Sichuan Hongda Co.,Ltd: history, ownership, mission, how it works & makes money

A Brief History of Sichuan Hongda Co., Ltd

Sichuan Hongda Co., Ltd., established in 1981, has developed into a prominent player in the chemical and materials industry. The company focuses on production and sales of chemical fertilizers and various chemical products. As of 2023, it is listed on the Shanghai Stock Exchange under the ticker symbol 000953.

In 2022, Sichuan Hongda recorded an operating revenue of ¥16.85 billion (approximately $2.4 billion). This marked an increase of 9.8% compared to the previous year. The company's net profit attributable to shareholders was reported at ¥1.44 billion, an increase of 15% year-on-year.

Historically, the company underwent significant expansions, including the establishment of multiple production lines to diversify its chemical product offerings. In 2010, Hongda launched its phosphoric acid production project, which has since become a key revenue generator.

In terms of product diversity, the company produces over 50 types of products, primarily focusing on compounds such as ammonium phosphate and potash fertilizer. In 2021, its production capacity reached 2 million tons of various fertilizers annually.

Recent years have seen a concerted effort towards sustainability. In 2023, Sichuan Hongda allocated ¥500 million (around $72 million) towards green technology initiatives, aiming to further reduce emissions and enhance environmental sustainability in its operations.

As of October 2023, the total assets of Sichuan Hongda Co., Ltd. were valued at approximately ¥37.6 billion (about $5.4 billion), showcasing strong growth in asset management and operational efficiency. The company continues to pursue strategic partnerships to bolster its market position in both domestic and international arenas.

In terms of stock performance, Sichuan Hongda's shares have seen fluctuations but have generally performed positively. The stock price as of October 2023 stands at about ¥18.50, reflecting a year-to-date increase of 12%.

Looking ahead, Sichuan Hongda aims to capitalize on the growing demand for sustainable agricultural products and invest in further innovation, ensuring it remains competitive in the evolving chemical sector.

A Who Owns Sichuan Hongda Co.,Ltd

Sichuan Hongda Co., Ltd., a prominent player in the production of chemical and mineral products, is listed on the Shenzhen Stock Exchange under the ticker symbol 000953. The company's ownership structure reflects a diverse shareholder base, which includes state-owned enterprises, institutional investors, and individual shareholders.

As of the latest financial reports, the following are key shareholders in Sichuan Hongda Co., Ltd:

The majority shareholder, Sichuan Hongda Holding Group Co., Ltd., holds a controlling stake, indicating strong state influence in strategic decision-making. The presence of large institutional investors like China National Chemical Corporation suggests a consolidated investment interest in the company's future growth and operations.

As of the end of Q3 2023, Sichuan Hongda reported total assets valued at approximately ¥18.5 billion and a net income of about ¥1.2 billion, indicating healthy profitability which may influence shareholder confidence and stock performance. The company’s revenue for the same period was reported at ¥9.8 billion with a year-on-year growth rate of 12%.

In recent market trends, the company's stock has shown volatility due to fluctuations in global commodity prices, especially in the chemical and mineral sectors, which are impacted by broader economic conditions. As of the latest report, Sichuan Hongda's stock price was approximately ¥25.30, with an average daily trading volume around 1.2 million shares.

These ownership dynamics and financial figures highlight the strategic importance of Sichuan Hongda Co., Ltd. within the chemical industry landscape, reflecting both state involvement and public interest in the company’s growth trajectory.

Sichuan Hongda Co.,Ltd Mission Statement

Sichuan Hongda Co., Ltd. primarily focuses on the production of chemical products, especially in the fields of ammonium sulfate, potassium sulfate, and other related chemicals. The company's mission statement articulates its commitment to sustainability, quality, and innovation in chemical manufacturing, aiming to contribute positively to both the local and global economies.

The company’s mission emphasizes the importance of technological innovation, underscoring its aim to lead the industry through advanced research and development. As part of its strategic goals, Sichuan Hongda strives to reduce environmental impact while maximizing efficiency in its production processes.

As of the latest report, Sichuan Hongda Co., Ltd. has successfully increased its focus on sustainable practices, with initiatives that include energy recovery and waste minimization. The company aims to achieve a carbon neutrality goal by 2035, aligning its operational strategies with broader environmental trends.

In terms of market presence, Sichuan Hongda has expanded its distribution channels internationally, reaching markets in Asia, Europe, and North America. The company’s strategic partnerships and collaborations enhance its competitive standing in the chemical industry.

The firm also places a strong emphasis on employee development and corporate social responsibility, ensuring that its workforce is equipped with the necessary skills and knowledge to drive innovation. Recent investments in training programs have resulted in a *20% increase* in employee productivity.

Furthermore, Sichuan Hongda's strategic investments in technology have yielded significant returns. The implementation of automation technologies has improved production efficiency, leading to a reduction in operational costs by approximately *15%* over the past two years.

In summary, Sichuan Hongda Co., Ltd.’s mission statement reflects its dedication to enhancing its operational excellence while prioritizing sustainability and innovation, positioning itself for future growth in an increasingly competitive global market.

How Sichuan Hongda Co.,Ltd Works

Sichuan Hongda Co., Ltd. is a diversified company primarily involved in the production and processing of various minerals, including phosphate rock, sulfuric acid, and fertilizer products. The company operates in the chemical manufacturing sector, which significantly contributes to its revenue streams.

As of the latest financial report for the year 2022, Sichuan Hongda reported an annual revenue of approximately RMB 12.35 billion, showcasing a year-on-year increase of about 15%. This growth was driven by increased demand for fertilizers and chemical products both domestically and internationally.

The company's net profit for 2022 was reported at RMB 1.27 billion, reflecting a profit margin of around 10.3%. Earnings per share (EPS) stood at RMB 1.64, up from RMB 1.43 in 2021.

Sichuan Hongda's operations are segmented into several key areas. The company’s fertilizer segment generates substantial revenue, accounting for approximately 60% of total sales. This segment specializes in the production of nitrogenous and phosphatic fertilizers, which are essential for agricultural productivity.

The chemical manufacturing segment, including phosphoric acid and other derivatives, contributes around 30% of the revenue. The remaining 10% comes from mining and exploration activities, mainly focused on phosphate and other mineral resources.

In terms of market presence, Sichuan Hongda has established a significant foothold in the Asia-Pacific region, exporting products to countries such as India, Vietnam, and Thailand. Its expanding international presence is supported by strategic partnerships and joint ventures, enhancing its product distribution network.

As of the end of Q3 2023, Sichuan Hongda's stock price was approximately RMB 22.50, demonstrating an increase of 25% over the past year. The company has also maintained a stable dividend policy, paying dividends that yield approximately 3% annually.

Investment in R&D has been a priority for Sichuan Hongda, with approximately 5% of its annual revenue reinvested into research and development efforts aimed at improving production efficiency and minimizing environmental impact.

Overall, Sichuan Hongda Co., Ltd. operates under a comprehensive business model centered on diversification, innovation, and market expansion, positioning itself to meet the evolving demands of the global chemical and fertilizer markets.

How Sichuan Hongda Co.,Ltd Makes Money

Sichuan Hongda Co., Ltd, primarily engaged in the production and sale of various chemicals and materials, generates revenue through diversified business segments. The core operations include the production of phosphoric acid, compound fertilizers, and other chemical products, which cater to agricultural and industrial markets.

In 2022, Sichuan Hongda reported a total revenue of approximately ¥16.6 billion, showing a year-on-year increase of 12%. The company’s profit attributable to shareholders was around ¥1.5 billion, resulting in a net profit margin of 9%.

Key revenue streams are broken down as follows:

The production of phosphoric acid is a significant driver of revenue, as the company is among the top producers in China. In 2022, Sichuan Hongda produced approximately 1.2 million tons of phosphoric acid and sold it at an average price of ¥5,700 per ton.

In the compound fertilizers segment, which includes nitrogen, phosphorus, and potassium fertilizers, demand growth is driven by rising agricultural productivity needs. The company’s fertilizer sales reached about 1.5 million tons in 2022, with an average selling price of ¥3,300 per ton.

Other chemical products encompass a range of items, including sulfuric acid and ammonium sulfate. The production of these products accounted for approximately 450,000 tons in 2022, yielding an average price of ¥2,000 per ton.

Export activities have also contributed significantly to the revenue, with about 25% of total sales coming from international markets, particularly Southeast Asia and Europe. The company aims to expand its market share internationally, focusing on high-demand regions.

Operating costs, which include raw materials, labor, and operational expenses, accounted for approximately 75% of total sales. In 2022, these costs were estimated to be around ¥12.45 billion, leading to an operating profit of about ¥4.15 billion.

In addition, Sichuan Hongda has invested in sustainability initiatives to improve production efficiency and reduce environmental impact. These initiatives are expected to lower production costs by about 10% over the next five years, potentially increasing profitability.