CHINA XLX FERTILIZER (01866) saw its shares rise over 5% against the broader market trend. At the time of writing, the stock was up 5.6%, trading at HK$11.13 with a turnover of HK$41.40 million.

The movement follows the company's announcement of its full-year results for 2025. Revenue reached RMB 25.35 billion, an increase of nearly 10% year-on-year, setting a new historical record. Net profit attributable to shareholders was approximately RMB 932 million.

In 2025, the group fully implemented its dual-coal blending technology and advanced specific cost-reduction technical upgrades. These measures effectively reduced production costs by 13% and resulted in a comprehensive energy consumption rate that is 10% lower than the industry average.

Furthermore, the company experienced a significant increase in overseas orders during the year. The proportion of revenue derived from international markets rose by 4 percentage points compared to the previous year, indicating a continued release of growth momentum from its overseas business.

It is noteworthy that a supply shortage has emerged for global commodities such as energy and fertilizers. There is a widespread market expectation for an easing of export restrictions following the spring ploughing season. Dongzheng Derivative Research Institute forecasts that China's urea export quota for 2026 could increase by 2 to 3 million metric tons compared to 2025, reaching a level of 7 to 8 million metric tons. If this expectation materializes, the domestic urea industry may experience a phase of opportunity with rising volume and prices in overseas markets. As the leading domestic urea producer by output, CHINA XLX FERTILIZER is well-positioned to benefit significantly from this anticipated recovery cycle in the industry.