CHINA XLX FERTILISER LTD. Press Release
(For immediate release)
Net Profit up 175% Year-on-Year
Results Highlights for First 9 Months Ended 30 September, 2015：
Unaudited net profits up 175% year-on-year
Unaudited sales revenue hit RMB4.572 billion, up 19% from last year
Continuous double-digit growth of sales in key products including urea and compound fertilizer
（27 October 2015, Hong Kong）China XLX Fertiliser Ltd ('China XLX Fertiliser' or the 'Company')(HKSE: 01866.HK) announced that the total revenue for the first nine months ended 30 September 2015 ('First Three Quarters' or the 'Period') rose 19% year-on-year to RMB4.572 billion thanks to continuous strong sales and rising average selling price in major products including urea and compound fertilizer. The net profit in the Period hits RMB393 million, up approximately 175% from the same period last year.
During the Period, the sales revenue derived from urea increased approximately 11% to RMB2.42 billion primarily attributable to the high efficiency operation of Plant IV and the rising average selling price that collectively drive up both the production and the revenue. The sales revenue derived from compound fertilizer rose approximately 53% to RMB1.548 billion due to the substantial increase in sales generated from the continuously expanding e-commerce sales network. However, the sales revenue derived from methanol dropped 25% year-on-year to RMB441 million due to the 17% decrease in the average selling price.
For the third quarter ended 30 September 2015 ('2015'Q3'), the net profit rose approximately 83% year-on-year. The sales revenue was RMB1.688 billion, up approximately 21% from the same period last year.
The new production line, Plant IV, has commenced operation for one year with sound performance and stable production. The Plant IV adopts world-class
gasification technology to ensure all the performance indicators are at the best standards, which further enhance the cost efficiency and the technology advantages of China XLX.
The Board of Directors believe that the strong profit for the Period and for 2015'Q3 is primarily attributable to the higher percentage of high efficiency fertilizer in the total sales portfolio. The high efficiency fertilizer has higher profitability and competitive edges on the market. Additionally, the Plant IV is performing well and the Plant I, Plant II and Plant III have been improving operating efficiency, which in combination boosts the total production and creates economies of scale and cost advantages for the Group.
China XLX Chairman and CEO Mr. Liu Xingxu commented, 'China XLX successfully keeps strong performance and is obviously the leading fertilizer company in China. As Pioneer of High-Efficiency Fertilizer in China, China XLX is expected to maintain solid growth. New opportunities arising from the initiatives to build the modern agriculture industry in China and the implementation of the 'One Belt, One Road' national strategy, we are prepared to leverage these new opportunities. We will continue to optimize product differentiation strategy, further develop the e-commerce network and potential, strengthen technology capability, and prioritize the percentage of high efficiency fertilizer in the total production. We believe our efforts will enhance the profitability and competitiveness in the market, strengthen our
leading position in the industry, and, ultimately, maximizing the value for our shareholders. 」
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China XLX Fertiliser Ltd., one of the largest and most cost efficient coal-based urea producers in China, is mainly engaged in the production and sale of urea, compound fertiliser and methanol. Its annual production capacity of urea, compound fertiliser and methanol is 2.1 million tons, 1.1 million tons and 300,000 tons, respectively. Besides, the 5th plant in Xinxiang, which is under construction, is expected to commence trial production in 2015. The Group forged a strategic partnership with Primavera Capital, an internationally renowned private equity fund, at the end of 2011, aiming to leverage on its extensive experience and resources network in the capital market to sustain stable business growth. The Company's shares are traded on the main boards of the Stock Exchange of Hong Kong Limited (stock code: 01866.HK).
Investor and Media Enquiries:
China XLX Fertiliser Ltd. Zhu Weiwei Tel: 86-138 4939 1363 Email: weiwei.zhu@chinaxlx.com.hk | PRChina Limited Peggy Yuan / Charles Chan Tel: 852-2522 1368 Email: jyuan@prchina.com.hk ckchan@prchina.com.hk |
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