Hong Kong-Sinofert Holdings Ltd., the largest fertilizer distributor in China, reported a 71.4 percent drop in potash sales volumes during the first half ending June 30. The company said potash volumes were down to 600,000 mt because market demand remained subdued due to high prices. Sinofert said lower production of compound fertilizers substantially slashed demand for potash and led to higher potash inventories, severely impacting potash sales performance. Overall sales volumes were put at 6.35 million mt, a decrease of 34.7 percent from last year. Sinofert sold 2.63 million mt of nitrogen, 1.68 million mt of phosphate, and 1.01 million mt of compound fertilizer. Sinofert reported its first operating loss, mainly due to the reduced sales volumes. Net loss attributable to shareholders was RMB828 million (US$121.1 million). Excluding a write-down of inventories and the change in fair value of a derivative component of convertible loans, Sinofert reported net profit attributable to shareholders of RMB118 million ($17.3 million), representing a 90.7 percent decrease from the prior year. Turnover was RMB 12,508 million ($1.83 billion), down 44 percent from the year-ago period.
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