02 September 2026, Beijing: China XLX Fertiliser, one of China’s larger urea and compound fertiliser producers, reported first-half 2026 revenue of 15.74 billion yuan, up 24 percent from a year earlier, and net profit of 1.229 billion yuan, up 62 percent, in interim results announced August 30.
Net profit attributable to the company’s shareholders came in at 921 million yuan, up 54 percent year on year. The company’s chairman, Liu Xingxu, said in comments accompanying the results that urea selling prices are expected to soften in the second half of the year as overall fertiliser supply in the domestic market becomes more abundant, even as he pointed to steady underlying demand.
The results were broad-based across the company’s product lines rather than concentrated in a single segment. Urea revenue rose 23 percent to nearly 4 billion yuan, and compound fertiliser revenue rose 15 percent to just over 4.1 billion yuan, together forming the core of the company’s agricultural input business. Beyond straight fertiliser products, China XLX also makes a range of industrial chemicals derived from the same coal-based production process, and several of those lines posted even sharper growth: liquid ammonia revenue nearly doubled to 1.586 billion yuan, methanol revenue rose 18 percent to 1.93 billion yuan, melamine rose 20 percent, and polyformaldehyde rose 27 percent.
The strong first half comes against a backdrop of a tightly managed Chinese fertiliser export regime. Beijing has kept export curbs in place on urea and phosphate fertilisers for much of 2026, a policy China has used at various points over the past several years to keep domestic supply available and prices in check for its own farmers, particularly during planting and top-dressing seasons. Reports earlier this year indicated Chinese authorities extended phosphate export restrictions through August, tightening global phosphate supply even as domestic Chinese producers like China XLX benefited from a well-supplied and price-supportive home market. Global fertiliser analysts have also pointed to supply disruptions tied to conflict-affected shipping routes, including reduced flows through the Strait of Hormuz earlier in the year, as a factor keeping global fertiliser prices elevated even as China’s own domestic urea prices are now expected to ease into the second half.
Chairman Liu’s caution about softer second-half urea pricing reflects a broader pattern industry watchers have flagged in China’s nitrogen fertiliser sector this year: capacity additions and generally adequate coal and natural gas feedstock supply have kept Chinese domestic urea output high, even as export volumes remain restricted, which tends to push domestic prices down over time as supply builds relative to Chinese demand once the main application seasons pass.
For international readers, particularly in India, which is one of the world’s largest importers of urea and phosphatic fertilisers, developments at major Chinese producers like China XLX matter for two connected reasons. First, China’s export restrictions directly affect how much fertiliser Chinese producers make available to the international market versus keeping at home, which has been a persistent source of tightness in global urea and phosphate supply over the past several years. Second, a well-supplied, profitable domestic Chinese market, of the kind these results describe, gives Beijing less incentive to loosen those export curbs in the near term, since domestic producers are already performing well serving Chinese farmers first. Indian fertiliser importers and policymakers tracking global urea and DAP availability for the winter cropping season will want to watch whether other major Chinese producers report similarly strong domestic results, which would reinforce the case that China’s export posture is unlikely to loosen quickly.
Why it matters: Strong profits at a major Chinese fertiliser producer, alongside continued export curbs, suggest Beijing has little incentive to loosen fertiliser export restrictions soon, a key factor for Indian urea and phosphate importers planning winter-season supply.
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