China XLX Announces Q1 2022 Earnings Production Capacity Reached New Milestone with 88% Year-on-Year Increase in Net Profit

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Highlights of first quarter 2022 results:

  1. Unaudited consolidated revenue increased 71% year-on-year to approximately RMB 5,386 million; among which, urea sales revenue increased 84% year-on-year to approximately RMB 1,583 million;

  2. Unaudited consolidated net profit was approximately RMB 520 million, an increase of 88% year-on-year;

  3. Unaudited total comprehensive income attributable to parent company owners increased 90% year-on-year to approximately RMB 382 million.

HONG KONG, CHINA/ACCESSWIRE/June 27, 2022/China XLX Fertilizer Ltd. (“China XLX” or the “Company”, together with its subsidiaries collectively known as the “Group”) (HKSE: 01866.HK) announced the results of the first quarter for the financial year ended March 31, 2022 (the “Period”). The group’s unaudited consolidated revenue was RMB 5,386 million, an increase of 71% year-on-year. Unaudited consolidated net profit was approximately RMB 520 million, an increase of 88% year-on-year; Unaudited total comprehensive income attributable to parent company owners increased 90% year-on-year to approximately RMB 382 million.

During the Period, the growth in the Group’s performance was mainly due to the increase in product volume and price, and the additional production capacity of the new production base. The pandemic, supply chain taints and the Russian-Ukrainian war have sent food and energy prices soaring. Prices for fertilizers and petroleum-related chemicals also rose in parallel. At the same time, with the addition of the third production base in Jiangxi Jiujiang and the successful commissioning of the fixed-bed renovation and upgrade project of the Group’s second and third factories in Henan Xinxiang, the Group’s production capacity has taken a new step.

During the period, the Group’s urea revenue reached approximately RMB 1,583 million, an increase of 84% year-on-year. This is mainly due to the increase in the average selling price and sales volume of the Group’s urea products by approximately 34% and 37% year-on-year respectively. Urea sales volume for the first quarter of 2022 was approximately 646,000 tonnes.

Compound Fertilizer sales revenue increased by approximately RMB 1,477 million or 79% year-on-year, mainly due to increase in average selling price and sales volume by approximately 44% and 24% in year-on-year respectively. The sales volume of compound fertilizers increased to 504,000 tons during the period.

During the period, methanol and DME revenues also experienced substantial growth. Methanol sales revenue was RMB 487 million, representing an increase of 82% year-on-year, mainly attributable to the increase in average selling price and sales volume of 29% and 40 % YoY respectively. The increase in sales volume is due to the release of new production capacity in the Jiujiang base and the expansion of trade channels by launching methanol trading. DME’s revenue reached RMB 431 million, representing a 67% year-on-year increase, driven by a 20% and 39% year-on-year increase in average selling price and sales volume respectively.

Additionally, the Group’s melamine revenue increased 14% year-on-year to RMB 273 million; furfuryl alcohol revenue increased 68% year-on-year to RMB 234 million; and Vehicle Urea Solution revenue was RMB 116 million, a year-on-year increase of 14%.

Since 2022, affected by the conflict between Russia and Ukraine and the shortage of international fertilizers, world prices for basic energy and food have been increasing, which translates into a more rigid demand for chemical fertilizers. Coupled with rising commodity prices, international and domestic fertilizer prices have increased. At the same time, given growing food security concerns in the PRC, domestic food prices will remain high in the medium to long term, which will benefit agricultural fertilizer use and further support fertilizer prices. In addition, the PRC’s stricter national environmental protection policies push back capacity out of the market, resulting in a tight balance between supply and demand. Thus, the price of fertilizers will remain high in line with market conditions.

With its various bases and geographical presence, the Group will continue to optimize the product structure while strengthening high-yield fertilizers, improve research and development and promotion of new fertilizers, and further highlight the competitive advantages of differentiated products. . At the same time, the Group will take advantage of the flexible production mode and the extension of the industrial chain with obvious advantages of low-cost and high-quality products to increase the added value of products and improve profitability. The Group’s DMF project with an annual output of 100,000 tons is expected to start pilot production by the end of June. The first phase of the Gansu Jinchang compound fertilizer project is also expected to be completed by the end of this year.

Mr. Liu Xingxu, Chairman of China XLXstressed that “While making full use of the advantages of the existing bases, the Group will further strengthen technological R&D and innovation, in order to facilitate the sound and quality development of the Group.” The Group will also continue to explore new development opportunities, integrate high-quality resources to maximize resource efficiency and strengthen industry presence. »

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 and pharmaceutical intermediates. The shares of the Company are traded on the main board of the Stock Exchange of Hong Kong Limited (stock code: 1866.HK).

Investor and Media Inquiries

China XLX Fertilizer Ltd.
Gui Lin
Tel: 86-135-6942-3415
Email: [email protected]

People’s Republic of China Limited
Alana Li / Ran Mo / Rachel Chen
Tel: 852-2522 1368 / 852-2522 1838
E-mail: [email protected]
[email protected]
[email protected]

Case: China XLX Announces Q1 2022 Earnings Production Capacity Reached New Milestone with 88% Year-on-Year Increase in Net Profit

THE SOURCE: China XLX Fertilizer

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