Shares of CHINA XLX FERT (01866) continued to climb during the morning session. At the time of writing, the stock was up 7.16%, trading at HKD 11.82 with a turnover of HKD 33.2495 million.

China has sufficient urea production capacity, and exports are subject to quota controls. If the trend of increasing export quotas continues into 2025, the combination of higher volumes and prices could improve the profitability of urea producers.

Public information indicates that CHINA XLX FERT is a top-tier urea enterprise in China in terms of both single-plant scale and per-unit product profitability. It is a leader in the domestic nitrogen fertilizer industry, ranking first in the country for urea output, while its compound fertilizer production and sales volumes also place it in the top tier of the industry. In 2024, the company's urea capacity was 3.9 million tons, and its compound fertilizer sales were approximately 2.3 million tons. For the first three quarters of 2025, these two major products contributed 25.3% and 58% of the company's revenue, respectively, combining for over 50% of total revenue.