Highlights of the 2022 interim results:
- Revenue grew 61% year-on-year to approximately RMB 12,214 million.
- Gross profit increased 44% year-on-year to around RMB 3,060 million.
- Net profit increased 47% year-on-year to approximately RMB 1,304 million.
- Total comprehensive income attributable to parent company owners increased 49% year-on-year to approximately RMB 960 million.
HONG KONG/ACCESSWIRE/August 21, 2022/ China XLX Fertilizer Ltd. (“China XLX” or the “Company”, together with its subsidiaries collectively referred to as the “Group”) (HKSE: 01866.HK) has announced interim results for the six months ended June 30, 2022 (the “Period”). Group unaudited consolidated revenue was RMB 12,214 million, an increase of 61% year-on-year Gross profit increased 44% year-on-year to approximately RMB 3,060 million. Net profit increased 47% year-on-year to approximately RMB 1,304 million Total comprehensive income attributable to parent company owners increased 49% year-on-year to approximately RMB 960 million Earnings per share attributable to ordinary shareholders of the company was 78.1 RMB cents, a year-on-year increase of 42%.
During the Period, affected by the pandemic, the Russian-Ukrainian war and the shortage of international fertilizers, the world prices of basic energy and food increased, which led to a strong demand for chemical fertilizers . Coupled with soaring commodity prices, global fertilizer prices have remained high. With the successful commissioning of the third production base in Jiangxi Jiujiang, the fixed-bed renovation and upgrade project of the group’s second and third factories in Henan Xinxiang, and various relevant diversified industrial chain projects, the capacity of production of the group has taken a new step.
During the period, revenue from urea sales increased 66% year-on-year to approximately RMB 3,438 million. This was mainly due to the increase in sales volume and average selling price of urea products by approximately 23% and 35% year-on-year, respectively. Revenue from vehicle urea solution sales increased 23% year-on-year to approximately RMB 290 million, mainly due to higher average selling price and sales volume of urea solution for vehicle by about 12% and 10% YoY respectively. Compound fertilizer sales revenue increased 90% year-on-year to approximately RMB 3,763 million, mainly due to higher sales volume and average compound fertilizer sales price of approximately 31 % and 45% YoY respectively. During the epidemic period, the Group took advantage of its own dedicated railway lines to adjust the transport mode from trucks to trains, which increased the sales volume of compound fertilizers to 1,194,000 tons.
Revenue from methanol sales increased by 58% year-on-year to approximately RMB 1,161 million, mainly due to the increase in average sales price and sales volume of methanol by 20% and 32% in year-on-year respectively. DME sales revenue increased 25% year-on-year to approximately RMB 774 million, mainly due to a year-on-year increase in DME’s average selling price and sales volume of 19% and 5 % respectively. Revenue from melamine sales increased 10% to approximately RMB 587 million. This increase is mainly due to a 32% year-over-year increase in the average selling price of melamine. Revenue from sales of furfuryl alcohol products increased 20% year-on-year to approximately RMB 401 million. This was primarily due to a 31% year-over-year increase in the average selling price of furfuryl alcohol products.
Looking ahead, Mr. Liu Xingxu, Chairman of China XLX, said, “Recently, the international situation has been tense, and food safety policies have again been tightened by various countries, resulting in a strong demand for food. chemical fertilizers on a global scale. the impacts of the Russia-Ukraine conflicts and the pandemic have resulted in a tight demand and supply situation in the international energy market, leading to high prices for energy products and chemical fertilizers. new fertilizer production capacities in the domestic market and the general slowdown in agricultural demand due to the low season. However, due to tight demand and supply conditions in the international energy market and in the urea market, the Group believes that the price of chemical fertilizers Meanwhile, with the increase in agricultural land to meet food demand in the PRC, the demand for high-yield fertilizer lisers will continue to increase increase.
Mr. Liu Xingxu said, “As one of the industry’s leading companies, the Group will leverage its geographic reach to further develop its low-cost, high-efficiency production line and product differentiation strategy, continue its research and develop high-yield fertilizers. to elevate its core competitive strength and position in the industry. For construction projects, the group’s DMF project with an annual output of 100,000 tons at the base in Jiangxi is in the trial production stage. It should be officially commissioned in the third quarter of the year. The Tianxin Coal Mine in the Xinjiang base has already entered the trial production stage. Various acceptance works are underway in an orderly fashion. In addition, the first phase of the Gansu Jinchang compound fertilizer project is also progressing smoothly. At the end of these projects, the Group’s industrial chain will be modernized and diversified. The Group aims to continue to improve its production efficiency and the diversification of its products, in order to improve its profitability and competitiveness in the market.”
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About China XLX Fertilizer Ltd.
China XLX Fertilizer Ltd., one of the largest and most profitable coal-based urea producers in China, the Group is mainly engaged in the development, manufacture and sale of related differentiated products such as urea, compound fertilizers, methanol, dimethyl ether, melamine, furfuryl alcohol, furfural, 2-methylfuran, gases and pharmaceutical intermediates. The shares of the Company are traded on the main board of the Stock Exchange of Hong Kong Limited (stock code: 01866.HK).
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File: China XLX Announces 61% Increase in 2022 Interim Earnings Revenue YoY
THE SOURCE: Fertilizer China XLX