2022 Interim Results Highlights:

• Revenue increased by 61% YoY to approximately RMB12,214 million.
• Gross profit increased by 44% YoY to approximately RMB3,060 million.
• Net Profit increased by 47% YoY to approximately RMB1,304 million.
• Total comprehensive income attributable to owners of the parent increased by 49% YoY to approximately RMB960 million.

HONG KONG / ACCESSWIRE / August 21, 2022 / China XLX Fertiliser Ltd. ("China XLX" or the "Company", together with its subsidiaries collectively known as the "Group") (HKSE:01866.HK) announced the interim results for the six months ended 30 June 2022 (the "Period"). The Group's unaudited consolidated revenue amounted to RMB12,214 million, representing an increase of 61% YoY. Gross profit increased by 44% YoY to approximately RMB3,060 million. Net Profit increased by 47% YoY to approximately RMB1,304 million. Total comprehensive income attributable to owners of the parent increased by 49% YoY to approximately RMB960 million. Earnings per share attributable to ordinary equity holders of the Company was RMB78.1 cents, representing an increase of 42% YoY.

During the Period, affected by the pandemic, the Russia-Ukraine war and tight supply of international fertilisers, the prices of global basic energy and food have been rising, which resulted in a strong demand for chemical fertilisers. Coupled with the surging prices in raw materials, global fertiliser prices have remained elevated. With the successful commissioning of the Third Production Base in Jiangxi Jiujiang, the Fixed-bed Renovation and Upgrading Project of the Group's Second and Third Plant in Henan Xinxiang and various relevant diversified industrial chain projects, the Group's production capacity reached a new milestone.

During the Period, revenue derived from the sales of urea increased by 66% YoY to approximately RMB3,438 million. This was mainly due to the increase in sales volume and average selling price of urea products by approximately 23% and 35% YoY, respectively. Revenue derived from the sales of urea solution for vehicle increased by 23% YoY to approximately RMB290 million, mainly due to the increase in average selling price and sales volume of urea solution for vehicle by approximately 12% and 10% YoY respectively. Revenue derived from the sales of compound fertilisers increased by 90% YoY to approximately RMB3,763 million, mainly due to the increase in sales volume and average selling price of compound fertilisers by approximately 31% and 45% YoY respectively. During the epidemic period, the Group took advantage of its own dedicated railway lines to adjust the transportation mode from trucks to trains, which increased the sales volume of compound fertilisers to 1,194,000 tons.

Revenue derived from the sales of methanol increased by 58% YoY to approximately RMB1,161 million, mainly due to the increase in average selling price and sales volume of methanol by 20% and 32% YoY respectively. Revenue derived from the sales of DME increased by 25% YoY to approximately RMB774 million, which was mainly due to a YoY increase in the average selling price and selling volume of DME by 19% and 5% respectively. Revenue derived from the sales of melamine increased by 10% to approximately RMB587 million, The increase was mainly due to a 32% YoY increase in the average selling price of melamine. Revenue derived from the sales of furfuryl alcohol products increased by 20% YoY to approximately RMB401 million. This was mainly due to a 31% YoY increase in the average selling price of furfuryl alcohol products.

Looking ahead, Mr. Liu Xingxu, Chairman of China XLX, commented, "Recently, the international situation has been tense, and food security policies have been strengthened by various countries again, which was driving strong demand for chemical fertilisers globally. Furthermore, the impacts of the conflicts between Russia and Ukraine and the pandemic resulted in a tense demand and supply condition in the international energy market, thus led to the high prices of energy products and chemical fertilisers. In the second half of the year, following a slower release of new production capacity of fertilisers domestically, and the general slowdown for agricultural demand due to off season. However, due to the tight demand and supply market conditions in the international energy market and urea market, the Group believes the price of chemical fertilisers will be well supported. In the meantime, with increasing agriculture land to meet food demand in the PRC, the demand for high-efficiency fertilisers will continue to rise."

Mr. Liu Xingxu said, "As one of the leading enterprises in the industry, the Group will take advantage of its geographical reach to further develop its low cost and high efficient production chain and product differentiation strategy, further research and develop high-efficiency fertilisers to elevate its core competitive strength and industry position. For the construction projects, the Group's DMF Project with an annual output of 100,000 tons at Jiangxi Base is in the trial production stage. It is expected to be officially put into operation in the third quarter of the year. The Tianxin Coal Mine in Xinjiang Base has already entered into trial production stage. Various acceptance works are being carried out in an orderly manner. In addition, the first phase of Gansu Jinchang Compound Fertiliser Project is also progressing in an orderly manner. Upon completion of these projects, the Group's industrial chain will be upgraded and further diversified. The Group aims to continue to improve its production efficiency and products diversification, so as to enhance its profitability and market competitiveness."

~ END ~

About China XLX Fertiliser Ltd.

China XLX Fertiliser Ltd., one of the largest and most cost efficient coal-based urea producers in China, the Group is principally engaged in developing, manufacturing, and selling of related differentiated products such as urea, compound fertiliser, methanol, dimethyl ether, melamine, furfuryl alcohol, furfural, 2-methylfuran, gas and pharmaceutical intermediates. The Company's shares are traded on the main board of the Stock Exchange of Hong Kong Limited (stock code: 01866.HK).

Investor and Media Enquiries

China XLX Fertiliser Ltd.
Gui Lin
Tel: 86-135-6942-3415
Email: gui.lin@chinaxlx.com.hk

PRChina Limited
Alana Li/ Rachel Chen
Tel: 852-2522 1368 / 852-2522 1838
Email: ali@prchina.com.hk
rchen@prchina.com.hk

File: China XLX Announces 2022 Interim Results Revenue Increased by 61% YoY

SOURCE: China XLX Fertiliser