中国心连心化肥二零二三年中期报告

High-EfficiencyFertilisers in China INTERIM REPORT2023 Stock Code1866 China XLX Culture We adhere to the culture of integrity and the corporate spirit of“working hard to fulfil the needs of our customers” and we are committed tocreating the greatest value to the society with the least resources. Critical on ourselves over the othersPrioritize subjectivity over objectivityValue the end result over the process Dedicated to hard workSatisfy the needs of others Contents 2Company Profile4Corporate Information7Management Discussion and Analysis30Condensed Consolidated Statement of ComprehensiveIncome31Condensed Consolidated Statement of FinancialPosition34Condensed Consolidated Statement of Changes inEquity35Condensed Consolidated Statement of Cash Flows37Notes to the Condensed Consolidated Interim FinancialInformation CHINA XLX DEVELOPMENT STRATEGY The Company’s Strategic Positioning and Tactics “1”Corporate Vision1 Committed to become China’s most respected fertiliser enterprise group “1”Core Mission1 Achieve high-efficiency, high-end, lean development in the Group “2”Adherences 2 Adhere to the development strategy of“Fertiliser as foundation, fertiliser andchemical side by side” “6”Development Principles6 Principle of customer orientation: promote amain value chain that applies an “integrated”high efficiency operation model, which isconcentrated in satisfying the demands ofthe market and customers. Principle of strategic positioning direction:never deviate from the main course andcommitted to establish the position as“Industry No.1” Principle of pursuing excellence: be open-minded and inclusive, learn from the mostadvanced enterprises in the world and withinthe industry, and improve various workingstandards. Principle of pragmatic and highly efficientmanagement: upgrade management withthe purpose of increasing competitivenessand profitability of the Company. Principle of key capabilities enhancement:strengthen technological research anddevelopment, marketing, differentiationcapabilities. Principle of preventing and controllingdevelopment risks: abide by laws anddisciplines, never take shortcuts, controldevelopment and investment risks. Corporate Information BOARD EXECUTIVE DIRECTORS LIU Xingxu(Chairman of the Board)ZHANG QingjinYAN Yunhua INDEPENDENT NON-EXECUTIVE DIRECTORS ONG Kian GuanLI ShengxiaoONG Wei JinLI Hongxing BOARD COMMITTEES AUDIT COMMITTEE ONG Kian Guan(Chairman)LI ShengxiaoONG Wei JinLI Hongxing REMUNERATION COMMITTEE ONG Wei Jin(Chairman)ONG Kian GuanLI ShengxiaoLI Hongxing NOMINATION COMMITTEE LI Shengxiao(Chairman)LIU XingxuONG Kian GuanONG Wei JinLI Hongxing CHIEF EXECUTIVE OFFICER (*) MA Tongsheng (*)SONG Wanlei CHIEF FINANCIAL OFFICERWONG Wing Wang AUTHORISED REPRESENTATIVES UNDER LISTING RULES YAN YunhuaLEUNG Kwan Wai JOINT COMPANY SECRETARIES LEUNG Kwan WaiCHEOK Hui Yee AUDITOR One Raffles QuayNorth Tower, Level 18Singapore, 048583 Ernst & Young LLPOne Raffles QuayNorth Tower, Level 18Singapore, 048583Partner-in-charge: LEE Lai Hiang LEGAL ADVISORS Haiwen & Partners LLPShook Lin & Bok LLP (Singapore) PRINCIPAL BANKERS China Construction BankBank of ChinaIndustrial & Commercial Bank of ChinaBank of CommunicationsChina Minsheng Banking Corp., Ltd.HSBC REGISTERED OFFICE 80 Robinson Road#02-00, Singapore 068898 80 Robinson Road#02-00, Singapore 068898 * *Mr. Ma Tongsheng resigned as the Chief Executive Officer of thecompany on 24 March 2023 and Mr. Song Wanlei succeeded hisposition. Please refer to the announcement of the Company dated 24March 2023 for further details. Corporate Information HEADQUARTERS 453731 Xinxiang Economic Development ZoneHenan ProvincePRC 453731 1866 STOCK CODEHong Kong Stock Code: 1866 www.chinaxlx.com.hk CORPORATE WEBSITEwww.chinaxlx.com.hk Management Discussion and Analysis The board of Directors (the “Board”) of China XLX Fertiliser Ltd. (the“Company” and, together with its subsidiaries, the “Group”) is pleasedto present this interim report for the six months ended 30 June 2023(“1H2023”). I (I)BUSINESS REVIEW In 1H2023, the supply and demand situation trended soft, with coalprices came under pressure and fell, leading to a lack of support forfertiliser prices, which subsequently declined. The chemical productmarket remained in a downturn, and the recovery of downstreamdemand fell short of expectations, resulting in continued vulnerabilityin chemical product prices, which in turn causing a decline of theGroup’s results. 12,214,000,000155,000,0001%12,059,000,0001,304,000,000526,000,00040%778,000,000960,000,000414,000,00043%546,000,000 The unaudited consolidated revenue of the Group decreased byapproximately RMB155 million or 1% from approximately RMB12,214million for the first half year ended 30 June 2022 (“1H2022”) toapproximately RMB12,059 million for 1H2023. The unauditedconsolidated net profit of the Group decreased by approximatelyRMB526 million or 40% from approximately RMB1,304 million f