China XLX Fertiliser (1866) Q3 2024 earnings summary

Executive summary

• Revenue for the nine months ended 30 September 2024 was RMB17.42 billion, down 0.6% year-over-year, while net profit surged 75.8% to RMB2.03 billion, driven by cost reductions and a one-time investment gain from the disposal of Tianxin Coal equity.

• Net profit attributable to owners rose 80.7% year-over-year to RMB1.53 billion, with basic EPS up 85.3% to RMB1.26.

• Gross profit increased 5% year-over-year, supported by lower raw material prices and improved operational efficiency.

Financial highlights

• Administrative and financial expenses were reduced by 2% and 13% year-over-year, respectively.

• Gross profit margin improved by 1 percentage point to 19%.

• Total assets grew 5.6% to RMB30.78 billion, and owners' equity increased 19% to RMB12.5 billion compared to 31 December 2023.

• Gearing ratio decreased by 4.5 percentage points to 59.4%.

Outlook and guidance

• Fertiliser prices are expected to stabilise and improve in Q4 2024, supported by stable raw coal prices, supply contraction, and steady demand for industrial urea.

• Long-term strategy focuses on green, efficient fertilisers, energy conservation, and dual strengths in fertilisers and chemicals.