Lanhua Annouces Records for 2007    

Shanxi Lanhua Sci-Tech Venture Co., Ltd. (Lanhua, SH: 600123) accomplished a main-business revenue of RMB3 461.0 million in 2007, an increase of 18.33% over the previous year. The total profit was RB860.9 million, an increase of 6.16%. The net profit was RMB574.6 million, an increase of 1.31%. The earning per-share was RMB1.41.
   The company saw a stable growth of the coal business and the chemical fertilizer business in 2007. According to its annual performance statement, the output of coal was 5.18 million tons, an increase of 13.47% over the previous year. The output of urea was 939 600 tons, an increase of 13.61% and the sales amount of urea was 967 800 tons, an increase of 11.22%.
   The company is located in Jincheng of Shanxi province, with rich anthracite resources. Anthracite is an important coal chemical raw material. The company has used this resource advantage to extend its industrial chain and made a vigorous development of the coal chemical industry. On May 23rd, 2007 the company purchased the 70.05% equity in Shanxi Jincheng Coal Chemical Co., Ltd. from its controlling shareholder Shanxi Lanhua Coal Industry Group Co., Ltd.
   The company said the gross profit of the chemical fertilizer business increased 15.6% in 2007 from 18% in 2006. Its average annual selling price of chemical fertilizers in 2007 was RMB1 666 per ton, an increase of RMB10 per ton over 2006. The production cost of chemical fertilizers was RMB1 367 per ton, a drop of RMB31 per ton from 2006.
   Stimulated by the export growth, the price of urea in China went up rapidly in the domestic market in 2007. The company exported 5.0 million tons of urea in 2007. The coal in the company has provided a high-quality raw material to its chemical fertilizer production, with simplified desulfurization process, reduced production cost.
   The capacity of urea in the company has reached 1.0 million t/a today. The 300 000 t/a urea production line in Tianyue Chemical Fertilizer Co., Ltd. will contribute to the profit in 2008. The 200 000 t/a methanol and 100 000 t/a dimethyl ether project, the first phase of the 1.0 million t/a dimethyl ether project in Lanhua Clean Energy Co., Ltd. whose 75% equity held by Lanhua, will hopefully start production in 2008.