中国心连心化肥二零二三年年报

High-EfficiencyFertilisers in China ANNUAL REPORT2023 China XLX Culture We adhere to the culture of integrity and the corporate spirit of "workinghard to fulfil the needs of our customers" and we are committed to creatingthe greatest value for the society with the least resources. Focus on ourselves over the othersPrioritize subjective over objectivityValue the end result over the process Contents 2Company Profile10Corporate Information13Financial Highlights14Major Events in 202319Chairman’s Statement24Management Discussion and Analysis41Directors, Senior Management and CompanySecretaries53Investor Relations55Corporate Governance Report83Directors’ Statement 96Independent Auditor’s Report104Consolidated Statement of Profit or Loss and OtherComprehensive Income105Statements of Financial Position108Statements of Changes in Equity111Consolidated Statement of Cash Flows114Notes to Financial Statements234Five-Year Financial Summary235Glossary Company Profile 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 CHINA XLX DEVELOPMENT STRATEGY Operation and Development Goals of the "Three" Major Bases The Henan base will create a green and efficient benchmark for the coal chemical industryThe forthcoming three years will be devoted to the “optimization of stock and strengthening incremental assets”, implementation of the strategy of “low-cost + differentiation + efficient operation”, as well as strengthening and refining various “fertiliser and chemical"products. By leveraging the scale effect of the base, the chemical industry park will become digital and intelligent, and continueto enhance the efficient operational advantages of “utilizing rooting approach for fertiliser synergy”. We will fully utilize the base’spotential as a big platform to realize the integrated management upgrade of the park, and support the high-quality development andoff-site expansion of the base. ++ The Jiangxi base will build a modernized chemical demonstration park along the river based on the strategy of “fertiliser asthe foundation, fertiliser and chemical side by side”Our three-year plan is to combine the park’s resources by "strengthening the base and extending the chain" and concentrate on the growth of our four business sectors, being basic chemicals, high efficiency fertilisers, fine chemicals and new materials. The goal is tosurpass RMB10 billion in revenue for the base and RMB1 million in per capita labor efficiency. The Xinjiang base will become the most competitive high resource conversion base in the PRC The three main goals that we will concentrate on over the next three years are "stabilizing the foundation, strengthening thechain, and extending the chain", and integrate internal and external resources to focus on the three major tasks of “increasingquantity and improving quality of chemical fertilisers, improving the scale and technology of melamine, and premiumizationof new polyformaldehyde materials". As a result, we will establish three leading brands of chemical fertilisers, melamine, andpolyformaldehyde, and together we will build a 10-billion base that will serve as an important growth pole for the Group as it workstowards its ultimate goal of reaching 100-billion market capitalization. Company Profile Henan Xinxiang Base Located in the economic and technological industrial cluster of Xinxiang, Henan Province, it endeavours to build arecycling, economic and chemical industry park with multiple ends, green environmental protection, high efficiencyand energy conservation Jiangxi Jiujiang Base Company Profile Xinjiang Manas Base Located in the Taxihe Industrial Park, Baojiadian Town, Manas County, Xinjiang Province, it endeavours to build a greenproduction base with high resource conversion, industrial chain synergy and unique product features 9 Raffles Place, #26-01 Republic Plaza,Singapore 0486191866 China XLX was incorporated with limited liability on 17 July 2006 inSingapore under the Companies Act 1967, with the Group’s registeredoffice at 9 Raffles Place, #26-01 Republic Plaza, Singapore 048619. China XLXhas been listed on the Main Board of the SEHK since 8 December 2009 withstock code “1866”. DMF The Group’s headquarters and principal place of business is located inXinxiang Economic Development Zone, Henan Province, Taxihe IndustrialPark, Baojiadian Town, Manas County, Changji Prefecture, XinjiangProvince, and Jishan Industrial Zone, Jiujiang City, Jiangxi Province in thePeople’s Republic of China (the “PRC”). The Group is principally engaged ininvestment holding. The principal business of the Group’s subsidiaries is theR&D, production and trading of urea, compound fertiliser, methanol, DMF,melamine, liquid ammonia, urea solution for vehicle, medical intermediateand other related d