The Heart to Heart 2021 Q3 Performance Presentation was successfully held

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The earnings presentation for the third quarter of 2021 was successfully held by China Heartland Fertilizer. Author/Source: Jiujiang Heartland Fertilizer Co., Ltd. Date: 2021-11-16. Clicks: 20. On November 15, 2021, China Heartland Fertilizer (01866.HK) held a teleconference to present its earnings for the third quarter of 2021. Liu Xingxu, the chairman of the company’s board, Zhang Qingjin and Yan Yunhua, executive directors, along with other relevant staff from China Heartland Fertilizer, participated in the meeting to engage in thorough discussions and exchanges with online investors and analyst representatives. For the nine months ended September 30, 2021, the group achieved comprehensive revenue of approximately RMB 11.762 billion, a year-on-year increase of 56% ； The comprehensive net profit was approximately RMB 1.395 billion, representing a year-on-year increase of 232% ； Profit attributable to the owners of the parent company was approximately RMB 1.022 billion, representing a year-on-year increase of 264%. Looking back at the period, as the pandemic resurged and food exports were restricted, global agricultural and food prices rose, leading to further increases in demand and prices for domestic fertilizers and chemical products. In the third quarter, both the Henan headquarters and the Xinjiang facility of our group completed their maintenance work as scheduled, ensuring the long-term safe and stable operation of production. With the successful commissioning of the third production facility in Jiujiang, Jiangxi, in February 2021, the group’s production capacity and profits both reached new heights. Among them, the sales revenue from urea increased by 45% on a year-on-year basis, reaching approximately RMB 3.406 billion. Sales revenue from compound fertilizers increased by 11% on a year-on-year basis to approximately RMB 2.823 billion, while sales revenue from methanol rose by 456% year-on-year to approximately RMB 1.224 billion. Dimethyl ether sales revenue grew by 93% year-on-year, reaching approximately RMB 985 million ； The sales revenue from melamine amounted to 807 million yuan, representing a year-on-year increase of 70% ； The sales revenue from furfuryl alcohol increased by 51% year-on-year, reaching approximately RMB 551 million. Due to the ongoing impact of the pandemic, food exports have been restricted, leading to a shortage of food supplies worldwide. There is also an increasing emphasis on food security in domestic countries, and the policies aimed at replanting crops and restoring farmland have further increased the demand for fertilizer products in agricultural production. Furthermore, with the implementation of the \"dual carbon\" policies, outdated production capacity is being phased out more rapidly, new capacity is subject to stricter controls, and the entry barriers for the coal chemical industry have increased. Yet, China Xinlianxin still benefits from being a high-quality enterprise with existing production capacity. The tight supply-demand balance and rising food prices will keep fertilizer prices high. The production capacity made available by outdated manufacturing processes will be occupied by leading enterprises that boast larger scale, superior technology, and lower costs. Relying on the geographical advantages, technological strengths, as well as the advantages of low costs and product differentiation associated with its three manufacturing bases, the group will continue to increase its efforts in developing high-efficiency fertilizers, thereby boosting its market share. It will also gradually expand into the fine chemical industry chain, aiming to achieve sustainable development in coal chemistry through diversification and green practices. The fixed-bed upgrade projects for the group’s second and third factories are expected to be completed and put into operation in the fourth quarter of this year. By then, all three of the group’s manufacturing sites will be equipped with advanced production technologies, allowing for an increased output of high-quality products, which will contribute to the group’s high-quality development and enhance its position in the industry.