China XLX Fertiliser Ltd. reported solid year-to-date results through 30 September 2026, underpinned by higher fertiliser and chemical volumes, improved pricing and disciplined cost control.
Revenue reached RMB23.05 billion, up 28% year-on-year (YoY), while gross profit expanded 43% to RMB4.15 billion. Net profit climbed 51% to RMB1.52 billion; profit attributable to shareholders rose 42% to RMB1.14 billion, equivalent to basic EPS of RMB0.91 (up 39%).
Segment performance • Fertilisers generated RMB12.28 billion in sales with a 19% gross margin. Urea volume jumped 36% to 3.62 million t, supported by the Jiangxi Phase II and New Chemical Materials capacity ramp-ups. High-efficiency urea sales grew 17% and delivered RMB450 million incremental gross profit. • Fine chemicals contributed RMB4.39 billion in revenue and a 22% margin. Melamine margin widened 5 ppts to 37%, while DMF margin increased 7 ppts to 24% on stronger pharmaceutical-grade demand. • Basic chemicals posted RMB4.80 billion in revenue with an 11% margin, as flexible output shifts absorbed surplus liquid ammonia into higher-value methanol.
Quarterly snapshot In 3Q26, the group executed scheduled maintenance across all bases, temporarily pressuring margins but completing automation upgrades that lifted plant automation control to 90%. Quarterly revenue rose 38% YoY to RMB7.31 billion, and attributable net profit advanced 8% to RMB217 million.
Balance-sheet trends Total assets stood at RMB46.01 billion (+19% from year-end 2025). Although the debt-to-asset ratio increased during the current investment peak, the funding profile improved: the short-term portion of total debt fell to 18% (-8 ppts) and the average borrowing cost declined to 2.91% (-0.26 ppts). Working capital outflow narrowed to –RMB3.25 billion from –RMB4.16 billion. EBITDA improved 33% to RMB3.93 billion, lifting interest coverage to 5.29×.
Capital investment and project pipeline Nine-month capital expenditure totalled RMB4.89 billion, or 75% of the 2026 plan, focused on the New Chemical Materials project, Zhundong base and Guangxi base. Key milestones: • Xinxiang New Chemical Materials urea unit started up in September, lowering site-level urea cash cost by RMB26/t. • Zhundong Phase I (320,000 t melamine; 500,000 t compound fertiliser) entered joint commissioning and is slated for commercial production in 4Q26, leveraging low-cost coal and rail links to Central Asia and Europe. • Guangxi Phase I (1.2 million t synthetic ammonia; 650,000 t urea) is on schedule for 3Q27 start-up, positioning the group closer to South-East Asian markets via Pinglu Canal logistics.
Liquidity remained ample with RMB17.00 billion of undrawn bank facilities at period-end.
Outlook The continuation of China’s fertiliser export quota regime, seasonal winter stocking and national farmland-upgrade programmes are expected to support demand in 4Q26. With major maintenance completed and new capacity ramping, management targets stable high-load operations while advancing its “low-cost + differentiation” strategy through R&D, smart-fertigation solutions and downstream chemical diversification.
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