China XLX Fertiliser (01866) posted a net profit attributable to shareholders of RMB 921 million for the six months ended June 30, 2026, marking a significant year-on-year increase of 53.64%.
The company reported an operating revenue of RMB 15.74 billion, up 24.27% from the prior-year period, while total net profit reached RMB 1.23 billion, representing a growth rate of 62.36%. Earnings per share stood at RMB 0.739, supported by the full realisation of the group's core strengths in large-scale operations, structural upgrades and refined management controls.
During the reporting period, the group's newly added production capacity was smoothly brought into operation, laying a robust foundation for higher sales volumes of key products such as urea and liquid ammonia. This development effectively expanded the market supply capacity of its core product lines. Leveraging the advantage of scale-driven operations, the company continued to reduce the unit production cost of urea and other core products, which contributed to a 66% year-on-year improvement in urea gross profit, further consolidating its low-cost competitive edge and lifting overall gross profit by 49%.
On top of this, the group advanced the iterative optimisation of its product mix and marketing framework, with efficient fertiliser products expanding their share of total production and sales by 4 percentage points year-on-year, thereby improving the overall profit structure. In parallel, the company capitalised on price differentials between domestic and international markets to rebalance its sales allocation, increasing exports of products such as melamine to lift the average selling price across its portfolio.
Furthermore, amid geopolitical-driven price increases for basic chemicals such as methanol and liquid ammonia, the group fully utilised its flexible production capabilities to adjust its product structure in line with market conditions, seizing the optimal sales windows to achieve profitability maximisation. As business scale continued to expand, the group reinforced its refined management systems, keeping the ratio of total operating expenses to revenue stable year-on-year and achieving a balanced approach between growth and cost control.
In addition, the company optimised its debt structure by reducing the proportion of short-term borrowings by 0.5 percentage points compared with the start of the period. This initiative generated approximately RMB 1 billion in additional working capital, narrowing the working capital gap by 25% and enhancing overall financial stability, thereby establishing a solid operational and financial base for high-quality and sustainable development.