Sichuan Lutianhua Company Limited By Shares: history, ownership, mission, how it works & makes money

A Brief History of Sichuan Lutianhua Company Limited By Shares

Sichuan Lutianhua Company Limited By Shares, established in 2000, has built a strong presence in the chemical industry, focusing primarily on the production of fertilizers and petrochemical products. The company has grown significantly, reflecting the evolving demands of the agricultural sector and industrial applications.

In 2021, the company reported a total revenue of RMB 14.82 billion, representing an increase of 15.2% compared to the previous year. The net profit for the same year was approximately RMB 1.02 billion, with an impressive net profit margin of 6.9%. These figures highlight the company’s robust financial health and operational efficiency.

In terms of production capacity, Lutianhua has an annual capacity of over 1.5 million tons of urea and various nitrogen-based fertilizers. The company's expansion efforts have also led to investments in advanced technology, enhancing production processes and product quality.

Over the years, the company has diversified its product portfolio. In 2022, the product mix included:

• Fertilizers: 60%
• Chemicals: 25%
• Other products: 15%

As of mid-2023, Sichuan Lutianhua's market capitalization stood at approximately RMB 16.5 billion. The stock price has shown resilience, trading between RMB 7.50 and RMB 9.00 per share throughout the first half of 2023.

The global fertilizer market also influences Lutianhua's operations. In 2021, the global fertilizer market was valued at around USD 200 billion, with projections indicating a compound annual growth rate (CAGR) of 3.5% through 2026. This robust growth trajectory is crucial for Lutianhua as it seeks to capture a larger market share.

In an effort to align with environmental regulations and sustainability trends, the company has begun implementing initiatives aimed at reducing carbon emissions by 30% over the next five years. These strategies include investing in cleaner production technologies and enhancing energy efficiency.

The company's strategic focus on innovation and sustainability, coupled with its solid financial performance, positions Sichuan Lutianhua for continued growth in the competitive chemical market. As it aims to increase market share while adhering to environmental standards, the outlook remains optimistic.

A Who Owns Sichuan Lutianhua Company Limited By Shares

Sichuan Lutianhua Company Limited By Shares, listed on the Shenzhen Stock Exchange, has a diverse ownership structure. As of the latest data in 2023, the ownership is divided among institutional investors, state-owned enterprises, and individual shareholders.

The largest shareholder is the Sichuan Provincial Investment Group Co., Ltd., holding approximately 20% of the total shares, which amounts to 175 million shares. This state-owned enterprise plays a significant role in the company's strategic direction.

In addition to Sichuan Provincial Investment Group, other notable institutional investors include China Life Insurance Company and various mutual funds that collectively own around 15% of the shares. The remaining shares are dispersed among various smaller institutional investors and retail investors.

As of the first quarter of 2023, Sichuan Lutianhua reported a market capitalization of approximately ¥10 billion, highlighting its presence in the chemical industry. With a focus on the production of fertilizers and chemical products, the company's financial performance remains closely tied to commodity prices, which directly affect profitability.

In 2022, Sichuan Lutianhua generated revenues of ¥5.2 billion, with a net profit margin recorded at 8%, reflecting a robust demand for fertilizers amid rising agricultural needs. The company’s earnings per share (EPS) stood at ¥0.30 for the same period.

Shareholder meetings indicate strong support for strategic initiatives aimed at expanding production capacity and diversifying product lines, ensuring steady growth amidst the competitive landscape of the chemical industry.

Sichuan Lutianhua Company Limited By Shares Mission Statement

Sichuan Lutianhua Company Limited By Shares, a significant player in the chemical industry, specifically focuses on the production of fertilizers and other chemical products. The company's mission emphasizes innovation in chemical processes, sustainability in operations, and a commitment to excellence in customer service.

The mission statement reflects their dedication to enhancing agricultural productivity while minimizing environmental impact. They aim to provide high-quality products that meet the evolving needs of their customers, contributing to both economic development and environmental stewardship.

As of the latest financial reports, Sichuan Lutianhua has showcased impressive figures that underline its operational efficiency and market presence:

The mission statement is further supported by their strategic initiatives aimed at expanding production capacities and leveraging advanced technologies. Sichuan Lutianhua has invested over 500 million CNY in research and development to enhance production efficiency and product quality.

Furthermore, the company is committed to reducing its carbon footprint, with a target to decrease greenhouse gas emissions by 30% by 2025. This aligns with their mission to operate sustainably and responsibly in the chemical industry. The implementation of cleaner technologies is projected to save the company approximately 100 million CNY annually in energy costs.

With a workforce of over 5,000 employees, Sichuan Lutianhua emphasizes a culture of safety and continuous improvement. Training programs are regularly conducted, resulting in a 15% reduction in workplace accidents year-on-year.

The company also engages actively with stakeholders to ensure that its mission resonates throughout the supply chain, contributing to greater societal and environmental outcomes. Their community outreach programs have benefitted over 20,000 local farmers, providing access to affordable fertilizers and educational resources.

How Sichuan Lutianhua Company Limited By Shares Works

Sichuan Lutianhua Company Limited By Shares (Sichuan Lutianhua) is primarily engaged in the production of chemical products, particularly ammonia, urea, and ammonia-based fertilizers. The company operates in various segments including chemical fertilizers, chemical products, and logistics and transportation, providing a diverse revenue stream.

As of the end of 2022, Sichuan Lutianhua reported a total revenue of approximately RMB 10.82 billion (approx. USD 1.70 billion), showcasing a solid performance in the highly competitive chemical industry. The net profit for the same period stood at around RMB 1.05 billion, which is a 9.7% increase compared to the previous year.

The company’s major products are as follows:

With a strong focus on research and development, Sichuan Lutianhua allocates approximately 3% of its annual revenue to R&D activities. The company has enhanced its production efficiency by adopting advanced technologies, resulting in a reduction of production costs by 5% over the last two fiscal years.

Sichuan Lutianhua's operational strategy includes a robust distribution network to ensure effective logistics. The company has invested in over 500 logistics vehicles, enabling efficient transportation of products to various domestic and international markets. Its logistics division contributes approximately 10% to the overall revenue.

The company’s stock is listed on the Shenzhen Stock Exchange under the ticker symbol 000912.SZ. As of late October 2023, the stock price is around RMB 10.25, reflecting a market capitalization of approximately RMB 11.5 billion.

In terms of financial ratios, Sichuan Lutianhua exhibits the following metrics:

In recent strategic moves, Sichuan Lutianhua entered into a partnership with several agricultural firms to enhance market penetration in the fertilizer sector, further increasing its share in the domestic market. This partnership is expected to drive a projected growth rate of 8-10% in revenue for the upcoming fiscal year.

The company remains committed to sustainable practices, aiming to reduce its carbon emissions by 20% over the next five years through greener production methods and technologies.

How Sichuan Lutianhua Company Limited By Shares Makes Money

Sichuan Lutianhua Company Limited By Shares, listed on the Shanghai Stock Exchange under the ticker symbol 000912, primarily operates in the chemical industry. The company produces a range of products, including urea, ammonium carbonate, and various chemical fertilizers. For the fiscal year 2022, the company's total operating income reached approximately RMB 20.54 billion, reflecting a growth of 12.3% compared to 2021.

The company's revenue generation is significantly influenced by the prices of raw materials and market demand for fertilizers. In 2022, the average selling price of urea, one of its key products, was around RMB 2,500 per ton, which was an increase from RMB 2,000 per ton in 2021. This price surge can be attributed to fluctuations in the global nitrogen market and supply chain disruptions caused by geopolitical tensions.

Another vital aspect of Sichuan Lutianhua's revenue is its production capacity. As of 2023, the company has an annual production capacity of about 2 million tons of urea and approximately 1 million tons of ammonium bicarbonate. The utilization rate of these facilities is typically above 90%, indicating efficient operations and strong demand for its products.

Sichuan Lutianhua's cost structure is also critical to understanding its profitability. In 2022, it reported a cost of goods sold (COGS) amounting to RMB 15.0 billion, which is approximately 73% of its total operating income. The gross profit margin stood at around 27%, indicative of healthy profitability within the industry.

The company's strategic initiatives include expanding its product offerings and entering new markets. As of 2023, Sichuan Lutianhua is working on enhancing its production capabilities with an investment of RMB 1.5 billion aimed at increasing its production capacity by an additional 300,000 tons of specialty fertilizers.

Another revenue stream for Sichuan Lutianhua comes from exports. In 2022, the company exported approximately 500,000 tons of urea, contributing about RMB 1.8 billion to its annual revenue. Key markets include Southeast Asia and South America, where demand for fertilizers is consistently rising.

Finally, Sichuan Lutianhua also benefits from government policies that support agricultural production, leading to increased fertilizer consumption. Recent policy changes in China aimed at boosting grain production will likely enhance the company’s sales potential in the domestic market, as agricultural output is closely tied to fertilizer usage.