2021 Q3 Results Highlights:
- The unaudited consolidated revenue of the Group reached approximately RMB11,762 million for 9M2020, which increased sharply by 56% y-o-y.
- Revenue derived from the sales of urea increased by 45% Y-O-Y to approximately RMB3,406 million. Gross profit margin of urea increased to approximately 37% from approximately 33% last year.
- The unaudited total comprehensive income attributable to the owners of the parent surged by 264% Y-O-Y to approximately RMB1,022 million for 9M2021.
HONG KONG, CHINA / ACCESSWIRE / November 15, 2021 / 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 that the Group recorded unaudited consolidated revenue of approximately RMB11,762 million for the nine months ended 30 September 2021 ("9M2020" or "the Period"), a sharp increase of 56% from the same period last year. The unaudited total comprehensive income attributable to the owners of the parent surged by 264% Y-O-Y to approximately RMB1,022 million for 9M2021.
During the Period, with the resurgence of the pandemic, restrictions on food export and rising global agriculture food prices, demand and prices for domestic fertilisers and chemical products further increased. During the third quarter, Henan headquarters and Xinjiang Base completed the 7-day and 15-day maintenance works respectively as scheduled to ensure a long-term, safe and stable production.
During the Period, with the addition of the third production base in Jiangxi Jiujiang successfully commissioned in February 2021, the Group's production capacity reached a new height and achieved record profits. Revenue derived from the sales of urea jumped by 45% to approximately RMB3,406 million for 9M2021. This was mainly due to the increase in sales volume and the average selling price of urea products of the Group by approximately 9% and 34% YoY, respectively. Gross profit margin of urea of the Group increased by approximately 4 percentage points to approximately 37% for 9M2021 from approximately 33% for 9M2020.
During the Period, strong results have also been recorded in the businesses of compound fertilisers and methanol. Revenue derived from the sales of compound fertilisers increased by approximately 11% to approximately RMB2,823 million for 9M2021, mainly due to the increase in average selling price by approximately 15% YoY.
Revenue derived from the sales of methanol increased by approximately 456% to approximately RMB1,224 million for 9M2021. The increased sales of methanol were a result of the increase in average selling price and sales volume of the Group by 69% and 229% YoY, respectively. The increased sales of methanol mainly derived from the new capacity from the third production base in Jiujiang. Gross profit margin of methanol of the Group increased by 14 percentage points to approximately 16% for 9M2021. This was mainly due to the rebound in international energy prices, which in turn caused the increase in the average selling price of methanol.
Revenue derived from the sales of Dimethyl Ether (DME) rose significantly by 93% to approximately RMB985 million for 9M2021. Revenue derived from the sales of melamine increased significantly by 70% to approximately RMB807 million for 9M2021. Revenue derived from the sales of furfuryl alcohol products was up by 51% to approximately RMB551 million for 9M2021.
As the Group has actively adjusted its product structure to allocate more production capacity in response to the increasing demands of urea. Revenue derived from the sales of urea solution for vehicle decreased to approximately RMB360 million for 9M2021.
Mr. Liu Xingxu, Chairman of China XLX, said that due to continuous impacts of the pandemic and restrictions on food export, global food supplies have become tight, and China has paid more attention to food security. The government's policies on grain replanting and land re-cultivation have further increased the demand for fertiliser products from the agricultural industry. In addition, with the "dual carbon" policy being implemented, obsolete production capacity has been eliminated rapidly, new production capacity has been strictly controlled, and entry barriers for coal chemical industry have been raised, thus the Group benefited from these as being a quality enterprise. The tight balance of supply and demand as well as the continuous increase in food prices will support the fertiliser products being priced in a rising and continuous trend. The capacity space freed by obsolete production technology will be occupied by leading companies with large scale, superior technology and low cost. The Group will rely on the advantages including the location, technology, low-cost products + differentiation of the three major bases to strengthen the continuous research and development of high-efficiency fertilisers. While increasing its market shares, it will gradually extend to the fine chemical industry chain, thereby diversifying green and low-carbon sustainable development of coal chemical industry."
Mr. Liu Xingxu said, "The fixed-bed renovation and upgrading project of the Group's second and third plants is expected to be completed and put into production in the fourth quarter this year, whereupon the three major bases of the Group will fully realize advanced production technology and further release high-quality production capacity to boost the Group's high-quality development and enhance its position in the industry.
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. Adhering to the competitive strategy of combination of "comprehensive cost control and product differentiation", the Group aims at further development of the fertiliser industry as a whole. Boasting resources of its Henan, Xinjiang, Jiujiang bases, the Group strives to expand its business into various upstream product lines including new energy, new chemical materials, and coal chemicals. At present, the Group owns 4 urea production lines and 18 compound fertiliser production lines, the production capacities of each product are at the top of the list in the industry. The Company's shares are traded on the main board of the Stock Exchange of Hong Kong Limited (stock code: 01866.HK).
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SOURCE: China XLX Fertiliser