China XLX Announces 2024 First Three Quarters Results

China XLX's Profit for 9M 2024 Surged by 80% YoY

Efforts in Efficiency Enhancement, Cost Reduction and Resources Optimization 
Produced Remarkable Results

Results highlights for first three quarters in 2024:

• Net profit climbed 75.8% YoY to RMB 2.031 billion.

• Net profit attributable to owners of the parent company surged 80.7% YoY to RMB 1.534 billion.

• Basic earnings per share grew 85.3% YoY to RMB 1.26.

• Financial position continued to improve with the gearing ratio dropped to 59.4%.

HONG KONG, CHINA / ACCESSWIRE / October 31, 2024 / China XLX Fertiliser Ltd. ("China XLX" or the "Company", together with its subsidiaries collectively known as the "Group") (HKSE: 01866.HK) announced that the Group's revenue for the nine months ended 30 September 2024 (the "Period") amounted to approximately RMB 17.42 billion. Net profit increased by 75.8% YoY to approximately RMB 2.031 billion. Net profit attributable to owners of the parent company surged by 80.7% YoY to RMB 1.534 billion.

In the first three quarters of 2024, benefiting from the decline in feedstock costs and the stable operation of production, the Group's gross profit grew by 5% YoY. Through effective cost management, its administrative expenses and financial expenses decreased by 2% and 13% respectively. In addition, the disposal of Tianxin Coal generated an investment gain of approximately RMB 790 million. The above factors led to a significant increase in the Group's net profit. In this regard, the Group completed the capital increase in its non-wholly owned subsidiaries and enlarged its shareholding to 80.18%, leading to a significant increase in the net profit attributable to the parent company.

As the global economy gradually picked up, the market demand for the Group's main products remained stable. Although fluctuations in raw material prices weighed on the product prices, the Group achieved stable improvement in its operating results by expanding production capacity and sales channels. The sales revenue of fertiliser segment, chemical segment, gas segment and medical intermediate accounted for 60%, 36%, 2% and 2% respectively of the total revenue.

During the Period, the sales volume of urea products increased by 33% YoY to 2.768 million tons mainly due to the expansion of production capacity and resumed operation of some production facilities. Meanwhile, with stepped-up efforts to promote high-efficiency compound fertilisers and differentiated fertilisers, the overall gross profit margin of compound fertilizers increased by 5% YoY. Underpinned by the economic recovery, the demand for methanol recovered and its sales volume for the period increased by 17% YoY, and the gross profit margin increased by 8% YoY.