China XLX Announces 2024 Interim Results

Quality Improvement, Cost Reduction and Efficiency Enhancement Contributing to Profit Growth.

In the first half of 2024, China XLX Fertiliser Ltd. reported a 0.02% YoY increase in revenue to approximately RMB 12.061 billion. Profit attributable to owners surged by 26% YoY, reaching around RMB 687 million. The Group continuously improved its financial condition, with the debt-to-asset ratio decreasing for four consecutive years to 62.7%, and finance costs reduced by 18% YoY.

Despite a mismatch in demand and supply within the fertilizer industry, the Group optimized its production and strictly controlled energy consumption, leading to significant sales increases in urea, compound fertilisers, and methanol. Consequently, overall gross profit increased by 12% YoY. The sales of urea rose by 9%, compound fertilisers by 6%, and methanol by 32%.

Conversely, melamine sales revenue decreased by 4%, mainly due to a 6% YoY drop in average selling prices. Nevertheless, DMF sales revenue increased by 14% driven by a 31% YoY increase in sales volume.

Looking ahead, Chairman Liu Xingxu emphasized the Group's focus on leveraging big data, restructuring sales organization, and building advanced technology projects to maximize investment returns.