严格保密

March 28, 2013

2012 Annual Result

1

Disclaimer

This presentation and the presentation materials distributed herewith include forward-

looking statements. All statements, other than statements of historical facts, that

address activities, events or developments that Sinofert Holdings (“Sinofert”) expects

or anticipates will or may occur in the future (including but not limited to projections,

targets, estimates and business plans) are forward-looking statements. Sinofert’s

actual results or developments may differ materially from those indicated by these

forward-looking statements as a result of various factors and uncertainties, including

but not limited to price fluctuations, actual demand, exchange rate fluctuations,

exploration and development outcomes, estimates of reserves, market shares,

competition, environmental risks, changes in legal, financial and regulatory frameworks,

international economic and financial market conditions, political risks, project delay,

project approval, cost estimates and other risks and factors beyond our control. In

addition, Sinofert makes the forward-looking statements referred to herein as of today

and undertakes no obligation to update these statements.

2

China’s leading fertilizer producer

China’s largest fertilizer distributor

and service provider

Sinofert Holdings Ltd., as the largest supplier of agricultural inputs and agrochemical services

in China, is committed to grow into a global leader in the industry.

Sinofert

China’s largest fertilizer importer

China’s leading phosphorus

resources owner

Top

Top

Top

Top

Branch office

Corporate headquarters

3

Key Financials for 2012

y-o-y

Sales volume

(1,000 tons)

Revenue

(RMBmn)

Net profit attributable to

onwers of the company

(RMBmn)

y-o-y

y-o-y

17,139

41,190

878

I. Operation Review

II. Financial Performance

III. Future Outlook

5

2010 2011 2012E

Potash fertilizer

Phosphate fertilizer

Compound fertilizer

Nitrogen fertilizer

1,230

160

605

800

900

1000

1100

1200

1300

1400

0

100

200

300

400

500

600

700

800

900

1000

500

1,500

2,500

3,500

4,500

Jan 2010 Jan 2011 Jan 2012

Review of Market Environment

Source: Data for 2010-2011 is sourced from National Bureau of Statistics; Data for 2012 is estimated amount of the Company

Source: China-fertinfo.com.cn

Dec 2012

Factory price of urea

in Shandong

Port price of

potassium chloride

Factory price of DAP

Source: China-fertinfo.com.cn

Pithead price of anthracite in Jincheng, Shanxi

Pithead price of lignite in Hailar, Inner Mongolia

Bargaining price on the vehicles of 30%

grade phosphorite ore in Kaiyang, Guizhou

Jan 2012 Jun Dec Jan 2011 Jun

Domestic fertilizer application amount (converted to pure amount, 10,000 tons)

Market price of major fertilizer varieties in China

(RMB/ton)

Price of major raw materials in China

(RMB/ton)

5,562 5,704 5,800

6

Steady Progress of Our Strategies

Acquire coal, phosphorus and potassium resources with a global view to

form strategic assets in support of future development Upstream

resource

Deepen marketing management on the basis of our network advantages

to promote marketing service transformation and achieve product

and service integration

Downstream

marketing

Make continuous technical innovation to enhance market leader position in

the region or industry

Midstream

production

7

20.2

5.84.1 3.7 3.0 2.7

firm1 firm2 firm3 firm4 Sinofert

Yunlong

firm5

Leading position in phosphorus resource reserve in China

Phosphorus reserve of major chemical enterprises in China (100 million tons)

Phosphorus resource transaction cases in recent years

Peru (2010) 24% stake of 238-million-ton mining right

US$385 million (or RMB43/ton)

Mabian, Sichuan (2009)

31.74-million-ton mining right

US$490 million (or RMB15/ton)

Sinofert Yunlong (2012)

300-million-ton phosphorite

US$1.38 billion (or RMB4.6/ton)

Two phosphorous

mining rights: 73.55

million tons of

resources

Meizhushao

Dawan

Kunming

Qujing Xundian

Fagudian

Yuezhao

Phosphorous

A relatively low transaction price for mining right

Three phosphorous

exploration rights:

Totally 300 million tons

of resources

Upstream Resource: Significant Breakthrough in Resource Acquisition

Source: Public data

8

Midstream Production: Compound and Phosphate Fertilizer Enterprises Maintain

Leading Position in the Industry

Sinofert Fuling boasts outstanding technical advantages in

the industry

Gross profit margin

Of feed-grade calcium

products

Sinofert Yunlong

Feed-grade

phosphate

industry average

Source: Industry research reports

Sinofert Yunlong achieves better profit in the period

Owns China’s first wet process

phosphoric acid device with

proprietary intellectual property right;

Rank among high energy efficiency

company in China’s petro-chemistry

industry;

Won the title of “Pacesetter of

China’s Fertilizer Industry in 2012”;

Obtained 15 national-level

authorized patent technologies in

2012

11%

Sinofert Yunlong possesses resource advantages and

advanced feed-grade calcium production capacity

Sinofert Fuling maintains industry-leading profitability

despite downturn in the market

77,274

103,321

Feasibility for 2012 Actual for 2012

Pretax profit of Sinofert Yunlong (RMB1,000)

A MDCP production enterprise in line

with European quality standard;

MDCP standard has been included

in Korean MDCP standard

A national high-tech enterprise

certified by Ministry of Science and

Technology

2011 20122011 2012

-8% -4%

Sinofert Fuling’s phosphorite

consumption for producing

1 ton of phosphate

Sinofert Fuling’s sulphuric acid

consumption for producing

1 ton of phosphorus

9 2010 2011 2012

Urea project with a capacity of 300,000 tons/year newly

completed by Sinofert Changshan

Actual Estimate from Feasibility

Study

Sinofert Changshan’s coal consumption for producing 1 ton of urea

-13%

High-quality

and low-price

coal supply

Capital Increase

and Equity

Investment of

RMB260 million

Increase profitability

Sinofert Pingyuan introduces strategic partners

Technical transformation projects completed in 2012

Sinofert Changshan Steam gradient utilization

Energy-saving and Consumption-reducing Transformation of

Sinofert Changshan’s Urea System

Sinofert Pingyuan Ammonia Evaporative Condenser

Transformation

Coal Briquette Transformation of Sinofert Pingyuan with a

capacity of 300,000 tons/year

……

Emphasis on technical transformation

Sinofert Changshan’s power

consumption for producing

1 ton of urea

Sinofert Pingyuan’s power

consumption for producing

1 ton of urea

-5%

-3%

Midstream Production: Strategic Production Plan of Nitrogen Fertilizer to Help

Achieve Future Leading Position in the Region

2010 2011 2012

10

Production Volume of holding

enterprises

Sales volume of holding

enterprises

Pretax profit of holding

enterprises

Midstream Production: Steady Production Volume and Sales and

Increasing Profit

(1,000 tons) (1,000 tons) (RMB1,000)

3,331 3,4493,289

2010 2011 2012

-212,118

7,550

211,131

2010 2011 2012

3,572 3,691 3,658

2010 2011 2012

11

Downstream Marketing: Transformation of the Marketing Service Business Achieved

Satisfactory Results (1/2)

Fertilizer variety Import share

Sea-borne

Potash Imports 40%

SOP based

compound fertilizer

imports 61%

Phosphate

Fertilizer Imports 75%

Sales volume of fertilizers produced by domestic

enterprises (1,000 tons)

Market share of imported fertilizers

10,08110,370

10,806

2010 2011 2012

12

Downstream Marketing: Transformation of the Marketing Service Model Achieved

Satisfactory Results (2/2)

Hainan Subsidiary Package Solution

1

Crops/customer

demands

2

Soil sampling

and soil test

3

Formula design and

recommendation of

fertilizer application

Best solution selected

from field test and

demonstration

4 5

Agrochemical lecture

and promotion

6

Channel-driven

demands

Gross Profit of Hainan Subsidiary (RMB1,000)

Application of soil

test-based formula Soil test-based fertilizer formulation

technology is applied in wax apple to

increase the size by 50-100%

Tests of soil test-based fertilizer formulation and application technology

and transverse planting technology show good results in Chinese yams

23,286

37,911

2011 2012

13

264

395352

593

395

646

Potash fertilizer Nitrogen fertilizer

13,886 14,19614,957

2010 2011 2012

Downstream Marketing: Stable Increase in Sales and Profit

Continuous increase in sales volume and gross profit of marketing business

Sales volume (1,000 tons)

Gross profit (RMBmn)

290

167

203179 184

162

Compound fertilizer Phosphate fertilizer

2010 2011 2012

5%

1,3971,351

1,151

2010 2011 2012

3%

I. Operation Review

II. Financial Performance

III. Future Outlook

15

Growth in Operation Scale

(1,000 tons) (RMB1,000)

Sales volume Turnover

17,13916,458

15,505

2010 2011 2012 2010 2011 2012

29,271,077

36,684,963

12% 4% 41,190,137

16

Increase in Profit and Optimization of Structure

2010 Gross profit 2011 Gross profit 2012 Gross profit

Marketing business Production business

(RMB’000) (RMB’000) (RMB’000)

35%

65%

41%

59%

77%

23%

1,490,998

2,089,689

2,377,802 14%

17

Consistent Net Inflow for Operating Cash Flow

Net operating cash flow Surplus Cash Coverage

(RMB’000)

Note: Surplus cash coverage = Net operating cash flow /Net profit

1,487,765

3,998,944

2,062,170

2010 2011 2012

3.08

5.83

2.23

2010 2011 2012

18

High Efficiency of Asset Operation

(Days)

Account receivable turnover days Inventory turnover days

(Days)

7166

60

2010 2011 2012

2723

12

2010 2011 2012

19

Secure and Stable Solvency

Liabilities to Assets ratio Debt-Equity Ratio

55%

41%

31%

End of 2010 End of 2011 End of 2012

49%53%

47%

End of 2010 End of 2011 End of 2012

20

Excellent Credit Ratios

Debt/EBITDA Debt/Total Capital

11.5

3.93.0

End of 2010 End of 2011 End of 2012

35.6%

28.9%

23.7%

End of 2010 End of 2011 End of 2012

10.2%

24.1%

33.0%

End of 2010 End of 2011 End of 2012

FFO/Debt

I. Operation Review

II. Financial Performance

III. Future Outlook

22

Grain supply and demand of China

Lack of agricultural acreage per capita in China

China’s grain price going up

Population growth of China

1.211.96

4.75

7.93

3.04

China India Brazil US Globle

average

467

550546502484462

513498477

573525

453

1995 2000 2005 2007 2010 2020E

Output Demand

(Million Tons)

(mu/person) (’00 Million)

4

6

8

10

12

14

1981 1986 1991 1996 2001 2006 2011

Source: EIU Source: FAO

Source: National Bureau of Statistics of China Medium and Long-term Plan for National Food Security

(2008–2020)

Gain Supply and Demand in Tight Balance, Grain Price Continue to Rise

Source：NBS, Ministry of Agriculture

23

716 758 716

835

1,078

2008 2009 2010 2011 2012

5,956

7,253

8,580

10,419

12,287

2008 2009 2010 2011 2012

Source: Ministry of Finance

Central Finance Continues to Increase Investment in Three Issues Concerning

Agriculture to Encourage Farming

Central Finance continues to increase investment in

Three Issues Concerning Agriculture

(RMB’00 Million)

General subsidy for purchasing agricultural

supplies

(RMB’00 Million)

Subsidy for purchasing agricultural

machinery and tools

(RMB’00 Million)

Improved Varieties Subsidy

(RMB’00 Million)

151 151 151 151 151

2008 2009 2010 2011 2012

Direct grain subsidy

(RMB’00 Million)

40

130

155175

215

2008 2009 2010 2011 2012

122

172186

220 220

2008 2009 2010 2011 2012

24

0

10

20

30

40

50

60

19

81

19

82

19

83

19

84

19

85

19

86

19

87

19

88

19

89

19

90

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

0

1000

2000

3000

4000

5000

6000

7000

19

81

19

82

19

83

19

84

19

85

19

86

19

87

19

88

19

89

19

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19

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19

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20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

Agricultural Modernization Is in the Take-off Stage

China's urbanization rate (%)

China’s GDP per capita (US$)

Stage of

undeveloped

economy

First half of medium-term

industrialization

Second half of medium-

term industrialization Early stage of industrialization

Acceleration of urbanization

Industrialization in China is currently in the second-half of the medium term with urbanization

accelerating, constantly driving the process of agricultural modernization.

Source: EIU

Source: National Bureau of Statistics of China Medium

25

Agricultural Modernization Impels the Growth of Fertilizer and Agrochemical Service

Demands

Increasing number of specialized

farmer cooperatives

Economic crops saw increase in

planting production

4974

156

449

614

80 100128 124 140

3358

95 91 115

1971 1981 1991 2001 2011

Fruits & vegetablesRiceW heat

（Million Ton)

11.09

24.7

37.9

52.17

68.9

2008 2009 2010 2011 2012

（0’000 unit）

Essential characteristics of modern agriculture

The 12th Five-Year Plan on Agricultural and Technological Growth explicitly put forward to further adjust

agricultural structure, strengthen land transfer, develop multi-form operation with appropriate scale and

specialized farmer cooperatives and intensify construction of modern agricultural demonstration areas.

Proportion of land transfer area

4.4%

8.9%

17.8%21.5%

2002 2008 2011 2012

Guided by science and technology Scale production Diversified functions

Integrated operation Sustainable growth

Opportunities: beneficial to the growth of marketing services-oriented enterprises.

Source: National Bureau of Statistics of China Medium Source：2011 China Economic Development Research Report,

the State Administration for Industry and Commerce

Source: Ministry of Agriculture of China

26

490461

408 381 377

End of 08 End of 09 End of 10 End of 11 End of 12

357 346 324

232 234

End of 08 End of 09 End of 10 End of 11 End of 12

China’s Fertilizer Industry is under integration, Advanced Production

Capacity is expected to Achieve Significant Advantage in the Future

Continuous integration of fertilizer market

Oversupply of China’s fertilizer industry

Supply and demand of China’s fertilizer industry

(converted to pure amount, 10,000 tons)

Source: Data of 2008-2011 from National Bureau of Statistics of

China, data of 2012 from the expected figure of the company

Number of nitrogen fertilizer enterprises

Source: China Petroleum and Chemical Industry Association

Number of phosphate fertilizer enterprises

During the 12th Five-Year

Plan period, large-scale

nitrogen fertilizer

enterprises accounted for

more than 80% of total

production capacity.

Number of the enterprises

decreased to less than 250

During the 12th Five-Year

Plan period, large-scale

phosphate fertilizer

enterprises accounted for

more than 70% of total

production capacity.

Number of the enterprises

decreased to less than 150

Opportunities: beneficial to the growth of such enterprises with scale, technology and capital advantages.

6,0286,385 6,338 6,213 6,318

5,239 5,404 5,562 5,704 5,800

2008 2009 2010 2011 2012E

Supply D em and

27

Sinofert’s Strategy

• Integration of products and

services

• Strengthen agro-chemical

services

• Advanced manufacturing

• Combine fertilizer with

chemistry business

• Converge to resource

source

• Combine resources with

fertilizer business

Industry Trends

• Marketing services: to provide end users with package solution

and improve end user-oriented marketing capabilities in an all-

round manner by utilizing network advantage and depending on

technologies and services

• Advanced manufacturing: to achieve scale, low-cost, high-

quality, information-based and clean production through strategic

layout and continuous technical innovation

• Resource acquisition: based on the company’s business

planning, to actively focus and acquire resources that support

the company’s strategic development

Company Strategies

Nurturing China's Modern Agriculture!

Thank You!