China XLX Fertiliser (1866) H2 2025 earnings summary

Executive summary

• Achieved year-over-year revenue growth of 10% to RMB 25.35 billion, driven by higher sales volumes in core products despite industry overcapacity and price declines.

• Net profit attributable to shareholders was RMB 930 million, down 36% year-over-year, mainly due to the absence of a one-off gain from a subsidiary disposal in 2024.

• Maintained industry leadership in urea and compound fertilizer production, with continued expansion in high-efficiency fertilizer markets.

• Dividend per share proposed at RMB 32 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 increased 10% year-over-year to RMB 25.35 billion.

• Gross profit margin was 15% (down from 17% YoY); gross profit rose 13% to RMB 3.83 billion.

• Net profit was RMB 1.30 billion (down 35% YoY); EPS: RMB 0.76 (down from RMB 1.20 YoY).

• Finance costs reduced by 3% YoY to RMB 480 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.

• Urea export policy expected to ease in 2026, supporting export growth.

• Ongoing capacity expansion with new urea and compound fertilizer projects scheduled for completion by 2026–2027.

• Strategic focus on high-quality, green development, digital transformation, and downstream product diversification.

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