China XLX Announces 2024 1Q Results - Seite 2

Revenue from compound fertilisers decreased by 8% YoY to approximately RMB 1,434 million, mainly due to approximately an 8% decrease in the sales volume. The gross margin of compound fertilisers for the Period increased by approximately 3 percentage points YoY to 14.7%. The increase was firstly due to 11% YoY decrease in average product cost resulting from low raw material costs. Secondly, as the gross margin of high-efficiency compound fertilisers was 4 percentage points higher than that of traditional compound fertilisers, the Group intensified the promotion of high-efficiency compound fertilisers, resulting in a 3% YoY increase in sales volume.

Revenue from methanol was approximately RMB 632 million, up 20% YoY mainly attributable to 26% YoY increase in methanol sales volume. As demand for basic chemical products in downstream markets gradually recovered, the Group utilized the flexible adjustment mechanism to adjust the proportion of methanol and dimethyl ether output, resulting in a 24% YoY increase in methanol production and higher sales volume. The gross margin of methanol increased by approximately 8 percentage points to 7% from negative 1% for the same period last year. The improvement was attributable to a 12% YoY decrease in average production costs of methanol due to the decline in feedstock coal prices.

Revenue from melamine was approximately RMB 213 million, up 8% YoY mainly due to approximately 20% YoY increase in the sales volume. As the Group further expanded into international markets, its export volume increased by 39% YoY, resulting in sales volume growth. Meanwhile, in order to ensure the smooth operation of the melamine production line, the Group successfully completed maintenance and repairs on some equipment in the first quarter of this year, resulting in a 19% YoY increase in production capacity recovery. As for the DMF business, driven by a 37% YoY increase in sales volume, the revenue from DMF grew by 12% YoY to approximately RMB 290 million. Revenue from medical intermediate was approximately RMB 111 million, down 23% YoY. With an aim to maximize the profitability, the Group flexibly adjusted the product structure of this segment based on market conditions and development trends. It decisively suspended the production of acrylonitrile, which had weaker profit potential at the current stage, to maximize resilience against market risks.