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Ecological fertiliser is the cornerstone of the Group. Adhering to the principle of “soil testing and prescribed fertilisation” over two decades, the Group has built a green and ecologically sustainable business with core products of organic fertilisers, Si-Mg fertilisers, functional fertilisers, and new ecological fertilisers. The agricultural services include research and development, production to sales and marketing. The fertiliser sells into markets through direct sales and distribution, sales network covers across China. The fertiliser brands are “Le He He”, “Feng Shou”, “Zhan Lan”, “Yanyangtian” and “Dongfanghong”, in which “Le He He” and “Yanyangtian” are popular among farmers and rewarded as “2016 Top 50 Brands of Farmer’s Most Trusted Fertilisers” (2016農民信賴的肥料品牌五十強). Yanyangtian was rewarded “China’s Best Fertiliser 2018” and “China Efficient Fertiliser Premium Brand in 2019”. The Group’s fertilisers products are applied in different types of crops, including food crops and tea, fruit, vegetables, peanuts, bamboo grove, and eucalyptus. The core functions of the fertiliser products are ecologically friendly and enhancing soil fertility. The products are tailored for green cultivation and organic farming.

A study from the Chinese Academy of Agricultural Sciences indicated that around 50% or more of 450 million mu paddy fields in the PRC are low in silicon, whereas 19% of them are low in magnesium. The surface area is equivalent to 23 million hectares. It leads to an unsought potential of approximately 40 million tonnes of silicon magnesium fertilisers per annum. The Group owns the major source of raw materials of silicon magnesium fertiliser products, the serpentine mine, and the unique production capability. It provides the secure raw materials of silicon magnesium production at low cost, which strengthens the sustainable development of the fertiliser business.

The production bases for the fertiliser business of the Group are located at Jiangsu Province and Jiangxi Province in China. The sales network covers across Mainland China. The Group has an experienced research and development team, and owns 18 patents in fertiliser production. It is recognised as the “National Chemistry Agricultural Services Centre” (全國化工農化服務中心) and “Provincial Technology Development Centre” (省級技術開發中心). Its strong technology and leading agricultural services network strengthens its competitive advantages. Given the promotion and penetration of healthy food and organic agricultural products in the PRC, the Group is able to capture a brighter development of its fertiliser business.

The subsidiary of the Group, Shandong Hongri, has invented the production technology of potassium sulfate compound fertilisers. Being the inventor, it is well-known as the “Father of Sulfur-based Compound Fertiliser” and is highly recognised in the market.

Against the backdrop of agricultural modernisation, the Chinese government will strive to promote structural revolution and optimise the agricultural structure. The Group will capture the opportunity given its reputation in the industry and differentiated products in the market, as well as extensive sales network and experienced management team. The Group will also speed up the core business consolidation and expand operation scale, in order to enhance the synergy between products, and market and brand, ultimately expanding the market share, and increasing the income source.