Star Metro - China XLX Announces 2026 9M Results

HONG KONG, HK / ACCESS Newswire / October 26, 2026 / China XLX Fertiliser Ltd. ("China XLX" or the "Company", together with its subsidiaries collectively referred to as the "Group") (stock code: 01866.HK) announced that the Group posted revenue of approximately RMB 23.047 billion for the nine months ended 30 September 2026, up by 28% year-on-year. Its net profit for the period surged by 51% year-on-year to approximately RMB 1.522 billion; and the net profit attributable to owners of the parent climbed by 42% year-on-year to approximately RMB 1.138 billion, outstripping the full-year figure for 2025.

During the reporting period, the Group achieved high-quality growth in its operating results. Driven by the dual drivers of fertiliser and chemical operations, the Group realized an increase in both the sales volume and selling price of its products with overall gross profit rose by 43% year-on-year. While the Phase II of the Jiangxi Project and the chemical new materials project came on stream as planned, the Group increased its output at lower costs and further optimized its product mix. The sales volume of high-efficiency urea for the period expanded by 31% year-on-year, leading to a 45% year-on-year growth in the overall gross profit of urea. Moreover, the Group capitalised on the opening of export window to elevate the urea export volume by nearly 100,000 tonnes from the same period last year.

Meanwhile, the Group grasped the opportunities arising from rising chemical prices and leveraged its flexible production capabilities to convert surplus liquid ammonia capacity into the production of methanol. By tapping into the cost advantages inherent in its integrated coal-to-methanol production process, the Group drove the upgrading of chemical products towards high value-added products, leading to a growth in the share of differentiated products such as pharmaceutical-grade DMF and modified polyoxymethylene (POM). Benefiting from higher sales volumes and selling prices, the gross profit of chemical products for the first three quarters surged by RMB 650 million or 77% from a year ago.

The Group vigorously promoted the transformation towards new marketing model and implemented the "product + service" integrated solutions to continuously sharpen its core competencies. Under the co-service model, the sales volume from its demonstration zones increased by 24% year-on-year with its benefits gradually emerged. The new marketing model is aimed to create value for farmers and to continuously enhance the Group's brand influence. It enables the Group to optimize the product structure and to expand the sales of high-efficiency fertilisers. At the same time, the Group rode on R&D innovation to push ahead with the "low cost + differentiation" strategy and promoted the transformation of R&D achievements into high value-added products.

During the reporting period, revenue from urea sales grew by 40% year-on-year to approximately RMB 6.357 billion. Underpinned by the phased commissioning of the Jiangxi Project, the urea output for the period increased by 840,000 tonnes year-on-year and it paved the way for the growth in overall sales volume. Besides, the Group capitalized on the government's relaxation of urea export quotas to further boost the exports. As a result, the urea sales volume for the period grew by 36% year-on-year. Meanwhile, driven by higher coal prices, the export growth and rapid increase in the sales volume of high value-added products, the average selling price of urea for the period increased by 3% year-on-year.

In the first three quarters, revenue from compound fertiliser sales increased by 8% year-on-year to approximately RMB 5.446 billion. The sales volume in the third quarter was adversely affected due to dealers' shift to a low-inventory strategy resulting from the increase in feedstock costs and delays in autumn fertiliser stockpiling. On the other hand, the channel coverage rate in the developed regions covered by the new marketing model exceeded 60%. Benefiting from terminal pricing power of the new model, the unit price of products was RMB 32 / tonnes higher than that of traditional channels. This, coupled with higher costs of feedstocks such as potash and phosphate fertilisers, drove the average selling price of compound fertilisers for the reporting period to increase by 4% year-on-year.

During the reporting period, the Group achieved outstanding sales performance of chemical products. Notably, revenue from liquid ammonia sales surged by nearly 1.8 times year-on-year to approximately RMB 2.247 billion; revenue from DMF sales grew by 30% year-on-year to approximately RMB 1.04 billion; revenue from POM sales grew by 24% year-on-year to approximately RMB 412 million; and revenue from melamine sales grew by 15% year-on-year to approximately RMB 631 million.

The Group retained a sound financial position. As of 30 September, the Group's total assets reached RMB 46 billion, representing a 19% increase from the beginning of the reporting period. With the ongoing optimization of the debt structure, the ratio of short-term to long-term debts decreased by 8 percentage points to 18% from the beginning of the reporting period. Although the debt-to-asset ratio rose by 3.5 percentage points from the beginning of the reporting period, the average borrowing interest rate fell by 0.26 percentage point year-on-year, resulting in a 0.3% year-on-year reduction in the ratio of three expenses. When major projects currently under construction come into operation, the Group's total debt is expected to gradually decline from 2027 onwards. Besides, the operational value of sunk capital will be progressively unleashed, resulting in continuous improvements in both of cash flow and debt-to-asset ratio.

Looking ahead to the future, Mr. Liu Xingxu, Chairman of China XLX, noted that the national export quota management mechanism for fertilisers will remain in place in the fourth quarter. The orderly allocation of export quotas in phases can effectively mitigate the supply pressure in domestic urea market. Meanwhile, the commencement of winter stockpiling and commercial reserve procurement will lend temporary support for fertiliser demand. Leading market players are poised to expand their market shares. In the medium to long term, the ongoing implementation of national initiatives to safeguard food security, including the development of high-standard farmland and black soil conservation, will bolster the rigid demand for fertilisers.

The Group will continue to boost investments in the R&D of differentiated products with a primary focus on high-efficiency fertilisers. It will strive hard to translate technological innovations into tangible farmland yield growth. With the support of smart irrigation systems and integrated water-and-fertiliser management technology, the Group will help farmers to boost crop yields and their incomes through controlled-release and efficient use of fertilisers. At the same time, it will further enhance its product performance and prioritize the development of Heiliwang humic acid fertiliser. Boasting the features of improving soil quality and enhancing fertilisation efficiency, this product aligns with the national policy direction for the development of green agriculture. The Group will leverage high-quality products to extend its value chain. Through the provision of agrochemical services such as on-site guidance at fields and customized cultivation solutions, it is building an integrative business model with economic moats comprising "products + technology + services", thereby creating non-replicable core competence.

Regarding project development, the urea facility under the chemical new materials project at the Xinxiang Base was successfully put into operation in September 2026. This project is expected to contribute approximately RMB 200 million in profit to the Group this year. Meanwhile, the Zhundong Base in Xinjiang is slated for commissioning in the fourth quarter of this year. In view of its cost advantages and operational efficiency, it will drive the Group's earnings growth next year. The flagship project at the Guangxi Base is advancing as planned and is targeted for completion and commissioning in the third quarter of 2027. This project will help address the capacity shortfall for modern nitrogen fertilisers in Guangdong and Guangxi. Furthermore, with easy access to the Pinglu Canal, it will facilitate the Group's expansion into the Southeast Asian market due to faster transit time and lower costs.

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About China XLX Fertiliser Ltd.

China XLX Fertiliser Ltd. is one of the largest and most cost-efficient coal-based urea producers in China. It is principally engaged in the development, manufacturing and trading of related differentiated products such as urea, compound fertilisers, methanol, liquid ammonia, melamine, DMF and polyoxymethylene. The Group adheres to the development strategy of "maintaining overall cost leadership and creating competitive differentiation" while strengthening the core fertiliser operations. With support of the resources in Xinxiang, Xinjiang and Jiangxi, it extends the value chain to upstream new energy and new materials and diversifies into coal chemical related products. The Company's shares (stock code: 01866.HK) are traded on the main board of the Hong Kong Stock Exchange.

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SOURCE: China XLX Fertiliser Ltd.

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A.Harris--SMC