China XLX Fertiliser Ltd. (“China XLX” or the “Company”, together with its subsidiaries known as the “Group”) (HKSE: 01866.HK) issued positive profit alert. The net profit of the Group for the six months ending 30 June 2017 is expected to surge by at least 100% year-on-year.
Such increase was primarily attributable to the recovery of the average selling prices of urea, methanol and liquid ammonia since the beginning of 2017. Moreover, the Group’s melamine project which commenced production in September 2016 has recorded outstanding performance, leading to an improvement in profitability. The recovery of international energy prices and stricter environmental control in China has accelerated the consolidation of the fertiliser industry, thereby resulting in an increase in selling prices of urea, methanol and liquid ammonia.