Financial Performance - In the first half of 2025, the company achieved a revenue of CNY 9.398 billion, representing a year-on-year growth of 11.63% [2] - The net profit attributable to shareholders was CNY 951 million, with a year-on-year increase of 28.98% [2] - The first quarter saw strong sales, while the second quarter experienced delays in sales of summer and autumn fertilizers due to raw material price adjustments [2] Sales and Market Dynamics - The first quarter's strong sales were attributed to low winter stock levels and increased procurement by distributors [2] - In the second quarter, conventional fertilizer sales declined, while new fertilizers maintained stable sales due to their application in short-cycle economic crops [2][3] Raw Material Management - The company has demonstrated superior performance in managing raw material price fluctuations compared to peers, aided by a diverse product portfolio and exclusive potassium fertilizer import rights [3] - The company maintains a relatively low inventory level, which helps mitigate risks associated with raw material price volatility [3] Profit Margins - The gross margin for conventional fertilizers is low at 12.56%, with significant potential for improvement as the company cannot fully pass on increased raw material costs to downstream customers [4] - The gross margin for monoammonium phosphate (MAP) is expected to recover as the supply-demand balance in the phosphate market stabilizes [4] Export and International Operations - The company received its first batch of export quotas for phosphate fertilizers in May, with a portion of exports completed in the first half of the year [8] - The majority of phosphate fertilizer exports are expected to be realized in the third quarter [9] Research and Development - Increased R&D expenses are driven by advancements in the compound fertilizer industry and the growing penetration of new fertilizers in economic crop cultivation [7] Future Outlook - The company anticipates a release of delayed sales in the third quarter, as the compound fertilizer industry is considered a necessity [9] - The profitability of iron phosphate is expected to improve following significant process upgrades made last year [10]