China XLX Fertiliser (1866) investor relations material

Executive summary

• Operating environment improved in Q1 2026 due to rising agricultural demand and favorable raw material costs, supporting industry growth.

• Focus on R&D for high-efficiency fertilisers and product mix optimization increased high-value product share, boosting average prices and gross profit.

• Expansion of domestic and international sales channels led to higher export volumes and prices for core products.

• Commissioning of Jiujiang Phase II project added new capacity, enhancing economies of scale and reducing unit costs.

• Acquisition of 10.66 million minority shares increased parent ownership to 83.32%, improving profit attribution and governance.

Financial highlights

• Revenue rose 17% YoY to RMB 6.82 billion; gross profit up 53% YoY to RMB 1.28 billion.

• Net profit increased 69% YoY to RMB 420.7 million; net profit attributable to parent up 52% YoY to RMB 299.6 million.

• Basic EPS grew 48% YoY to 24.1 RMB cents; EBITDA up 16% YoY to RMB 4.25 billion.

• Capital expenditure surged 119% YoY to RMB 1.35 billion.

Outlook and guidance

• Domestic urea prices expected to remain stable in Q2 2026, with limited upside due to ample supply.

• Anticipated relaxation of urea export policy post-spring planting to stabilize prices.

• Demand for high-efficiency and specialty fertilisers to grow, driven by farmland expansion and green agriculture initiatives.

• New capacity from Jiujiang Phase II and Xinxiang projects to drive output and performance growth in 2026.