China Company Report—Qinghai Salt Lake Potash Co., Ltd

China Company Report—Qinghai Salt Lake Potash Co., Ltd

Qinghai Salt Lake Potash Co., Ltd (stock code: 000792) is the largest potash production base in China.

The total operating incomes and net profits of the company was 3.10937 billion yuan and 990.29 million yuan respectively, year-on-year growth of 19.76 percent and 21.15 percent. Two aspects have contributed to the revenue growth, one is the increasing output of productions in 2007, the total output of potassium chloride was 1.9 million tons, increased 9.83 per cent than last year; another aspect is the increasing price of potash fertilizer, the price of domestic potash fertilizer in 2007 has affected by the international market, driven prices to continue to maintain the upward trend, the average price of the company's products was 1,875 yuan / tons in 2007, higher than the previous year, increased by 12 per cent.

The price of potash fertilizer in global market has been an accelerated trend from January to early March of 2008; the CIF of potash fertilizer of the Southeast Asian region has increased 175-225 US dollars / per ton, much higher than the increase rate in 2007. Recently, the International Maritime price has rebounded rapidly in March after dropping sharply in the January and February of 2008. The fare from Vancouver to Shanghai in the first week of March was 74 US dollars / tons, compared to the end of February rose by 14 US dollars, there will be a further rise of potassium CIF.

The total annual consumption of potash fertilizer in China is more than 1,100 million tons, but the current domestic production capacity of potash fertilizer is only about 30% of total demand, therefore, The rest of the demand have to import from the overseas to solve domestic supply shortage. In 2008, the extra output of potash fertilizer is expected about 2 million tons, the increasing price is the main contributor to the growth of Salt Lake Potash in 2008. In terms of the current price trend, there is a great increasing space of potash fertilizer price. Conservative estimates that the price of potash fertilizer in 2008 will rise 500 yuan than 2007. Therefore, there will be a greater business performance of Salt Lake Potash in 2008.

The heat input centre will be built in August 2008; the capacity of potash fertilizer will produce extra 100,000 tons. The 100,000 tons potassium chloride Heated Dissolution refining project is invested 260 million yuan by a subsidiary firm, which will be completed in 2009.

1. Brief of Salt Lake Potash
2. Analysis of business performance of 2007
2.1. Figure of Operating data of 2007
2.2 The contribution factors of the growth in 2007
2.3. The impact of the rising Prices in 2007
3. Analysis of the International potash market
4. The trend of potash price in 2008
5. Analysis of subsidiaries firm
6. The strategies of business development of 2008

Charts
Comparison the Performances of Salt Lake Potash of 2007
Key financial indicators
Comparison and Analysis of Financial report
The output of Potassium
The profits of Potassium
the imports of Potash fertilizer
Analysis of Domestic potassium chloride price
The ex-factory price of Crystal 60% of Salt Lake Potash
The capacity of global potash fertilizer productions
Vancouver potassium chloride FOB prices
The price of Potassium Chloride in global market between January and mid-March of 2008
The stock of potash fertilizer in northern American market
The prices of Potashcorp potash fertilizer
Comparison the potash fertilizer price between Domestic and import
The forecast of profits of Salt Lake Potash
Balance Sheet
Profit statement
Cash Flow Statement
Comparison of the Major financial figures