China Xlx Announces 2025 Annual Results Deepening Efforts in Reducing Costs, Enhancing Efficiency, Strengthening Competitiveness Through Differentiation and Driving Marketing Transformation

Rhea-AI Summary

China XLX Fertiliser Ltd (CXLFF) reported 2025 revenue of RMB 25.35 billion (+9.6% YoY) and profit attributable of RMB 932 million (down 36.1% YoY; +1.2% YoY after deducting non-recurring items). The Board proposed a final dividend of RMB 0.32 per share (+23.1% YoY). The Group advanced major projects, increased investment in new projects by ~24%, cut high-interest debt of RMB 9.24 billion, and improved its long-term to short-term borrowing ratio to 8:2.

Segment strengths included methanol revenue up 37% and methanol volume up 43%, while urea faced price pressure with average selling price down 10%.

Positive

• Dividend increased by 23.1% to RMB 32 fen per share
• Methanol revenue rose 37% year-on-year (sales volume +43%)
• Investment in new projects up approximately 24% YoY
• Replaced RMB 9.24 billion of high-interest loans
• Borrowing mix improved to long-term:short-term 8:2

Negative

• Profit attributable declined by 36.1% YoY to RMB 932 million
• Urea average selling price fell by 10% YoY, pressuring urea revenue

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

2025 Annual Results Highlights:

• Profit attributable to owners of the parent after deducting non-recurring items grew by 1.2% YoY to approximately RMB 932 million.

• Dividend payment increased by 23.1% YoY to RMB 32 fen per share.

• The ratio of long-term to short-term borrowings improved from 6:4 at the beginning of the year to 8:2 at the year end with finance cost dropped by 3% YoY. The Group's liquidity and capital structure was thus further optimized.

• Development of the Xinxiang New Chemical Materials Project and the Zhundong Production Base progressed smoothly. The Group's share in domestic fertiliser market is expected to grow by 6 percentage points upon the full operation of five production bases.

HONG KONG, HK / ACCESS Newswire / March 29, 2026 / China XLX Fertiliser Ltd. ("China XLX" or the "Company", together with its subsidiaries collectively referred to as the "Group") (stock code: 01866.HK) announced that the Group's revenue for the year ended 31 December 2025 grew by 9.6% year-on-year to approximately RMB 25.35 billion. Profit attributable to owners of the parent for the period amounted to approximately RMB 932 million, down by 36.1% year-on-year and up by 1.2% year-on-year if non-recurring items were deducted.

In order to reward shareholders for their long-term support and to send a positive signal to the capital market, the Board of Directors, after comprehensive consideration of the Group's actual operating performance and future strategic plans, proposed to distribute a final dividend of RMB 32 fen per share, up by 23.1% year-on-year.

During the review period, the supply glut of domestic coal chemical-related market dragged down the selling prices of products and weighed on the industry's overall operating results. The Group adhered to the core profitability model of "low cost + differentiation" and focused on "project development" and "marketing transformation". While making continuous efforts in reducing costs and increasing efficiency, it reinforced the competitive edges through differentiation and advanced the strategy of marketing transformation, thereby ensuring the stable operation of overall business.

During the review period, revenue from urea sales reached approximately RMB 6.83 billion, down by 6% year-on-year. Due to the decline in feedstock prices, urea selling price was sluggish in the first quarter and led to a 10% year-on-year decrease in the average selling price for the year. On the other hand, driven by relaxed export controls and the unleashing of demand for winter stockpiling, urea prices rebounded quarter by quarter afterwards. It is noteworthy that the selling price in the fourth quarter climbed by 3% from previous quarter. In order to mitigate the adverse impacts of declining prices, the Group fully capitalized on the opening of export window to expand overseas sales with a primary focus on increasing the proportion of exports to Southeast Asia. As a result, the urea export volume substantially grew, leading to a 3% year-on-year increase in urea sales volume for the year.

Revenue from compound fertiliser sales amounted to approximately RMB 6.92 billion in the year, up by 15% year-on-year. In a market environment characterized by misalignment in price transmission, the Group leveraged its nationwide network of small-scale production bases to accelerate marketing transformation and to strengthen agrochemical services, resulting in a 19% year-on-year increase in the sales volume of compound fertiliser. Nevertheless, owing to the national policies to stabilize selling prices and supply, the transmission of feedstock costs to the product prices was delayed, creating a temporary operational pressure arising from "lower prices amid rising costs". Besides, farmers delayed fertiliser stockpiling, leading to a 3% year-on-year decrease in the average selling price of compound fertiliser.

Revenue from methanol sales in the year surged by 37% year-on-year to approximately RMB 3.67 billion. As domestic economy steadily picked up and the capacity utilization of chemical sector improved, the downstream demand for methanol gradually recovered. As a result, the sales volume of methanol jumped by 43% from the previous year. On the other hand, methanol imports from the Middle East climbed to a record high due to geopolitical tensions. The average selling price of methanol hence dropped by 4% year-on-year on ample supply in the market.

With the successful commissioning of Jiujiang Phase II Project, the Group possessed more low-cost, high-quality production capacity. It became a benchmark for the Group's development of large-scale project and capacity optimization plan. Meanwhile, the construction of the new chemical materials project at theXinxiang Production Base and the Zhundong Production Base progressed as planned. When all of five major production bases come on stream, the Group's share in domestic fertiliser market is expected to increase by 6 percentage points. Leveraging its large-scale synthetic ammonia production bases, the Group had established multiple small-scale compound fertiliser bases across the country. Benefiting from their proximity to end-user markets, the Group further strengthened the nationwide marketing network.

In order to safeguard the financial security and ensure its stable operation, the Group promoted steady and orderly development of large-scale production bases and projects in accordance with the development strategy for next three years, with investment in new projects and new production bases increasing by approximately 24% year-on-year. At the same time, the Group continued to optimize the debt structure, strengthening its financial stability and ensuring the orderly development of projects through medium- and long-term low-cost financings.

The Group further optimized the borrowing structure through the expansion of medium- and long-term financings. As a result, the ratio of long-term to short-term borrowings improved from 6:4 at the beginning of the year to 8:2 at the year end, thus further enhancing its liquidity and capital structure. During the period, the Group completed the replacement of high-interest loans worth approximately RMB 9.24 billion, including all prior high-interest financial lease loans. The borrowing interest rate thus reduced by 0.5 percentage point. While the Group continued to proceed with its development strategy and to increase the cash resources, its finance costs still dropped by 3% year-on-year.

Looking ahead into 2026, Mr. Liu Xingxu, Chairman of China XLX , said: The general trend of domestic urea market for the year will see "ample supply, stable demand and export controls". Despite the persistence of supply glut, the arable land area is expected to further expand under the support of national policy to ensure grain production. Therefore, agricultural demand is likely to grow. At the same time, the government is expected to further relax export controls and it cannot be ruled out that the export volume will be increased to optimize the demand and supply condition in the market. The imbalance condition of the urea market will see phasal improvement. All in all, the urea price for this year will remain stable, and the selling price is expected to grow steadily in the first half amid robust agricultural demand for farming peak season.

Regarding project development, the trial run of the synthetic ammonia production facility at the Xinxiang New Chemical Materials Phase I Project (with capacity of 570,000 tons) goes smoothly. Most of its indicators perform well. Through energy-saving renovation of key equipment and optimization of production process, the project's production costs are expected to decrease by approximately 8% when compared with the Group's existing production facilities. Meanwhile, the development of the Zhundong Production Base Phase I is progressing steadily as planned and it is expected to be put into operation by the end of this year. With an access to local feedstocks, this project will enjoy significant benefits from low-cost feedstocks. Upon the commencement of its operation, the Group will reinforce the market leadership in terms of production capacity and energy efficiency, thereby laying a solid foundation for it to implement large-scale expansion and enhance its market competitiveness in the future.

~ END ~

About China XLX Fertiliser Ltd.

China XLX Fertiliser Ltd. is one of the largest and most cost-efficient coal-based urea producers in China. It is principally engaged in developing, manufacturing and selling of urea, compound fertiliser, methanol, dimethyl ether, melamine, furfuryl alcohol, furfural, 2-methylfuran, pharmaceutical intermediates and related differentiated products. The Group adheres to the development strategy of "maintaining overall cost leadership and creating competitive differentiation" while strengthening the core fertiliser operations. With support of the resources in Xinxiang, Xinjiang and Jiangxi, it extends the value chain to upstream new energy and new materials and diversifies into coal chemical related products. The Company's shares (stock code: 01866.HK) are traded on the main board of the Hong Kong Stock Exchange.

Investor and Media Enquiries

China XLX Fertiliser Ltd.
Gui Lin
Tel: 86-135-6942-3415
Email: gui.lin@chinaxlx.com.hk

PRChina Limited
David Shiu / Liky Guo
Tel: 852-2522 1368 / 852-2522 1838
Email: dshiu@prchina.com.hk
lguo@prchina.com.hk

SOURCE: China XLX Fertiliser Ltd.

View the original press release on ACCESS Newswire

FAQ

What were China XLX's (CXLFF) 2025 revenue and profit results?

China XLX reported 2025 revenue of RMB 25.35 billion and profit attributable of RMB 932 million. According to the company, profit fell 36.1% YoY but was up 1.2% after deducting non-recurring items.

Why did China XLX (CXLFF) propose a higher dividend for 2025?

The Board proposed a final dividend of RMB 32 fen per share, up 23.1% YoY. According to the company, this rewards long-term shareholders and signals confidence in future strategic plans.

How did urea performance affect China XLX's (CXLFF) 2025 results?

Urea revenue declined amid weaker selling prices, with average urea price down 10% YoY. According to the company, export expansion partly offset domestic price pressure, lifting annual urea volume by 3%.

What drove China XLX's (CXLFF) methanol growth in 2025?

Methanol revenue rose 37% YoY and volume jumped 43% YoY due to recovering downstream demand and higher capacity utilization. According to the company, domestic demand recovery supported the volume increase.

How did China XLX (CXLFF) improve its balance sheet in 2025?

The Group replaced RMB 9.24 billion of high-interest loans and shifted borrowing to a 8:2 long-term:short-term ratio. According to the company, these steps lowered borrowing costs and strengthened liquidity.

What capital spending plans did China XLX (CXLFF) report for its projects?

Investment in new projects and production bases increased by about 24% YoY to support large-scale bases. According to the company, Xinxiang and Zhundong projects progressed smoothly and aim to boost future capacity.