China XLX Fertiliser (1866) H2 2024 earnings summary

Executive summary

• Revenue for FY2024 was RMB23,128 million, down 1% year-over-year due to lower product prices, but new capacity and expanded sales channels supported resilience.

• Net profit rose 23% year-over-year to RMB2,014 million, with profit attributable to the parent up 23% to RMB1,459 million, driven by investment income from the disposal of Tianxin Coal Mine.

• Fertilizer remained the core segment (58% of revenue), with chemicals (37%), medical intermediates (2%), and others (3%).

Financial highlights

• Gross profit was RMB3,931 million, down from RMB4,187 million in FY2023.

• Other income and gains surged 255% to RMB1,061 million, mainly from the Tianxin Coal Mine disposal.

• Selling and distribution expenses increased 15% to RMB708 million; general and administrative expenses rose 2% to RMB1,324 million.

• Finance costs decreased 15% to RMB495 million due to lower interest rates and improved debt structure.

• Basic earnings per share increased to 120.05 RMB cents (FY2023: 96.95 RMB cents).

• Proposed final dividend of RMB0.26 per share, up from RMB0.24 per share last year.

Outlook and guidance

• Domestic nitrogen fertilizer demand and supply expected to remain stable in 2025, with outdated capacity being phased out.

• Demand for differentiated and high-efficiency fertilizers projected to grow, supported by national policies and agricultural trends.

• The company will continue to expand high-quality capacity and prioritize investments with high returns.

• Dividend policy for 2025–2027 targets a payout ratio of no less than 25% of audited net profit and a minimum dividend of RMB0.24 per share.