China XLX Reports Improved Q1 2025 Earnings

China XLX Fertiliser Ltd. announced a 1.7% year-over-year revenue increase in Q1 2025, reaching RMB 5.85 billion. This marks a notable recovery with a net profit of RMB 198 million compared to a RMB 74.64 million loss in Q4 2024. Despite price weaknesses in early 2025, urea prices rebounded in March, driven by spring farming demand and anticipated export growth, enhancing downstream product performance.

The compound fertiliser business capitalized on its humic acid advantage, boosting sales and improving margins. Sales volume rose 6% quarter-over-quarter, with selling prices up by 9%. The overall gross margin increased by 3 percentage points to 14%, supported by stronger demand and new production facilities.

Cost control measures, including lower finance expenses and interest rate reductions, improved financial stability. The Group plans strategic capital investments to sustain cash flow and enhance financial metrics. Looking forward, China XLX seeks to leverage environmental policies to advance technological and product innovations to support sustainable growth.