China XLX Announces Slight Growth Amid Challenges in 2023 Annual Results

China XLX Fertiliser Ltd. has reported a marginal revenue increase of 2% for the year ending December 31, 2023, reaching approximately RMB 23.475 billion. Despite the uptick in revenue, profits attributable to parent company owners fell by 11% year-over-year to about RMB 1.187 billion. Amidst these financial outcomes, the Board of Directors has proposed a final dividend of RMB 24 cents per share. Moreover, noteworthy improvements in the company’s risk management were highlighted, including a reduction in the gearing ratio to 70.59% and a 12% decrease in finance costs compared to the previous year.

The backdrop of these results is a global economy experiencing muted recovery and sharp fluctuations in the energy and fertilizer markets. China XLX attributed its resilience in part to the introduction of new high-quality production facilities, which bolstered supply capacity and cemented the company's market leadership in energy efficiency. Among its product segments, urea maintained a stable performance with slight revenue growth, compounded by an impressive 112% increase in urea export volumes, primarily to markets in Brazil and India.

Conversely, the company faced challenges with its melamine and urea solution for vehicles, both witnessing sharp declines in revenue due to dropping average selling prices and sales volumes. However, medical intermediate sales surged by 40%, showcasing a significant uptick in both price and volume.

Looking forward, Chairman Mr. Liu Xingxu expressed cautious optimism, citing stabilizing international energy supplies and sustained agricultural and industrial demand as key factors likely to support fertilizer prices. Additionally, the completion of major projects, including the polyformaldehyde and compound fertilizer projects, is anticipated to further strengthen China XLX's market position.