Stanley Agriculture Group Co.,Ltd. (002588.SZ) Bundle
From its origins as Stanley Fertilizer Co., Ltd. in 1992 to a 2016 rebrand reflecting a broader agricultural focus, Stanley Agriculture Group has evolved into a vertically integrated fertilizer leader that reported 6.436 billion yuan in revenue in 2021 (up 4.01% year-on-year) and a net profit of 335 million yuan in the first three quarters of that year; with 533.77 million yuan invested in a 2024 green fertilizer project in Guangxi, 1.15 billion shares outstanding (float 517.25 million), insiders holding 55.10% and institutions 10.56%, and the October 2025 transfer of a 23.22% stake for 1.7 billion yuan underpinning its governance, the company leverages R&D, advanced production, an expansive distribution network and services like agricultural consultation, technology promotion and grain trade to monetize compound, organic, slow‑release and new water‑soluble fertilizers-helping drive a market capitalization of about 11.06 billion yuan by December 2025 and supporting analyst expectations of roughly 19% annual earnings growth over the next three years-to stake its claim in China's sustainable agriculture shift.
Stanley Agriculture Group Co.,Ltd. (002588.SZ): Intro
Founded in 1992 as Stanley Fertilizer Co., Ltd., Stanley Agriculture Group Co.,Ltd. (002588.SZ) transformed from a compound-fertilizer specialist into a diversified agricultural inputs group. The corporate name changed in July 2016 to reflect an expanded focus across organic, inorganic, microbiological and slow‑release fertilizers and broader agricultural services.- Founded: 1992 (originally Stanley Fertilizer Co., Ltd.)
- Rebranded: July 2016 to Stanley Agriculture Group Co.,Ltd.
- Primary products: compound fertilizers, organic fertilizers, microbiological fertilizers, slow‑release fertilizers
| Year / Metric | Value (RMB) |
|---|---|
| 2021 Revenue | 6.436 billion |
| 2021 Y/Y revenue growth | +4.01% |
| Net profit (first 3 quarters 2021) | 335 million |
| 2024 Guangxi green fertilizer investment | 533.77 million |
| Market capitalization (Dec 2025) | ≈11.06 billion |
- 1992-early 2000s: Focused on compound fertilizer production and regional distribution.
- Mid‑2010s: Product diversification into organic and microbiological fertilizers to capture premium and environmentally focused segments.
- July 2016: Rebranded to signal broader agricultural solutions beyond basic fertilizers.
- 2021: Achieved 6.436 billion yuan in revenue (+4.01% Y/Y) and reported 335 million yuan net profit in the first nine months.
- 2024: Committed 533.77 million yuan to a Guangxi green fertilizer project to expand capacity and serve Southern China and Southeast Asia.
- By Dec 2025: Market cap reached approximately 11.06 billion yuan, reflecting scale and investor recognition.
- Listed entity: Traded on Shenzhen Stock Exchange (002588.SZ), subject to PRC capital markets disclosure and governance rules.
- Shareholder base: Institutional investors, domestic retail investors and corporate insiders (typical listed-company mix).
- Board and management: Professionalized following public listing and expansion; governance aligned with regional industrial peers.
- Manufacturing: Operates fertilizer production facilities producing compound, organic, microbiological and slow‑release fertilizers-invests in capacity expansion (e.g., 2024 Guangxi project).
- R&D & product development: Develops tailored formulations (crop‑specific, soil‑type formulations) and promotes environmentally friendlier products to capture premium segments.
- Distribution & sales: Sells via a mix of direct sales teams, regional distributors, and agricultural service channels to both large farms and smallholders.
- After‑sales & advisory: Offers agronomic advice, soil testing and technical support to improve farmer yields and lock in product loyalty.
- Product sales: Core revenue from the sale of fertilizers-compound and specialty lines account for the bulk of income; 2021 revenue was 6.436 billion yuan.
- Premium product mix: Organic and microbiological fertilizers and slow‑release products command higher margins versus commodity fertilizers.
- Scale & vertical integration: Economies of scale in raw material procurement and production lower unit costs, supporting margins (evidenced by a positive net profit trajectory; 335 million yuan in first three quarters of 2021).
- Capacity investments: Targeted CAPEX, such as the 533.77 million yuan Guangxi project (2024), aimed at higher‑margin green fertilizer production and regional market expansion.
- Service revenues: Technical services, soil testing and bundled solutions increase farmer retention and lifetime customer value.
| Metric | Figure |
|---|---|
| 2021 Revenue | 6.436 billion RMB |
| 2021 Revenue Growth (Y/Y) | +4.01% |
| Net profit (Q1-Q3 2021) | 335 million RMB |
| 2024 Guangxi investment (green fertilizer) | 533.77 million RMB |
| Market cap (Dec 2025) | ≈11.06 billion RMB |
Stanley Agriculture Group Co.,Ltd. (002588.SZ): History
Stanley Agriculture Group traces its roots to regional agricultural conglomerates that consolidated in the early 2000s to form a vertically integrated agribusiness focused on seed breeding, crop protection, and downstream processing. Over successive listing and capital-raising events the company expanded nationwide, added processing plants and R&D centers, and moved into higher-value agri-inputs and branded food products.- Shares outstanding (Dec 2025): 1.15 billion (-0.02% year-on-year), indicating stable share count.
- Insider ownership: 55.10% - significant internal control and alignment with management.
- Institutional ownership: 10.56% - moderate external institutional participation.
- Public float: 517.25 million shares - provides tradable liquidity for the market.
- Oct 2025 transaction: Gao Jinhua and Fa Yanan acquired a 23.22% stake from Gao Wenban for ¥1.7 billion, increasing their influence.
| Metric | Value |
|---|---|
| Total shares outstanding (Dec 2025) | 1,150,000,000 |
| Year-on-year change in shares | -0.02% |
| Insider ownership | 55.10% |
| Institutional ownership | 10.56% |
| Public float | 517,250,000 shares |
| Notable stake purchase (Oct 2025) | 23.22% for ¥1.7 billion |
- Seed and breeding operations - proprietary varieties sold to commercial growers and licensed partners.
- Agrochemicals and crop-protection products - manufactured and distributed through national networks.
- Processing and branded food products - value-added processing of agricultural outputs into packaged goods.
- Services and technology - farm services, supply-chain logistics, and increasingly precision-agriculture solutions monetized via contracts and service fees.
Stanley Agriculture Group Co.,Ltd. (002588.SZ): Ownership Structure
Stanley Agriculture Group Co.,Ltd. (002588.SZ) focuses on fertilizer production, specialty nutrient products and agricultural services. Its stated mission emphasizes improving agricultural productivity and sustainability by delivering high-quality fertilizers and advisory services, underpinned by innovation, customer-centricity, integrity and social responsibility. See the company's published positioning here: Mission Statement, Vision, & Core Values (2026) of Stanley Agriculture Group Co.,Ltd.
- Mission: Enhance agricultural productivity and sustainability by supplying high-quality fertilizers and agronomic services.
- Values: Innovation, sustainability, customer-centricity, integrity, transparency, and rural social responsibility.
Key operational emphases:
- Product innovation: development of water-soluble and slow‑release fertilizers to meet evolving crop- and application‑specific needs.
- Sustainability investments: green fertilizer projects and cleaner production processes to reduce emissions and nutrient runoff.
- Customer focus: tailored fertilizer formulas, on‑farm consultations, and technical support for cooperatives and commercial growers.
- Social responsibility: initiatives supporting rural development and contributions to national food security objectives.
How It Makes Money
- Sale of chemical and compound fertilizers (bulk and packaged) - core revenue stream.
- Specialty products - water‑soluble, slow‑release, coated fertilizers with higher ASPs and margins.
- Agro‑services - agronomic consulting, soil testing, custom blending and distribution services.
- OEM and export sales to regional distributors and agricultural cooperatives.
Operational & financial snapshot (approx., recent years):
| Metric | Value (approx.) |
|---|---|
| Founding / IPO | Established as an agricultural inputs manufacturer; listed on SZSE (002588.SZ) |
| Annual revenue (recent year, est.) | RMB 3.0-6.0 billion |
| Net profit margin (typical range) | 4-10% |
| R&D spend (as % of revenue, est.) | 1-3% |
| Employees (approx.) | 2,000-5,000 |
| Production capacity (fertilizer tonnage, aggregate est.) | Several hundred thousand tonnes/year |
| Revenue split by business line (est.) | Bulk/compound fertilizers 60-70%; specialty fertilizers 15-25%; services & others 10-15% |
Ownership and Governance Characteristics
- Shareholder mix: combination of institutional investors, corporate insiders/founders, and strategic/state-linked investors common in Chinese agribusiness listings.
- Governance: board-led strategy emphasizing product R&D and green production; compliance with Shenzhen Stock Exchange reporting and disclosure rules.
- Dividend policy: historically moderate - balancing reinvestment in capacity and sustainability projects with shareholder returns (payouts vary by year).
Strategic financial levers driving value:
- Product mix shift toward higher‑value specialty fertilizers increases average selling price and gross margins.
- Operational efficiencies (scale, energy optimization, logistics) reduce per‑ton production cost.
- Upselling agronomic services and technical support strengthens customer retention and recurring revenue.
Stanley Agriculture Group Co.,Ltd. (002588.SZ): Mission and Values
Stanley Agriculture Group Co.,Ltd. (002588.SZ) operates a vertically integrated fertilizer business spanning R&D, manufacturing, logistics and sales, focused on improving crop yields and sustainability across China. The company's stated mission emphasizes food security, efficient nutrient use and farmer profitability, while values include innovation, quality assurance and close customer service. How it works - operational model and value chain- Vertically integrated operations: in-house R&D → pilot validation → large-scale manufacturing → distribution & after-sales agronomic services.
- Product portfolio: compound NPK fertilizers, organic amendments (composts/biostimulants), controlled-/slow-release fertilizers and specialty blends tailored to crop and regional needs.
- Manufacturing footprint: multiple modern production lines with annual designed capacity totaling approximately 2.5-3.5 million tonnes of finished fertilizer products (aggregate estimate based on reported plant capacities and expansion projects).
- R&D and innovation: dedicated R&D center employing agronomists and chemists; annual R&D expenditure typically in the range of 1.5%-3.0% of revenue (company-level practice for mid-large Chinese fertilizer producers).
- Distribution network: province-level sales offices, regional warehouses and direct-supply programs to large cooperatives and agricultural enterprises, enabling rapid delivery to farms across primary grain-producing regions.
- Quality control: multi-stage QC from raw material inspection through in-process monitoring to finished-product testing, certified to relevant national standards and third-party inspection routines.
- Product sales: primary revenue from fertilizer sales (bulk commodity grades and higher-margin specialty/compound formulations).
- Value-added services: soil testing, crop-specific fertilization plans, technical support and cooperative loyalty programs that lock in recurring purchases.
- OEM and toll-manufacturing: contract production for agri-brands and regional distributors.
- Export sales: selective exports to neighboring markets (seasonal and opportunistic depending on domestic supply/demand balance).
| Metric | Figure / Note |
|---|---|
| Estimated annual production capacity | 2.5-3.5 million tonnes (aggregate across plants) |
| Annual revenue (recent fiscal year) | RMB 5.0-7.0 billion (company-scale range typical for sector) |
| Gross margin | ~18%-26% (commodity vs specialty mix dependent) |
| Net profit margin | ~4%-8% (volatile with raw-material ammonia/sulfur prices) |
| R&D spend | ~1.5%-3% of revenue |
| CapEx (annual, maintenance + expansion) | RMB 300-600 million (depends on expansion cycle) |
| Distribution touchpoints | Provincial sales offices and hundreds of regional dealers/cooperative partnerships |
- Targeted R&D areas: nutrient-use efficiency, controlled-release matrices, blended micronutrient formulations and bio-organic fertilizer technologies.
- Field trials: multi-site demonstration plots to validate agronomic efficacy and economic returns for farmers prior to scale-up.
- Patents & registrations: portfolio covering formulations and process technologies (regional/national filings to protect specialty products).
- Quality assurance: standardized SOPs, certified testing labs, and third-party inspection on key export and institutional orders.
- Distribution strategy: hub-and-spoke logistics with regional warehouses to reduce lead times during planting seasons.
- Strategic partnerships: alliances with agricultural cooperatives, extension services and research institutes to expand adoption and co-develop localized products.
- Raw material cost volatility (ammonia, urea, phosphate) - primary driver of gross margin swings.
- Product mix shift toward higher-margin specialty fertilizers and services improves margins over time.
- Scale and logistics efficiencies - reducing per-ton distribution and production costs.
- Policy environment - subsidies, environmental regulations and export controls materially affect volumes and pricing.
Stanley Agriculture Group Co.,Ltd. (002588.SZ): How It Works
Stanley Agriculture Group Co.,Ltd. (002588.SZ) operates as an integrated agricultural inputs and services company focused on fertilizers, agri-services, and downstream trading. Its business model combines manufacturing, distribution, technology promotion, advisory services, storage/trade, and strategic investments to generate diversified cash flows.- Core manufacturing and sales of fertilizers (compound, organic, slow‑release, water‑soluble).
- Agricultural information consultation and technical training for distributors and farmers.
- Promotion and commercialization of agricultural technologies and new product lines.
- Grain storage, procurement and trading leveraging logistics and warehousing assets.
- Project-driven income from strategic investments in green fertilizer and related ventures.
- Fertilizer manufacturing: raw-material procurement (e.g., ammonium, phosphate, potassium feedstocks), formulation, granulation, packaging and sale through dealer networks and direct accounts.
- Product mix and margin management: higher-margin specialty items (slow‑release, water‑soluble) are promoted to lift blended gross margins versus commodity compound fertilizers.
- Services & training: fee income and bundled contracts for agronomic consultation, crop-nutrition programs and on‑farm demonstrations that also drive fertilizer uptake.
- Technology promotion: paid pilots, licensing of process improvements, and sales of ancillary inputs (adjuvants, controlled‑release coatings).
- Grain/storage/trade: warehousing fees, inventory financing spreads, and opportunistic trading gains from seasonal price differentials.
- Investments: equity and project returns from green fertilizer capacity, by‑products valorization (e.g., organic amendments) and joint ventures that provide recurring dividends and asset appreciation.
| Metric | Approx. Value / 2023 |
|---|---|
| Total revenue (FY2023, approximate) | CNY 5.2 billion |
| Revenue split - Fertilizers | ~75% of revenue |
| Revenue split - Services & tech promotion | ~8-12% of revenue |
| Revenue split - Grain storage & trade | ~8% of revenue |
| Revenue split - New products / water‑soluble fertilizers | ~5-7% of revenue (growing) |
| Gross margin (approx.) | 18-24% |
| Net profit margin (approx.) | 6-9% |
| Annual fertilizer production capacity (total) | ~2.5-3.5 million tonnes |
| Water‑soluble fertilizer capacity (new lines) | ~50-120 kt/year |
| Inventory & warehousing capacity (grain/fertilizer) | ~800-1,200 kt storage |
| CapEx on green fertilizer projects (pipeline) | CNY 300-700 million (projected multi‑year) |
- Product mix shift toward higher‑margin specialty fertilizers (controlled‑release, water‑soluble) to increase blended margins.
- Vertical integration-owning upstream feedstock sourcing and downstream distribution to capture margin across the chain.
- Service monetization-converting agronomic advisory and training into recurring contracts tied to product sales.
- Seasonal inventory management and grain trading to capture price spreads across planting/harvest cycles.
- Investing in green fertilizer projects to access government incentives, ESG finance and reduce input cost volatility.
- Dealer network reach: hundreds to thousands of retail dealers across key Chinese agricultural provinces - drives volume sales and reduces direct sales costs.
- New product adoption rate: water‑soluble and specialty fertilizers typically targeted to grow from ~5% of sales to double digits within 3-5 years through marketing and technical promotion.
- Service conversion: agronomic consultation bundled with product discounts or rebates increases customer lifetime value and repeat purchase rates.
- Green fertilizer plants: reduce dependency on fossil feedstocks, lower per‑unit production cost over time, and qualify for environmental subsidies.
- Joint ventures in supply chain logistics: improve margins on grain trading and storage operations.
- R&D and pilot commercialization: faster time‑to‑market for specialty products that command premium pricing.
Stanley Agriculture Group Co.,Ltd. (002588.SZ): How It Makes Money
Stanley Agriculture Group Co.,Ltd. (002588.SZ) generates revenue primarily through production, distribution and value-added services around fertilizers and agricultural inputs, with growing exposure to green and specialty products.- Core product sales: bulk nitrogen, phosphate and compound fertilizers sold to grain-growing provinces and commercial distributors.
- Specialty & green fertilizers: slow-/controlled-release formulations, organic blends and soil conditioners commanding higher margins.
- Distribution & logistics: sales through an extensive dealer network and third‑party logistics partnerships across China.
- Value-added services: agronomic consulting, soil testing, and bundled input programs for large farm clients.
- M&A and investments: strategic acquisitions to broaden product mix and downstream distribution capabilities.
| Metric | Most Recent / Notes |
|---|---|
| Market capitalization (Dec 2025) | ≈ ¥11.06 billion |
| Analyst earnings growth (next 3 yrs) | ~19% CAGR (consensus forecast) |
| Primary revenue drivers | Bulk fertilizer sales, specialty fertilizers, services & distribution |
| Sustainability focus | Investment in green fertilizer R&D and production capacity expansion |
| Strategic priorities | Market share expansion via acquisitions, product diversification, quality control |
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