China XLX Announces 2025 Q1 Results

China XLX's 2025 Q1 Earnings Remarkably Improved QoQ

Continuing Efforts to Strengthen Cost and Budgetary Control

2025 Q1 Results Highlights:

• The Group's revenue grew by 1.7% Y-o-Y to approximately RMB 5.85 billion.

• Net profit attributable to owners of the parent amounted to approximately RMB 198 million as compared to a loss in previous quarter.

• Operating results of compound fertiliser business steadily improved as the Group leveraged its competitive edges in humic acid feedstock to boost compound fertiliser sales.

• The Group grasped the opportunities from interest rate cuts to make early repayment and replacement of high-interest loans and lowered the average lending rate by 0.7 percentage points from a year ago.

HONG KONG / ACCESS Newswire / May 18, 2025 / 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 three months ended 31 March 2025 (the "Period") grew by 1.7% Y-o-Y and 2.4% Q-o-Q to approximately RMB 5.85 billion. Net profit attributable to owners of the parent for the Period reached approximately RMB 198 million, as compared to a loss of approximately RMB 74.64 million for the fourth quarter of last year.

In the first quarter of 2025, the fertiliser market staged a comeback after subdued performance. Dragged by a mismatch between market supply and demand, the price weakness of coal chemical related products lingered in the first two months. However, the urea prices remarkably rebounded in March on the demand for spring farming coupled with growing expectations for export resumption, leading to a strong recovery in the prices of urea-based downstream products. The overall gross profit margin for the Period climbed by 3 percentage points to 14% from the previous quarter. Besides, the revival in agricultural demand along with the commencement of new compound fertiliser production facilities bolstered the sales of the Group's core products.

The gross profits of the Group's urea products and urea solution for vehicles retreated as their selling prices declined at a faster pace than their costs due to weakened support for urea prices resulting from lower prices of feedstock coal. As a result, its overall gross profit dropped by 23% Y-o-Y. On the other hand, its gross profit surged by 26% Q-o-Q due to the improvement in fertiliser supply and demand condition and a gradual pickup in the prices of different products.