China XLX Fertiliser (1866) H2 2025 earnings summary

Executive summary

• Revenue increased 10% year-over-year to RMB25.35 billion, driven by higher sales volumes in core products despite industry overcapacity and price declines.

• Net profit attributable to shareholders was RMB932 million, down 36% year-over-year, mainly due to the absence of a one-off gain from a subsidiary disposal in 2024.

• Dividend per share proposed at RMB32 cents, up 23% year-over-year, reflecting confidence in long-term growth.

• Share repurchases and increased parent company shareholding further optimized capital structure and shareholder returns.

Financial highlights

• Revenue: RMB25.35 billion (up 10% YoY); Net profit: RMB1.30 billion (down 35% YoY).

• Gross profit margin: 15% (down from 17% YoY); EPS: RMB0.76 (down from RMB1.20 YoY).

• Other income and gains dropped to RMB411 million due to the absence of a major disposal gain.

• Finance costs reduced by 3% YoY to RMB480 million through refinancing and lower interest rates.

• Gearing ratio increased to 73.84% from 69.66% YoY.

Outlook and guidance

• Fertilizer prices expected to remain stable with potential for a steady upward trend in 2026, supported by rising energy prices and favorable agricultural policies.

• New projects at Xinxiang and Zhundong bases to be commissioned, expected to lower costs and enhance competitiveness.

• Continued focus on high-efficiency fertilizers, digital transformation, and overseas market expansion.