CHINA XLX FERT (01866) has announced a positive profit forecast. For the three months ended March 31, 2026, the Group expects its main business revenue to be between RMB 6.7 billion and RMB 7.0 billion, representing a year-on-year increase of 15% to 20%. Net profit attributable to owners of the parent company is projected to be in the range of RMB 280 million to RMB 300 million, marking a significant year-on-year growth of 41% to 52%. Basic earnings per share are estimated to be between RMB 0.23 per share and RMB 0.24 per share.
The substantial improvement in the Group's performance during the period is primarily attributed to a simultaneous increase in both volume and price of its core products, which drove an overall enhancement in gross profit. This was achieved through two key factors. Firstly, the commencement of operations at the Jiujiang Phase II project and the successful entry into the trial production phase of the first-phase chemical new materials project at the Xinxiang base have released additional production capacity. This expansion has not only increased sales scale but also further consolidated and strengthened the Group's cost competitiveness. Secondly, the Group has consistently focused on market demand by intensifying research and development of differentiated products. This effort has promoted the optimization and upgrading of the product portfolio, leading to a steady rise in the average selling price of its products. Notably, the selling prices of products such as urea and melamine saw particularly significant increases, providing a solid foundation for the performance growth.
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