Shares of CHINA XLX FERT (HKEX: 01866) have surged close to 5% once again. At the time of writing, the stock is up 4.45%, trading at HK$10.56 with a turnover of HK$6.03 million.

Major Shareholder Boosts Stake

Recent data from the Hong Kong Stock Exchange reveals that a major shareholder of CHINA XLX FERT has been actively increasing its holdings. In late May, Pioneer Top Holdings Limited, which is ultimately controlled by Chairman Liu Xingxu, executed five separate purchases of the company's shares, acquiring a total of 4.094 million shares for approximately HK$43 million. This raised its stake to 32.70%.

The buying activity continued into June by the management team. On June 4, Executive Director Yan Yunhua purchased 600,000 shares on the secondary market, investing nearly HK$6 million. The following day, on June 5, Yan Yunhua bought an additional 312,000 shares for about HK$3.05 million.

Urea Capacity Expansion Ahead of Schedule

According to the company's strategic plan, CHINA XLX FERT aims to reach a total fertilizer production capacity of 14 million tonnes by 2028, comprising 8 million tonnes of urea and 6 million tonnes of compound fertilizer. This positions the company with a notable scale advantage in urea production compared to peers.

The company's Xinxiang base chemical new materials project is currently in the trial production phase, with all operational indicators performing well. The new urea production capacity at the Xinxiang base, scheduled for commissioning in the third quarter, is expected to exceed market forecasts, reaching 1.05 million tonnes. Furthermore, construction of the first phase of the Zhundong project is progressing as planned and is anticipated to be operational before the end of this year. The first phase of the Guangxi mega-project is slated to commence operations in the third quarter of next year.