Breaking Down Sichuan Lutianhua Company Limited By Shares Financial Health: Key Insights for Investors

Founded in 1999 and rebranded in July 2021 into a publicly traded entity headquartered in Luzhou, Sichuan, Sichuan Lutianhua has grown into a diversified chemical and fertilizer maker producing urea, compound fertilizers, liquid ammonia, methanol and specialty chemicals while operating multiple production sites and a broad distribution network; in 2024 the company recorded operating revenue of CNY 5.07 billion (a decline of 21.02% year‑on‑year) and employed 3,020 staff (up 0.90%), its ownership base includes Luzhou Industrial Investment Group with a 12.44% stake and Lutianhua Group Company Limited with 15.09%, and strategic moves such as Luzhou Development Group's June 2025 purchase of 39.2 million shares (≈2.5% of total share capital) for about CNY 189 million at an average of CNY 4.82 per share have supported a market capitalization of CNY 6.66 billion as of October 10, 2025 (up 15.36% year‑over‑year) across 1.54 billion outstanding shares (up 2.89%); with a mission centered on technological innovation, green development and product diversification, the company generates revenue primarily from fertilizer sales while expanding high‑value specialty chemicals and investing in R&D and process optimization to navigate market volatility and capture future opportunities-explore the full breakdown of history, ownership, operations and financials below.

Sichuan Lutianhua Company Limited By Shares (000912.SZ): Intro

• 1999: Company established, focused initially on fertilizer production for Sichuan province and neighboring agricultural regions.
• 2000s-2010s: Expanded capacity and product range to include urea, compound fertilizers, liquid ammonia, methanol and related chemical products; invested in upstream ammonia and methanol production to secure feedstock.
• July 2021: Official rebrand to Sichuan Lutianhua Company Limited By Shares to reflect transformation into a publicly traded, joint-stock company.
• 2022-2024: Continued product diversification and modest headcount growth; emphasis on efficiency and downstream compound fertilizer development.

• Corporate form: Joint stock company (limited by shares), publicly traded on Shenzhen Stock Exchange (000912.SZ).
• Major shareholders: mix of state-owned and private institutional investors (typical structure for Chinese listed chemical manufacturers-specific shareholder percentages fluctuate with filings).
• Management: Board and executive team responsible for production, procurement of feedstock (ammonia, natural gas derivatives) and sales channels into agricultural and industrial markets.

• Core products: urea, compound fertilizers, liquid ammonia, methanol.
• Production footprint: manufacturing facilities in Sichuan province with integrated ammonia and downstream fertilizer lines.
• Sales channels: agricultural distributors, bulk industrial buyers, regional wholesalers and retailers.

• Raw material integration: Owns or secures long-term procurement of feedstocks (ammonia, natural gas derivatives) to control input costs.
• Product mix: Higher-margin specialty compound fertilizers and value-added chemical products complement commodity urea sales.
• Distribution: Revenue derived from domestic fertilizer sales (seasonal crop cycles) and industrial chemical contracts.
• Operational levers: Capacity utilization, feedstock cost management, product pricing tied to domestic agricultural demand and international chemical markets.

Sichuan Lutianhua Company Limited By Shares (000912.SZ): History

• Listed ticker: 000912.SZ
• Core businesses: phosphate fertilizer production, phosphate chemical intermediates, and related industrial chemicals
• Strategic shift: modernization of production lines and optimization of product mix toward higher-margin specialty phosphates

Ownership Structure

• Luzhou Industrial Investment Group Co., Ltd. (state-owned under Luzhou SASAC) - 12.44% stake.
• Lutianhua Group Company Limited (wholly-owned by Luzhou Industrial Investment Group) - 15.09% stake.
• June 2025 transaction: Luzhou Development Group acquired 39.2 million shares (≈2.5% of total share capital) for ~CNY 189 million at an average price of ~CNY 4.82/share.

How It Makes Money

• Sale of phosphate fertilizers to agricultural and industrial distributors (bulk commodity volume-driven revenue).
• Production and sale of phosphate chemical intermediates and specialty phosphates with higher margins.
• Operational leverage from integrated upstream phosphate processing and downstream chemical manufacturing.
• Periodic asset investments and state-backed capital injections supporting capacity and working capital.

Sichuan Lutianhua Company Limited By Shares (000912.SZ): Ownership Structure

• Mission and values center on technological innovation, green development, and expanding market presence in fertilizers and specialty chemicals.
• The company invests in new chemical technologies and process optimization to raise efficiency and product quality.
• Priority on high-value-added product expansion-particularly specialty fertilizers and industrial chemicals-to improve margin profiles.
• Operational emphasis on sustainable practices, emissions control, and environmental responsibility.
• Customer satisfaction and continuous improvement guide product development and service delivery.

• Core revenue streams: granular and compound fertilizers, industrial chemicals, and upstream chemical intermediates sold domestically and exported.
• Margin drivers: shift toward specialty/ready-mix fertilizers and higher-margin chemical intermediates; operational efficiencies from process upgrades.
• Capital allocation: recurring CAPEX and targeted R&D to commercialize new specialty products and reduce energy/unit-production costs.
• Sustainability investments reduce regulatory and compliance risk while enabling premium product positioning in environmentally sensitive markets.

• State/strategic shareholders: ~40% - provides policy alignment and access to local industrial partnerships.
• Institutional investors (including funds and insurance): ~35% - supports capital market liquidity.
• Retail and other public shareholders: ~25% - traded free float on SZSE under ticker 000912.SZ.

• Scaling specialty fertilizer lines and higher-margin chemical intermediates to lift gross margins.
• Investing in process electrification, waste-heat recovery and low-carbon feedstock options to meet sustainability goals.
• Expanding international sales channels while deepening domestic distributor networks to stabilize volumes.

Sichuan Lutianhua Company Limited By Shares (000912.SZ): Mission and Values

• Multiple production facilities concentrated in Luzhou, Sichuan Province, specialized in nitrogen and compound fertilizer production and downstream specialty chemicals.
• Domestic and international procurement of feedstocks (natural gas, ammonia, sulfur, phosphate intermediates) to ensure continuity of production and to optimize input costs.
• Application of advanced chemical technologies - including catalytic processes, continuous synthesis reactors, and automated blending systems - to produce urea, compound fertilizers, and specialty chemical products.
• A robust logistics and sales network that distributes products across China's agricultural provinces and exports selected chemical products to international markets.
• Strict quality control protocols from raw material inspection through finished-product testing to meet safety, agricultural efficacy, and regulatory standards.
• Ongoing investment in research and development to refine processes, improve product formulations (e.g., controlled-release fertilizers, specialty industrial chemicals), and reduce emissions and energy intensity.

• Long-term contracts with domestic natural gas suppliers and chemical intermediates producers for steady feedstock supply.
• Imports of specific raw chemicals and specialty intermediates when domestic availability or cost advantages require international sourcing.
• Inventory management and hedging strategies to smooth price volatility in global commodity markets.

• Primary agricultural products: granular urea, blended NPK/compound fertilizers, controlled- and slow-release fertilizer formulations.
• Industrial/specialty chemicals: ammonium sulfate, phosphate derivatives, and tailored intermediates for downstream chemical manufacturers.
• Process focus: energy-efficient synthesis units, emissions control systems, and centralized quality laboratories to ensure product consistency.

• Domestic distribution through regional sales offices, distributors, and cooperatives servicing grain-producing provinces.
• Direct supply agreements with large agricultural cooperatives and industrial buyers for bulk chemical products.
• Export sales of select product lines to neighboring Asian markets and other international customers via established logistics partners.

• Quality control: multi-stage testing from incoming materials to final product assays to meet agronomic and regulatory standards.
• Safety & environment: investments in emissions controls, wastewater treatment, and occupational safety programs to comply with national regulations and local requirements.
• R&D focus: formulation science for specialty fertilizers, process optimization to reduce energy intensity, and development of higher-value chemical intermediates.

Sichuan Lutianhua Company Limited By Shares (000912.SZ): How It Works

• Core revenue drivers: sale of chemical fertilizers (urea, compound fertilizers) and bulk chemical products (liquid ammonia, methanol).
• Secondary revenue: specialty chemicals and by-product monetization (exports, industrial intermediates).
• Margin enhancement: shift toward high-value-added fertilizer blends and specialty chemicals; process efficiencies and feedstock cost management.

• 2024 revenue decline: CNY 5.07 billion, down 21.02% vs prior year - attributed to market price volatility, weaker demand, and intensified competition across China's chemical and fertilizer sectors.
• Risk mitigation: diversified product mix reduces exposure to single-commodity price swings; geographic and channel diversification (domestic agricultural channels, industrial buyers, some export) smooths demand cycles.
• Strategic investments: capacity upgrades for specialty fertilizer grades, R&D for value-added chemical derivatives, and downstream blending/packaging to capture retail and high-margin institutional customers.

• How cash is generated:
• Large-volume fertilizer and commodity chemical sales provide predictable top-line cash inflows.
• Specialty product lines and improved product mix target higher gross margins and better cash conversion.
• Working-capital management (inventory and receivables) and feedstock procurement strategies impact free cash flow.

Sichuan Lutianhua Company Limited By Shares (000912.SZ): How It Makes Money

• Core revenue drivers: bulk fertilizers (nitrogen, phosphate), specialty and compound fertilizers, and industrial chemical intermediates.
• Margin drivers: feedstock costs (natural gas, phosphate rock), production efficiency, and product mix toward higher-margin specialty fertilizers.
• Risk factors affecting near-term profitability: commodity price volatility, increased competition, and cyclical agricultural demand.

• Technological innovation - R&D and process upgrades aimed at raising product mix toward specialty fertilizers and improving energy efficiency.
• Product diversification - expanding higher-value specialty and environmentally friendly products to buffer commodity cycles.
• Green development - investments in emissions control, cleaner production, and sustainable inputs to align with regulatory trends and buyer preferences.
• Execution challenges - ability to invest, scale innovations, and manage working capital will determine whether the company converts its market position into sustained margin recovery.