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Letter of Chairman

The year 2015 is quite extraordinary for Wengfu’s development. In 2015, under the challenge of the increasing pressure from macroeconomic downturn, the continuous sluggish industry, the significantly decreased main product prices and the rigid rise of fixed costs of the company, yet led by the Board of Directors and the Party Committee of Wengfu Group, we have basically achieved the goals by cooperating with our staff, focusing on production, operation, management, reform and development, as well as promoting work with firm confidence, perspiration and overall planning.  

Practice has proven that this “severe winter” will not warm itself. It is of the periodicity, the general trend and the historical inevitability. When the economic development meets “bottlenecks”, we need to gather strength to break it. Historically, only by innovation and thoroughly changed productivity can we break through the economic slump brought by the crisis, and the ice imprisoning development. As with the first and second industrial revolutions as well as the information revolution, they not only brought the leap in productivity, but also changed the social organizational shape.

Under the pressure of economic downturn, the enterprise has to make a difference, being the main force to break the ice.

In fact, the “structural reform at supply side” aims to activate the endogenous power of the enterprise so as to shake off the overcapacity and create new incremental value for the economic development. Currently, there is a severe overcapacity of the phosphoric compound fertilizer in China, so the enterprise has to continuously surrender its profits, resulting in the industry suffering at the edge of cost overhang. Uncontrolled capacity of the phosphoric fertilizer leads to an unreasonable supply-demand structure. On the one hand, there is the on-going demand saturation in domestic and overseas market. On the other hand, a continuous high open capacity exists just to grab the market share. All these aggravate contradictions, and force the enterprise to make transformation and upgrading such as adjusting overcapacity and upgrading the new capacity.

As the leader in domestic phosphorus chemical industry, Wengfu has made a lot of efforts regarding the construction of “Green Mine” and “Green Chemical Industry”, the transformation and upgrading of the phosphorus chemical industry, as well as promotion of the water-fertilizer-agriculture integration. Wengfu’s mines are green. The factories are roomy and clean. Wengfu leads the industry in terms of not only the safe and environmental storage and the comprehensive utilization of the ardealite, which constitutes a challenge in the international phosphorus chemical industry, but also the mining and dressing of the mid-low-grade phosphate rock. Wengfu initiated how to extract the accompanying resources such as fluorine and iodine from the phosphorite, thus breaking through the technology blockage on wet-process phosphoric acid purification by some countries. Therefore, Wengfu’s technology wins world reputation. Currently, following the tendency of “zero growth of fertilizer use in 2020”, Wengfu makes overall arrangement over production of the water soluble fertilizer and the modern agriculture at the “supply side”, so as to transform from a single fertilizer producer to a water-fertilizer-agriculture integration service provider, striving to be the model of “structural reform at the supply side”, as well as the pioneer in making Guizhou a powerful industrial province.

While focusing on production, Wengfu, as a large state-owned enterprise, also keeps in mind its social responsibility. According to the requirement of “targeted poverty alleviation” made by General Secretary Xi Jinping when he visited in Guizhou, Wengfu plays a main role in aiding Rongjiang County, southeast Guizhou Province, by introducing “external brains”. With the targeted poverty alleviation power introduced, good results have been achieved.

If winter comes, can spring be far behind? Currently, with the vision of “focusing on green ecology, consolidating the foundation of mineral resources, being specialized in chemical fertilizers, and devoting to serving the modern agriculture and industry in China”, Wengfu aims to get through the production and marketing chain of the agricultural materials, upgrade the traditional manufacturing industry and to be a hundred-billion-level enterprise. As long as Wengfu people unite as one, the breakthrough development will be achieved while Wengfu overcomes difficulties, and the Chinese Dream of Wengfu is bound to achieve.

 

 

 

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