China XLX Announces 2022 1Q Results Production Capacity Entered a New Milestone with Net Profit Increasing by 88% YoY

2022 1Q Results Highlights:

1. The unaudited consolidated revenue increased by 71% YoY to approximately RMB5,386 million; among which, urea sales revenue increased by 84% YoY to approximately RMB1,583 million;
2. The unaudited consolidated net profit was approximately RMB520 million, representing an increase of 88% YoY;
3. The unaudited total comprehensive income attributable to owners of the parent increased by 90% YoY to approximately RMB382 million.

HONG KONG, CHINA / ACCESSWIRE / June 27, 2022 / China XLX Fertiliser Ltd. ("China XLX" or the "Company", together with its subsidiaries collectively known as the "Group") (HKSE:01866.HK) announced the first quarter results for the year ended 31 March 2022 (the "Period"). The Group's unaudited consolidated revenue amounted to RMB5,386 million, representing an increase of 71% YoY. The unaudited consolidated net profit was approximately RMB520 million, representing an increase of 88%YoY; The unaudited total comprehensive income attributable to owners of the parent increased by 90% YoY to approximately RMB382 million.

During the Period, the Group's performance growth was mainly due to the raise of products' volume and price, and the additional production capacity from new production base. The pandemic, supply chain stains and the Russia-Ukraine war sent food and energy prices soaring. Prices of fertilisers and petrol chemical related products have also risen in tandem. Meanwhile, with the addition of the Third Production Base in Jiangxi Jiujiang and the fixed-bed renovation and upgrading project of the Group's second and third plant in Henan Xinxiang successfully commissioned, the Group's production capacity reached a new milestone.

During the Period, the Group's urea revenue reached approximately RMB1,583 million, representing an increase of 84% YoY. This was mainly due to the increase in the average selling price and sales volume of urea products of the Group by approximately 34% and 37% YoY respectively. Sales volume of urea for the first quarter of 2022 was approximately 646,000 tons.

Sales revenue of the compound fertilisers increased by approximately RMB1,477 million or 79% YoY, mainly due to the increase in the average selling price and sales volume by approximately 44% and 24% YoY respectively. Sales volume of compound fertilisers increased to 504,000 tons during the Period.

During the Period, methanol and DME revenue also recorded substantial growth. The sales revenue of methanol was RMB487 million, representing an increase of 82% YoY, mainly attributable to the increase in average selling price and sales volume by 29% and 40% YoY respectively. The increase in the selling volume was due to the release of new production capacity in Jiujiang base and expansion of the business channels by launching the methanol trading. The sales revenue of DME reached RMB431 million, representing an increase of 67% YoY, as a result of 20% and 39% YoY increase in the average selling price and selling volume respectively.