Sanzheng Organic Tonghua Chemical Technology Innovation Project opened a new phase of fertilizer co-production. The company’s Tonghua Chemical’s 300,000-ton synthetic ammonia technical transformation project is progressing smoothly and is expected to be completed in the second half of next year. The company expects the urea production cost to be 1,070 yuan/ton, plus 450 yuan/ton coal price, and the expected total cost is 1,520 yuan/ton. At present, the cash cost of fertilizer in Northeast China is about 1500 yuan/ton, and the comprehensive cost is 1700-1900 yuan/ton. The company's cost per ton of urea is about 200 yuan lower than the market. Next year, the direct subsidy for fertilizer production will be cancelled, and electricity costs are expected to rise by 50%+ and transportation costs by 100%+. At present, the production of major synthetic ammonia manufacturers in Northeast China is sluggish. After the subsidy is cancelled, the expected cost will rise significantly. The company's technical advantage in ammonia synthesis is that on the one hand, the newly developed ruthenium-based catalyst is used in ammonia synthesis. The pressure during the reaction is less than PN100 (generally above 200PN in the industry), which significantly reduces power consumption. At the same time, the by-products are divided into ruthenium and thiamine, which can be recycled. use. The company expects that the annual demand for chemical fertilizers in Northeast China will be about 7 million tons, and the demand for synthetic ammonia catalyst will be more than 200 tons. The company's catalyst production capacity will be expanded to 200 tons next year to meet the subsequent technical transformation needs of the synthetic ammonia plant; on the other hand, the hydrogen source comes from the coking enterprise that has been technologically reformed in the previous period. The factory provides a more stable and cheaper gas source. The company expects that by the end of next year, it can form an effective influence on the pricing of fertilizers in Northeast China.

The overseas business of cyanuric chloride is advancing steadily, with the short-term goal of building a good reputation. At present, the company has 7 shale gas desulfurization facilities in Eagle Ford area and 20 projects in hand. The unit desulfurization fee is US$10/lb. At present, the sulfur content of the gas outlet of the company's operating projects can be stably controlled at 0-3ppm, which is significantly lower than the requirements of the project party, and the sulfur capacity of the desulfurizer can reach 57%. Most of the reactors cost 300,000 U.S. dollars and need to be replaced every 6 months. The cost of each replacement is about 25,000 U.S. dollars. The company continues to be optimistic about the development of overseas business, but because the project party requires the company's desulfurization agent reserve to reach the consumption level of half a year, and there are strict requirements for the place of production, the company will consider designing a production base overseas. Related businesses will not advance too fast in the future, and synthetic ammonia manufacturers will prioritize building good quality. Considering that the company's current operating projects are all 30,000 to 50,000 square meters, and the overall desulfurization capacity is relatively low, we believe that in the short term, the contribution of overseas business to the company's overall performance will not increase significantly.