Phosphorus Chemical Industry Company Dynamics (Q3 2014)
The whole Chinese phosphorus industry chain is in decline at present and players in it are trying best to improve their business performance.
As of the end of Aug. 2014, all the listed phosphorus chemical companies in China released their 2014 semi- annual reports, but about half of them suffered losses. Among them, Luxi Chemical Group Co., Ltd. (Luxi Chemical)'s net profit down 25.14% YoY in H1 2014; Anhui Liuguo suffered huge losses in H1 2014, with its net profit of - USD15.22 million, down 1,446.14% YoY.
Since H2 2013, the pressure of economic downturn has increased. Lots of industries were involved in the shadow of overcapacity, and this was also a growing problem in phosphorus chemical and phosphate fertilizer industries. In addition with the gloomy international price in phosphate fertilizer market, China's export of phosphate fertilizers faces huge difficulties, and prices of nearly all phosphorus chemical products are way down.
This industrial background has affected much on the companies' decision. Yunnan Yuntianhua Co.,Ltd. (Yunnan Yuntianhua) released that one of its subsidiaries, Yunnan Zhaotong Tianhe Co., Ltd. (Zhaotong Tianhe) suspended its production because of its great losses in recent years.
However, different from the traditional phosphorus chemical industry, fine chemicals industry still has promising prospects in China. Many companies are actively expanding their industrial chain to a more precise way. Zhejiang Wansheng Co., Ltd. (Zhejiang Wansheng), China’s second flame retardant company, is about to be listed, and this listing will enhance Zhejiang Wansheng’s status as a leader in the flame retardant industry. Sichuan Mianzhu Economic Development Zone signed a contract concerning the second- phase deep- processing project of phosphate with AsiaPhos in Singapore, aiming to extend Mianzhu’s phosphorus chemical industrial chain to a more refined level.
As phosphorus resource's non- renewable characters, guaranteeing abundant phosphorus ore supply is necessary for China and Chinese phosphorus chemical enterprises. Anhui Huaxing Chemical Industry Co., Ltd. (Anhui Huaxing) increased capital to its subsidiary Anhui Huajian Chemical Co., Ltd. (Anhui Huajian), which will accelerate the construction of Anhui Huajian’s PCl3 project so as to achieve the raw material support and supply to improve Anhui Huaxing's industrial chain.
Based on these backgrounds above, this report had listed the detailed companies dynamics in the past three years and analyzed deeply to show you the major trend of Chinese phosphorus chemical players.
As of the end of Aug. 2014, all the listed phosphorus chemical companies in China released their 2014 semi- annual reports, but about half of them suffered losses. Among them, Luxi Chemical Group Co., Ltd. (Luxi Chemical)'s net profit down 25.14% YoY in H1 2014; Anhui Liuguo suffered huge losses in H1 2014, with its net profit of - USD15.22 million, down 1,446.14% YoY.
Since H2 2013, the pressure of economic downturn has increased. Lots of industries were involved in the shadow of overcapacity, and this was also a growing problem in phosphorus chemical and phosphate fertilizer industries. In addition with the gloomy international price in phosphate fertilizer market, China's export of phosphate fertilizers faces huge difficulties, and prices of nearly all phosphorus chemical products are way down.
This industrial background has affected much on the companies' decision. Yunnan Yuntianhua Co.,Ltd. (Yunnan Yuntianhua) released that one of its subsidiaries, Yunnan Zhaotong Tianhe Co., Ltd. (Zhaotong Tianhe) suspended its production because of its great losses in recent years.
However, different from the traditional phosphorus chemical industry, fine chemicals industry still has promising prospects in China. Many companies are actively expanding their industrial chain to a more precise way. Zhejiang Wansheng Co., Ltd. (Zhejiang Wansheng), China’s second flame retardant company, is about to be listed, and this listing will enhance Zhejiang Wansheng’s status as a leader in the flame retardant industry. Sichuan Mianzhu Economic Development Zone signed a contract concerning the second- phase deep- processing project of phosphate with AsiaPhos in Singapore, aiming to extend Mianzhu’s phosphorus chemical industrial chain to a more refined level.
As phosphorus resource's non- renewable characters, guaranteeing abundant phosphorus ore supply is necessary for China and Chinese phosphorus chemical enterprises. Anhui Huaxing Chemical Industry Co., Ltd. (Anhui Huaxing) increased capital to its subsidiary Anhui Huajian Chemical Co., Ltd. (Anhui Huajian), which will accelerate the construction of Anhui Huajian’s PCl3 project so as to achieve the raw material support and supply to improve Anhui Huaxing's industrial chain.
Based on these backgrounds above, this report had listed the detailed companies dynamics in the past three years and analyzed deeply to show you the major trend of Chinese phosphorus chemical players.
1 OVERVIEW
2 COMPANY DYNAMICS
2.1 Sept.
2.1.1 China’s second flame retardant company to be listed
2.1.2 Hubei Longxiang signed technological development agreement with WIT
2.1.3 Shaanxi Shanhua started new PA concentration device
2.2 Aug.
2.2.1 Jiangsu Yoke changed industrial and commercial registration
2.2.2 Zhaotong Tianhe suspended production
2.2.3 Luxi Chemical’s net profit down 25.14% YoY in H1 2014
2.2.4 Hubei Sanning output first batch of qualified products from nitro- and S-based compound fertilizer project
2.2.5 China cooperated with Uganda to launch major mining project
2.2.6 Guizhou Xinxin acquired four phosphorus chemical enterprises in Kaiyang County
2.2.7 Anhui Huaxing increased capital to Anhui Huajian to accelerate construction of PCl3 project
2.3 July
2.3.1 Mianzhu Economic Development Zone cooperated with AsiaPhos to develop phosphate industry
2.3.2 Anhui Liuguo invested USD9.73 million in Anhui Zhongyuan as capital increment
2.3.3 Anhui Liuguo suffered huge losses in H1 2014
2.3.4 Kingenta Norsterra put nitrocompound fertilizer project with capacity of 600,000 t/a into production
2.3.5 Guiyang Sinochem-Kailin’s two scientific projects passed identification
2.3.6 Jiangxi Liuguo introduced autumnal marketing strategy in North China
2.3.7 Yunnan Kingenta transferred 38% equity of Yunnan Zhongzhen with USD4.18 million
2.3.8 Yancon Lunan completed transformation and upgrading
2.3.9 Stanley's actual controller pledged part of equity
2 COMPANY DYNAMICS
2.1 Sept.
2.1.1 China’s second flame retardant company to be listed
2.1.2 Hubei Longxiang signed technological development agreement with WIT
2.1.3 Shaanxi Shanhua started new PA concentration device
2.2 Aug.
2.2.1 Jiangsu Yoke changed industrial and commercial registration
2.2.2 Zhaotong Tianhe suspended production
2.2.3 Luxi Chemical’s net profit down 25.14% YoY in H1 2014
2.2.4 Hubei Sanning output first batch of qualified products from nitro- and S-based compound fertilizer project
2.2.5 China cooperated with Uganda to launch major mining project
2.2.6 Guizhou Xinxin acquired four phosphorus chemical enterprises in Kaiyang County
2.2.7 Anhui Huaxing increased capital to Anhui Huajian to accelerate construction of PCl3 project
2.3 July
2.3.1 Mianzhu Economic Development Zone cooperated with AsiaPhos to develop phosphate industry
2.3.2 Anhui Liuguo invested USD9.73 million in Anhui Zhongyuan as capital increment
2.3.3 Anhui Liuguo suffered huge losses in H1 2014
2.3.4 Kingenta Norsterra put nitrocompound fertilizer project with capacity of 600,000 t/a into production
2.3.5 Guiyang Sinochem-Kailin’s two scientific projects passed identification
2.3.6 Jiangxi Liuguo introduced autumnal marketing strategy in North China
2.3.7 Yunnan Kingenta transferred 38% equity of Yunnan Zhongzhen with USD4.18 million
2.3.8 Yancon Lunan completed transformation and upgrading
2.3.9 Stanley's actual controller pledged part of equity
LIST OF TABLES
Table 2-1 Company dynamic in phosphorus chemical industry in China, Q3 2014
Table 2-1 Company dynamic in phosphorus chemical industry in China, Q3 2014
