China XLX Fertiliser (1866) H2 2024 earnings summary

Executive summary

• Maintains leading position in China's urea and compound fertilizer industry, with the largest single-unit urea capacity and top-five domestic sales and profitability for compound fertilizer.

• Operates multiple large-scale production bases across China, supporting diversified product offerings and market reach.

• Revenue for FY2024 was RMB23,128 million, down 1% year-over-year due to lower product prices, but new capacity and expanded sales channels supported resilience.

• Net profit rose 23% year-over-year to RMB2,014 million, with profit attributable to the parent up 23% to RMB1,459 million, driven by investment income from the disposal of Tianxin Coal Mine.

• Fertilizer remained the core segment (58% of revenue), with chemicals (37%), medical intermediates (2%), and others (3%).

Financial highlights

• 2024 sales revenue reached RMB 23,128 million, down slightly from RMB 23,475 million in 2023, an 11% year-over-year change.

• Net profit rose to RMB 2,014 million from RMB 1,637 million, a 23% year-over-year increase.

• Earnings per share increased to 120.05 RMB cents, up 24% year-over-year.

• Dividend per share rose 18% to 26 RMB cents, with a proposed final dividend of RMB0.26 per share.

• Gross profit was RMB3,931 million, down from RMB4,187 million in FY2023.

Segment performance

• Fertilizer accounted for 58% of revenue and 93% of profit (excluding non-recurring items); chemical products contributed 37% of revenue but only 14% of profit.

• Urea: Revenue up 6.3% to RMB7,306 million, sales volume grew 29% year-over-year to 3.789 million tons, with gross margin down 4 percentage points to 25% due to a 17% price drop.

• Compound fertilizers: Revenue down 2% to RMB5,994 million; sales remained stable at 2.299 million tons, with gross margin up 2 percentage points to 15%.

• Methanol: Revenue up 14.5% to RMB2,678 million; gross margin rose to 8.6% from -0.6% due to cost reductions and higher demand.

• Urea solution for vehicle: Revenue down 13% to RMB377 million; gross margin dropped to 18%.