Xinghua Chemical's Net Profit Surges
Year:2009 ISSUE:9
COLUMN:M & A, BUSINESS & TRADE
Click:202    DateTime:Mar.26,2009
Xinghua Chemical's Net Profit Surges     

Shaanxi Xinghua Chemical Co., Ltd. (Xinghua Chemical, SZ: 002109), China's leading ammonium nitrate maker, had operating revenue of RMB835.55 million in 2008, up 25.25% from a year earlier. Net income surged 71.80% to RMB166.09 million.
   Xinghua Chemical attributed the earnings increase to the surging ammonium nitrate prices during the second and third quarters of 2008. Sales turned weak in the fourth quarter.
   In 2008, the company produced 211 500 tons of synthetic ammonia and 354 100 tons of ammonium nitrate. Its annual production capacity has risen to 220 000 t/a for synthetic ammonia and 450 000 t/a for ammonium nitrate after an expansion phase was completed at the end of 2008.
   The company has set a 2009 target of RMB861.95 million in operating revenue and RMB103.60 million in total profit.
   Xinghua Chemical has proposed to expand the capacity of a dilute nitric acid facility phase II to 270 000 t/a from an originally planned 170 000 t/a. The added capacity will be used to complement a 125 000 t/a ammonium nitrate production line which has been idled.