Stanley: Net profit in the first three quarters increased by 70.03% Actively layout the phosphorus industry chain

China Securities Network News (Wang Luo) Stanley released the first three quarters of 2021 performance forecast on the evening of October 13, and it is expected that the net profit attributable to shareholders of listed companies from January to September 2021 will be about 347 million yuan, an increase of 70.03% year-on-year.

The announcement shows that the main reason for the performance growth is that the gross profit of the company's product units has increased slightly compared with the same period last year. The company makes full use of its capital advantages to do a good job in strategic procurement of raw materials, and has made multiple product price adjustments according to the rise of raw materials and downstream demand, ensuring the gross profit space of the product and bringing about the growth of gross profit. The company deepened the intensity of management, strengthened the reasonable control of expenses, paid attention to capital management, and increased monetary funds over the same period of the previous year, thereby achieving a substantial increase in financial interest income and improving operating profits.

This year, the company formulated a development plan for the extension of the phosphorus industry chain, and in the first half of the year, the company obtained 51% of the equity of Chengde Lihe Fertilizer Co., Ltd. through equity transfer and capital increase, and Lihe Fertilizer industry officially became the company's holding subsidiary.

Lihe Fertilizer is located in Longhua County, Chengde City and the surrounding areas have rich phosphate iron ore resources, while Longhua County is adjacent to the northern copper smelting base Chifeng City, the local non-ferrous smelting industry can bring sufficient sulfuric acid, Lihe Fertilizer industry can conveniently integrate the nitrogen, phosphorus and sulfur resources required for ammonium phosphate production. Longhua County is located in the middle of the northeast region and the north China region, Lihe Fertilizer has obvious transportation advantages compared with enterprises in central and south China to ship to the northeast market. Longhua County has formed a mature phosphate rock - phosphate fertilizer - phosphogypsum - building materials cycle industrial chain, phosphate fertilizer production by-product phosphogypsum can be effectively treated, with a certain industrial chain advantages. Lihe Fertilizer industry has been engaged in phosphate fertilizer production for many years, with rich experience and certain talent advantages. The above advantages provide unique conditions for the efficient and low-cost operation of Lihe Fertilizer.

After the acquisition of Lihe Fertilizer, the company will actively promote the construction of new projects in Lihe Fertilizer Industry, increase production capacity, increase sales volume, and enhance profitability, so that Lihe Fertilizer industry will become one of the leading enterprises in North China and Northeast China, so that the company and Lihe Fertilizer industry can achieve business synergy and complete the company's phosphorus industry chain layout in the northern region.

The company said that at the same time, it is also actively planning and promoting the layout of the phosphorus industry chain in the southern region, and intends to rely on local phosphate rock resources to open up the phosphate mine-phosphate fertilizer-compound fertilizer industry chain through self-construction or cooperation, and strive to improve the company's profitability and core competitiveness.