China XLX Fertiliser (1866) investor relations material

Executive summary

• Operating revenue for 1H2026 reached RMB15.74 billion, up 24% year-over-year, with net profit at RMB1.23 billion, a 62% increase year-over-year; net profit attributable to owners was RMB920.8 million, up 54% year-over-year.

• Growth was driven by scaled development, structural upgrades, refined management, and newly commissioned production capacity supporting higher sales of core products.

• High-efficiency fertilisers, overseas sales expansion, and product mix optimization contributed to improved profitability.

• Gross profit rose 49% year-over-year, with urea gross profit up 66% and overall profitability enhanced by cost reductions.

Financial highlights

• Gross profit margin improved to 19% from 16% in 1H2025, with gross profit at RMB3.03 billion.

• Earnings per share (basic and diluted) were RMB0.739, up from RMB0.492 and RMB0.487 respectively in 1H2025.

• Cash and cash equivalents at period end were RMB2.79 billion, up from RMB1.2 billion at the start of the year.

• Gearing ratio increased to 67.8%, up 1.8 percentage points from year-end 2025, due to increased borrowings for project construction.

• No interim dividend was declared for 1H2026; a final dividend of RMB409.3 million for FY2025 was paid.

Outlook and guidance

• Urea prices are expected to decline in 2H2026 amid looser supply, but industry consolidation, environmental policies, and high-efficiency fertilisers will favor leading players.

• Chemical product prices are forecast to normalize as geopolitical tensions ease; cost advantages and smart manufacturing upgrades will support profitability.

• New capacities at Xinxiang and Zhundong bases will come online in 2H2026, with Guangxi base targeted for 3Q2027, further lowering unit costs.