China XLX Fertiliser (CXLFF) reported improved Q1 2025 financial results with revenue growing 1.7% Y-o-Y to RMB 5.85 billion. The company achieved a net profit of RMB 198 million, rebounding from a RMB 74.64 million loss in Q4 2024. The fertiliser segment remained the largest revenue contributor at 53% (RMB 3.09 billion), followed by chemicals at 42% (RMB 2.46 billion). Gross profit margin improved by 3 percentage points Q-o-Q to 14%, despite a 23% Y-o-Y decline in overall gross profit. The company successfully reduced its average lending rate by 0.7 percentage points and decreased finance expenses by 9% Y-o-Y through early repayment of high-interest loans. Compound fertiliser sales showed steady growth with a 6% Q-o-Q increase in volume and 9% growth in selling price.
China XLX Fertiliser (CXLFF) ha riportato risultati finanziari migliorati nel primo trimestre 2025, con un fatturato in crescita dell'1,7% su base annua, raggiungendo 5,85 miliardi di RMB. L'azienda ha registrato un utile netto di 198 milioni di RMB, recuperando dalla perdita di 74,64 milioni di RMB nel quarto trimestre 2024. Il segmento fertilizzanti è rimasto il principale contributore al fatturato con il 53% (3,09 miliardi di RMB), seguito dal settore chimico al 42% (2,46 miliardi di RMB). Il margine lordo è migliorato di 3 punti percentuali rispetto al trimestre precedente, arrivando al 14%, nonostante un calo del 23% su base annua del profitto lordo complessivo. L'azienda ha ridotto con successo il tasso medio di interesse sui prestiti di 0,7 punti percentuali e ha diminuito le spese finanziarie del 9% su base annua grazie al rimborso anticipato di prestiti ad alto interesse. Le vendite di fertilizzanti composti hanno mostrato una crescita costante, con un aumento del volume del 6% trimestre su trimestre e una crescita del prezzo di vendita del 9%.
China XLX Fertiliser (CXLFF) reportó resultados financieros mejorados en el primer trimestre de 2025, con ingresos que crecieron un 1,7% interanual hasta 5,85 mil millones de RMB. La compañía logró un beneficio neto de 198 millones de RMB, recuperándose de una pérdida de 74,64 millones de RMB en el cuarto trimestre de 2024. El segmento de fertilizantes siguió siendo el mayor contribuyente a los ingresos con un 53% (3,09 mil millones de RMB), seguido por el sector químico con un 42% (2,46 mil millones de RMB). El margen bruto mejoró 3 puntos porcentuales trimestre a trimestre hasta el 14%, a pesar de una caída del 23% interanual en el beneficio bruto total. La empresa redujo con éxito su tasa media de interés en préstamos en 0,7 puntos porcentuales y disminuyó los gastos financieros en un 9% interanual mediante el pago anticipado de préstamos con altos intereses. Las ventas de fertilizantes compuestos mostraron un crecimiento constante con un aumento del volumen del 6% trimestre a trimestre y un crecimiento del precio de venta del 9%.
China XLX Fertiliser(CXLFF)는 2025년 1분기 재무 실적이 개선되어 매출이 전년 대비 1.7% 증가한 58억 5천만 RMB를 기록했습니다. 회사는 2024년 4분기 7,464만 RMB 손실에서 회복하여 1억 9,800만 RMB의 순이익을 달성했습니다. 비료 부문은 전체 매출의 53%(30억 9천만 RMB)로 가장 큰 비중을 차지했으며, 화학 부문이 42%(24억 6천만 RMB)를 차지했습니다. 총이익률은 전분기 대비 3%포인트 상승한 14%를 기록했으나, 전체 총이익은 전년 대비 23% 감소했습니다. 회사는 평균 대출 금리를 0.7%포인트 낮추고 고금리 대출을 조기 상환하여 금융 비용을 전년 대비 9% 절감하는 데 성공했습니다. 복합 비료 판매는 분기 대비 6% 증가한 판매량과 9% 상승한 판매 가격으로 꾸준한 성장을 보였습니다.
China XLX Fertiliser (CXLFF) a annoncé des résultats financiers améliorés au premier trimestre 2025, avec un chiffre d'affaires en hausse de 1,7 % en glissement annuel, atteignant 5,85 milliards de RMB. La société a réalisé un bénéfice net de 198 millions de RMB, se redressant après une perte de 74,64 millions de RMB au quatrième trimestre 2024. Le segment des engrais est resté le principal contributeur au chiffre d'affaires avec 53 % (3,09 milliards de RMB), suivi par les produits chimiques à 42 % (2,46 milliards de RMB). La marge brute s'est améliorée de 3 points de pourcentage par rapport au trimestre précédent, atteignant 14 %, malgré une baisse de 23 % du bénéfice brut global en glissement annuel. L'entreprise a réussi à réduire son taux d'intérêt moyen sur les prêts de 0,7 point de pourcentage et à diminuer ses charges financières de 9 % en glissement annuel grâce au remboursement anticipé de prêts à taux élevé. Les ventes d'engrais composés ont montré une croissance régulière avec une augmentation de 6 % du volume trimestre après trimestre et une hausse de 9 % du prix de vente.
China XLX Fertiliser (CXLFF) meldete verbesserte Finanzergebnisse für das erste Quartal 2025 mit einem Umsatzwachstum von 1,7 % im Jahresvergleich auf 5,85 Milliarden RMB. Das Unternehmen erzielte einen Nettogewinn von 198 Millionen RMB und erholte sich damit von einem Verlust von 74,64 Millionen RMB im vierten Quartal 2024. Der Düngemittelsektor blieb mit 53 % (3,09 Milliarden RMB) der größte Umsatzträger, gefolgt von der Chemiesparte mit 42 % (2,46 Milliarden RMB). Die Bruttomarge verbesserte sich quartalsweise um 3 Prozentpunkte auf 14 %, trotz eines Rückgangs des Bruttogewinns um 23 % im Jahresvergleich. Das Unternehmen konnte seinen durchschnittlichen Kreditzins um 0,7 Prozentpunkte senken und die Finanzaufwendungen durch vorzeitige Rückzahlung von hochverzinslichen Darlehen um 9 % im Jahresvergleich reduzieren. Der Absatz von Mischdüngern zeigte ein stetiges Wachstum mit einem volumenmäßigen Anstieg von 6 % im Quartalsvergleich und einem Verkaufspreisanstieg von 9 %.
Positive
Net profit of RMB 198M in Q1 2025, recovering from RMB 74.64M loss in Q4 2024
Revenue growth of 1.7% Y-o-Y and 2.4% Q-o-Q to RMB 5.85B
Gross profit margin improved by 3 percentage points Q-o-Q to 14%
Finance expenses reduced by 9% Y-o-Y with 0.7 percentage point reduction in average lending rate
Compound fertiliser sales volume up 6% Q-o-Q with 9% price growth
Gearing ratio expected to increase due to project development needs
Urea products and urea solution gross profits declined due to faster price drops than cost reductions
Price weakness in coal chemical related products during first two months of Q1
China XLX's 2025 Q1 Earnings Remarkably Improved QoQ
Continuing Efforts to Strengthen Cost and Budgetary Control
2025 Q1 Results Highlights:
The Group's revenue grew by 1.7% Y-o-Y to approximately RMB 5.85 billion.
Net profit attributable to owners of the parent amounted to approximately RMB 198 million as compared to a loss in previous quarter.
Operating results of compound fertiliser business steadily improved as the Group leveraged its competitive edges in humic acid feedstock to boost compound fertiliser sales.
The Group grasped the opportunities from interest rate cuts to make early repayment and replacement of high-interest loans and lowered the average lending rate by 0.7 percentage points from a year ago.
HONG KONG / ACCESS Newswire / May 18, 2025 / China XLX Fertiliser Ltd. ("China XLX" or the "Company", together with its subsidiaries collectively known as the "Group") (HKSE:01866.HK) announced that the Group's revenue for the three months ended 31 March 2025 (the "Period") grew by 1.7% Y-o-Y and 2.4% Q-o-Q to approximately RMB 5.85 billion. Net profit attributable to owners of the parent for the Period reached approximately RMB 198 million, as compared to a loss of approximately RMB 74.64 million for the fourth quarter of last year.
In the first quarter of 2025, the fertiliser market staged a comeback after subdued performance. Dragged by a mismatch between market supply and demand, the price weakness of coal chemical related products lingered in the first two months. However, the urea prices remarkably rebounded in March on the demand for spring farming coupled with growing expectations for export resumption, leading to a strong recovery in the prices of urea-based downstream products. The overall gross profit margin for the Period climbed by 3 percentage points to 14% from the previous quarter. Besides, the revival in agricultural demand along with the commencement of new compound fertiliser production facilities bolstered the sales of the Group's core products.
The gross profits of the Group's urea products and urea solution for vehicles retreated as their selling prices declined at a faster pace than their costs due to weakened support for urea prices resulting from lower prices of feedstock coal. As a result, its overall gross profit dropped by 23% Y-o-Y. On the other hand, its gross profit surged by 26% Q-o-Q due to the improvement in fertiliser supply and demand condition and a gradual pickup in the prices of different products.
During the period under review, the fertiliser segment generated sales revenue of approximately RMB 3.09 billion, accounting for 53% of the Group's total revenue and remaining the largest revenue contributor. The revenues of chemicals segment and other segments were approximately RMB 2.46 billion and RMB 290 million respectively, accounting for 42% and 5% respectively of the Group's total revenue.
In view of growing demand for high-efficiency fertilisers in modern agriculture, the Group leveraged its competitive edges in humic acid feedstock to boost the sales of high-efficiency compound fertilisers, resulting in steady growth of compound fertiliser sales. While the sales volume of compound fertilisers for the Period increased by 6% Q-o-Q, their selling price and gross profit margin grew by 9% and 2 percentage points respectively from the previous quarter. At the same time, the Group continued to deepen the R&D of humic acid feedstock so as to ensure the superior quality and stable gross profit margin of their products. As a result, the gross profit margin of humic acids reached 25% in the period. Meanwhile, with the recovery of downstream demand and the gradual improvement in supply and demand condition, the revenue of methanol products continued to grow and hence effectively enhanced the operating performance of chemicals segment.
As the Group further strengthened cost control, the proportion of selling, administrative and finance expenses (excluding the impact of non-recurrent transactions) came down by nearly 1 percentage point from a year ago. In particular, the finance expenses dropped by 9% Y-o-Y. The Group took advantage of interest rate cuts to make early repayment and replacement of high-interest borrowings, the average lending rate thus reduced by 0.7 percentage point Y-o-Y. With enhanced capital operation, it is in a better position to improve the profitability.
The Group will prudently align its capital expenditures with cash flow and exercise stringent budgetary control. Investments in major projects will be carried out in order according to their input-return ratio so as to better manage the financial risks. Projects under construction will be gradually put into operation in phase in three years, and cash inflow from newly commissioned project will be used in next newly-developed project. The Group's cash flow pressure will thus be mitigated year by year. Although the Group's gearing ratio for this year will slightly increase as more financial resources are required to meet the project development needs, the capital expenditures in 2027 are expected to significantly reduce. Therefore, its operating cash flow will become ample and various financial indicators will markedly improve, hence creating a virtuous cycle of investment and return.
In addition to possessing sufficient capital reserves for the development of its projects, the Group kept the average lending rates below the benchmark interest rate. Low-interest project loans with long maturity of 7-10 years are earmarked for all production bases under construction, which effectively cover their construction timelines and funding requirements and thereby ensure the Group's operational and cash flow stability.
Looking ahead, Mr. Liu Xingxu, Chairman of China XLX, said: "Since the beginning of the second quarter, domestic environmental policies have been further tightened. The market restructuring is gaining momentum as leading fertiliser enterprises proceed with resources consolidation, technological breakthroughs and product upgrades. Demand for high-efficiency fertilisers, including water-soluble fertilisers, controlled-release fertilisers and humic acid-based products, is increasing amid the growing popularity of large-scale farming. This lays a solid foundation for the Group to market its high-end fertilisers. The Group will take advantage of the supportive policies to accelerate the technological advancement. With an emphasis on green and high-efficiency products, it will focus on the strategies highlighting product functionality, customised fertiliser formulation and service differentiation. By upgrading its brand positioning to 'China's High-Efficiency Fertiliser Advocate', the Group aims to promote scientific and precise fertilisation through the use of high-efficiency fertilisers, thereby enabling farmers to apply fertilisers accurately and driving the Group's sustainable growth."
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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 developing, manufacturing and selling of urea, compound fertiliser, methanol, dimethyl ether, melamine, furfuryl alcohol, furfural, 2-methylfuran, pharmaceutical intermediates and related differentiated products. 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.
What were China XLX Fertiliser's (CXLFF) Q1 2025 earnings results?
China XLX reported Q1 2025 revenue of RMB 5.85 billion (+1.7% Y-o-Y) and net profit of RMB 198 million, recovering from a RMB 74.64 million loss in Q4 2024.
How did CXLFF's different business segments perform in Q1 2025?
The fertiliser segment contributed 53% of revenue (RMB 3.09B), chemicals segment 42% (RMB 2.46B), and other segments 5% (RMB 290M).
What is China XLX's strategy for managing its debt and interest expenses?
The company reduced finance expenses by 9% Y-o-Y by making early repayment of high-interest loans and securing low-interest project loans with 7-10 year maturities, lowering average lending rates by 0.7 percentage points.
How did CXLFF's compound fertiliser business perform in Q1 2025?
Compound fertiliser sales volume increased 6% Q-o-Q with a 9% rise in selling price and 2 percentage point improvement in gross profit margin.
What is the outlook for China XLX's financial position?
While gearing ratio will increase short-term due to project development, capital expenditures are expected to significantly reduce by 2027, leading to improved cash flow and financial indicators.
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