China XLX Fertiliser Announces 2024 Annual Results

Rhea-AI Summary

China XLX Fertiliser reported its 2024 annual results, showing mixed performance with revenue declining 1.5% YoY to RMB 23.13 billion, while profit attributable to owners increased 23.0% YoY to RMB 1.46 billion. The company raised its final dividend by 8.3% to RMB 0.26 per share.

The company's performance was impacted by declining domestic coal prices and market oversupply. Key highlights include:

• Urea sales volume increased 29% YoY, though selling prices declined 17%
• Compound fertiliser revenue decreased 2% YoY to RMB 5.99 billion
• Methanol sales revenue grew 14.5% YoY to RMB 2.68 billion
• Finance costs reduced by 15% YoY

The company implemented its "Two Majors, One Share, Joint Service" marketing model to strengthen brand awareness and market share. New facilities including a 60,000-ton polyformaldehyde project and a 300,000-ton compound fertiliser project commenced operations, expanding the company's production capacity.

Positive

• Profit attributable to owners increased 23.0% YoY to RMB 1.46 billion
• Dividend increased 8.3% YoY to RMB 0.26 per share
• Urea sales volume grew 29% YoY
• Methanol revenue increased 14.5% YoY with improved margins
• Finance costs reduced by 15% YoY
• Gearing ratio decreased by 2.4 percentage points

Negative

• Overall revenue declined 1.5% YoY to RMB 23.13 billion
• Urea selling prices dropped 17% YoY
• Urea gross profit margin decreased by 4 percentage points
• Compound fertiliser revenue decreased 2% YoY
• Compound fertiliser sales volume declined 0.3% YoY

Two Majors, One Share, Joint Service" Marketing Model to Bolster Competitive Edges

2024 Annual Results Highlights:

• The Group's revenue reduced by 1.5% YoY to approximately RMB 23.13 billion.

• Profit attributable to owners of the parent climbed by 23.0% YoY to approximately RMB 1.46 billion.

• Final dividend for 2024 was RMB 26 cents per share, up by 8.3% year-on-year.

• The Group enhanced the competitiveness and brand power of its differentiated products through "Two Majors, One Share, Joint Service" marketing model.

HONG KONG, HK / ACCESS Newswire / March 30, 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 year ended 31 December 2024 (the "Period") reduced by 1.5% year-on-year to approximately RMB 23.13 billion. Profit attributable to owners of the parent grew by 23.0% year-on-year to approximately RMB 1.46 billion. The Board of Directors proposed the payment of a final dividend of RMB 26 cents per share for 2024, up by 8.3% from the previous year.

During the Period, the coal chemicals industry saw a subdued recovery due to a combination of factors including declined domestic coal prices, a supply glut and tightened export policy, which weighed on the prices of related products and hence the financial performance of market participants. Despite a mild decline in its revenue for the Period, the Group maximized its capability to withstand the pressure on its financial results arising from price fluctuations and the soft market through newly-added high-quality production facilities and greater economies of scale.

While integrating its superior resources and focusing on the development of core businesses, the Group disinvested its entire interest in Tianxin Coal Mine and realized a substantial investment gain. As a result, its profit for the Period expanded by 23.0% year-on-year to approximately RMB 2.01 billion. Riding on the development trend of China's agriculture, the Group implemented innovative marketing model featuring 兩大一分共服務 to strengthen its brand awareness and market share. Meanwhile, the polyformaldehyde project at Xinjiang Base with annual capacity of 60,000 tons and the Guangxi Base Compound Fertiliser Project with annual capacity of 300,000 tons commenced operation at the end of last year, laying a solid foundation for the Group to tap into new markets and new business areas.

While prioritising the fertiliser business development, the Group coordinated the development of different business segments based on the core operation. During the Period, the sales revenue of fertiliser segment, chemical segment, medical intermediate segment and others accounted for 58%, 37%, 2% and 4% respectively of the Group's total revenue.

The sales volume of urea for the Period climbed by 29% year-on-year, thanks to a 21% year-on-year growth in urea output on increased production capacity. The sales revenue from urea grew by 6.3% year-on-year to approximately RMB 7.31 billion. Nevertheless, a surge in new production capacity in the market coupled with export controls led to a supply glut and 17% year-on-year decline in the Group's urea selling price. Therefore, the gross profit margin of urea dropped by 4 percentage points year-on-year to approximately 25%.

The sale revenue from compound fertiliser for the Period slightly decreased by 2% year-on-year to approximately RMB 5.99 billion, mainly attributable to delayed procurement from downstream for farming because China's ample grain reserves and abundant food supply dragged down the food prices. As a result, the sales volume of compound fertiliser dropped by 0.3% year-on-year. At the same time, the selling price of compound fertiliser reduced by 2% year-on-year due to lower feedstock costs. On the other hand, the production costs of compound fertiliser came down on relatively abundant supply of feedstocks, resulting in 4% year-on-year growth in sales volume and 3 percentage points year-on-year increase in the overall gross profit margin of compound fertilisers.

Underpinned by domestic economic recovery, downstream demand for basic chemicals gradually picked up, leading to 16% year-on-year growth in the sales volume of methanol for the Period. The sales revenue from methanol advanced by 14.5% year-on-year to approximately RMB 2.68 billion. Benefiting from lower coal costs and the Group's ever-improving production technology, the production costs of methanol retreated by 10.6% and the gross profit margin of methanol for the Period grew by 9.2 percentage points year-on-year to 8.6%.

The Group continued to optimize its debt structure and grasped the opportunities arising from interest rate cuts to replace the high-cost borrowings with the borrowings with lower costs and to lower its finance costs. During the Period, its finance costs came down by approximately 15% from the previous year and its gearing ratio reduced by 2.4 percentage points from a year ago.

Looking ahead into the future, Mr. Liu Xingxu, Chairman of China XLX , said, "The supply and demand condition of domestic nitrogenous fertiliser market is expected to turn relatively stable this year as the growth of supply capacity will slow down amid margin squeeze. Besides, obsolete production facilities will partly offset the impacts of new capacity addition. Therefore, the supply glut issue shall be less severe than expected. Agricultural demand for fertilisers is gaining steam with the start of spring farming. With higher utilisation rates of compound fertiliser production facilities, urea prices will stabilize and trend upwards. Meanwhile, driven by economic recovery and tighter environmental regulations, downstream industrial demand for urea will grow further. As for compound fertiliser, tight balance of demand and supply will emerge on increasing fertiliser demand for spring farming coupled with tighter global supply and higher transportation costs, which will push up global fertiliser prices and will lend support to the compound fertiliser prices."

Mr. Liu Xingxu noted: China XLX will take advantage of the opportunities arising from market downcycle to propel the steady expansion of high-quality production facilities and to boost its market shares. Based on the industry trends and its own cash flow situation, the Company will carry out investments reasonably with primary focus on projects with high return on investment as well as good economic benefits and cash-generating capability. Once the market stabilises, they will become the Company's strong competitive edges. Meanwhile, it will extend services to market side and consumer side through the "Two Majors, One Share, Joint Service" marketing model, thereby delivering differentiated services to end-users (farmers) and enhancing the competitiveness and brand power of the Group's differentiated products.

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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 Rachel Chen Tel: 852-2522 1368 / 852-2522 1838 Email: rchen@prchina.com.hk

File: China XLX Announces 2024 Annual Results

SOURCE: China XLX Fertiliser Ltd.

View the original press release on ACCESS Newswire

FAQ

What caused China XLX Fertiliser (CXLFF) profit to increase by 23% in 2024?

The profit increase was primarily due to divestment of Tianxin Coal Mine, newly-added high-quality production facilities, and greater economies of scale, despite market challenges.

How did CXLFF's urea business perform in 2024?

Urea sales volume increased 29% YoY with revenue growing 6.3% to RMB 7.31 billion, though selling prices fell 17% and gross margin declined 4 percentage points to 25%.

What is the dividend payout for CXLFF shareholders in 2024?

CXLFF announced a final dividend of RMB 0.26 per share, representing an 8.3% increase from the previous year.

How did CXLFF's methanol segment perform in 2024?

Methanol sales volume grew 16% YoY with revenue increasing 14.5% to RMB 2.68 billion, while gross margin improved by 9.2 percentage points to 8.6%.

What new production facilities did CXLFF add in 2024?

CXLFF added a 60,000-ton polyformaldehyde project at Xinjiang Base and a 300,000-ton Compound Fertiliser Project at Guangxi Base.