China XLX Fertiliser expects sharp profit drop on maintenance, lower prices

China XLX Fertiliser Ltd. expects a substantial decrease in its results for the nine months ended 30 September 2025. Net profit is estimated to fall by 53%–48% to RMB9.6–10.6 million, with net profit attributable to the parent projected to decrease by 50%–45% to RMB7.6–8.4 million. This decline is largely due to centralized shutdown maintenance across its three core production bases, which reduced product output by approximately 269,000 tons, impacting total profit by an estimated RMB226 million.

The maintenance, conducted during a period of low fertilizer prices in Q3 2025, aimed to improve production line efficiency and integrate new projects. Despite the short-term impact, the company states the maintenance has enhanced operational energy efficiency and capacity, setting a foundation for future recovery. Additionally, the smooth commissioning of the Jiujiang Base Phase II Project on 23 September is expected to release low-cost production capacity, strengthening market competitiveness.

However, a decline in prices for coal chemical-related products, including urea, liquid ammonia, and melamine, also exerted pressure on the group's results. The company notes that the Jiujiang Phase II Project has demonstrated improved energy consumption control compared to Phase I, consolidating its cost advantage for future profitability amidst market fluctuations.