China XLX Fertiliser (1866) H1 2025 earnings summary

Executive summary

• Revenue for 1H2025 reached RMB12,666 million, up 5% year-over-year, driven by higher sales volumes despite lower product prices and initial supply-demand imbalances.

• Net profit for 1H2025 was RMB757 million, down 19% year-over-year but up 104% sequentially, mainly due to a sharper drop in selling prices than in raw material costs.

• EPS for 1H2025 was RMB0.515, a 19% decrease year-over-year but a 219% increase sequentially.

• Second quarter saw a strong rebound: gross profit rose 44% quarter-over-quarter and net profit surged 104% quarter-over-quarter, led by higher prices and volumes for urea and melamine.

Financial highlights

• Gross profit for 1H2025 was RMB2,040 million, down 13% year-over-year but up 45% sequentially.

• Basic EPS was RMB0.515, down from RMB0.564 in 1H2024.

• Finance costs decreased 14% year-over-year due to lower average loan rates and optimized debt structure.

• No interim dividend was declared for 1H2025.

• Other income, net, increased 79% year-over-year to RMB200 million, mainly from higher government grants and by-product sales.

Outlook and guidance

• Urea prices expected to remain stable in 2H2025, with potential for periodic upward movement due to coal price stabilization.

• Chemical product industry supply-demand is expected to improve, supporting a steady upward trend in industry prosperity.

• Expansion projects in Jiangxi and Xinxiang are on track, with full capacity release expected by 2027, supporting long-term growth.