China XLX Announces 2022 Annual Results  Revenue surged 36% YoY with 32% increase in final dividend

EQS Newswire / 27/03/2023 / 11:48 UTC+8

 

China XLX Announces 2022 Annual Results 

Revenue surged 36% YoY with 32% increase in final dividend

 

2022 Annual Results Highlights:

  • Revenue surged 36% YoY to approximately RMB23,072 million.
  • Gross profit grew 6% YoY to approximately RMB4,349 million.
  • Profit for the year increased by 2% YoY to approximately RMB1,808 million.
  • Profit attributable to owners of the parent increased by 2% YoY to approximately RMB1,326 million.
  • The Board recommended the payment of a final dividend of RMB25 cents per share, up 32% YoY.

 

(27 March 2023, Hong Kong) China XLX Fertiliser Ltd. (“China XLX” or the “Company”, together with its subsidiaries collectively known as the “Group”) (HKSE: 01866.HK) is pleased to announce the annual results for the year ended 31 December 2022 (the “Period”). The Group’s revenue amounted to RMB23,072 million, representing an increase of 36% YoY. Gross profit increased by 6% YoY to approximately RMB4,349 million. Profit for the year increased by 2% YoY to approximately RMB1,808 million, with profit attributable to owners of the parent increased by 2% YoY to approximately RMB1,326 million. The Board recommended the payment of a final dividend of RMB25 cents per share for the year, up 32% YoY.

 

Affected by geopolitics, environmental protection policies and the recurrent outbreaks of pandemic , the world’s food prices spiraled upwards in 2022, resulting in higher prices of fertilisers and coal chemical-related products. With completion of the renovation and upgrading of the Group’s second and third plants in Xinxiang Base and the reconstruction and expansion of the Tianxin Coal Mine in Xinjiang Base, the Group increased high-quality production capacity. Underpinned by accelerated transformation and upgrading of its industrial chain, the Group pushed for diversification towards coal chemical-based products. It continued to enhance its production capacity, geographical reach and product mix, hence achieving record revenue and profitability.

 

Revenue derived from the sales of urea increased by 36% YoY to approximately RMB6,830 million mainly due to 18% and 15% YoY increase respectively in sales volume and average selling price of urea products. Revenue derived from the sales of compound fertilisers increased by 63% YoY to approximately RMB6,116 million mainly due to 28% and 27% YoY increase respectively in average selling price and sales volume of compound fertilisers. Revenue derived from the sales of methanol increased by 29% to approximately RMB2,283 million, as a result of 6% and 21% YoY increase respectively in average selling price and sales volume of methanol. Revenues derived from the sales of DME, melamine and furfuryl alcohol products declined to approximately RMB1,245 million, RMB967 million and RMB611 million respectively mainly due to resurgence of the pandemic and the war between Russia and Ukraine, resulting in weakened demand and lower export volume. Meanwhile, in order to ensure production safety and stable operations, the Group carried out scheduled maintenance shutdown in the third quarter last year, which led to decreased overall production volume.

 

In 2022, affected by the recurrent pandemic, geopolitical tensions, rising food prices and energy shortages, fertiliser prices were driven up and became volatile. Meanwhile, the rising concern of food safety issue bodes well for the demand for high efficiency fertilisers, as well as the operating performance of leading enterprises in the industry. In 2023, while international energy prices rebound, the supply and demand of fertiliser will continue to be in tight balance in a short term. At the same time, the central clearly stated that China shall endeavor to ensure the stable production and supply of grain across the country. Therefore, this will continue to increase demand for chemical fertilizers. Fertilizer prices are expected to remain stable, but prices may fluctuate and are subject to seasonal factors. In terms of chemical products, with the further optimization of epidemic control and favorable policies to promote the recovery of downstream demands, it will stabilize and help the recovery of chemical products prices.

 

Looking ahead, Mr. Liu Xingxu, Chairman of China XLX, commented, “In the face of a new round of transformation and upgrading of coal chemical industry, the Group will adhere to the principle of ‘driving the development of fertiliser and chemical businesses simultaneously based on fertilizer operation’. We will reinforce our core fertiliser business, step up efforts to promote compound fertilisers and differentiated urea, continue to strengthen R&D and promote high efficiency fertilizers. Besides, we will strengthen the ‘flexible adjustment between products’ production modeby taking full advantage of our cost leadership arising from low syngas production, extend downstream chemical products, increase efficient use of energy resources, and strengthen the competitive advantage of our product chain, thereby promoting the transformation and upgrading of the industrial chain. As for the project construction, a million-ton ecological fertiliser project at Liaoning Huludao Base is under construction in an orderly manner as planned. In addition, the green urea project with an annual capacity of 700,000 tons at Xinxiang Base is expected to be completed and put into operation this year. By then, the advantages of the Group’s principal business will be further enhanced with sustainable development capability, supporting the Group’s high-quality sustainabledevelopment of the Group.”

 

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About China XLX Fertiliser Ltd.

China XLX Fertiliser Ltd., one of the largest and most cost efficient coal-based urea producers in China, the Group is principally engaged in developing, manufacturing, and selling of related differentiated products such as urea, compound fertiliser, methanol, dimethyl ether, melamine, furfuryl alcohol, furfural, 2-methylfuran and pharmaceutical intermediates. The Company’s shares are traded on the main board of the Stock Exchange of Hong Kong Limited (stock code: 01866.HK).

 

Investor and Media Enquiries

China XLX Fertiliser Ltd.

Gui Lin

Tel: 86-135-6942-3415

Email: gui.lin@chinaxlx.com.hk

PRChina Limited

Alana Li/ Rachel Chen

Tel: 852-2522 1368 / 852-2522 1838

Email:ali@prchina.com.hk rchen@prchina.com.hk

 

 

 

File: • Revenue surged 36% YoY to approximately RMB23,072 million. • Gross profit grew 6% YoY to approximately RMB4,349 million. • Profit for the year increased by 2% YoY to approximately RMB1,808 million. • Profit attributable to owners of the parent increased

27/03/2023 Dissemination of a Financial Press Release, transmitted by EQS News.
The issuer is solely responsible for the content of this announcement.

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