Net profit jumped 14-fold last year and the stock hit a record high, putting the company on track to become Asia’s largest single potash producer by volume

Ya Potassium international on The evening of April 1, 2021 annual report, the company last year to the mother’s net profit growth of 1401.43%, buckle non-mother’s net profit up 6232.51%.The agency expects a large global potash shortfall in 2022.Potash International also announced in its annual report that it is pursuing the acquisition of a 179.8 square kilometer potash mine in Pangha-Nongpo Village, Nongpo County, Gammon Province, Laos.If the acquisition is completed, it will become the largest single potash resource enterprise in Asia, and plans to increase production capacity to more than 3 million tons in 3-5 years.Last year net profit increased 1401.43% ya Potassium International on the evening of April 1 released 2021 annual report, last year to achieve operating revenue of 833 million yuan, year-on-year growth of 129.36%;Net profit attributable to shareholders of listed companies reached 895 million yuan, with a year-on-year growth of 1401.43%;Net profit excluding non-recurring gains and losses attributable to shareholders of listed companies was 289 million yuan, with a year-on-year increase of 6232.51%.Asipotassium and its subsidiary, China Agricultural International, are focused on potash mining, potash fertilizer production and sales, according to the announcement.The company owns the mining rights of 35 square kilometers of potassium salt in Kamong Province, Laos, with a total reserves of 1.002 billion tons and 152 million tons of pure potassium chloride. The company has rich mineral resources and good resource endowment conditions, which are suitable for large-scale development of potassium salt projects.As one of the first Chinese enterprises to “go out” to implement overseas potash development, the company has built the first potash fertilizer production facility to realize industrial production outside China in Laos.In 2020 the company officially launched in April 1 million tons/year of potash reconstruction projects, and completed 2021 years has 250000 tons of production system of mass transfer efficiency, putting-in-service proactively built 750000 tons of production system, and form a complete set of storage and transportation, power supply, water supply, gas supply unit and so on, on September start-up commissioning and lack of work, elimination of December into formal production,Production has been achieved.In 2021, the company produced 332,000 tons of qualified potash fertilizer products and sold 350,400 tons of potash fertilizer, achieving good economic benefits.In December 2021, the china-Laos Railway was opened to traffic, and a “through train” was added to the company’s logistics system to transport potash fertilizer back to China.So far, through sea transportation, land transportation, land transportation, the company’s sales logistics system has been complete, further strengthen the location advantage.According to the Annual report of Potash International, potassium is one of the three essential nutrients for crop growth.In 2021, with the rise of food and commodity prices, the global potash prices have shown a significant rise.The sanctions imposed by the European Union and the United States on Potash fertilizer in Belarus and the rising international sea freight caused problems in potash fertilizer transportation, which exacerbated the shortage of global potash fertilizer supply. The global potash fertilizer market price reached a historical high in nearly 10 years.Guosen Securities pointed out in the research report that the uncertainty of international events will have a significant impact on the global and Chinese potash prices, and is optimistic about the long-term high prosperity of the potash industry.Citic Securities also introduced that from the perspective of new capacity, this year’s new capacity mainly includes Nutrien increased by 1 million tons, Mosaic K3 mine increased by 1 million tons, Subpotassium International increased capacity by 750,000 tons and ICL and other enterprises capacity adjustment, is expected to be less than 4 million tons.On the demand side, Nutrien expects global potash demand to be in the range of 68 million to 71 million tonnes in 2022.Under tight supply, there is expected to be a large shortfall in global potash fertilizer in 2022, and the price is easy to rise but difficult to fall.The continued rise in potash prices has also led to a recent surge in the share prices of potash listed companies, with Asia Potash International hitting a new high of 39.35 yuan per share on March 29, according to China Securities Taurus data.In the face of the global potash shortage, Potash International is also actively expanding production.On the day of issuing the annual report, Asik International also announced that the 1 million ton/year potash fertilizer renovation and expansion project in Laos has reached production. After orderly engineering construction, equipment installation and debugging, trial production and process optimization, the company has met the conditions of 72 hours continuous operation and production acceptance.At present, the project has achieved stable production and reached the production capacity and product quality of the project design plan.In the annual report, Asik International introduced that the company is advancing the acquisition of 179.8 square kilometers of potash mine in Penxia-Nongpo Village, Nongpo County, Gammon Province, Laos. The mining area is connected to the 35 square kilometers of potash mine. The total amount of potash ore is about 3.935 billion tons, and the converted potassium chloride is about 677 million tons.If the reorganization is completed, the company will have 214.8 square kilometers of potash mining rights in Kamong Province, Laos, with 829 million tons of pure potassium chloride, becoming the largest single potash resource enterprise in Asia, and realizing efficient coordinated development of the two mineral resources, which is conducive to further enhancing the company’s sustainable development ability and core competitiveness.Potash International also said it plans to increase its production capacity to more than 3 million tons in 3-5 years to meet the huge market demand in neighboring Southeast Asia and China, and to build a potash fertilizer production and reserve base outside China.Editor: Wang Yin

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