HK Stock Market Move | CHINA XLX FERT (01866) rose over 4% as the company officially entered the Hong Kong Stock Connect list. The additional production capacity will open up growth space.

CHINA XLX FERT (01866) rose over 4%. As of the time of writing, it has increased by 4%, trading at HKD 11.17, with a transaction volume of HKD 64.1663 million. In terms of news, in the first half of this year, CHINA XLX FERT achieved revenue of approximately RMB 15.740 billion, a year-on-year increase of 24%; the net profit attributable to the parent company was about RMB 921 million, a year-on-year increase of 54%, approaching the net profit level for the entire year of 2025. The significant increase in profitability was primarily due to the growth in sales of urea and synthetic ammonia, alongside a decrease in costs resulting in a noticeable improvement in gross profit margin, as well as rising prices of self-produced methanol, DMF, and melamine, which contributed to the increase in gross profit margin. Regarding expansion of production capacity, the high-efficiency fertilizer project at the Xinxiang base was put into operation on September 4th. The large project at the Quanzhong base is expected to be completed and operational in the fourth quarter; the large project at the Guangxi base is also progressing steadily as planned, with an expected completion and operation in the third quarter of 2027. With the gradual start-up of the new production capacity, the groups scale effects will be further released, driving down unit production costs, continuously solidifying cost competitiveness, and laying a solid foundation for the sustainable development of the enterprise. It is worth mentioning that as of September 7th, CHINA XLX FERT has officially been included in the Hong Kong Stock Connect, unlocking a southbound capital channel. With the opening of the southbound capital channel, the company's market attention has consistently increased, and expectations for improved liquidity are gradually being realized. As more domestic and foreign institutional investors enter the picture, the company's market capitalization and liquidity improvement are expected to support its business expansion and long-term value release.