Investment Rating - The report maintains a "Buy" rating for the company with a target price raised to 16 HKD [4][8]. Core Insights - The company is expected to experience significant growth in revenue and net profit in 2026 and 2027 due to the launch of new production capacities [4]. - In 2025, the company's revenue is projected to reach 25.35 billion RMB, a 10% year-on-year increase, with adjusted net profit expected to be 930 million RMB, reflecting a 1% growth [2][4]. - The gross profit margin is anticipated to be 15% in 2025, down 2 percentage points from the previous year, primarily due to price declines in some products and maintenance shutdowns [2][3]. Financial Summary - Revenue for 2025 is projected at 25.35 billion RMB, with a growth rate of 9.6% [6]. - The net profit for 2025 is expected to be 932 million RMB, with a significant increase in subsequent years, reaching 1.44 billion RMB in 2026 and 1.86 billion RMB in 2027, representing growth rates of 54.3% and 29.1% respectively [6][12]. - The company plans to distribute a final dividend of 0.32 RMB per share for 2025, a 23% increase year-on-year, with a payout ratio of 44% [2][4]. Product Performance - In 2025, urea revenue is expected to be 6.83 billion RMB, with an average selling price of 1,745 RMB/ton, a 10% decrease year-on-year [3]. - The revenue from compound fertilizers is projected to be 6.91 billion RMB, with an average selling price of 2,539 RMB/ton, down 3% year-on-year [3]. - The company is benefiting from low anti-dumping tax rates, which have positively impacted the gross margin of melamine, increasing it to 38% [3]. Production Capacity Expansion - The company is set to launch key projects in Henan, Xinjiang, and Guangxi, with total urea production capacity expected to exceed 8 million tons and overall fertilizer capacity to surpass 14 million tons [4]. - The new production facilities are anticipated to significantly reduce production costs and enhance operational cash flow, leading to a major financial turning point in 2027 [4].

第 1 頁 共 2 頁 v 1.1.1 EF001 免責聲明 | 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因 | | | --- | --- | | 公告全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 | | | 股票發行人現金股息公告 | | | 發行人名稱 | 中國心連心化肥有限公司 | | 股份代號 | 01866 | | 多櫃檯股份代號及貨幣 | 不適用 | | 相關股份代號及名稱 | 不適用 | | 公告標題 | 截至2025年12月31日止之末期股息 | | 公告日期 | 2026年3月27日 | | 公告狀態 | 新公告 | | 股息信息 | | | 股息類型 | 末期 | | 股息性質 | 普通股息 | | 財政年末 | 2025年12月31日 | | 宣派股息的報告期末 | 2025年12月31日 | | 宣派股息 | 每 股 0.32 RMB | | 股東批准日期 | 有待公佈 | | 香港過戶登記處相關信息 | | | 派息金額及公司預設派發貨幣 | HKD， 金額有待公佈 | ...

Financial Performance - The total revenue for the fiscal year ending December 31, 2025, was RMB 25,352,471,000, representing an increase of 9.6% compared to RMB 23,128,292,000 in 2024[3] - The gross profit for 2025 was RMB 3,808,011,000, a decrease of 3.1% from RMB 3,931,083,000 in 2024[3] - The net profit for the year was RMB 1,303,031,000, down 35.2% from RMB 2,013,620,000 in 2024[3] - Basic earnings per share decreased to RMB 0.76 in 2025 from RMB 1.20 in 2024, reflecting a decline of 36.7%[3] - The company's net profit for the year was RMB 1.303 billion, with a pre-tax profit of RMB 1.583 billion[16] - The company's pre-tax profit for 2025 was RMB 2,376 million, down from RMB 2,014 million in 2024, reflecting a decrease of approximately 17.9%[20] - The company reported a total tax expense of RMB 280.355 million for 2025, compared to RMB 362.816 million in 2024, a decrease of approximately 22.7%[22] - The company plans to distribute a final dividend of RMB 0.32 per share for the fiscal year 2025, up from RMB 0.26 per share in 2024, reflecting an increase of 23.1%[23] Assets and Liabilities - Total assets increased to RMB 38,760,428,000 in 2025, up from RMB 32,518,244,000 in 2024, marking a growth of 19.2%[5] - Non-current assets rose to RMB 31,947,784,000 in 2025, compared to RMB 26,217,520,000 in 2024, an increase of 21.5%[5] - Current liabilities decreased to RMB 10,968,019,000 in 2025 from RMB 11,367,961,000 in 2024, a reduction of 3.5%[7] - Total liabilities increased to RMB 25,564,129,000 in 2025, up from RMB 19,996,456,000 in 2024, representing a rise of 28.0%[7] - As of December 31, 2025, the company's debt-to-asset ratio increased to 73.84%, up from 69.66% in the previous year, representing a rise of 4.2 percentage points[79] - The company's net debt amounted to RMB 23,472,893,000, compared to RMB 18,042,484,000 in the previous year, indicating a significant increase in leverage[79] Capital Expenditure and Investment - Capital expenditure for the group amounted to RMB 6.020 billion, with a year-on-year increase of approximately 24% for new projects and bases[16] - Capital expenditures for the year were RMB 4,874.463 million, indicating significant investment in property, plant, and equipment[18] - The company increased R&D investment by 19% year-on-year for 2025, focusing on AI applications in chemical engineering and energy recovery, establishing research platforms in Shanghai and Shenzhen[37] Revenue Segmentation - The fertilizer segment generated revenue of RMB 9.711 billion, while the chemical segment contributed RMB 8.470 billion[16] - The company achieved a 10% year-on-year revenue growth, driven by a significant increase in overseas orders, with urea exports rising by 6 percentage points[40] - The chemical product segment saw a 21% year-on-year revenue increase, driven by higher sales of methanol and liquid ammonia[44] Market and Operational Strategy - The company plans to enhance its market share by 6 percentage points through the release of production capacity from five major production bases[36] - The company is leveraging its nationwide sales network to meet diverse fertilizer needs across different regions, aligning with modern agricultural development trends[80] - The company is focused on enhancing its capital structure through share buybacks to improve earnings per share and overall shareholder returns[95] Cost Management and Efficiency - The cost of goods sold for the fiscal year 2025 was RMB 21,544.460 million, compared to RMB 19,197.209 million in 2024, indicating an increase of about 12.2%[20] - Production costs were reduced by 13% through the application of two-coal co-firing technology, achieving comprehensive energy consumption 10% lower than the industry average[41] - The company improved its financial position by reducing financial costs by 3% while increasing other income by 32%[41] Employee and Corporate Development - The employee count increased to 12,964, up by 1,177 from the previous year, primarily due to the acquisition of Henan Shenzhou Precision Manufacturing Co., which added 486 employees[98] - Approximately 70% of the newly recruited employees are highly educated, including PhD and master's degree holders, supporting the company's high-quality development[98] Regulatory and Accounting Changes - The implementation of IFRS 18 will introduce new reporting requirements for income and expenses, effective from April 2024[13] - The revised IFRS 7 will change the starting point for operating cash flow from "profit and loss" to "operating profit"[14] - The introduction of new performance metrics and classifications in the income statement is mandated under IFRS 18[13] - The group is assessing the impact of the new accounting standards on its financial statements and notes[15] Shareholder Returns and Buybacks - The company has successfully repurchased 4,169,000 shares at a total cost of HKD 28,375,458, representing about 0.32% of the issued shares as of December 31, 2025[95] - The proposed final dividend is RMB 0.32 per share, an increase of 23% compared to RMB 0.26 in 2024[24]

Group 1 - BASF announced a price increase for its commodity amines portfolio in Europe, with increases up to 30% and some products potentially higher, effective immediately [1] - Morgan Stanley highlighted that raw material availability is a critical bottleneck, and if the conflict continues, operational rates in the Middle East and Asia may decline further, impacting global chemical supply chains [1] - As of March 15, approximately 60% of chemical products in China saw price increases, with notable rises in acrylic acid (90.7%), p-nitrochlorobenzene (80.3%), and methionine (56.3%) [1] Group 2 - Shanghai Petrochemical Company is a major integrated refining and chemical enterprise in China, listed in Shanghai, Hong Kong, and New York, focusing on producing synthetic fibers, resins, plastics, and petrochemical products [2] - China Xuyang Group is the largest producer of methanol from coke oven gas in China, with an annual production capacity of 600,000 tons, and is a key player in the "alcohol-ammonia" industry chain [2] - Xinlianxin Fertilizer has diversified its business, with a growing share of revenue from the chemical sector, primarily focusing on methanol, and is expected to see significant revenue and profit growth in Q1 2026 due to rising prices [2]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容 而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 CHINA XLX FERTILISER LTD. 中國心連心化肥有限公司 * （ 在 新 加 坡 註 冊 成 立 之 有 限 公 司 ） （香港股份代號：1866） 中國心連心化肥有限公司 董事會主席 劉興旭 香港，二零二六年三月十七日 於本公告日期，本公司執行董事為劉興旭先生、張慶金先生及閆蘊華女士；本公司獨立 非執行董事為王建源先生、李生校先生、王為仁先生及李紅星先生。 * 僅供識別 董事會會議召開日期 中國心連心化肥有限公司（「本公司」）之董事會（「董事會」）謹此宣佈，本公司將於2026年 3月27日（星期五）舉行董事會會議，其中議程包括考慮及批准刊發本公司及其附屬公司截 至2025年12月31日止年度之綜合全年業績公告於香港聯合交易所有限公司網站，以及考 慮派發末期股息之建議（如有）。 承董事會命 ...

Group 1 - Fertilizer stocks showed significant gains in early trading, with China National Petroleum Corporation (03983) rising by 8.28% to HKD 3.40 [1] - Sinochem Fertilizer (00297) increased by 3.91%, reaching HKD 1.86 [1] - China Heartlink Fertilizer (01866) saw a rise of 2.74%, trading at HKD 12 [1]

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 | 截至月份: | 2026年2月28日 | 狀態: | 新提交 | | --- | --- | --- | --- | | 致：香港交易及結算所有限公司 | | | | | 公司名稱: | China XLX Fertiliser Ltd. 中國心連心化肥有限公司（於新加坡註冊成立之有限公司） | | | | 呈交日期: | 2026年3月5日 | | | | I. 法定/註冊股本變動 | 不適用 | | | FF301 第 1 頁 共 10 頁 v 1.2.0 FF301 II. 已發行股份及/或庫存股份變動及足夠公眾持股量的確認 1. 股份分類 普通股 股份類別 不適用 於香港聯交所上市 (註1) 是 證券代號 (如上市) 01866 說明 已發行股份（不包括庫存股份）數目 庫存股份數目 已發行股份總數 上月底結存 1,274,680,000 8,561,000 1,283,241,000 增加 / 減少 (-) 本月底結存 1,274,680,000 8,561,000 1,283,241,000 足夠公眾持股量的確認(註 ...

Investment Rating - The industry investment rating is "Recommended (Maintain)" [1] Core Insights - The geopolitical situation in Iran is escalating, which may impact the supply expectations and fundamentals of related chemical products. Methanol and urea may face supply disruptions, as Iran's methanol production capacity is significant, accounting for 59.78% of the Middle East's total capacity and 22.86% of international capacity (excluding China) as of February 2026. Urea exports from Iran are projected to be around 4.5 million tons in 2024, making it the third-largest exporter globally [3][4] - Major chemical companies are raising prices for MDI and TDI products, indicating potential price increases in traditional peak seasons. For instance, Hunstman announced a price increase of $260 per ton for MDI in the U.S. market, effective immediately [3][4] - The U.S. government has signed an executive order to protect the supply of phosphorus and glyphosate, which may lead to a revaluation of phosphate resources. This strategic resource is expected to maintain high demand and price stability [3][4] - The chemical industry is anticipated to experience a cyclical recovery and industrial upgrade in 2026, driven by domestic growth policies and a potential easing of monetary policy by the Federal Reserve. This may lead to a moderate recovery in traditional chemical demand [5][6] Summary by Sections Geopolitical Impact - The Iranian geopolitical situation is causing concerns over supply disruptions for chemical products like methanol and urea, with significant production capacities in Iran [3] - Sulfur and aluminum carbonate, which have high import dependencies, may also be affected by geopolitical factors, leading to potential price increases [3] Price Trends - The price of TMP has continued to rise due to tight supply conditions, with a reported price of 12,750 RMB per ton as of February 27, 2026, reflecting a 6.3% increase week-on-week [8] - Prices for refrigerants are expected to rise due to supply constraints and increased demand post-holiday, with notable price increases reported for various refrigerants [4][8] Long-term Investment Recommendations - The chemical industry is expected to benefit from a cyclical recovery and industrial upgrades in 2026, with a focus on sectors like pesticides and tire manufacturing, which may see increased pricing opportunities due to trade barriers [5] - Emerging industries such as sustainable aviation fuel (SAF) and lithium battery materials are projected to grow significantly, driven by global decarbonization policies [5][6]

Core Viewpoint - The stock of China Heartland Fertilizer (01866) has seen an increase of nearly 5% during trading, with a current rise of 3.67% to HKD 11.59, supported by a trading volume of HKD 26.1 million [1] Group 1: Fertilizer Market Trends - During the Spring Festival period, the average sales price of fertilizers in Hunan Province has increased, with a pre-festival average of CNY 2,627.71 per ton, up 2.7% but down 1.3% year-on-year [1] - The average sales price of nitrogen fertilizers reached CNY 2,191.1 per ton, increasing by 4.2% but down 10.1% year-on-year; the average price for compound fertilizers was CNY 3,064.32 per ton, up 1.7% and up 6% year-on-year [1] - The rise in fertilizer prices is primarily supported by the increase in international fertilizer prices and pre-festival stockpiling demand [1] Group 2: Potash Fertilizer Supply and Demand - China is the world's largest consumer of potash fertilizers, but the supply of potash resources is relatively insufficient [1] - As of the end of January 2026, domestic port inventory of potassium chloride was 2.4947 million tons, a decrease of 345,100 tons year-on-year, representing a decline of 12.15% [1] - Due to the increasing emphasis on food production safety, it is expected that domestic potash safety inventory will rise to over 4 million tons [1] Group 3: Pricing and Contracts - The market average price for potassium chloride at the end of January was CNY 3,295 per ton, with a month-on-month increase of 0.4% and a year-on-year increase of 27.52% [1] - In the international market, a cross-border railway contract was established between Chinese importers and the Russian Ural Potash Company, with the February contract price for potassium chloride set at USD 364 per ton (delivered to Manzhouli), an increase of USD 3 per ton from January [1]

Group 1 - China Heartland Fertilizer (01866) saw its stock price increase by nearly 5% during trading, with a current price of 11.59 HKD and a trading volume of 26.1 million HKD [1] - The average sales price of fertilizers in Hunan province rose during the Spring Festival period, with a price of 2627.71 RMB/ton, an increase of 2.7% compared to the previous week, but a year-on-year decrease of 1.3% [1] - The price increase in fertilizers is primarily supported by rising international fertilizer prices and pre-holiday stockpiling demand [1] Group 2 - China is the world's largest potassium fertilizer consumer, but the supply of potassium resources is relatively insufficient [2] - As of the end of January 2026, domestic port inventory of potassium chloride was 2.4947 million tons, a decrease of 345,100 tons year-on-year, representing a decline of 12.15% [2] - The average market price of potassium chloride at the end of January was 3295 RMB/ton, with a month-on-month increase of 0.4% and a year-on-year increase of 27.52% [2] - A cross-border railway contract was signed between Chinese importers and the Russian Ural Potash Company, with the February contract price for potassium chloride set at 364 USD/ton, an increase of 3 USD/ton from January [2]