China XLX Fertiliser (1866) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 increased by 1.7% year-over-year and 2.4% quarter-on-quarter, reflecting stable growth amid market volatility.

• Gross profit margin decreased by 4 percentage points YoY but improved by 3 percentage points QoQ to 14%, indicating a recovery trend.

• Net profit declined 35% YoY, mainly due to lower urea prices, but rebounded 89% QoQ as product prices and demand improved.

• Expense control measures reduced the proportion of major expenses by 1 percentage point YoY, with finance costs down 9% YoY.

Financial highlights

• Revenue: RMB 5,845.8 million (up 1.7% YoY).

• Net profit: RMB 249.4 million (down 35% YoY).

• Net profit after deducting non-recurring gains: RMB 266.8 million (down 30% YoY).

• Basic EPS: 16.3 RMB cents (down from 23.2 RMB cents YoY).

• Gross profit decreased 23% YoY but increased 26% QoQ.

Outlook and guidance

• Industry consolidation and capacity upgrades are expected to accelerate, supporting higher industry concentration.

• New high-efficiency fertiliser capacity and ongoing projects are expected to drive future growth and meet rising demand.

• Capital expenditure will be prudently managed, with a slight rise in debt-to-asset ratio expected in 2025, but improvement anticipated by 2027.

• Market demand for high-efficiency fertilisers is expected to remain strong, supported by policy and industry trends.