China XLX Fertiliser: Q3 2025 profit falls amid maintenance, market oversupply

China XLX Fertiliser reported unaudited revenue of RMB17,962,803 for the nine months ended September 30, 2025, a slight increase from RMB17,419,724 in the same period last year. However, net profit significantly decreased to RMB1,008,393 from RMB2,031,307, with diluted earnings per share falling to 64.7 RMB cent/share from 124.7 RMB cent/share. The decline was attributed to concentrated maintenance efforts in Q3 2025, which impacted output by approximately 269,000 tonnes and reduced estimated total profit by RMB226 million. The domestic fertilizer market's oversupply and low urea prices also contributed to a 23% year-over-year (YoY) decrease in gross profit for Q1 2025, leading to an 11% YoY decline in overall gross profit for the nine-month period.

Total assets increased by 20% to approximately RMB37.1 bn, driven by production capacity expansion and project guarantee fund disbursements, resulting in a 16% increase in fixed assets and a 41% rise in cash on hand. The group successfully secured low-cost medium- and long-term loans, increasing total loans by approximately RMB3.1 bn, primarily medium- and long-term. Financing costs were optimized, with the average loan interest rate decreasing by 0.6 percentage points to 3.2%, and the long-to-short-term borrowing ratio improving from 6:4 to 7:3.

The group's product structure saw fertilizers contribute 57% of revenue, chemicals 38%, and other categories 5%. The chemical segment demonstrated strong performance with a nearly 45% YoY increase in gross margin, bolstered by leveraging park resources and flexible production strategies. Strategic projects, including the Jiujiang Phase II Project, successfully commissioned in Q3 2025, are expected to further expand low-cost production capacity and strengthen market competitiveness.