China XLX Fertiliser Ltd. reported its financial results revealing a slight increase in revenue and a significant decline in net profit. For the reporting period, the company's revenue reached RMB 5.85 billion, up from RMB 5.75 billion in the same period last year. However, net profit dropped to RMB 249.37 million from RMB 383.49 million, showing a marked decrease. The decline in net profit is attributed to a weakened support for the price of urea due to the fall in raw material coal prices, which led to a decrease in the selling price of urea greater than the cost reduction. Consequently, the overall gross profit decreased by 23% year-on-year (YoY). Excluding non-recurring items, net profit fell by 30% YoY. Despite these challenges, the company experienced a recovery with its net profit increasing by 89% quarter-on-quarter (QoQ), driven by an improvement in supply and demand conditions for fertilizers, which lifted gross profit by 26% QoQ. Revenue for the first quarter increased by 1.7% YoY and 2.4% QoQ. On the financial front, China XLX Fertiliser Ltd. managed to decrease its finance costs by 9% YoY by replacing high-interest loans in advance, thereby reducing the average borrowing rate by 0.7 percentage points YoY. This move, along with reducing short-term borrowings by 15% from the beginning of the period, helped enhance working capital efficiency, increasing it by approximately RMB 1.7 billion. Furthermore, the company continued to strengthen its expense control efforts, achieving a decrease of approximately 1 percentage point YoY in the proportion of its three major expenses. The Group's core product sales rose, supported by the release of agricultural demand and the introduction of new compound fertiliser production capacity, maintaining stable revenue growth.