Dongguang Chem profit drops 55.5% amid urea price slump

Dongguang Chemical Limited (HKEX: 1702) reported a 55.5% decrease in profit for the year ended December 31, 2024, with profits falling to RMB86.4 million from RMB194.1 million the previous year. The primary driver was a steep decline in urea prices, compounded by weak domestic demand and government export restrictions. Revenue also saw a decrease, falling 11.8% to RMB2,575.4 million. While urea sales volume increased, it couldn't offset the impact of lower average selling prices, which decreased by 15.9% to RMB1,842 per tonne. The board has proposed a final dividend of HK3.6 cents per share. Looking ahead, the company aims to focus on technological innovation and sustainable strategies.