10:08     SINOCHEM HK<00297> - Announcement & Resumption of Trading(9)        

    Key financials                                                            
                                                                              
    The following table summaries the key audited financial                   
    information of the Fertiliser Group prepared based on PRC GAAP:           
                                                                              
    For the year ended 31 December                                            
    For the nine months ended                                                 
    30 September                                                              
    2001                                                                      
    2002                                                                      
    2003                                                                      
    2004                                                                      
    (RMB'million)                                                             
    (RMB'million)                                                             
    (RMB'million)                                                             
    (RMB'million)                                                             
                                                                              
                                                                              
    Turnover                                                                  
    4,608.6                                                                   
    7,803.9                                                                   
    11,617.2                                                                  
    10,647.1                                                                  
                                                                              
    Net profit (before taxation and extraordinary items)                      
    224.2                                                                     
    297.1                                                                     
    523.1                                                                     
    513.6                                                                     
                                                                              
    Net profit (after taxation and extraordinary items)                       
    180.0                                                                     
    240.4                                                                     
    415.8                                                                     
    404.1                                                                     
                                                                              
    Net profit margin                                                         
    3.9%                                                                      
    3.1%                                                                      
    3.6%                                                                      
    3.8%                                                                      
                                                                              
    Net asset value                                                           
    406.1                                                                     
    764.6                                                                     
    1,181.0                                                                   
    1,889.8                                                                   
                                                                              
    D.   REASONS FOR AND BENEFITS OF THE ACQUISITION                          
                                                                              
    Potential for the PRC fertiliser industry                                 
                                                                              
    China has approximately 7% of the world's arable land and                 
    approximately 22% of the world population, of which approximately         
    71% (approximately 900 million people) are engaged in the                 
    agricultural industry (Source: China Data Center and the United           
    Nations). It has been one of the key fertiliser supply and                
    consumption countries in the world.                                       
                                                                              
    Set out below is a list of major production and consumption               
    countries of the three major types of fertilisers:                        
                                                                              
    Major production countries and production output (Mt nutrient)            
    in 2002                                                                   
                                                                              
    Nitrogen-based fertilisers                                                
    Phosphate-based fertilisers                                               
    Potash fertilisers                                                        
    Country                                                                   
    Mt nutrient                                                               
    %                                                                         
    Country                                                                   
    Mt nutrient                                                               
    %                                                                         
    Country                                                                   
    Mt nutrient                                                               
    %                                                                         
                                                                              
                                                                              
    PRC                                                                       
    23.64                                                                     
    27.1                                                                      
    USA                                                                       
    7.97                                                                      
    23.5                                                                      
    Canada                                                                    
    8.03                                                                      
    31.1