Dongguang Chemical profit falls 18.8% amid lower urea prices

Dongguang Chemical Limited reported a profit of RMB72.9 million for the six months ended June 30, 2025, an 18.8% decrease from RMB89.8 million in the same period last year. Revenue declined by 11.7% to RMB1,180.8 million, from RMB1,337.2 million, primarily due to a 19.2% decrease in the average selling price of urea to RMB1,632 per tonne. Gross profit also fell by 29.0% to RMB101.8 million, resulting in a reduced gross profit margin of 8.6%.

Despite the profit decline, sales volume for urea increased by 7.5%, and vehicle urea solution revenue rose by 43.8% to RMB78.3 million, driven by a 116.0% increase in sales volume. Administrative expenses increased by 34.4% to RMB28.9 million, mainly due to higher legal and professional fees. The Group maintained a strong liquidity position with cash and bank balances of RMB752.8 million and no interest-bearing bank borrowings as of June 30, 2025.