Higher Phosphorus Chemicals Prices Boost Xingfa Group's 2008 Earnings    

Hubei Xingfa Chemicals Group Co., Ltd. (Xingfa, SH: 600141), China's leading phosphorus chemical company, reported a 56.36% on-year rise in core business revenue in 2008 to RMB2.676 billion. Net profit gained 283.78% to RMB295 million, or RMB1.17 per share.
   However, the company only posted earnings of RMB14.14 million in the fourth quarter of 2008, representing a quarter-on-quarter decline of 92.9%, affected by the adverse international economic situation.
   Prices for Xingfa Group's yellow phosphorus and phosphate products rose substantially in the first three quarters amid strong demand for phosphorus chemicals in both home and international markets.
   And such natural disasters like snowstorms and the Sichuan earthquake, which led to a supply shortfall in China's yellow phosphorus market, also helped push up yellow phosphorus and phosphate prices and in turn the company's earnings.
   In the fourth quarter, phosphorus chemical demand became weaker, and such were product prices, in face of the domestic economic slowdown.
   Since there is no sign of immediate recovery, the company set a 2009 sales target of RMB2.68 billion, basically flat with 2008's.