2007–11

Year Population (million) % Growth

2007 1,321.3 0.5%

2008 1,328.0 0.5%

2009 1,334.7 0.5%

2010 1,339.7 0.4%

2011 1,346.3 0.5%


Table 19: China gdp (constant 2000 prices, $ billion), 2007–11

Year Constant 2000 Prices, $ billion % Growth

2007 2,824.9 14.2%

2008 3,160.4 11.9%

2009 3,486.9 10.3%

2010 3,846.0 10.3%

2011 4,196.0 9.1%


Table 20: China gdp (current prices, $ billion), 2007–11

Year Current Prices, $ billion % Growth

2007 3,494.4 25.4%

2008 4,532.2 29.7%

2009 5,051.0 11.4%

2010 5,807.3 15.0%

2011 6,906.7 18.9%




Table 21: China inflation, 2007–11

Year Inflation Rate (%)

2007 4.8%

2008 5.9%

2009 (0.7%)

2010 3.3%

2011 5.6%


Table 22: China consumer price index (absolute), 2007–11

Year Consumer Price Index (2000 = 100)

2007 113.7

2008 120.4

2009 119.5

2010 123.5

2011 130.4


Table 23: China exchange rate, 2007–11

Year Exchange rate ($/CNY) E change rate (€/CNY)

2007 7.6172 10.4228

2008 6.9623 10.1875

2009 6.8409 9.5123

2010 6.7788 9.0005

2011 6.4544 8.9794




APPENDIX

Methodology MarketLine Industry Profiles draw on extensive primary and secondary research, all aggregated, analyzed, cross-

checked and presented in a consistent and accessible style.

Review of in-house databases – Created using 250,000+ industry interviews and consumer surveys and supported by

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Industry associations

Crop Life Asia

17A Everton Road, Singapore 089373

Tel.: 65 6221 1615

Fax: 65 6222 1615

www.croplifeasia.org

Related MarketLine research

Industry Profile

Fertilizer in the UK

Fertilizer in North America

Fertilizer in Western Europe

Fertilizer in Eastern Europe

Fertilizer in Japan

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