SINGAPORE (ICIS)--China’s Shindoo Chemi-Industry (Shindoo) has on Friday posted a 12% year-on-year drop in its 2013 net profit to yuan (CNY) 107m ($17.5m), affected by the slowdowns in the global economy despite higher revenues.
The company’s operating revenue rose to CNY3.85bn last year, up by 12% year on year, thanks to good performance in marketing and innovation to develop new fertilizer products, it said in a statement to the Shenzhen Stock Exchange.
However, Shindoo did not provide the specific reasons on the decrease of the net profit.
Some analysts said that lower subsidy from the government last year may be the major factor for the drop.
The company obtained the governmental subsidy of CNY29.7m last year, which hit a three-year low, the analysts added.
Meanwhile, the company plans to successively start up three new nitrogen phosphorous potassium (NPK) plants in 2014, including an 800,000 tonne/year plant at Ningling in Henan province, a 1m tonne/year unit at Pingyuan in Shandong province, and a 450,000 tonne/year unit at Meishan in Sichuan province, the company said.
Shindoo's capacity of NPK is expected to reach 4.68m tonnes/year following those start-ups, which is anticipated to make a great contribution to this year's revenue, the company added.
Shindoo, based in China's southwestern province of Sichuan, mainly engages in the production of soda ash and fertilizers.
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