Breaking Down Sichuan Development Lomon Co., Ltd. Financial Health: Key Insights for Investors

Founded in 1997 in Chengdu and listed on the Shenzhen Stock Exchange in 2009 as 002312.SZ, Sichuan Development Lomon Co., Ltd. has grown into a vertically integrated phosphorus chemicals leader with R&D centers in Shanghai, Wenzhou and Jiaxing and production sites across Wenzhou, Jiaxing, Liuzhou, Foshan, Chongqing and Indonesia; in 2024 it reported revenue of 8.18 billion yuan and net income of 532.91 million yuan, and as of December 12, 2025 its stock traded at 10.90 yuan with a market capitalization of approximately 20.03 billion yuan, while planning a strategic 366 million yuan investment in a lithium dihydrogen phosphate project announced in October 2025 to expand into new energy materials; the company-whose controlling shareholder is Sichuan Advanced Materials Group under the Sichuan SASAC-has 1.84 billion shares outstanding (insiders 18.09%, institutions 3.59%), registered capital of 1.889 billion yuan, paid a 0.14 yuan final cash dividend with ex-dividend date June 18, 2025, and has seen its stock fall 38.86% over the past 52 weeks; SD Lomon manufactures industrial-grade phosphoric acid, multiple phosphates, fertilizers and lithium iron phosphate, operates mining-to-chemicals integration, provides financial outsourcing services to Chinese banks, targets >300,000 tonnes annual TiO2 capacity, invested 200 million yuan in R&D in 2022, aims for 20% of sales from overseas by 2025 and a 30% carbon-emissions reduction by 2030 (vs. 2020), leveraging vertical integration and diversified businesses-including agriculture, logistics and pipeline transport-to generate revenue and pursue growth in domestic and international markets.

Sichuan Development Lomon Co., Ltd. (002312.SZ): Intro

• Established in 1997 in Chengdu, Sichuan Province; originally named Chengdu Santai Holding Group Co., Ltd.
• Listed on the Shenzhen Stock Exchange in 2009 (ticker: 002312.SZ), entering public capital markets.
• Core business historically focused on phosphorus chemical products: industrial-grade mononuclear phosphoric acid, monobasic phosphate, phosphate-based fertilizers and downstream derivatives.
• Strategic pivot toward new energy materials in the 2020s, including investments in lithium phosphate projects to serve lithium-ion battery cathode/precursor markets.

• Founding/controlling interests trace to entities associated with the original Chengdu Santai group; the company operates as a publicly traded joint-stock company with both institutional and retail shareholders.
• Board and management structure combines industry-experienced executives and technical R&D leaders focused on chemical and materials engineering.

• Mission: develop competitive phosphorus-chemical and new-energy material solutions that serve agriculture, industry and energy storage sectors while pursuing sustainable production practices.
• Vision: become a leading integrated supplier of phosphorus-derived chemicals and advanced battery materials in China and globally.
• Core values: technology-driven innovation, customer focus, environmental compliance and steady shareholder returns. See formal statement: Mission Statement, Vision, & Core Values (2026) of Sichuan Development Lomon Co., Ltd.

• Upstream raw materials: phosphate rock and chemical reagents procured domestically and internationally to produce phosphoric acids and phosphate salts.
• Production: integrated chemical processing facilities producing mononuclear phosphoric acid, monobasic phosphate, polyphosphates and fertilizer formulations; R&D units developing battery-grade lithium phosphate variants.
• Sales channels: direct sales to fertilizer distributors, industrial chemical users, battery material makers and export markets; long-term offtake and spot sales mix.
• Value-add: product differentiation via purity grades (industrial vs. battery-grade), technical services and backward integration to secure raw-material supply and cost control.

• Primary revenue from sale of phosphorus chemical products and fertilizers (volume × average selling price).
• Margin drivers: product mix (higher margins for specialty and battery-grade materials), chemical processing efficiencies, energy & raw-material costs, and byproduct recovery.
• Growth levers: capacity expansions, upgrading to battery-grade products (e.g., lithium dihydrogen phosphate), vertical integration and export expansion.

• October 2025: announced a 366 million yuan investment to build a lithium dihydrogen phosphate production project to expand into new energy materials for lithium-ion battery supply chains, targeting higher-margin battery-grade product lines.

Sichuan Development Lomon Co., Ltd. (002312.SZ): History

• Listing: Shenzhen Stock Exchange, ticker 002312.SZ.
• Controlling shareholder: Sichuan Advanced Materials Group (a wholly-owned subsidiary of Sichuan Development).
• Actual controller: Sichuan State-owned Assets Supervision and Administration Commission (Sichuan SASAC).

• Business model: mining and processing of industrial minerals, production of high-purity products, and sales to chemical, metallurgy, and advanced materials sectors.
• Revenue drivers: upstream mineral extraction, value-added purification/processing, and long-term supply agreements with industrial customers.
• Capital structure highlights: sizeable registered capital (1.889 billion yuan) supports ongoing capacity investments and downstream integration.

Sichuan Development Lomon Co., Ltd. (002312.SZ): Ownership Structure

• Core product: Titanium dioxide (TiO2) - >300,000 tpa capacity.
• Sustainability target: -30% CO2 vs. 2020 by 2030.
• R&D: 200 million yuan invested in 2022.
• Internationalization: target 20% of revenue from overseas by 2025.

• Major shareholders typically include institutional investors and state-linked entities that provide capital stability for long-term investments in capacity expansion and emissions reduction.
• Management alignment with shareholders focuses on scaling high-margin specialty TiO2 products and expanding export channels to meet the 20% overseas sales goal.
• Access to capital enables continued R&D and modernization programs aimed at energy efficiency and lower emissions intensity.

• Manufacture and sale of TiO2 grades for coatings, plastics, inks and other industrial uses - volume-driven and specialty-grade premium pricing.
• Value-added sales from proprietary processing, pigment surface treatments, and downstream formulations.
• Export sales growth as a strategic lever to diversify revenue and capture higher-margin international markets (target 20% by 2025).
• Operational efficiency and technology upgrades funded by retained earnings and shareholder support to reduce unit costs and carbon intensity.

Sichuan Development Lomon Co., Ltd. (002312.SZ): Mission and Values

• Phosphate mining and ore processing - captive raw‑material supply to downstream plants.
• Chemical production - conversion of phosphate rock into a range of acids, salts and battery materials.
• Sales & distribution - domestic and export channels for industrial, agricultural and feed markets.
• Ancillary services - logistics, warehousing, loading/unloading, pipeline transport and agricultural services.

• R&D centers located in Shanghai, Wenzhou and Jiaxing, focused on process optimization, new product development (including lithium iron phosphate) and environmental controls.
• Manufacturing and processing sites in Wenzhou, Jiaxing, Liuzhou, Foshan, Chongqing and an overseas production presence in Indonesia - enabling regional feedstock blending and local market supply.

• Industrial‑grade mononuclear phosphoric acid and monobasic phosphate for chemical industry inputs.
• Feed‑grade calcium hydrogen phosphate and fertilizer‑grade calcium hydrogen phosphate for animal & crop nutrition.
• Monoammonium phosphate (MAP), monobasic phosphate and compound fertilizers for agriculture.
• Lithium iron phosphate (LFP) precursor materials for battery manufacturers.

• "Mine‑chemical‑material integration" - owning upstream phosphate resources reduces raw‑material volatility and enhances margin capture downstream.
• Vertical integration supports product diversification (fertilizers, feed additives, industrial chemicals, battery materials) and improved working‑capital management through internal feedstock flows.
• Complementary logistics & storage operations (loading/unloading, warehousing, pipeline transport) lower distribution costs and support export volumes.

• Sale of phosphate‑derived chemicals and fertilizers - primary revenue source, benefiting from vertical integration and scale.
• Specialty products (feed‑grade phosphates, LFP precursors) - higher margin, targeted B2B sales to animal nutrition and battery sectors.
• Logistics and storage services - incremental revenue and cost savings for group shipments.
• Financial outsourcing & platform services for banks - service income from business process optimization, centralized platform management and big‑data analytics tuned to Chinese banking clients.

• Capital intensive upstream mining and chemical plants require periodic capex for environmental compliance and capacity upgrades.
• Profitability correlates with phosphate rock prices and fertilizer demand cycles; downstream integration cushions raw‑material swings by internalizing feedstock.
• Exposure to energy and sulfuric acid input costs affects operating margins for acid and phosphate salt production.

• Control of phosphate resource inputs and multiple downstream product lines reduces external supplier dependence.
• R&D investment and localized production footprint (including Indonesia) support product customization for domestic and export customers.
• Integrated logistics/warehousing and pipeline transport capabilities provide distribution resilience and cost efficiency.

Sichuan Development Lomon Co., Ltd. (002312.SZ): How It Works

• Core product lines: technical and food-grade phosphoric acid, mono- and diammonium phosphate (MAP/DAP), calcium phosphates, and specialty phosphates for industrial and agricultural use.
• New energy materials: announced investment of ¥366 million in a lithium dihydrogen phosphate (LDP/LiH2PO4) project to supply precursors for lithium-ion battery cathode synthesis and electrolyte additives.
• Financial outsourcing services: tailored solutions for Chinese banking clients, providing a recurring-fee revenue stream tied to service contracts and platform usage.
• Vertical integration: captive phosphate rock mining, acidulation and purification, and downstream formulation-reducing raw-material volatility exposure and improving gross margins.

• Primary sales: bulk and specialty phosphorus chemicals sold to fertilizer companies, food processors, and industrial manufacturers-priced by commodity and purity grade.
• Value-added specialties: higher-margin food-grade phosphates and fine chemicals sold at premium prices due to purification and certification processes.
• Battery materials pathway: production of lithium dihydrogen phosphate (LDP) and downstream derivatives intended for battery cathode and electrolyte manufacturers; pricing tied to lithium raw material costs and battery demand.
• Service revenues: recurring fees from financial outsourcing-platform subscriptions, transaction processing, and bespoke financial solutions for banks.

• Upstream mine ownership and long-term ore contracts reduce feedstock cost volatility-estimated 15-20% lower input cost versus spot-purchased ore.
• Integrated acidulation and recovery systems improve phosphoric acid yields and reduce reagent consumption, supporting above-industry gross margins.
• Scale in export logistics and tariff planning lowers per-unit shipping costs as overseas sales approach the 20% target.
• R&D and product upgrading (food-grade purification, battery-grade lithium salts) lift ASPs (average selling prices) and enable cross-selling into higher-margin segments.

• ¥366 million capital allocation for LDP project-expected to materially increase new energy materials revenue starting in the first full year of operation.
• Export sales growth target: 20% of total sales by 2025-diversification to reduce domestic-market cyclicality.
• Estimated contribution of financial outsourcing services: steady-state 5-8% of consolidated revenue with high recurring characteristics.

Sichuan Development Lomon Co., Ltd. (002312.SZ): How It Makes Money

• Core revenue streams: phosphate rock mining, phosphoric acid, phosphate fertilizers, industrial phosphates, and specialty phosphorus chemicals for electronics and new-energy applications.
• New-energy push: investment in lithium dihydrogen phosphate (366 million yuan planned for October 2025) to serve battery cathode materials and broaden high-margin product mix.
• International expansion: target of 20% of total sales from overseas by 2025 to diversify markets and capture export premiums.
• Sustainability focus: target to reduce carbon emissions by 30% by 2030 vs. 2020 baseline to meet regulatory and customer expectations.

• How profitability works: capture value from raw phosphate extraction → bulk intermediates (phosphoric acid, fertilizers) → value‑added specialty chemicals and new‑energy precursors, where margins are higher.
• Risks to earnings: volatile phosphate commodity prices, capital intensity of downstream/upstream integration, and stock volatility (notably -38.86% over 52 weeks) which can affect investor access to capital.
• Growth levers: overseas market penetration, scaling specialty/new‑energy product lines (e.g., lithium dihydrogen phosphate), and cost reductions via decarbonization and process efficiencies.