China XLX Fertiliser (01866) has officially announced its inclusion in the Stock Connect programme, following a notice from the Shanghai Stock Exchange regarding eligible shares under the southbound trading link. The new status took effect on Monday, September 7th. This development is expected to significantly enhance the trading activity of its shares on the Hong Kong market, while also paving the way for a more diversified investor profile, strengthening its ties with mainland capital markets, and creating favourable conditions for attracting additional institutional interest.
The Stock Connect mechanism serves as a key pillar for financial connectivity between mainland China and Hong Kong. According to the current regulations of both the Shanghai and Hong Kong exchanges, a company must satisfy stringent criteria across areas such as market capitalisation, liquidity, financial health, and regulatory compliance to qualify for inclusion. By meeting these high standards, China XLX Fertiliser’s addition underscores broad recognition of its enduring investment value and robust growth trajectory.
Driven by its three core advantages of scaled expansion, structural upgrades, and refined management, the group posted an impressive financial performance for the first half of 2026. Revenue climbed 24% year-on-year to approximately RMB 15.74 billion, while net profit surged 62% to around RMB 1.229 billion. Attributable net profit to shareholders reached roughly RMB 921 million, a substantial 54% increase year-over-year, bringing the figure close to the full-year result for 2025. Additionally, the new urea plant at its Xinxiang base and the large-scale project at the Zhundong facility are scheduled to commence operations in the third and fourth quarters of this year, respectively. Meanwhile, the Guangxi base project is advancing as planned, with production expected to start in the third quarter of 2027. As new capacity comes online, economies of scale are projected to further cut per-unit production costs, solidifying the company’s competitive edge in cost efficiency and laying a strong foundation for future growth.
As a major coal chemical conglomerate with an integrated value chain spanning research, production, sales, and services, China XLX Fertiliser has been listed in Hong Kong since 2009. The company operates under the strategic mantra of "high-quality development anchored in fertiliser," adopting a dual-driven approach of low cost and differentiation to bolster its core competitiveness. It has been repeatedly recognised as a leading enterprise for synthetic ammonia energy efficiency by the Ministry of Industry and Information Technology and the China Petroleum and Chemical Industry Federation for 14 consecutive years. Its cutting-edge technology achieves industry-leading production efficiency, with production costs running about 10% below the sector average.
Looking ahead, China XLX Fertiliser has mapped out a comprehensive strategic vision spanning the period from 2025 through 2033, structured in three distinct phases. The first phase (2025-2027) focuses on capacity expansion, foundational building, and model innovation, the second (2028-2030) aims at high-end market penetration, global outreach, and new product exploration, and the third (2031-2033) targets brand strengthening, premium market leadership, and steady advancement. This roadmap is designed to translate high-quality development into actionable goals, ensuring the strategic vision yields tangible operational outcomes.
The inclusion in Stock Connect marks another significant milestone for China XLX Fertiliser, reflecting market validation of its past achievements while serving as a catalyst for future growth. This status is likely to draw greater attention from domestic and international institutional investors, injecting steady capital inflows that could boost both its market valuation and share liquidity. Such support is expected to fuel efficient business expansion and facilitate the release of long-term value.
With the backing of the Stock Connect platform, China XLX Fertiliser is poised to engage more openly with investors from mainland China and abroad. The company remains dedicated to advancing its core operations, upholding a philosophy of prudent management and rewarding shareholders, and striving towards a win-win scenario that benefits industry development, environmental stewardship, and investor returns. This approach aims to deliver consistent, long-term value for its shareholders.