China XLX Announces 2024 1Q Results - Seite 3

Looking ahead, as the second quarter is the peak season for summer fertilisation and spring plowing approaches, agricultural demand will be released, hence boosting the sales of nitrogen-based fertilisers. Additionally, the window for fertiliser export is open, which will help alleviate the supply glut, improve the market sentiment, enhance the supply and demand condition and facilitate the stable and positive development of fertiliser prices. As for chemical products, underpinned by the steady recovery of domestic economy, the demand and supply of basic chemical products will tend to become balanced along with stabilization of product prices. In view of a pickup of domestic economy, it is expected that there is a relatively large room for chemical market to grow.

In terms of project construction, while ensuring stable cash flow, the Group will seize the opportunities arising from the consolidation of existing market capacity and the upgrading of the fertiliser industry to further increase its market share. The Group will expand the production capacity, extend the industrial chain, strengthen the R&D capability, and advance the construction of new production bases. It is expected that the Phase I compound fertiliser project at the Guangxi Production Base will be completed and put into operation by the end of this year. The project will be developed into the most competitive demonstration base for integrated production of fertilisers and chemicals in South China, thereby laying a solid foundation for the Group to expand into the Southeast Asian market.

Mr. Liu Xingxu, Chairman of China XLX, said, "The Group is always committed to the 'low cost + differentiation' strategy. While continuing to push for high-quality development, we will strive hard to retain cost efficiency through technological research, promote product differentiation through product development efforts, and sharpen our core operational competency through continual enhancement of high-end R&D. At the same time, we will accelerate the transformation of marketing models, make use of the big data technology in marketing as the starting point, attach greater importance to large-scale farmers, and enhance integrated service capabilities through team collaboration to adapt to the future trend of land-intensive agricultural development."