[Haichuan Chemical Industry Site] The former site of Chitian Chemical Plant is planned to be turned into an old-industry film and television culture park

Goodbye, Chitianhua! 300,000 tons of synthetic ammonia and 500,000 tons of urea production facilities are about to be demolished! 2019-07-17 Author: Source: Danqing Chishui, China Net Finance, Shengjitang, China Agricultural Inputs Media. “Just outside the city of Chishui, three kilometers downstream along the Chishui River, in a narrow area at the foot of Tiantai Mountain, there is a modern large-scale fertilizer factory – that’s Chitianhua!” ”This is the memory of the local people in Chishui regarding Chitianhua. 　　Recently, Chishui City in Zunyi, Guizhou Province, held a preparatory meeting for the demolition of Chitianhua’s 300,000-ton synthetic ammonia and 500,000-ton urea production facilities, in order to ensure that the demolition is carried out successfully and safely. From now on, Chitianhua – that renowned state-owned enterprise which had existed along the Chishui River for over forty years – will completely disappear, leaving no trace behind. 　　Glory: The “stars” along the Chishui River in the past 01 In the last century, there were two prominent enterprises along the beautiful Chishui River: one was the Moutai Distillery, located in the middle reaches of the river, and the other was the Chishui Natural Gas Fertilizer Factory (abbreviated as Chitianhua), situated in the lower reaches of the river. Established in the 1970s, Chitianhua is located in Chishui City, Zunyi Province, Guizhou Province, which shares borders with Luzhou City in Sichuan Province on three sides. It makes full use of the abundant natural gas available in nearby Luzhou City to produce urea, a type of fertilizer, thereby supporting the development of agriculture in Guizhou and contributing positively to ensuring that local farmers have enough food to eat. 　　As the largest nitrogen fertilizer producer in Guizhou Province, Chitianhua’s main business is the production and sales of urea. Its fertilizer and chemical production bases include the Chishui Chemical Branch, which uses natural gas as raw material for production (with an annual output of 500,000 tons of urea), and the wholly-owned subsidiary Tongzi Chemical, which uses coal as its raw material (with an annual output of 520,000 tons of urea and 300,000 tons of methanol). During that period, Chitianhua was truly a happy little world equipped with everything needed for production and daily life. In the 1980s and 1990s, its infrastructure was far more modernized than that of Chishui city center, comparable to that of Guiyang, the provincial capital at the time.

　Decline: 800 million yuan in losses over three years 　　02 　　Chitianhua used to focus on its chemical manufacturing operations, but due to the severe overcapacity in its industry, product prices remained low, which negatively affected its financial performance. 　　An analysis reveals that in the early years after its listing, Chitianhua, which is primarily engaged in the chemical industry, performed well. However, between 2008 and 2013, although the company was profitable, its net profit began to decline for six consecutive years. In 2008, Chitianhua celebrated its 30th anniversary of establishment with great enthusiasm, as the entire company participated in the lively festivities. It was also in that year that Chitianhua began to decline gradually. In 2003, Chitianhua borrowed 2.8 billion yuan to build an integrated pulp and paper factory ； In 2005, Chitianhua borrowed 2.8 billion yuan to build Tianfu Coal Chemical in Machangping, Fuquan, Guizhou ； In 2007, Chitianhua took on another loan of 5.8 billion yuan to build the Jinchи Coal Chemical Plant in Tongzi County, Guizhou. Over the past 10 years, Chitianhua has built three major projects: the paper industry project, the Tianfu project, and the Jinchi project. By 2013, Chitianhua’s total assets amounted to 13.156 billion yuan, while its total liabilities were 8.287 billion yuan, resulting in a debt-to-asset ratio of 62.99%. The three factories in the paper industry—Tianfu and Jinchi—have been operating at a loss since their establishment. After 2013, natural gas prices in Luzhou, Sichuan, began to rise, which caused the Chishui Natural Gas Fertilizer Plant – the only facility that could previously make a profit from urea production – to start incurring losses as well. This became the final straw that led to the collapse of Chitianhua. 　　In 2014, Chitianhua’s performance was even more dismal: it achieved revenue of 3.287 billion yuan that year, a decrease of 20.97% on a year-on-year basis ； Net profit loss amounted to 575 million yuan, a decrease of 7765.73% on a year-on-year basis. In 2015, Chitianhua was on the verge of incurring another net loss; the quarterly reports for that year showed that revenue for the first three quarters amounted to 2.307 billion yuan, a 0.29% increase compared to the previous year ； The net profit loss amounted to 142 million yuan, a 54.73% increase compared to the previous year. 　　Fortunately, Chitianhua recorded a net profit of 162 million yuan in the fourth quarter of 2015, reversing its annual loss situation. However, Chitianhua’s performance in 2016 faced further difficulties, with revenue reaching 2.857 billion yuan, a 3.07% decrease on a year-on-year basis ； The net profit loss was 350 million yuan, a decrease of 37.318 billion yuan on a year-on-year basis.

　　03 In March 2018, the name of Chitianhua Company was changed from \"Guizhou Chitianhua Co., Ltd.\" to \"Guizhou Shengjitang Pharmaceutical Industry Co., Ltd.\\" On June 25, 2018, its stock ticker symbol was changed from \"Chitianhua\" to \"Shengjitang\". Following the name change, in addition to its fertilizer and chemical manufacturing operations, Shengjitang’s business scope was expanded to include investments in the pharmaceutical, medical, and health industries ； Research, development, and production of biological, genetic, and cellular drugs ； Operation of large-scale health and pharmaceutical industry projects ； Businesses such as the development of specialized medical services. 　　At the beginning of 2018, Chitianhua signaled its intention to divest its chemical business. On January 26, 2018, Chitianhua announced that it would, depending on the actual operating conditions, consider divesting its chemical industry operations at an appropriate time, thereby shifting from its current dual focus of pharmaceuticals and chemicals to a healthcare industry centered on diabetes and cancer treatments. 　　A year later, the boots finally touched ground. On March 20, 2019, Shengjitang announced that it would sell its main urea and synthetic ammonia production facility, the Chishui Chemicals Branch, in order to raise working capital and focus on developing its pharmaceutical business. It is reported that the company has a urea production facility with a capacity of 500,000 tons, but production was halted as early as November 2015, and it has not resumed to this day. 　　Thus, Guizhou Province’s former largest nitrogen fertilizer producer has completely withdrawn from the market. In the future, no traces of Chitianhua will be found along the Chishui River anymore, yet it will forever remain in the hearts of those who belonged to Chitianhua.

However, these state-owned enterprise sites that have been vacant for many years may become lively once again; of course, it won’t be the scene of roaring machinery and billowing chimneys as before, but rather a different kind of prosperity. It is reported that Chishui City plans to build a theme park at the on-ramp and off-ramp exits of the Rongzun Expressway (Chishui Interchange) under the Jinhua Sub-district Office, as well as on the site of the former Chitianhua factory. The construction of this park will cover an area of about 1,200 mu, with a total investment of 500 million yuan planned. Among them, the \"Journey Through the Jurassic Period\" theme park, a thrilling and luxurious attraction, requires an investment of 100 million yuan; it covers an area of 300 mu and is built featuring the unique Danxia Alsophila found in Chishui ； The Chitianhua Old Industrial Film and Television Culture Base Industrial Park requires 200 million yuan; it is planned to retain the original factory buildings and towers on the 800-mu area occupied by Chitianhua’s factory, and to build infrastructure such as film and television sets and outdoor shooting locations ； A 200 million yuan investment is being made in a live CS activity base designed to simulate factory battles. This base will consist of land, sea, and air elements (including training areas), and it will recreate the scenario of factory battles. It features bunkers built with brick walls, as well as entrances shaped like doors and windows, thereby replicating the interior structure of buildings and enhancing the realism, excitement, and technical aspects of combat.